Canceling credit cards

Discussion in 'The BS Topic' started by CamaroMan79, Aug 10, 2010.

  1. CamaroMan79

    CamaroMan79 Veteran Member Lifetime Gold Member

    Messages:
    5,206
    Likes Received:
    19
    Joined:
    Jun 10, 2001
    Location:
    Selah, WA
    I currently have 2 credit cards to my name. Both of them only have $1500 limits, which is what i requested. However, I only use one of the cards. The card I dont use is Bank of America and the card I use on a regular basis is my State Farm credit card. Would canceling my bank of America credit card account be a wise decision? I haven't used the card in at least 2yrs and it has had zero balance for over 2 years. I stopped using there card because I did not like their business practices. So, I went with a credit card through my insurance company, and am very happy with it.


    Would it be a wise decision to do cancel my inactive card? I have read that closing a credit card account can hurt your credit score, but how much? I have a perfect credit history except for 1 late payment from about 2 months ago. I payed it the day after it was due. I also always pay more than the minimum if I am not able to pay it all off at once.


    So........what would you do? Im worried about having this inactive card. Worried as in someone could get ahold of the number and make charges on the card, and since i'm not using it I dont ever view the statments for it.
     
  2. FreedomPenguin

    FreedomPenguin Veteran Member Lifetime Gold Member

    Messages:
    1,393
    Likes Received:
    161
    Joined:
    Sep 19, 2006
    Location:
    Dayton, Ohio
    iuno.. all i know.. when i went to get att.. i had no credit, like didnt exist. lol. never used credit ever before. D:
     
  3. Aceshigh

    Aceshigh Veteran Member Lifetime Gold Member

    Messages:
    26,757
    Likes Received:
    6
    Joined:
    Apr 9, 2001
    Location:
    Boondocks
    Unless you subscribe to the Dave Ramsey no FICO score theory......

    Take it from someone who screwed up his credit in 1999, then closed EVERY credit card and didn't use them for over 10 years. I cleaned it up , and went to a "Cash only" system and I couldn't get my credit score above 610. Even after buying a house and paying off 2 vehicle loans, and 2 motorcycle loans and wasn't late on anything for 7 years.

    IN fact, my wife filed BK and 6 months later had a higher FICO score then me. :rolleyes:

    You have to have credit cards open to have a GREAT credit score. I finally realized you have to have them. 3 Open Trading lines is what 7 Steps to a 720 Credit Score teaches. Keep them all below 30% of your maximum limit for optimum results on your score. You can cancel it, I would just suggest you open a better one to replace it before you do.
     
    Last edited: Aug 10, 2010
  4. angel71rs

    angel71rs Veteran Member

    Messages:
    1,343
    Likes Received:
    1
    Joined:
    Jul 28, 2002
    Location:
    El Paso, TX
    It can hurt your score in that your credit length would take a hit as it is your oldest reported credit account.

    Plus you would have less available credit. So if you charge $1,000 on your remaining card, you would be using ~ 66% of your available credit. That looks bad, makes it seem like you are in trouble so you have to use up your available credit.

    This is even if you pay your card off every month, cause they take a snapshot of your credit, and if it happens to be when you haven't paid it off for the month yet, that's the credit usage percentage reported.

    IMO, leave it in a drawer. Correction, leave it hidden somewhere secure.
     
    Last edited: Aug 10, 2010
  5. Cardinal

    Cardinal Veteran Member Lifetime Gold Member

    Messages:
    8,319
    Likes Received:
    51
    Joined:
    Jun 22, 2003
    Location:
    Endicott, NY
    I too wanted to get rid of ALL of our credit cards. Evil asked a friend of hers if that was a good idea. The reply was a unequivical, "NO! Your credit score with be trashed! You have to have credit cards to show that you are credit worthy!" Give me a break! I ABSOLUTELY HATE CREDIT CARDS! ESPECICALLY SEARS! Those penis vacuumizers charge up the ying yang! The base interest charge is somewhere around 28%, then theres the "service charge", and fees, and GOD help you if you are late paying, a $39 late fee! WE NEVER charge anything at Sears unless we have the money to pay for it THAT month!

    Bottom line, you have to have credit cards to have a good credit score.

    BUT, I too HATE, H A T E, Bank of America. They suck no matter how you look at them. I think Master Card, Visa, and Discover are much better than them although all of them suck in some form or another.
     
  6. High Country Z

    High Country Z Veteran Member

    Messages:
    1,353
    Likes Received:
    0
    Joined:
    Jun 28, 2009
    Location:
    N.Central Pennsylvania,
    Keep the 2nd card. Banks are shutting off some peoples cards that they consider risky, if they yank one of your cards, you still have a backup. Use one card for your primary, and make at least one purchase a month on your secondary card, banks will yank a card if it is inactive for extended periods of time. Try to make more than the minimum payment on the card each month. If possible pay them off at the end of each month, interest sucks.
     
  7. SG71SS

    SG71SS Veteran Member

    Messages:
    1,279
    Likes Received:
    8
    Joined:
    Dec 16, 2004
    Location:
    Los Angeles, California
    Like the others have said - keep the cards. Closing them shows that you have less credit and hurts your credit score. One component of the credit score models is the difference between your credit card balance and the credit limit. The wider the gap, the more credit you have available, which looks good on your credit scroe if you have a card(s) paid off but still open. It's when you have a high credit limit AND a high balance when your credit score suffers.

    Pay them off. Put them away but use them maybe once every 6 months or year and pay it off right away that way there is some activity on them.
     
    Last edited: Aug 10, 2010
  8. Buickfunnycar

    Buickfunnycar Veteran Member Lifetime Gold Member

    Messages:
    8,370
    Likes Received:
    1,075
    Joined:
    Nov 11, 2005
    Location:
    living the dream in my own world...
    Closing limits your credit availability and will negatively effect your score.
    Simply don't use the card much and pay it off fully when you do...
     
  9. Z-WIZZ

    Z-WIZZ Veteran Member

    Messages:
    1,297
    Likes Received:
    0
    Joined:
    Mar 18, 2004
    Location:
    FLA
    plus its always good to have a backup card if you get in a jam...if you still hate B/A that much open another card(credit union) then cancel B/A
     
  10. 67lemanster

    67lemanster Veteran Member Lifetime Gold Member

    Messages:
    12,662
    Likes Received:
    9
    Joined:
    Oct 20, 2003
    Location:
    I AM ILK
    keep the card. if you worry about self control just cut it up. i alwasy keep one around for an emergency. now where did i put that card. lol.
     

Share This Page