Why I am CANCELLING most of my credit cards

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Deleted member 4644

I started with a debit card in high school (about 8 years ago). I now have 5 credit cards. I have zero debt. But I spend like CRAZY, and I have missed my payments (as in late) a few times because I can't keep track of my cards.

Time to cut back. I have realized that all these reward points, miles, and cash back offers are actually a HUGE scam.

ALSO, I have noticed that there isn't a girl on the planet who cares if you use a gold mastercard or a Amex Platinum.

Edit: Thinking again, I lied. I am going to put my cards in my desk. No need to cancel, why take the credit hit/lose the back up option of other cards.
 
RossMAN

RossMAN

Grand Nagus
Feb 24, 2000
79,004
429
136
Originally posted by: Deleted member 4644
I started with a debit card in high school (about 8 years ago). I now have 5 credit cards. I have zero debt. But I spend like CRAZY, and I have missed my payments (as in late) a few times because I can't keep track of my cards.

Time to cut back. I have realized that all these reward points, miles, and cash back offers are actually a HUGE scam.

ALSO, I have noticed that there isn't a girl on the planet who cares if you use a gold mastercard or a Amex Platinum.
Click to expand...

How is it a "huge scam" if you can't control your own spending and pay your bills on time?
 
M

Mojoed

Diamond Member
Jul 20, 2004
4,473
1
81
Don't cancel your cards unless you want a huge hit on your credit score. Just learn how to be responsible. Cut them up if you have to, but don't cancel them!
 
D

Deleted member 4644

Originally posted by: RossMAN
Originally posted by: Deleted member 4644
I started with a debit card in high school (about 8 years ago). I now have 5 credit cards. I have zero debt. But I spend like CRAZY, and I have missed my payments (as in late) a few times because I can't keep track of my cards.

Time to cut back. I have realized that all these reward points, miles, and cash back offers are actually a HUGE scam.

ALSO, I have noticed that there isn't a girl on the planet who cares if you use a gold mastercard or a Amex Platinum.
Click to expand...

How is it a "huge scam" if you can't control your own spending and pay your bills on time?
Click to expand...

Huge scam for people like me ;)

* corrected.
 
M

Mojoed

Diamond Member
Jul 20, 2004
4,473
1
81
Originally posted by: intogamer
Originally posted by: Tooncesthedrivingcat
I make nearly 1k per year from the so called scam and I pay no interest.

You are doing it wrong.
Click to expand...

App-O-Rama!
Click to expand...

:thumbsup: Thar lies the sekrit!
 
RossMAN

RossMAN

Grand Nagus
Feb 24, 2000
79,004
429
136
Originally posted by: Deleted member 4644
Originally posted by: RossMAN
Originally posted by: Deleted member 4644
I started with a debit card in high school (about 8 years ago). I now have 5 credit cards. I have zero debt. But I spend like CRAZY, and I have missed my payments (as in late) a few times because I can't keep track of my cards.

Time to cut back. I have realized that all these reward points, miles, and cash back offers are actually a HUGE scam.

ALSO, I have noticed that there isn't a girl on the planet who cares if you use a gold mastercard or a Amex Platinum.
Click to expand...

How is it a "huge scam" if you can't control your own spending and pay your bills on time?
Click to expand...

Huge scam for people like me ;)

* corrected.
Click to expand...

/me nods in agreement.
 
Capt Caveman

Capt Caveman

Lifer
Jan 30, 2005
34,543
651
126
Originally posted by: Mojoed
Don't cancel your cards unless you want a huge hit on your credit score. Just learn how to be responsible. Cut them up if you have to, but don't cancel them!
Click to expand...

I concur.
 
SlickSnake

SlickSnake

Diamond Member
May 29, 2007
5,235
2
0
Dark Lord of credit, please save me from myself!

MUHAHAHAHA! (grabs hand away from self)

Seriously, you need to use online banking to set up auto bill pay for any cards you use. Just don't charge up an empty card and forget to pay something on it when the bill comes due.

I also got my creditors to accept as late of a payment each month as possible, to avoid my cards hitting when my other bills come due at the first of the month, like my utilities, car, or house payments. All credit cards can change the billing date to like the 21-26 or so of each month. Just also keep in mind they may alter that date a bit if there is a 3 day holiday involved, like around xmas or Thanksgiving.

Thanks for the cookie! :cookie:
 
Bateluer

Bateluer

Lifer
Jun 23, 2001
27,730
8
0
At the moment, I have three credit cars, 1 medical credit card, and my car. These are my only sources of debt. 1 CC is through my credit union and has a balance of roughly 3k. The other two cards are an Amazon VISA and a WaMu MC. Without warning, Chase raised the interest rate on my Amazon card to 21.25%, bare in mind that I've never missed a payment, paid late, etc. So I took advantage of one of those zero interest periods from WaMu and opened up the third and final CC with WaMu and transfered all the amazon balance to the WaMu card. As far as debt goes, I'm actually doing pretty good today compared to a year or so ago.

CC1 - 3k
CC2 - 0
CC3 - 690
Medical CC - 494
Car - 2100

My cash assets actually mean I have a positive worth.

TSP - 7600
Roth IRA - 1000
Mutual Fund - 3000
ING liquid savings - 2800

The goal is to pay off everything but the one 3k CC by June 08, which will take a few more months. Unfortunately, I didn't get 'it' soon enough to pay off everything by then. :(
 
R

RC159

Senior member
Sep 27, 2000
682
0
0
Don't cancel your cards unless you want a huge hit on your credit score. Just learn how to be responsible. Cut them up if you have to, but don't cancel them!
Click to expand...

How does cancelling credit cards hurt your credit score?
 
S

Special K

Diamond Member
Jun 18, 2000
7,098
0
76
Originally posted by: RC159
Don't cancel your cards unless you want a huge hit on your credit score. Just learn how to be responsible. Cut them up if you have to, but don't cancel them!
Click to expand...

How does cancelling credit cards hurt your credit score?
Click to expand...

Part of your score is your % utilization of available credit. So having more available credit is always better because your % utilization will be lower for a fixed amount of spending.

By cancelling your cards, your available credit decreases, so if your spending remains the same, then your % utilization will increase.
 
M

Mojoed

Diamond Member
Jul 20, 2004
4,473
1
81
Originally posted by: Special K
Originally posted by: RC159
Don't cancel your cards unless you want a huge hit on your credit score. Just learn how to be responsible. Cut them up if you have to, but don't cancel them!
Click to expand...

How does cancelling credit cards hurt your credit score?
Click to expand...

Part of your score is your % utilization of available credit. So having more available credit is always better because your % utilization will be lower for a fixed amount of spending.

By cancelling your cards, your available credit decreases, so if your spending remains the same, then your % utilization will increase.
Click to expand...

^What he said. In addition, the average age of all open accounts factors into your credit score.
 
R

RC159

Senior member
Sep 27, 2000
682
0
0
I have 11 credit cards, only 2 have a balance $235.00 and $700.00 both zero % interest. So it would hurt my credit score to cancel the other 9 cards?
 
A

axelfox

Diamond Member
Oct 13, 1999
6,719
1
0
Originally posted by: RC159
I have 11 credit cards, only 2 have a balance $235.00 and $700.00 both zero % interest. So it would hurt my credit score to cancel the other 9 cards?
Click to expand...

Yes. Lowers your debt to credit ratio/credit utilization.

 
HeroOfPellinor

HeroOfPellinor

Lifer
Dec 27, 2001
11,272
1
0
I pay off my rewards card each month and end up with $500-600 a year in gift cards for Macys and Home Depot. That's not a scam.
 
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