I've had the same VISA card through my credit union for the past 25 years.
No need to have 10+ credit cards. I've heard PenFed has a good CC.
No need to have 10+ credit cards. I've heard PenFed has a good CC.
Closing/Opening Credit Cards
- Thread starter GenesisGuy70
- Start date
- Status
Originally Posted By: Throt
Bestow wisdom upon me my elders.
I am pretty credit savvy and at only 21 have great credit (749 FICO, 24K in total credit line). I do however have a number of cards. (Discover, Capital One, Barclay, Chase, Kohl's, Goodyear, Best Buy, JCPenney.)
I get a slew of credit card offers in the mail and as my credit has gotten better, I've been getting better offers (read: better rewards, lower APR, long terms of 0% APR). I want to get some of these better cards but I already have so many and I know that closing older accounts can adversely effect credit scores. I'd like to close Barclay and Chase due to their low credit lines and higher APR.
I just need some advice please. Not sure what to do or in what order.
Advice does not include reaming me for the amount of cards I have or whatever. I manage my money extremely well, which is reflected in my score.
I've had the Barclay and Chase for about a year. Capital One is my oldest at about 4 or 5 years.
Thanks
Throt
If I am reading right, your goal here is to get "better cards", which you said is lower APR and higher limits.
Since credit rating is, in part, based on how long you have had cards and you'd like to preserve your score, I would suggest calling and negotiating with some of your existing cards. This will have the advantage of keeping your credit history long rather than short. Many times, a respnsible user can simply request a lower APR or higher limit, or both.
Start with the worst (lots of ways to figure that out and it's based on your criteria, not mine) and work up the line. If they won't make a change in the direction you need, ask them to cancel the card. Depending on the company and your history with them, they may send you to the retention department - which can usually do things for you that the "regular" customer service cannot. If you do end up cancelling one, then choose from the best long term deal on the offers you are receiving. I say long term because there are plenty of teasers out there that really crush you once the normal terms.kick in.
Lastly, don't fall into the credit card trap with increasing balances and moving your debt
from card to card for the lower interest. It is a slippery slope that worsens quickly and is very painful to escape and I happen to know from experience.
For my part, I have a Discover and one credit card from my Credit Union, and that's it. If I need to carry a balance it goes on the CU card's low interest.
Hope all that helps.
Bestow wisdom upon me my elders.
I am pretty credit savvy and at only 21 have great credit (749 FICO, 24K in total credit line). I do however have a number of cards. (Discover, Capital One, Barclay, Chase, Kohl's, Goodyear, Best Buy, JCPenney.)
I get a slew of credit card offers in the mail and as my credit has gotten better, I've been getting better offers (read: better rewards, lower APR, long terms of 0% APR). I want to get some of these better cards but I already have so many and I know that closing older accounts can adversely effect credit scores. I'd like to close Barclay and Chase due to their low credit lines and higher APR.
I just need some advice please. Not sure what to do or in what order.
Advice does not include reaming me for the amount of cards I have or whatever. I manage my money extremely well, which is reflected in my score.
I've had the Barclay and Chase for about a year. Capital One is my oldest at about 4 or 5 years.
Thanks
Throt
If I am reading right, your goal here is to get "better cards", which you said is lower APR and higher limits.
Since credit rating is, in part, based on how long you have had cards and you'd like to preserve your score, I would suggest calling and negotiating with some of your existing cards. This will have the advantage of keeping your credit history long rather than short. Many times, a respnsible user can simply request a lower APR or higher limit, or both.
Start with the worst (lots of ways to figure that out and it's based on your criteria, not mine) and work up the line. If they won't make a change in the direction you need, ask them to cancel the card. Depending on the company and your history with them, they may send you to the retention department - which can usually do things for you that the "regular" customer service cannot. If you do end up cancelling one, then choose from the best long term deal on the offers you are receiving. I say long term because there are plenty of teasers out there that really crush you once the normal terms.kick in.
Lastly, don't fall into the credit card trap with increasing balances and moving your debt
from card to card for the lower interest. It is a slippery slope that worsens quickly and is very painful to escape and I happen to know from experience.
For my part, I have a Discover and one credit card from my Credit Union, and that's it. If I need to carry a balance it goes on the CU card's low interest.
Hope all that helps.
Originally Posted By: expat
I don't think I have ever closed a CC, I just stop using them and let them fade away.
Assuming they have no fees attached.
many companies will charge you a fee for NOT using their card at least once per calendar year.
