Dear Liz: Someone recently asked you if closing a credit card was worth the hassle, and you replied that there was no strong reason to do so, and that it could actually have a negative impact on your credit score.
As a senior, there are two legitimate reasons: theft and fraud. Many people of a certain age don’t have a mortgage or other debt. However, I am finding it hard to stay on top of my finances, which is why I want to cancel 3 of my 5 credit cards.
Other advice
answer: You misquoted my response. What I actually wrote was“If you don’t have a specific reason to close your card, consider keeping the account open and using the card occasionally to prevent the issuer from closing it.”
Wanting to reduce risk is reason enough to close a card account, and as we age, it’s wise for all of us to consider simplifying our finances, says Carolyn McClanahan, a certified financial planner and physician in Jacksonville, Florida.
It’s also a good idea to think about who can help you manage your finances if things get difficult. A legal document called a power of attorney allows you to name a trusted person to take over if you become incapacitated. You can also acquaint that person with your financial situation and give them online access to your accounts to help you spot fraud, theft, and late payments. Involving them now, while you can help them, is generally better than waiting until a crisis hits and hoping they’ll figure it all out on their own.
Liz Weston, Certified Financial Planner Otaku Wallet. If you have any questions, please send them to us at 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or use our “Contact Us” form. Visit asklizweston.com.
