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Posted: 10/8/2007 7:02:21 AM EST


I have a $0.00 balance on both of my 2 cards, I just got the second one so I could get some rewards points and crap.


I won't use the old one anymore. But when I called to cancel it, they told me that I would be forfiting any points tword my credit score that I earned on that card, which is basically ALL my points.


So what should I do? Throw it away? Won't I still get replacements in the mail when this one expires?

How can I keep the points, but get rid of the card?


Am I stuck with this thing forever?

Link Posted: 10/8/2007 7:12:22 AM EST
It is a grand plot brought about by the left wing extremists to keep us in debt enough so that socialism will look good come November elections.

I have poor credit according to most people because I refuse to have a line of credit just to say I do. I still get the interest rates I wanted on my house and car (the only bills I owe).
Link Posted: 10/8/2007 7:17:38 AM EST

Originally Posted By bluduk15:

Originally Posted By Matthew_Q:
I believe it can actually be good for your credit score to leave at least one open. Maybe use it once in a while and pay it off at the end of the month.

Not having a credit card is like not having credit.... bad for your credit score.

I'm sure someone will come along and elaborate.


This is my understanding too. However, the guys at this forum are very good at answering these type questions.

www.creditboards.com/forums/



my understanding also ..

lenth of credit is part of your score.
Link Posted: 10/8/2007 7:18:50 AM EST
Unless you have a CC with fees, keep it. Just cut the card up every time they send you anew one.
Link Posted: 10/8/2007 7:27:08 AM EST
The amount of un used credit you have demonstartes and ability to live within your means. This makes you a good credit risk to the CC companies. If it doesn;t have an annual fee keep it and don't use it. just keep an eye on it so as to make sure no-one else is using it either.

Seth
Link Posted: 10/8/2007 7:30:47 AM EST
[Last Edit: 10/8/2007 7:31:10 AM EST by Foxxz]
Thanks for reminding me. I just canceled my sears mastercard. To make a long story short, they kept me at a low limit and wouldnt raise it. So i would pay it off sometimes twice a month. This flagged me as a terrorist and my account was frozen for two weeks while department of homeland security investigates. Their website says you can make up to 4 payments a month.

This all happened twice to me. So i got another card with 5 times the limit and stopped using this one.

-Foxxz
Link Posted: 10/8/2007 7:32:56 AM EST
Make sure you know the card's policies first though. I got burned on a MasterCard once. I kept the account open since it was the oldest in my name, but never used it. I had moved and wasn't getting notices or anything. The next thing I know I was getting credit alerts that my credit scores were crashing. Apparently they had lack of use fees, that compounded with lack of payment fees and in 90 days I went from a zero balance to over $1,000 in fees and fines in addition to them trashing my credit report. It took months to get it all worked out. Its better to use them once in awhile just pay it off every month.
Link Posted: 10/8/2007 7:35:17 AM EST
Why do you want a good credit score? I'm aiming to completely get rid of my credit score. I don't think it's possible to have a good credit score if you've never had debt, and I don't like debt.
Link Posted: 10/8/2007 7:39:43 AM EST
My wife and I have a credit card for those just-in-case situations. However, we've found that it has helped our credit score to close and terminate extra CC accounts. Strangely, just closing the account wasn't enough. Old CC accounts would show up on our credit statements even though we had the accounts closed some time before. Apparently you have to ask that the account be completely terminated.
Link Posted: 10/8/2007 7:48:56 AM EST
There are 2 schools of thought about it:

1. Keep the account open and dont use it. Length of credit and low debt/limit ratio are positive factors in your credit score.

2. Have the account closed. Large amounts of unused (but potentially usable) credit can be a negative factor in your credit score.

I would cancel one and keep the other. Which one to keep depends upon fees, interest rate, length of time you have had the card, etc.
Link Posted: 10/8/2007 7:53:37 AM EST
Depends on your age and where you are financially.
If you are young its probably a good idea to keep it open for history.
I am a geezer with 780+ score. I own no plastic and pay cash for everything.