I don't think I have ever closed a CC, I just stop using them and let them fade away.
Assuming they have no fees attached.
many companies will charge you a fee for NOT using their card at least once per calendar year.
Originally Posted By: Lolvoguy
Originally Posted By: expat
I don't think I have ever closed a CC, I just stop using them and let them fade away.
Assuming they have no fees attached.
many companies will charge you a fee for NOT using their card at least once per calendar year.
Define "many".
As is I've never had that happen. Currently have ~20 cards, some have been sock-drawered for years and years.
In my case, "many" = "none".
(edit) maybe its different up there [Canadia], though?
Originally Posted By: expat
I don't think I have ever closed a CC, I just stop using them and let them fade away.
Assuming they have no fees attached.
many companies will charge you a fee for NOT using their card at least once per calendar year.
Define "many".
As is I've never had that happen. Currently have ~20 cards, some have been sock-drawered for years and years.
In my case, "many" = "none".
(edit) maybe its different up there [Canadia], though?
Originally Posted By: volk06
Originally Posted By: dlundblad
I am only 23, but that sounds like a lot of credit cards IMO. Hopefully your credit card companies hate you and you pay them off monthly. Dave Ramsey 101. If you cant afford to pay cash, you cant afford it.
From what I have heard, the Chase card is a good one to have so I'd definitely try to keep that one.
OT: I am in the midst of looking for a different bank and considering Chase. Not a huge fan of the service fee my bank charges (for having an account as well as using my debit) and it's location is no longer convenient for me.
A bit OT again: I am new to direct deposit. Combine that with not wanting to use my debit for cash back and its a big no no. Just 2 weeks ago, apparently Marathons EFT system was down. My fuel light was on and I just figured I'd swing by after work. No biggy. I only had $4 in cash on me to get home.
Take a look at Ally bank. Great rates on checking, savings, and no ATM fees ever.
Or any local or regional banks/credit unions? I can't recall paying a fee for having an account ever, with the exception on being asked to pay for checks which both my local banks waived.
Originally Posted By: dlundblad
I am only 23, but that sounds like a lot of credit cards IMO. Hopefully your credit card companies hate you and you pay them off monthly. Dave Ramsey 101. If you cant afford to pay cash, you cant afford it.
From what I have heard, the Chase card is a good one to have so I'd definitely try to keep that one.
OT: I am in the midst of looking for a different bank and considering Chase. Not a huge fan of the service fee my bank charges (for having an account as well as using my debit) and it's location is no longer convenient for me.
A bit OT again: I am new to direct deposit. Combine that with not wanting to use my debit for cash back and its a big no no. Just 2 weeks ago, apparently Marathons EFT system was down. My fuel light was on and I just figured I'd swing by after work. No biggy. I only had $4 in cash on me to get home.
Take a look at Ally bank. Great rates on checking, savings, and no ATM fees ever.
Or any local or regional banks/credit unions? I can't recall paying a fee for having an account ever, with the exception on being asked to pay for checks which both my local banks waived.
Originally Posted By: Throt
Bestow wisdom upon me my elders.
I am pretty credit savvy and at only 21 have great credit (749 FICO, 24K in total credit line). I do however have a number of cards. (Discover, Capital One, Barclay, Chase, Kohl's, Goodyear, Best Buy, JCPenney.)
I get a slew of credit card offers in the mail and as my credit has gotten better, I've been getting better offers (read: better rewards, lower APR, long terms of 0% APR). I want to get some of these better cards but I already have so many and I know that closing older accounts can adversely effect credit scores. I'd like to close Barclay and Chase due to their low credit lines and higher APR.
I just need some advice please. Not sure what to do or in what order.
Advice does not include reaming me for the amount of cards I have or whatever. I manage my money extremely well, which is reflected in my score.
I've had the Barclay and Chase for about a year. Capital One is my oldest at about 4 or 5 years.
Thanks
Throt
You didn't say what your revolving balances were - so I'll assume your goal is too not carry a credit balance forward on a regular basis (Once in a while is fine, for big ticket purchases like tires, etc. - but pay those off in a matter of months).
I would keep the 2 or 3 oldest of the Visa/MC/Discover accounts open, especially if the credit limits are high. Interest rate is irrelevant long-term, since you're not going to carry a balance on these cards.
If you're tempted to open a new account due to rewards, I'd close two of your accounts for every new account I open. Maybe close the one of the younger and lower credit limit Visa/MC/Discover and/or the JCP/BB/Goodyear accounts.
