Posted: 11/8/2010 1:44:07 PM EDT
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Just trying to get an idea about something. The economy being what it is....Is it smart to keep CCs that you dont use active? I just got a letter from one of my secondary banks that I rarely use, I mainly go to them to cash money orders and checks. Well, ive got a CC thru them but havent used it in years, now they send me a letter saying that if I dont use it, ill lose it and they wont renew.
So, should I just use to keep it active so I have a 2nd CC around for emergency or just tell them to pound sand with it? Also if they dont renew will this leave anything open on my credit report or should I just call them and say to cancel it? Just wondering. 
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Quoted: If you are not planning on using it, I would cancel it. And make surethat it is noted that the card was canceled at YOUR request. Then, if you want another "backup" card shop for one that has good rewards/benefits and won't cancel you for non usage.
Just trying to get an idea about something. The economy being what it is....Is it smart to keep CCs that you dont use active? I just got a letter from one of my secondary banks that I rarely use, I mainly go to them to cash money orders and checks. Well, ive got a CC thru them but havent used it in years, now they send me a letter saying that if I dont use it, ill lose it and they wont renew. So, should I just use to keep it active so I have a 2nd CC around for emergency or just tell them to pound sand with it? Also if they dont renew will this leave anything open on my credit report or should I just call them and say to cancel it? Just wondering. |
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Canceling a card will affect your credit score but probably not a whole lot.
Available credit, length of time, and the number of inquiries are all factored into your score. If you cancel a card then your total amount of available credit will go down. An account that has been open for 10 years is better than one that has been open for 6 months. A new credit card application will require a credit inquiry, this will stay on your credit report for two years. If it were me I'd set up a couple of automatic monthly payments on the card, utilities for example. That way you don't have to carry the card, it will get used, and you won't lose the history of that account. |
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look up debt to credit ratio
i'd keep the card open, and only use it for certain things, like gas, groceries, or a couple monthly bills. |
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Keep it open and use it twice per year. The length of time that the account is open and the credit line available will work in your favor. Someday, you'll want a mortgage or a car loan and that credit score will play a very important factor in whether or not you get the loan or at what interest rate. I have a Discover card that has been open since 1992. I wouldn't close it for anything. |
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Never hurts to carry at least one spare card.
I've had situations where I attempted to buy something, only to discover that the transaction was declined due to "suspicious activity" on the card account. Being able to whip out another card to finish the transaction sure beats going home empty-handed - particularly if home happens to be on the other side of the continent when it happens. |
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Holly Smokes.... Yes - you should keep it! A CC is a valuable tool.
What if you are on a road trip and need to fix your car, plane ticket, etc. and don't have enough cash? You should do the exact opposite and use it but NEVER carry a balance. Do not buy something you don't have the cash to pay for! If you are worried about .gov tracking you, this can work for or against you depending on the situation. I get a minimum of 1% cash back on everything I buy. 0.05 per gallon of gas cash back. Buyer protection - product warranty extended to 3 yrs - travel cancellation insurance - rental car insurance is waved – accidental death insurance - etc. - etc..... Some cards like Discover have specials of the month - like 5% off all groceries. Do some math and figure out what 1% savings on everything you buy adds up to in 10 yrs. |
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Quoted:
Holly Smokes.... Yes - you should keep it! A CC is a valuable tool. What if you are on a road trip and need to fix your car, plane ticket, etc. and don't have enough cash? You should do the exact opposite and use it but NEVER carry a balance. Do not buy something you don't have the cash to pay for! If you are worried about .gov tracking you, this can work for or against you depending on the situation. I get a minimum of 1% cash back on everything I buy. 0.05 per gallon of gas cash back. Buyer protection - product warranty extended to 3 yrs - travel cancellation insurance - rental car insurance is waved – accidental death insurance - etc. - etc..... Some cards like Discover have specials of the month - like 5% off all groceries. Do some math and figure out what 1% savings on everything you buy adds up to in 10 yrs. You didnt really read my post did you? This is a SECONDARY CC, Ive got a Primary one that I use all the time. I know how to use a CC, I know to pay it off each month, been doing it for about 30years now. I was just asking about keeping the 2nd card around or not. |
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Quoted:
You didnt really read my post did you? This is a SECONDARY CC, Ive got a Primary one that I use all the time. I know how to use a CC, I know to pay it off each month, been doing it for about 30years now. I was just asking about keeping the 2nd card around or not. I would since it's been open for many years. Also, in case the primary card gets compromised, you can use the backup card for the few days until your primary card is replaced. Hey, this is the survival forum... two is one, one is none... |
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I guess I'm going to run counter to the group and say, "Close it."
MrsZ and I have been consolidating and eliminating debt as quickly as we can. We had half a dozen credit cards between us, and over the last six months have pared that down to TWO - our oldest lines of credit. I canceled one that had been giving me horrible service and she got rid of a couple store cards. We have plenty of credit limit on the remaining two to handle most anything that could come up. |
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Quoted:
In a survival situation, credit cards are useless. In many survival situations, credit cards are not only useful, but nearly indispensable. Example: The last hurricane that blew through town dumped enough rain to put the ATM machines out of order - so getting cash was out of the question. However, most stores continued to accept credit cards - so it was still possible to buy food, gasoline and other essentials. One reason I carry a spare credit card is to cover the deductible on medical emergencies - It's never used for anything else, so the entire line of credit is available if needed. |
| Keep it open. Like many say it is better to have a back up. My primary is a Delta Rewards Amex that gives very good rewards in the form of frequent flier miles. The free flights, compainion tickets, reduced cost to check bags, etc. is well worth worth the anual fee, plus it has a low interest rate (as far as CCs go) for those times you may actually carry a ballance for a few months. Problem is that some of the small mom and pop stores around me do not accept American Express. My back up is a generic VISA that I hardly use. It is accepted everywhere and has no annual fee, but a higher interest rate. I never carry a ballance on this card. |
hadn't heard that in a while..."the only time you have too much fuel is when you are on fire"...