My opps living debt free with one credit card.

[Noid]

I received a letter from my ONLY credit card that my rate is increasing due to one or more of 4 factors.
None of the categories were applicable.

So I called them, I got a " remote " agent working from a script.
I eventually asked for a manager, who was not available.

After all this I called my mother about Thanksgiving, and my call to my CCC.
She told me the same thing happened to her at Home Depot when she cancelled one of 3 cards.
( they were giving $20 dollars on each card - they didnt care how many apparently )
So, when she cancelled one, her credit rating dropped 100 points.

The only lender I had deliberately attacked my credit score, and raised my rate.
Hate is the only word I can deliver without profanity.

A hard lesson to learn.
Be warned.

 

[otho11]

Unfortunately part of the credit score game is maintaining a larger line of credit than you need. Sign up for some cards with bonus offers, pay them to zero and keep them open.

 

[nakedfrog]

Not true as far as I can tell.

 

[IndyColtsFan]

Cancelling a card will lower your credit score - it sucks, but it's because you've lowered your available credit and likely increased credit utilization as a result.

Paying the cards off every month won't lower your rate, however. I have paid mine off every single month for like 20 years and my credit score is astronomical.

 

[purbeast0]

Eh I cancel and get cards multiple times a year. It is just temp hits and then goes right back up. It's really not a big deal. My credit basically lingers between 775 - 825.

I pretty much pay my current card that I am using all the way off the day I get paid or shortly after.

 

[brianmanahan]

i never cancel cards, because having old credit lines around is important for a good score

i just make sure to use the crappy cards a few times a year so they don't cancel me

and i always pay off every balance every month

 

[IndyColtsFan]

Eh I cancel and get cards multiple times a year. It is just temp hits and then goes right back up. It's really not a big deal. My credit basically lingers between 775 - 825.

I pretty much pay my current card that I am using all the way off the day I get paid or shortly after.

Right, it's just a temp hit. I haven't cancelled a card in probably 20 years but one of the banks cancelled one of my cards a few years ago because of inactivity and any hit was gone pretty fast.

My score is very high. I remember getting into a fight with everyone's favorite blowhard alkemyst a few years ago about it and owning him. And I don't even lift, bro.

 

[ponyo]

OP needs more credit cards. And if canceling credit card lowers your score drastically, you also need more cards.

Do people not like free tax free money? Open more cards. It's free money.

 

[purbeast0]

Right, it's just a temp hit. I haven't cancelled a card in probably 20 years but one of the banks cancelled one of my cards a few years ago because of inactivity and any hit was gone pretty fast.

My score is very high. I remember getting into a fight with everyone's favorite blowhard alkemyst a few years ago about it and owning him. And I don't even lift, bro.

I cancel cards often because I'm not paying an annual fee for a card I'm not using anymore. I usually will wait until the annual fee is charged to my card to and then I'll call and cancel and they remove it. So I typically have em open for a year.

I do have an Amex I've had for like 20 years that has no annual fee though.

I got 2 new cards this year.

Got the United Explorer card and I flew to my whole family to St. Thomas last month for free because of the bonus and points I earned with it this year. Had I not gotten that card we wouldn't have gone on that trip. We booked it last minute because we could get there for free. I'll be canceling that card in the next few months.

I actually got that card back in March or April to book our earlier trip to St. Thomas on United. Got free baggage and extra points since we used a United card to book a United flight.

I'm currently using the Sapphire Reserve which I've had before. It has a 100k bonus going on right now so I'll use that card to get the bonus.

Then come January I'm getting one Southwest card and will get another one shortly after that so I can get 125k+ points and the companion pass through 2023. Both of our companion passes run out this year.

We're flying 4 of us to Aruba in 3 weeks and I only had to use points on 2 tickets. The other 2 tickets were companions.

These credit card perks save tons and tons of money if you know how to use them. And it keeps/builds credit for you.

 

[BarkingGhostar]

I do not believe this one bit. I never hold a balance on any of my cards and my FICO smacks 850 every month. It hadn't gone below 845 in years.

 

[MrSquished]

I don't have crazy high limit cards, but I have a few and I keep the balance at zero, use them each every 2-3 months, pay them in full before the due date, and never take a hit to my score. I use those Klarna style split your purchase into 4 interest free payments or 6 monthly payment things much more often.

Paying your cards in full is not doing this to you - something else is.

