Just TRY cancelling your credit card . . .

[ShotgunSteven]

I thought it was bad to have a lot of unused credit, though. I have one I've paid off and am going to cancel as soon as I cash in my reward points.

 

[n0cmonkey]

I don't think there is a person on the planet that understands all of the intricacies of credit.

 

[Pliablemoose]

Originally posted by: n0cmonkey

Originally posted by: Pliablemoose
Your credit report takes a hit because you could potentially max out your credit on those cards you don't use.

How would you max them out without using them?

Now I'm just more confused.

It's pre-approved available credit, if you could potentially run up $50K without anyone's permission, is scares the credit companies.

I just paid off a no interest promotion yesterday, included a written request to cancel the card with the check.

 

[Nebor]

Originally posted by: n0cmonkey

Originally posted by: Pliablemoose
Your credit report takes a hit because you could potentially max out your credit on those cards you don't use.

How would you max them out without using them?

Now I'm just more confused.

Purple monkey dishwasher.

 

[n0cmonkey]

Originally posted by: Pliablemoose

Originally posted by: n0cmonkey

Originally posted by: Pliablemoose
Your credit report takes a hit because you could potentially max out your credit on those cards you don't use.

How would you max them out without using them?

Now I'm just more confused.

It's pre-approved available credit, if you could potentially run up $50K without anyone's permission, is scares the credit companies.

I just paid off a no interest promotion yesterday, included a written request to cancel the card with the check.

Ok, so they give you a credit limit, but expect you not to use it?

 

[Cobalt]

Originally posted by: vi_edit
Can't be any worse than trying to cancel an AOL account.

Uhg!

 

[cchen]

Originally posted by: welst10
I dont think closing cc will do harm to your credit. in fact, it's better for it.

actually you're wrong
the average age of your credit history will go down, plus your available credit is decreased now and may hurt your future applications for credit

assuming you'll NEVER use those other cards again, the arguments for WHY to keep them are:
1 older age of accounts
2 sufficient # of trade lines
3 mix of tradelines (store cards and national credit accounts)
4 even if paying off every month, the utilization % of credit will be lower than if you just have 1 card you use and payoff monthly....
5 if you like another card from your old issuer, you may be able to easily ask for a product switch, or apply the old line of credit to the new one
6 costs nothing to keep them (assuming they have no annual fees)

reasons NOT to keep them
1 annual fees (if they have any, most dont)...if they do, get rid of em
2 potential someone can get the # and charge (pretty hard if you destroy the cards, and most issuers have 100% fraud protection)

http://www.sfgate.com/cgi-bin/....DTL&type=business

edit: and taken from the fatwallet finance forums,

"According to FICO's brochure: http://www.myfico.com/Offers/B...oring_booklet_2002.pdf it will NOT help you to close out old accounts. Also, it doesn't help to open up accounts just to have "more accounts" or "more available credit"."

Credit Card FAQ:

http://www.fatwallet.com/forum...52&threadid=158558

 

[CTrain]

Originally posted by: cchen

Originally posted by: welst10
I dont think closing cc will do harm to your credit. in fact, it's better for it.

actually you're wrong
the average age of your credit history will go down, plus your available credit is decreased now and may hurt your future applications for credit

assuming you'll NEVER use those other cards again, the arguments for WHY to keep them are:
1 older age of accounts
2 sufficient # of trade lines
3 mix of tradelines (store cards and national credit accounts)
4 even if paying off every month, the utilization % of credit will be lower than if you just have 1 card you use and payoff monthly....
5 if you like another card from your old issuer, you may be able to easily ask for a product switch, or apply the old line of credit to the new one
6 costs nothing to keep them (assuming they have no annual fees)

reasons NOT to keep them
1 annual fees (if they have any, most dont)...if they do, get rid of em
2 potential someone can get the # and charge (pretty hard if you destroy the cards, and most issuers have 100% fraud protection)

http://www.sfgate.com/cgi-bin/....DTL&type=business

edit: and taken from the fatwallet finance forums,

"According to FICO's brochure: http://www.myfico.com/Offers/B...oring_booklet_2002.pdf it will NOT help you to close out old accounts. Also, it doesn't help to open up accounts just to have "more accounts" or "more available credit"."

Credit Card FAQ:

http://www.fatwallet.com/forum...52&threadid=158558

He explained it better than I ever could.
I heard from several sources that you're worst off closing your CC, especially the old ones, so I believed them.

 

[CrazyDe1]

Originally posted by: DonVito
I called Amex to cancel the dumb Amex Blue card that I never, ever use.

I've been on hold for an hour so far. I guarantee you if I'd called to ask for an increase on my limit, those idiots would be on promptly, but they make it friggin' impossible to cancel. Bastards!

I had no problems cancelling my card. Got through in 2 minutes. Keep in mind I also spend 60k a month on the card paid off in full. Screw Amex...they're not worth my time.

I might get another one in the future just to get a black card but my current card was basically worthless...

 

[n0cmonkey]

I'd rather cancel them to avoid the temptation.

 

[cchen]

Originally posted by: n0cmonkey
I'd rather cancel them to avoid the temptation.

You could always cut it up.