Just don't continually close and open accounts all the time. Close a couple, open one, then let a year or more pass before you do anything else.
Since you don't want to hear that you have too many accounts open for your age - I will just say look to trend the number downward with the 2:1 ratio in the near future, then keep the number of accounts you have open steady over the next couple of decades. You're doing fine, good credit score, just make some smart tweaks and things will only improve from there.
One last thing... long-term, learn to ignore the credit offers in the mail. I don't even read mine anymore.
Bestow wisdom upon me my elders.
I am pretty credit savvy and at only 21 have great credit (749 FICO, 24K in total credit line). I do however have a number of cards. (Discover, Capital One, Barclay, Chase, Kohl's, Goodyear, Best Buy, JCPenney.)
I get a slew of credit card offers in the mail and as my credit has gotten better, I've been getting better offers (read: better rewards, lower APR, long terms of 0% APR). I want to get some of these better cards but I already have so many and I know that closing older accounts can adversely effect credit scores. I'd like to close Barclay and Chase due to their low credit lines and higher APR.
I just need some advice please. Not sure what to do or in what order.
Advice does not include reaming me for the amount of cards I have or whatever. I manage my money extremely well, which is reflected in my score.
I've had the Barclay and Chase for about a year. Capital One is my oldest at about 4 or 5 years.
Thanks
Throt
You didn't say what your revolving balances were - so I'll assume your goal is too not carry a credit balance forward on a regular basis (Once in a while is fine, for big ticket purchases like tires, etc. - but pay those off in a matter of months).
I would keep the 2 or 3 oldest of the Visa/MC/Discover accounts open, especially if the credit limits are high. Interest rate is irrelevant long-term, since you're not going to carry a balance on these cards.
If you're tempted to open a new account due to rewards, I'd close two of your accounts for every new account I open. Maybe close the one of the younger and lower credit limit Visa/MC/Discover and/or the JCP/BB/Goodyear accounts.
Just don't continually close and open accounts all the time. Close a couple, open one, then let a year or more pass before you do anything else.
Since you don't want to hear that you have too many accounts open for your age - I will just say look to trend the number downward with the 2:1 ratio in the near future, then keep the number of accounts you have open steady over the next couple of decades. You're doing fine, good credit score, just make some smart tweaks and things will only improve from there.
One last thing... long-term, learn to ignore the credit offers in the mail. I don't even read mine anymore.
Most people act like typical uneducated consumers, have little understanding of finance, and are unfortunately heavy users of credit. What most of these folks think they know is generally wrong.
To the typical American consumer saving a big down payment before buying a house, and only buying a house they can afford to pay off off in no more than 10-15 years is not a concept they want to adopt because it requires discipline and delayed gratification. Instead they spout half understood ideas about leveraging assets, etc. It would be laughable if it wasn't sad.
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
I don't give a rat's patoot about impressing anyone. My post above was so maybe 1-2 of the younger people reading this thread actually learn something and escape a life of life long debt and "easy payments" poverty.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
Here is something very simple to remember and live by - Poor people pay interest and wealthy people earn interest.
To the typical American consumer saving a big down payment before buying a house, and only buying a house they can afford to pay off off in no more than 10-15 years is not a concept they want to adopt because it requires discipline and delayed gratification. Instead they spout half understood ideas about leveraging assets, etc. It would be laughable if it wasn't sad.
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
I don't give a rat's patoot about impressing anyone. My post above was so maybe 1-2 of the younger people reading this thread actually learn something and escape a life of life long debt and "easy payments" poverty.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
Here is something very simple to remember and live by - Poor people pay interest and wealthy people earn interest.
Last edited:
I have excellent credit but credit cards I don't used get CLOSED. If you have a need to apply for a mortgage those 20 cards sitting in the drawer (assuming all unexpired) will go towards your available credit and can be used against you.
BTW-I have applied for jobs in sales with major companies and many want to run your credit. If your in sales and representing the company-they want you to be responsible. A good credit history is CERTAINLY one indicator.
BTW-I have applied for jobs in sales with major companies and many want to run your credit. If your in sales and representing the company-they want you to be responsible. A good credit history is CERTAINLY one indicator.
Last edited:
Credit karma has a lot of good information about which credit factors affect your score. According to them the biggest factors are credit card utilization and payment history, obviously any derogatory marks have a high impact too but only if you have them, such as bankruptcy or collections.
The other factors aren't huge to your actual score even though age of accounts has a more than minor impact it's nothing compared to your credit usage impact. According to them again, staying under 30% is good.
