Is It Better to Close a Credit Card or Leave It Open With a Zero Balance

Most of you use a credit card to buy everyday necessities. Remember that, not so long ago, using a credit card sounded unreal and a little scary, right? However, with the development of the economy and technology, the increasingly fast way of living, the method of paying has changed a lot. Using a credit card allows you to have all your funds in one place without accumulating money in your wallet. Also, the ability to search the balance on the credit card account electronically is of great benefit. In a word, it makes the shopping process easier for you and teaches you a better organization in spending money.

The question is whether maintaining a credit card costs and what to do with it if we have zero balance? This is a question that people often ask, and they don’t have the time or don’t know how to come up with the right answers.

Fear of zero balance?

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We’re sure most of you have encountered this situation at some point in your life. Zero balance, what to do now? Well first of all, panic will not help you. A zero balance does not mean to you or the bank that you have gone bankrupt. This is a situation that is changing relatively quickly, as is the money market in general. It can happen on two grounds. You may not have the current funds available to you, or you are simply a regular cardholder, you regularly settle your obligations every month, so you are some wise familiar with this situation. Either way, it is not necessary to have a certain monthly amount on the card nor is the bank forced to do so. A credit card can be active with or without a balance on it.

Myths about credit card closure due to zero balance

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You will always hear different opinions about this topic. Some thinking are that it is a waste of money, some that it is profitable in the long run. As in any situation, there are always advantages and disadvantages of doing so. Depending on which situation you are in and what is your attitude towards the problem, your decision will be.

In fact, it is considered that unused credit cards, i.e. those with zero balance, should be kept open. Wondering why since you don’t have a profit on the credit card? Well, very simply, the longer the card usage period is, the more warfare you will have. In short, if you have a credit card in your possession for a long time, regardless of the balance on it, you have a better chance of taking a loan. Banks that approve credit always reward more those people who have long-term credit accounts open. So whether your card has millions on it or zero, it is good to have it with you so that you are entitled to benefits in the future.

However, as we mentioned earlier, each medal has two sides. If you do not know how to control your finances and spending and you think that closing an account is the only right way to do, then go ahead, but know that it would be worth the short-term credit impact. If you are in a situation where maintaining a credit card is quite expensive, then closing the account makes more sense. In case you have two credit cards in your possession, and you’re thinking about closing one, make sure you close a newer account because an older credit card can have more benefits for you. If you have a zero balance and you have to pay a hefty amount annually to maintain it, we believe you will find another way to get a loan or some other bank benefits. In case the costs far exceed the available amount, closing or giving up the card will be considered the right choice.

Keep credit card open VS creditworthiness

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If you are relatively new to the world of credit card payments, you will probably have many questions and sub-questions related to how it works. What kind of card do you have, what does it offer you, what do you have at your disposal, is it important for obtaining a loan, etc.? According to, there are several types of credit cards that definitely depend on your weekly or monthly income. If you have certain prejudices related to credit cards and are afraid of spending more money, we have a few tips for that. Leave the card in the nearest drawer and forget about it.

You have a zero balance on it, it’s kind of useless so you can’t make purchases through it. Afterwards use a cash for everyday obligations. The longer you have a credit card, with or without cash flow, the higher your credit score is and therefore the chance of getting a loan. If you do not have funds in your account, cash can always solve the problem.

However, if you have a credit card for a long time but your income is not at a satisfactory level, it doesn’t mean that you aren’t creditworthy. You can also apply for a loan through a mortgage, and a credit card will increase your creditworthiness in the form of collected points and its longevity. Also, if your credit card has a high credit limit, consider maintaining it because canceling it would reduce the number of possible loans available.

Topic about the money is a personal matter where you and only you could make the decision. Managing finances and disposing of the new can be a difficult and exhaustive task for all of us. Based on your needs and the way it works, you will choose whether you want to use a credit card or opt for cash payment. If you want to use a top long-term strategy to maintain good credit standing, the easiest way to do so is to have a credit card. Whether you have a zero balance on it or not, it would certainly mean a lot to have it by your side for future plans. So can you now answer the original question Is it better to close a credit card or leave it open with a zero balance? Follow the tips for maintaining or closing your credit card account before making a decision.