Link Posted: 10/8/2007 7:59:46 AM EST

Originally Posted By XterraJohn:
Why do you want a good credit score? I'm aiming to completely get rid of my credit score. I don't think it's possible to have a good credit score if you've never had debt, and I don't like debt.


+1 why not live within your means, save up an emergency fund (3 - 6 months of expenses) and pay cash for the stuff you buy?

If you don't have any debt for a number of years, your credit score will go to zero.

Only thing I owe on is my house. I'm in the process of building my emergency fund. I've already cut up my CCs.
Link Posted: 10/8/2007 8:07:49 AM EST
You'll screw up you credit by not using it. It sucks, but the game is rigged.

Do you subscribe to any music services or monthly charges you currently pay in full? If yes, i recommend you charge it this month and don't pay it off. Set it up for recurring charges.

Then set up you automatic bank payment to pay 1 month's charge next month. This will keep a recurring low balance that is always paid off on time. I used this to keep a very high limit card alive and to keep my credit active on that card.
Link Posted: 10/8/2007 8:10:12 AM EST
[Last Edit: 10/8/2007 8:10:31 AM EST by TexasSmooth]
This is one thing that really pisses me off lately. It's a new tactic by credit card companies to keep your account open. So, what now...you'll just never close any credit accounts you have....ever? Bullshit. Just close the damn thing out if you don't anticipate needing any high dollar loans in the next year.

Credit has turned into a whole damned industry unto itself (that is completely separate from banking) that is built around gunning for people to make late payments so they can slap on all sorts of fees and of course they get to tamper with that almighty number we all love to fear: your credit score.

You know what? I don't give a shit anymore. I closed out like 3 or 4 credit cards in the past 5 years. It's even more absurd these days that the very agencies who are responsible for housing your credit score (ie: Experian) now market new "tools" to protect your in case your credit is stolen...all for low fees of like $20/month. These fucking companies prey on your fear so they can extort money from you. The latest scheme I saw on their website is scaring you with your kids identity being stolen. Don't you want to protect them? Well for a low fee of like $10/month you can add them on to your existing protection. Fuck them.

We need to start hammering various state legislatures to make laws so that all credit bureaus have to offer a complete credit freeze. But of course, these companies would lobby against it....in fact they have before.
Link Posted: 10/8/2007 8:12:54 AM EST

Originally Posted By birdbarian:

Originally Posted By XterraJohn:
Why do you want a good credit score? I'm aiming to completely get rid of my credit score. I don't think it's possible to have a good credit score if you've never had debt, and I don't like debt.


+1 why not live within your means, save up an emergency fund (3 - 6 months of expenses) and pay cash for the stuff you buy?

If you don't have any debt for a number of years, your credit score will go to zero.

Only thing I owe on is my house. I'm in the process of building my emergency fund. I've already cut up my CCs.


Credit is rigged into a lot of things. Ever plan on moving? Most good places won't rent if you don't have credit. Ever want a new house? Hope you have the money in your pocket. No credit = no mortage

Need to rent a car for emergencies? Some companies won't let you with a credit card.

New job? HEY! This guy has no credit! Must be a deatbeat. Don't hire him!

Credit has wrapped it self around everyone. The trick is to get a good rating and play the system to keep it.
Link Posted: 10/8/2007 8:14:09 AM EST

Originally Posted By TexasSmooth:
This is one thing that really pisses me off lately. It's a new tactic by credit card companies to keep your account open. So, what now...you'll just never close any credit accounts you have....ever? Bullshit. Just close the damn thing out if you don't anticipate needing any high dollar loans in the next year.

Credit has turned into a whole damned industry unto itself (that is completely separate from banking) that is built around gunning for people to make late payments so they can slap on all sorts of fees and of course they get to tamper with that almighty number we all love to fear: your credit score.

