Huawei CEO Ren Zhengfei laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing...Technologyread more
The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
China has used both monetary and fiscal measures to lift economic activity as its trade war with the U.S. looks set to intensify in the coming months.China Economyread more
President Donald Trump said on Twitter he was postponing a scheduled meeting with Denmark's prime minister because of her lack of interest in discussing a possible sale of...World Politicsread more
"I think (rate cuts) will help, but whether they're going to be sufficient to counter the negative trade pressures and global growth slowdown and impact is debatable," one...Central Banksread more
Chinese overseas investment growth will likely slow or even decline in the next few years as risks around the world increase, according to new research by Moody's Investors...China Economyread more
The two countries want to smash the civil aerospace duopoly enjoyed by Airbus and Boeing.Aerospace & Defenseread more
Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing, Reuters reported.Technologyread more
Federal Reserve Chairman Jerome Powell is set to deliver his annual speech on Friday at the Jackson Hole, Wyoming symposium, where he's expected to provide more clarity on the...Asia Marketsread more
U.S. and Asian investors poured $3.7 billion into U.K. tech start-ups in the first seven months of 2019, research shows.Technologyread more
After Elon Musk touts Tesla solar on Twitter, Walmart sues the electric vehicle and clean energy company over store rooftop panels that ignited.Technologyread more
Finally paid off that high-interest credit card balance? Great, but think twice before cutting up the plastic and closing the account.
That's because doing so won't help your credit score — and might actually hurt it, according to Bankrate.com.
"You should keep old accounts open to boost your credit score, because scoring algorithms look favorably upon longstanding accounts and more available credit," said Bankrate.com analyst Ted Rossman.
Fifty-eight percent of Americans in a survey didn't know that closing a credit card account can actually hurt your credit score, according to a survey of 2,582 people conducted this May by Bankrate.com, a New York-based consumer financial services company. A similar 61% have canceled at least one card in their lifetime, while 37% have canceled more than one. Older and/or wealthier cardholders, along with Midwesterners, are more likely to close card accounts.
Thirteen percent of card cancelers erroneously think doing so will improve their credit scores, 15% think closing an account has no effect, while 29% have no idea. Only 42% correctly believe it decreases scores. (Percentages do not add up to 100% due to rounding.)
In fact, Shrewsbury, Massachusetts-based Mercator Advisory Group has found that credit card closure rates have more than doubled in the past five years while new account openings have leveled out, according to Bankrate.com.
Other common reasons for taking scissors to plastic include having paid off debt (40%) and lack of card use (36%). The average U.S. card holder has 3.7 active credit card accounts, of which two, on average went unused in the past month, Bankrate.com found.
Why else do consumers clip their cards? High interest rates (36%) and high annual fees (28%). If you're paying an annual fee for a card you feel you're not getting much value from anymore, Bankrate.com recommends asking the card issuer to downgrade you to a card without an annual fee.
"A product change like that will not hurt your credit score because it maintains the account history and credit line," Rossman said.