The other factors aren't huge to your actual score even though age of accounts has a more than minor impact it's nothing compared to your credit usage impact. According to them again, staying under 30% is good.
Cashmoney,
Are you an accountant or work in finance ?
You always give good advice.
Are you an accountant or work in finance ?
You always give good advice.
Originally Posted By: cashmoney
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
These two statements of yours are incongruent with each other. You are advocating that people, in particular the OP, should follow your philosophy. You have said that credit doesn't matter (in your first post and this last one), then go on to say it does matter. Which is it?
Further, if an employer needs more than a person's credit score they are just going fishing and infringing on my privacy. I would never work for a company that wanted my entire credit report (and it is strong). A FICO score or other credit score from the individual bureaus takes into account debt:credit ratio and should be enough in that regard.
Earlier you also said that people should save up for a big down payment before buying a house, and in the same post said that credit score isn't important. Someone else pointed out the fact of how is a person supposed to get a mortgage without having a good credit history? For lenders, a prospective borrower having little or no credit history is a huge red flag.
While some of your advice is good, they are blanket statements and you fail to realize people have different priorities and different situations in life. Credit is a tool and can be used successfully or abused, just like a wrench is a tool that can be used to fix something or to throw at someone's head.
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
These two statements of yours are incongruent with each other. You are advocating that people, in particular the OP, should follow your philosophy. You have said that credit doesn't matter (in your first post and this last one), then go on to say it does matter. Which is it?
Further, if an employer needs more than a person's credit score they are just going fishing and infringing on my privacy. I would never work for a company that wanted my entire credit report (and it is strong). A FICO score or other credit score from the individual bureaus takes into account debt:credit ratio and should be enough in that regard.
Earlier you also said that people should save up for a big down payment before buying a house, and in the same post said that credit score isn't important. Someone else pointed out the fact of how is a person supposed to get a mortgage without having a good credit history? For lenders, a prospective borrower having little or no credit history is a huge red flag.
While some of your advice is good, they are blanket statements and you fail to realize people have different priorities and different situations in life. Credit is a tool and can be used successfully or abused, just like a wrench is a tool that can be used to fix something or to throw at someone's head.
Originally Posted By: wallyuwl
Originally Posted By: cashmoney
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
These two statements of yours are incongruent with each other. You are advocating that people, in particular the OP, should follow your philosophy. You have said that credit doesn't matter (in your first post and this last one), then go on to say it does matter. Which is it?
Further, if an employer needs more than a person's credit score they are just going fishing and infringing on my privacy. I would never work for a company that wanted my entire credit report (and it is strong). A FICO score or other credit score from the individual bureaus takes into account debt:credit ratio and should be enough in that regard.
Earlier you also said that people should save up for a big down payment before buying a house, and in the same post said that credit score isn't important. Someone else pointed out the fact of how is a person supposed to get a mortgage without having a good credit history? For lenders, a prospective borrower having little or no credit history is a huge red flag.
While some of your advice is good, they are blanket statements and you fail to realize people have different priorities and different situations in life. Credit is a tool and can be used successfully or abused, just like a wrench is a tool that can be used to fix something or to throw at someone's head.
The point I took away was that for most people, a good credit score will help you. cashmoney's situation is different; since he can pay cash for something if he chooses to, he has no need to rely on his credit rating to get through a loan process.
Originally Posted By: cashmoney
I personally don't need a credit score - I can buy cars and house for cash. This comes after many years of disciplined investments and smart financial moves.
Employers and folks that make hiring decisions (like me) avoid hiring people with bad credit or lots of debt. Just to be clear having good credit does NOT get you hired. But having bad credit or huge debt ratios will get you passed over for hire.
These two statements of yours are incongruent with each other. You are advocating that people, in particular the OP, should follow your philosophy. You have said that credit doesn't matter (in your first post and this last one), then go on to say it does matter. Which is it?
Further, if an employer needs more than a person's credit score they are just going fishing and infringing on my privacy. I would never work for a company that wanted my entire credit report (and it is strong). A FICO score or other credit score from the individual bureaus takes into account debt:credit ratio and should be enough in that regard.
Earlier you also said that people should save up for a big down payment before buying a house, and in the same post said that credit score isn't important. Someone else pointed out the fact of how is a person supposed to get a mortgage without having a good credit history? For lenders, a prospective borrower having little or no credit history is a huge red flag.
While some of your advice is good, they are blanket statements and you fail to realize people have different priorities and different situations in life. Credit is a tool and can be used successfully or abused, just like a wrench is a tool that can be used to fix something or to throw at someone's head.
