Paid off card. What would you do?

iVillage Member
Registered: 03-25-2003
Paid off card. What would you do?
3
Mon, 07-18-2005 - 5:34pm

I just paid off JCPenny. Just dropped it in the mail.

But do I close the card or use it as open credit? There is no temptation to use it at all, but the thought of calling them and saying I want to close it is so great.

My credit available ratio to credit used is horrible. I have been denied a consildation loan becuase of it.

So should I close the card or keep it open and not use it, Like I said, I have no temptation to use it at all.

What would you do?

iVillage Member
Registered: 09-20-2004
Mon, 07-18-2005 - 6:07pm
Christina,
Personally, if your ratio isn't so great, then I would just keep the card open. It all depends on what mix of cards you are holding is like...it is good to have a store card or two open, actually. Especially if you aren't tempted to use it. I have a card like this, actually...my Home depot card which i used only to purchase a washer and dryer a year ago and have since paid it off. Anyhow, that's what i would do. Heather
iVillage Member
Registered: 09-07-2003
Mon, 07-18-2005 - 9:00pm

Hi Kristina!

Congratulations on paying of the JCPenny! I just did the same. :) Doesnt it feel sooo good to have one debt "gone"!?!

I dunno if its the "right" thing, since Im certainly no "expert" (yet!), but I am leaving mine Open, for just the reasons you mentioned.

However, if you think you might be AT ALL tempted by the cards, I would consider the percentage of your debt that that card actually entails. For example, I have a Victoria Secret card that only has a $100 max on it. If I find that card tempting me, ("Oh, they're having a big sale, and I'll be able to pay it off in a month or two, anyway" )closing it isnt going to make a significant change in my debt ratio. BUT, my $2000 limit on my Circuit City card.....that would make a difference.

Make sense?

Maybe, to make sure its a conscious decision to leave it open for the ratio...set yourself a goal of when you will close your store cards. Like, when you've eliminated 40% of your current debt, you'll clear out all those "extra" sources of credit.

Just a thought.

Congrats again!

~ Teresa

Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 02-19-2004
Mon, 07-18-2005 - 9:14pm
I'd keep it open, it will be better for your credit rating that way. I would also cut up the card, so even if you are not tempted to use it today, you won't be tempted a month from now either. This way if you do decide you want to use it, you'll have to call up and ask for a replacement card and wait for it to come in the mail. That ought to discourage you from using it again :) If you do keep it open and want it to stay active and trust yourself to keep the card, just use it once per year, even if you just charge $15 and pay it right off.

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