You know what? I don't give a shit anymore. I closed out like 3 or 4 credit cards in the past 5 years. It's even more absurd these days that the very agencies who are responsible for housing your credit score (ie: Experian) now market new "tools" to protect your in case your credit is stolen...all for low fees of like $20/month. These fucking companies prey on your fear so they can extort money from you. The latest scheme I saw on their website is scaring you with your kids identity being stolen. Don't you want to protect them? Well for a low fee of like $10/month you can add them on to your existing protection. Fuck them.

We need to start hammering various state legislatures to make laws so that all credit bureaus have to offer a complete credit freeze. But of course, these companies would lobby against it....in fact they have before.



I would love to be able to freeze and unlock my credit when I need it. The problem is in TX you can only do it AFTER you've had your Identity stolen.
Link Posted: 10/8/2007 8:14:21 AM EST

Originally Posted By SS109:
I would keep it and occasionally use it & then pay it off.
+1. Build your credit. Should you ever want a new house or car, or appliances or anything else worth "charging", credit would be a good thing to have.
Link Posted: 10/8/2007 8:15:48 AM EST
A great thing to do to keep the card and boost your credit is to hold a small (~$100) balance and make regular minimum payments on it. The CC company loves it and it can help your score. My mother has been doing this for years now and it's helping her to beat my dad's score.
Link Posted: 10/8/2007 8:16:13 AM EST

Originally Posted By rxdawg:
There are 2 schools of thought about it:

1. Keep the account open and dont use it. Length of credit and low debt/limit ratio are positive factors in your credit score.

2. Have the account closed. Large amounts of unused (but potentially usable) credit can be a negative factor in your credit score.

I would cancel one and keep the other. Which one to keep depends upon fees, interest rate, length of time you have had the card, etc.


I was under the impression number 2. was the case, I just closed 2 cards I don't use anymore cause the interest on them was to high (13.9%) and thought it would be better for my credit to get rid of the extra $10k in open credit.
Link Posted: 10/8/2007 8:16:27 AM EST
Ditch it. They want you to keep it so they can make money off you in the future, if you ever use it again. They "punish" you for taking away their chance at free money by adjusting your "score" negatively. If you don't play their game, the score is irrelevant. Ditch it.
Link Posted: 10/8/2007 8:17:31 AM EST
[Last Edit: 10/8/2007 8:21:09 AM EST by BangStick1]
To have a credit score you must use credit. Keep it but use it wisely.

I've been keeping my cards in check but my score has been dropping simply because I don't have a mortgage or other "savings" accounts.

They'll find any way to smack you down.
Link Posted: 10/8/2007 8:18:16 AM EST
[Last Edit: 10/8/2007 8:21:02 AM EST by Admiral_Crunch]
Don't believe the retention guy at the CC company. He wants you to keep the card. Do your own research on what effect it will have. I'm betting it will be minimal.

Personally, I would close and terminate the account and burn the card. No need in having an open account that you don't want or need. Besides, you leave yourself open to fraud and inactivity fee headaches.

Do what makes sense for you. Don't let credit agencies run your life. That's my stance anyway. I do what I do, and I don't worry about how it will affect my credit score. I've always closed my old credit card account as soon as I chose a new one, and I still had excellent credit the last time I bought a car.
Link Posted: 10/8/2007 8:21:31 AM EST

Originally Posted By XterraJohn:
Why do you want a good credit score? I'm aiming to completely get rid of my credit score. I don't think it's possible to have a good credit score if you've never had debt, and I don't like debt.


'Cause it's kinda tough to pay cash for a house. Yes, I'm sure that there are people who plunk down $40K on a single-wide, or a house out in the middle of Bumfuck Nowhere. But if you want to be able to work, go to the store, or have some kind of life other than watching corn grow, that means six figures, and the overwhelmingly vast majority of people are never going to see $100,000 in cash, let alone have it to spend on something. And a good credit score can be the difference between hundreds of thousands of dollars in interest payments over the life of a mortgage.

Plus, there is always the possibility of an emergency coming up that requires more than you have in liquid caash on hand. It's nice to be able to charge it and solve the emergency right now, and then pay off the card.
Link Posted: 10/8/2007 8:27:28 AM EST

Originally Posted By F4Squid:

Originally Posted By rxdawg:
There are 2 schools of thought about it:

1. Keep the account open and dont use it. Length of credit and low debt/limit ratio are positive factors in your credit score.