The point I took away was that for most people, a good credit score will help you. cashmoney's situation is different; since he can pay cash for something if he chooses to, he has no need to rely on his credit rating to get through a loan process.
Last edited:
Here's what I think about credit scores:
1. Having a good credit score is important, even if you don't plan on ever getting another credit card or loan ever again. Like wallyuwl pointed out, employers and landlords look at your credit score. Even insurance companies look at it. If you have bad credit, you could be paying more for car insurance.
2. Just because you have an excellent credit score, that doesn't NECESSARILY mean your finances are in good shape. In other words, you can have a great credit score and still have mountains of debt.
3. However, you don't have to get into a pile of debt (or ANY debt, for that matter) in order to get a good credit score. I established my credit by getting a credit card and paying the full balance every month. I eventually got a second card and also always paid the balance on that. I eventually got my credit score up to 728 without ever paying a penny in interest.
1. Having a good credit score is important, even if you don't plan on ever getting another credit card or loan ever again. Like wallyuwl pointed out, employers and landlords look at your credit score. Even insurance companies look at it. If you have bad credit, you could be paying more for car insurance.
2. Just because you have an excellent credit score, that doesn't NECESSARILY mean your finances are in good shape. In other words, you can have a great credit score and still have mountains of debt.
3. However, you don't have to get into a pile of debt (or ANY debt, for that matter) in order to get a good credit score. I established my credit by getting a credit card and paying the full balance every month. I eventually got a second card and also always paid the balance on that. I eventually got my credit score up to 728 without ever paying a penny in interest.
OK some advice for those just starting out - or for those that have already screwed up and need to restart their financial lives.
First and foremost save 3-6 months living expenses and don't touch it. Until you can do that you can not afford to buy anything. Live with your parents, your relatives, get 5 roommates, eat baloney sandwiches and peanut butter, drive a 20 yo junker car, do whatever it takes to first save 3-6 months living expenses. There is NOTHING more important to a person's future than establishing and maintaining adequate savings in the bank and not living paycheck to paycheck.
Once you have established a 3-6 month living fund, then you can start developing some credit history for the purpose of buying a house you can afford. A few small loans can establish that easily and quickly if you are smart about it. To be clear - do not use a debit card for anything - they are junk and anti-consumer. As you are establishing a good credit history you are also saving every penny you can for a 20% down payment on a house you can afford (yes that likely that means more baloney sandwiches). That's right 20% so you don't have to pay PMI (PMI is for suckers)
Find a company to give you the best credit card you can get (cash back if possible) and use it to buy everything with it and pay it off monthly. Never EVER use a credit card for credit. Apply for 2-3 other credit cards in different flavors - Visa, Mastercard, Amex - always looking for cash back or points. Open a savings account at a credit union and get a car loan for no more than 36 months to buy a good quality 3-4 year old used car. Make extra payments to principle on the car loan and pay the car loan off early in 24 month max.
You have decide early in life because you generally can't have both - do you want bright shiny new things all the time or do you want security?
First and foremost save 3-6 months living expenses and don't touch it. Until you can do that you can not afford to buy anything. Live with your parents, your relatives, get 5 roommates, eat baloney sandwiches and peanut butter, drive a 20 yo junker car, do whatever it takes to first save 3-6 months living expenses. There is NOTHING more important to a person's future than establishing and maintaining adequate savings in the bank and not living paycheck to paycheck.
Once you have established a 3-6 month living fund, then you can start developing some credit history for the purpose of buying a house you can afford. A few small loans can establish that easily and quickly if you are smart about it. To be clear - do not use a debit card for anything - they are junk and anti-consumer. As you are establishing a good credit history you are also saving every penny you can for a 20% down payment on a house you can afford (yes that likely that means more baloney sandwiches). That's right 20% so you don't have to pay PMI (PMI is for suckers)
Find a company to give you the best credit card you can get (cash back if possible) and use it to buy everything with it and pay it off monthly. Never EVER use a credit card for credit. Apply for 2-3 other credit cards in different flavors - Visa, Mastercard, Amex - always looking for cash back or points. Open a savings account at a credit union and get a car loan for no more than 36 months to buy a good quality 3-4 year old used car. Make extra payments to principle on the car loan and pay the car loan off early in 24 month max.
You have decide early in life because you generally can't have both - do you want bright shiny new things all the time or do you want security?
Last edited:
- Status
Similar threads
