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when you pay them off and when you already have big ticket items that depend heavily on credit scores, ie, homes, cars?
*I understand about having one in emergencies so I have considered asking my bank to lower my limit , but other than that...*
When I mention paying off my cards AND closing them, it's like the world's coming to an end to some people. They alarm me to not close out the accounts because it will damage my score. I really don't care anymore since I have a car and am a home owner. Why have credit out there floating around for thieves when you have a 0 balance? Keeping the cards will only tempt you to charge when you don't have cash.
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Quote:
Originally Posted by formercalifornian
Are you absolutely sure that you will never need to use credit again? If so, then close away.
"..it's like the world's coming to an end to some people. They alarm me.."
You must have some really nervous friends. I would say that for the people who don't know you, they are simply cautioning you. But for them it's not like the end of the world, or alarming.
Only because you asked why.....
Since you would be tossing yourself on the risky pile by asking for a credit limit decrease, you will may find the creditor would rather opt to close the account, especially if it's Bank of America, or rate jack you instead of just lowering the limit.
Once you, or the creditor, closes the card you would probably be fine for a couple years if you suddenly decide you do need credit. But I would imagine after two or three years you will get the "not enough credit experience" spiel.
Different types of credit, ie, mortgage, car loan, credit cards, store cards, etc., all impact scores differently. Guess which one has the most impact on scores.
A mortgage and car note are not enough to keep your credit scores up.
But then, you stated you don't care about your scores so I guess it's no big deal.
If you are worried about theft on your credit card, I sincerely hope you never plan on using a debit card. Theft and debit cards go hand in hand, with relatively no protection to your bank account. If you do plan on using a debit card, I would suggest that you open two separate accounts and only funnel a small amount into the account that is attached to the debit card. Do not place overdraft protection on that account and do not allow them to auto transfer funds from your base account to your debit card account. That way when your debit card is compromised you would only be out whatever small amount you had placed into that account, plus any fees the theft may cause.
Since you asked why I thought I throw out a few cautions and suggestions .. no end of the world or alarm bells going off.
Like formercalifornian said "close away" if you know you will have no further need of credit.
Believe it or not, some people who have credit cards actually have the discipline to use them conservatively and pay off every month's balance without being 'tempted' by their presence to go binge-spending.
when you pay them off and when you already have big ticket items that depend heavily on credit scores, ie, homes, cars?
*I understand about having one in emergencies so I have considered asking my bank to lower my limit , but other than that...*
When I mention paying off my cards AND closing them, it's like the world's coming to an end to some people. They alarm me to not close out the accounts because it will damage my score.
These same people have been brainwashed into thinking your DEBT score, errr FICO score, is all that important if you have better hobbies than repaying debt all the time.
No fault of their own, though, since pretty much all lenders and even insurance agencies have fallen into that same hole where the rest of the lemmings fall into.
I routinely shred cards that I will not use, but I keep the account open. Very little risk that an open account will ever be "hijacked".
Pretty much only time I close account is when the terms become unfavorable, and even then if I can request that the terms be waived for a period (like for annual fee) I generally do.
I routinely shred cards that I will not use, but I keep the account open. Very little risk that an open account will ever be "hijacked".
Pretty much only time I close account is when the terms become unfavorable, and even then if I can request that the terms be waived for a period (like for annual fee) I generally do.
They don't need the card to hijack your account, the just need the number.
The account number of shredded up, unused account would be hijacked how?
Quote:
Originally Posted by Houston3
They don't need the card to hijack your account, the just need the number.
If you say that it would be "inside job" at the CC then what is to stop that same insider from just tapping into the credit bureau and using credit history to open all the accounts they care to...
Somehow I do not think that I have much to worry about...
Even if there is little risk of compromise, Chet, what is your reason for keeping them open?
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The account number of shredded up, unused account would be hijacked how?
