Paid off card. What would you do?
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Paid off card. What would you do?
| 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?



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
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