 

[Torn Mind]

Myth to keep the bank business machinery spinning. My mom has always paid her bills off on time and thus her credit is 700-800+ nearly all the time.

 

[Ajay]

Hmm, we have, I think, five cards atm (plus a mortgage and no auto loans). We pick up some for special deals and then close them a while after they are paid off (0% interest if paid off in 24 months kind of thing). I have a 'perfect' credit score and my wife is close. So, IDK - just don't be late.

 

[sdifox]

I don't think I have ever known my credit score.

 

[Noid]

I had a running balance with my CC for probably 8 years now.
No missed payments, all payments over the required minimums.

However, knowing that I might need my full limit to revive my old home I bought, I payed it off over the summer.

I was told they do a credit " check " every 6 months.
So, yes. My my score dropped.
And, they are who dropped it.

I have no mortgages.
Bought my home in cash.
No other cards. No loans. I owe no one.

 

[highland145]

However, installment loans....you need to refinance them as often as possible.

 

[highland145]

I don't think I have ever known my credit score.

2

 

[sdifox]

2

Cool

 

[SKORPI0]

Looks like my credit score is always higher than my recently upgraded Internet download speed (450->750), thanks Comcast/Xfinity.

I have 9 revolving accounts (>$25k total credit) , 3 with balances of averaging $400 (total is $1220), 6 with $0.00.
Those balances are not due to be fully paid till mid to end of 2022, which I can actually pay off today If I wanted to.
I've always paid them full, months ahead when they were due (no interest).

 

[nakedfrog]

I had a running balance with my CC for probably 8 years now.
No missed payments, all payments over the required minimums.

However, knowing that I might need my full limit to revive my old home I bought, I payed it off over the summer.

I was told they do a credit " check " every 6 months.
So, yes. My my score dropped.
And, they are who dropped it.

I have no mortgages.
Bought my home in cash.
No other cards. No loans. I owe no one.

Well, there you go, you're not doing anything to prove your creditworthiness, which is what your credit score is meant to indicate.

 

[PowerEngineer]

I have no mortgages.
Bought my home in cash.
No other cards. No loans. I owe no one.

So why worry about your credit score if you have no need to borrow?

Coincidentally, Citi just notified me that my credit score had dropped a few points because we have too many credit cards (chalk this one up to my wife and all her department store cards) and we haven't been making any loan payments (because we have no loans). Still 800+ but it hardly matters.

 

[highland145]

So why worry about your credit score if you have no need to borrow?

Coincidentally, Citi just notified me that my credit score had dropped a few points because we have too many credit cards (chalk this one up to my wife and all her department store cards) and we haven't been making any loan payments (because we have no loans). Still 800+ but it hardly matters.

The deal is that the bureaus have to have a reason for your score. One of mine was too much credit cared debt..$40.

 

[Noid]

Well, there you go, you're not doing anything to prove your creditworthiness, which is what your credit score is meant to indicate.

You missed the point.

I did not have to pay it down.
My balance is at 9k now.
I was zero 2 months ago.

They did this to me.
Took 50 points off my score.
Then when they did their " check ".
They raised my rate to 13.75 from 12 percent

There are no others involved.

[ So why worry about your credit score if you have no need to borrow?

They raised my rate.

 

[SKORPI0]

I have no mortgages.
Bought my home in cash.
No other cards. No loans. I owe no one.

My balance is at 9k now.
I was zero 2 months ago.

If you owe no one, how come you have a 9K balance? Explain.

I had a well-to-do bother-in-law pay cash (+$32,000) for a 2008 Honda CRV (all options), the loaning bank did not approve since he had no credit history.
Not sure how he established credit after that, what his score was/is. My expression was WTF? Wasn't that the point of getting a loan to begin with?

 

[ponyo]

You missed the point.

I did not have to pay it down.
My balance is at 9k now.
I was zero 2 months ago.

They did this to me.
Took 50 points off my score.
Then when they did their " check ".
They raised my rate to 13.75 from 12 percent

There are no others involved.

You have $9k balance. There's your problem. What's the credit limit on your card?

You have single card with balance of $9k. No other cards. Even if the credit limit on your credit card Is like $30k, that $9k balance will kill your credit score since that's almost 30% credit utilization rate. The solution is simple. You need to open lot more cards. If you had like $150k-$200k total credit limit between all your cards, that small $9k balance wouldn't ding you very much. You're lucky it's only 50 points off your score. It could easily be like 100 points off your score.