 

[n0cmonkey]

Originally posted by: cchen

Originally posted by: n0cmonkey
I'd rather cancel them to avoid the temptation.

You could always cut it up.

I have. Doesn't fix anything. The temptation is still there, it just takes an extra step or two.

 

[Nebor]

Originally posted by: CrazyDe1

Originally posted by: DonVito
I called Amex to cancel the dumb Amex Blue card that I never, ever use.

I've been on hold for an hour so far. I guarantee you if I'd called to ask for an increase on my limit, those idiots would be on promptly, but they make it friggin' impossible to cancel. Bastards!

I had no problems cancelling my card. Got through in 2 minutes. Keep in mind I also spend 60k a month on the card paid off in full. Screw Amex...they're not worth my time.

I might get another one in the future just to get a black card but my current card was basically worthless...

You can't get a black card. No one who posts on ATOT can get a black card. It's one of the things they check.

 

[DeeKnow]

what's wrong with just shredding it?

 

[Double Trouble]

RossMAN is right, if you decide to close your account, you should do so in writing. If you read the fine print in your agreement, it requires you to do so. Usually it's ok, but there's a few unpleasant things that could potentially happen if you don't do it in writing.

The question of whether you should close the account is a different one, and it pretty much depends on your credit picture.

 

[n0cmonkey]

Originally posted by: tagej
RossMAN is right, if you decide to close your account, you should do so in writing. If you read the fine print in your agreement, it requires you to do so. Usually it's ok, but there's a few unpleasant things that could potentially happen if you don't do it in writing.

The question of whether you should close the account is a different one, and it pretty much depends on your credit picture.

And those unpleasant things would be....

 

[Apathetic]

Originally posted by: vi_edit
Can't be any worse than trying to cancel an AOL account.

Uhg!

LOL - you've got him there.

Dave

 

[mcvickj]

Originally posted by: tagej
The question of whether you should close the account is a different one, and it pretty much depends on your credit picture.

What do you mean by this?

 

[rufruf44]

Originally posted by: n0cmonkey

Originally posted by: tagej
RossMAN is right, if you decide to close your account, you should do so in writing. If you read the fine print in your agreement, it requires you to do so. Usually it's ok, but there's a few unpleasant things that could potentially happen if you don't do it in writing.

The question of whether you should close the account is a different one, and it pretty much depends on your credit picture.

And those unpleasant things would be....

If the Credit card company report to the credit reporting agency (experian, equifax, etc) that they made the decision to close the card (instead of your decision), it could hurt credit score and usually a negative in the eye of prospetive lender. Without a proof, it'll be hard to counter that.

 

[puffff]

i cancelled my capital one card cuz i hated their commercials.

 

[GasX]

Originally posted by: n0cmonkey

Originally posted by: Pliablemoose
Your credit report takes a hit because you could potentially max out your credit on those cards you don't use.

How would you max them out without using them?

Now I'm just more confused.

When they figure out how much they are willing to give you for a mortgage they factor in how much debt you could take on if you maxed your cards. Too many credit cards will hurt your ability to borrow for something IMPORTANT like a house or a car

 

[JDub02]

I cancelled a capital one card I had in college. no hassle .. i didn't even have to speak to anyone. it was all automated.


I just cancelled a MBNA card that I didn't know I had. My brother signed me up for it in 2001 at a yankees game to get a cal ripken bobblehead. That was a pain. Kept me on the phone for a while telling me how wonderful they were. If they would have bothered to look, I had not used the card in 3 years. Not once. I never even activated it.

 

[Kelemvor]

If it hasn't already been mentioned, you should always request them to note the account as "Cancelled per Customer Request". It helps make sure your credit rating doesn't take a hit because some places think the CC Company may have cancelled it on you or something like that.

 

[psiu]

Originally posted by: FrankyJunior
If it hasn't already been mentioned, you should always request them to note the account as "Cancelled per Customer Request". It helps make sure your credit rating doesn't take a hit because some places think the CC Company may have cancelled it on you or something like that.

Cool. Planning on canceling 2 or 3 cards pretty soon. One gas card, and one or possibly both my Capital One cards. They just sent me an offer for another card based on how good my others are, but I really would just like one card with a higher limit and no annual fee. My Providian has a higher limit than the 2 Cap One's I already have and the minimum this 3rd one would be combined. And they all have annual fees.

That should be a fun call.

Also planning on taking the credit union up on their holiday loan offer. Heard that a couple quick loans help out the credit rating. I should probably look into this stuff.

 

[CrazyDe1]

Originally posted by: Mwilding

Originally posted by: n0cmonkey

Originally posted by: Pliablemoose
Your credit report takes a hit because you could potentially max out your credit on those cards you don't use.

How would you max them out without using them?

Now I'm just more confused.

When they figure out how much they are willing to give you for a mortgage they factor in how much debt you could take on if you maxed your cards. Too many credit cards will hurt your ability to borrow for something IMPORTANT like a house or a car

I've heard this doesn't really hurt you at all. If you're carrying the debt it's one thing but I've never heard of anyone actually getting denied for a mortgage because of too much available credit. If this happens you just go in and cancel a card.