2. Have the account closed. Large amounts of unused (but potentially usable) credit can be a negative factor in your credit score.

I would cancel one and keep the other. Which one to keep depends upon fees, interest rate, length of time you have had the card, etc.


I was under the impression number 2. was the case, I just closed 2 cards I don't use anymore cause the interest on them was to high (13.9%) and thought it would be better for my credit to get rid of the extra $10k in open credit.


Me too. I have one credit card that I pay off twice a month. All other cards have been closed for years. My credit score is way over 800 - just had it ran last week when I bought a car.

Keep one card for online purchases, motel reservations, etc. Treat it like a checking account debit card - you dont buy it if you dont have cash in the bank to pay for it. Pay it off when the bill comes.
Link Posted: 10/8/2007 8:32:59 AM EST

Originally Posted By birdbarian:

Originally Posted By XterraJohn:
Why do you want a good credit score? I'm aiming to completely get rid of my credit score. I don't think it's possible to have a good credit score if you've never had debt, and I don't like debt.


+1 why not live within your means, save up an emergency fund (3 - 6 months of expenses) and pay cash for the stuff you buy?

If you don't have any debt for a number of years, your credit score will go to zero.

Only thing I owe on is my house. I'm in the process of building my emergency fund. I've already cut up my CCs.


I actually live well below my means.

I charge a lot of shit because I don't like to carry cash, but pay it off that month though, I've never payed a dime in interest.


I DO plan on buying a house in the near future though so I'd like to have a good credit score that way I don't get ass raped by the lender. I guess I'll leave the card open and just charge a tank of gas on it or something every few months.


Thanks for the help.


Link Posted: 10/8/2007 8:43:45 AM EST

Originally Posted By rxdawg:

Originally Posted By F4Squid:

I was under the impression number 2. was the case, I just closed 2 cards I don't use anymore cause the interest on them was to high (13.9%) and thought it would be better for my credit to get rid of the extra $10k in open credit.


Me too. I have one credit card that I pay off twice a month. All other cards have been closed for years. My credit score is way over 800 - just had it ran last week when I bought a car.

Keep one card for online purchases, motel reservations, etc. Treat it like a checking account debit card - you dont buy it if you dont have cash in the bank to pay for it. Pay it off when the bill comes.


Yep I have one card I use frequently (netflix, online purchases) that has rewards points, I pay it off every month, have one other with low APR I keep on hand just in case of some sort of emergency, then I have a couple store cards that I pay off if I use.

I need to run my credit again, did it about a year ago and I caught 2 screw ups on it that were keeping my score lower then it should of been.
Link Posted: 10/8/2007 9:09:40 AM EST

We need to start hammering various state legislatures to make laws so that all credit bureaus have to offer a complete credit freeze. But of course, these companies would lobby against it....in fact they have before.


I heard on a radio show that the credit bureaus do this all ready. They do it for free if you have been a victim of ID theft or charge a freeze/thaw fee if you don't (like $10)
Link Posted: 10/8/2007 1:53:44 PM EST
You can do a short term freeze or long term freeze. One is 90 days and I forget the other length. When someone tries to open accounts in your name extra checks are done. I think they call the phone number currently in your record but basically it makes it alot of trouble.

-Foxxz
Link Posted: 10/8/2007 2:21:27 PM EST
Keep one card open and paid off and dump the other one. You're just asking for trouble keeping a unused account open.

If you want to keep your score up, see if you can raise the limit on the one remaining card. When a CC is ran, they look at available credit and balance. High limit/low balance looks good be it one card or 20 woth a $500.00 limit on each. To much available credit can also hurt when they look as it could mean you could get in over your head, especially if many have been opened in a short period of time.

Best credit is pay ALL your bills on time, house payments, car, utility, phone etc. You build as much a history that way as anything else you do.
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