If there is no balance on it then just cut up the card and forget about it In time it will be dropped from your report because of inactivity or they will cancel it for the same reason which is not a black mark against you.. Better to just let the time run out on it while you are paying off the rest of your debt. Makes your debt to ratio balance look better. This is something that Carmen preaches.
I am so sorry to hear about that. I have a had few credit cards, I hate to say that I have that many. They have raised my interest rate. Never been late, I have balances and I am over extended. But it is something what these credit card companies are doing. I have not been give a 30 day notice either!!!
What is the credit limit on the card? Generally these store cards have low limits. If that's the case, I would dump it and move on. It may ding you a tiny bit at first, but your score will correct itself within a few months.
The purpose this card is currently serving is adding to your total available credit number. When you close the card, your total available credit goes down, which could alter your used debt to available credit ratio. Again, these cards typically have such low limits that it's not more than a blip.
Ok, you are over 40 right? What are you planning on using credit for in the near future? If the answer is not much, what does your FICO score matter? Close it as it won't mean that much with regard to car insurance ratings and such, a larger deductible would save you more on car insurance.
We are over 40 and a financial person told us it is time now to save hard and ONLY buy with cash. He said, if we can't buy using cash now, when exactly do we think we will get more money as we are near the top of the earning curve.
My in-laws don't have huge FICO scores, but they are in Florida right now, enjoying themselves for 6 weeks every winter at a condo. They own a nice home with 5 acres of land. Their vehicles are paid off and they have a small vacation cabin that they spend the summer at with their grandchildren. And they take a 2-3 week road trip somewhere new every fall. They NEVER bought on credit except for their main home, and paid that off in 15 years. My MIL never worked outside the home after having children. They are just frugal, make repairs on things, buy old as opposed to new, oh and my FIL, never went to college, just worked hard as a blue collar worker all his life. They also put 2 kids through college.
So I guess I now look at my score differently, I don't need credit if I don't plan to pay interest. Money in the bank pays me and can be used as collateral.
If there is no balance on it then just cut up the card and forget about it In time it will be dropped from your report because of inactivity or they will cancel it for the same reason which is not a black mark against you.. Better to just let the time run out on it while you are paying off the rest of your debt. Makes your debt to ratio balance look better. This is something that Carmen preaches.
Hi Mary Ann,
I'm in the same boat with a Walmart card, which I haven't used in about 2 years.
Kate
When you close an account, it shows a ding in your credit score...which I think is outrageous.
I would destroy the card, but leave the account open.
I am so sorry to hear about that. I have a had few credit cards, I hate to say that I have that many. They have raised my interest rate. Never been late, I have balances and I am over extended. But it is something what these credit card companies are doing. I have not been give a 30 day notice either!!!
If your rates are being raised the only
What is the credit limit on the card? Generally these store cards have low limits. If that's the case, I would dump it and move on. It may ding you a tiny bit at first, but your score will correct itself within a few months.
The purpose this card is currently serving is adding to your total available credit number. When you close the card, your total available credit goes down, which could alter your used debt to available credit ratio. Again, these cards typically have such low limits that it's not more than a blip.
Danni
cl-phocid, Debt Support Group
All my best,
Danni
I hear and read that after 6 months of no activity a creditor will close the account.
Ok, you are over 40 right? What are you planning on using credit for in the near future? If the answer is not much, what does your FICO score matter? Close it as it won't mean that much with regard to car insurance ratings and such, a larger deductible would save you more on car insurance.
We are over 40 and a financial person told us it is time now to save hard and ONLY buy with cash. He said, if we can't buy using cash now, when exactly do we think we will get more money as we are near the top of the earning curve.
My in-laws don't have huge FICO scores, but they are in Florida right now, enjoying themselves for 6 weeks every winter at a condo. They own a nice home with 5 acres of land. Their vehicles are paid off and they have a small vacation cabin that they spend the summer at with their grandchildren. And they take a 2-3 week road trip somewhere new every fall. They NEVER bought on credit except for their main home, and paid that off in 15 years. My MIL never worked outside the home after having children. They are just frugal, make repairs on things, buy old as opposed to new, oh and my FIL, never went to college, just worked hard as a blue collar worker all his life. They also put 2 kids through college.
So I guess I now look at my score differently, I don't need credit if I don't plan to pay interest. Money in the bank pays me and can be used as collateral.
-Marie