Updates--and Q on bal. transfers

iVillage Member
Registered: 12-12-2004
Updates--and Q on bal. transfers
3
Tue, 07-07-2009 - 12:52am

Hi, everyone.

iVillage Member
Registered: 10-01-2008
Tue, 07-07-2009 - 8:51am

I've read several articles that if you close these accounts your credit score takes a big hit.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 08-29-2006
Tue, 07-07-2009 - 10:18am

You two are models of strength.

I don't know the exact computation but perhaps you do regarding paying down your mortgage earlier than 30 years. Is it something like, making one extra payment a year will reduce the interest on the loan by some high percentage and quite a few years??

Kudos to you for refi when you did. I think that small window was the very best rates on 30 yr fixed I've ever seen and I think the window was for only about a month?

I agree with the pp regarding shutting down cards in relation to your debt to available credit percentage. It's what I've been reading on that concept.

Conversely, my dh did the very thing your dh wants to do this year with no regard to percentages, ratings, etc. He had a personal need not to have more cc than he wants open and available, that he can easily monitor. He feels having open, unused cc may leave him open to fraud and he would not be getting monthly statements if someone were clever enough to do an address change hence keeping him out of the loop if you will, out of site, out of mind sort of thing.

I also believe that having a large amount of available credit could be a detriment if an underwriter crunched the ratio AS IF you maxed out all of the available against your income. If it's upside down, if you were to go on a buying binge decorating and improving your home or if the underwriter goes on the premise you are artificially keeping your cc balance low for the loan process only to max out your cards after funding.

Anyway, when my husband asked me to take his name off all but a couple of his cards, meaning close them out, I just did it. I figured fine, fine, we can't get into any trouble this way and its way less paper to have to process for us. Less is more and the like. I like paying for stuff directly out of our checking account cause then I won't spend more than we have more easily, and it's real time accounting. I love not a getting bill in the mail cause everything is already paid for.

Again conversely, I have been charging all my purchases for simplified accounting for dh (he has a handle on his income schedule and checking account balance and I don't) AND FOR THE POINTS on my most advantageous cc. Then paying them off online as soon as we have the money not waiting for a statement, thus draining the checking account so WE FEEL the expense and don't spend all our cash leaving us with a cc balance at the end of the month. I don't want to create a bill for us.

G/L with your decision process and thanks for the sharing your road map to success, you've inspired me!

iVillage Member
Registered: 11-17-2007
Tue, 07-07-2009 - 11:03am

There is advice all over on this issue. If you listen to Suze you keep the cards in a safe place and just leave the accounts open for its good history.


If you listen to Carmen you never charge more then 30% of your limit on any card and you trash all the store cards.


If you listen to Old Dave you close all the accounts and save for everything..


I will