Author Topic: My shredder made some new friends  (Read 5132 times)

Offline ubergeek

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My shredder made some new friends
« on: October 20, 2009, 01:21:14 PM »
All my credit cards....well most of them anyway. My youngest son and I ran them through the shredder. I kept 1 visa card through my credit union which has the lowest rate and highest limit of all the cards strictly for emergency use.

My question is....should I just go ahead and close the accounts? I have no desire to use credit anytime soon as I know it will have a negative impact on my score to close them. If I should do it, I'd like to just go ahead and do it now,  but if I should keep them open, then I can do that too. I'm leaning towards just closing them and being done with it. What do ya think?

Offline chris

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Re: My shredder made some new friends
« Reply #1 on: October 20, 2009, 01:52:02 PM »
Close them without delay. An open credit line is asking for trouble.

Hare of Caerbannog

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Re: My shredder made some new friends
« Reply #2 on: October 20, 2009, 01:59:08 PM »
Close them without delay. An open credit line is asking for trouble.

I agree.
Its never good to have old accounts open anyway.
It can actually be worse on your credit score if you have several inactive but open accounts.

Offline Morning Sunshine

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Re: My shredder made some new friends
« Reply #3 on: October 20, 2009, 04:38:19 PM »
I agree.
Its never good to have old accounts open anyway.
It can actually be worse on your credit score if you have several inactive but open accounts.


[nods]
'nuf said

Offline ubergeek

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Re: My shredder made some new friends
« Reply #4 on: October 20, 2009, 06:06:28 PM »
I agree.
Its never good to have old accounts open anyway.
It can actually be worse on your credit score if you have several inactive but open accounts.

I've actually read to keep the one you've had longest open, because without it, it can appear on your credit report that you've had credit for a shorter amount of time, which creditors see as risk.

I'm not really concerned about it, I've had a house for quite some time, so I'm not worried about not showing a long credit history, so I'll likely go ahead and close them down.

sarahluker

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Re: My shredder made some new friends
« Reply #5 on: October 20, 2009, 06:17:16 PM »
I saw a report late this spring or so that was talking about people who had left their accounts empty, expecting it to stay at a 0 balance, then found fees charged on their account, I believe, because of inactivity.  They were outraged.  You might check that out and see if it was your lender.

Offline ubergeek

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Re: My shredder made some new friends
« Reply #6 on: October 20, 2009, 06:25:18 PM »
Good idea, I'll check that too. That's the main reason I left Bank of America and went to a credit union, unexplained charges kept popping up. I'd call and they would reverse the charges usually without much effort on my part. It all seemed rather shady to me.

Offline 96Charlie

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Re: My shredder made some new friends
« Reply #7 on: October 21, 2009, 02:21:07 PM »
If you close these your FICO score will take a hit.  Doesn't make a sense but I've seen this reported in financial publications repeatedly.

I would recommend holding off if you're going to be applying for any type of credit in the future. 

Also, see if you can get your FICO score before closing one, close it then check your score.  If it hasn't dropped by more than 50 or so points, go ahead and close the other.

Offline DeepSea1985

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Re: My shredder made some new friends
« Reply #8 on: October 21, 2009, 09:26:42 PM »
My preference for credit cards and the unsolicited applications is they become an addition to my fireplace for heat. If you are lacking a fireplace, then send them thru the shredder and compost them...........with the exception of the envelopes that have the free postage return. I fill them with other junk mail I have received and send it back them. Although it's probably a small cost to them, I hope it is an aggravation to them and it's my way to register a small protest...........

Offline TexDaddy

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Re: My shredder made some new friends
« Reply #9 on: October 21, 2009, 09:36:48 PM »
...with the exception of the envelopes that have the free postage return. I fill them with other junk mail I have received and send it back them. Although it's probably a small cost to them, I hope it is an aggravation to them and it's my way to register a small protest...........
I love this idea! I am going to do this from now on. Thanks and +1

Offline Ann

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Re: My shredder made some new friends
« Reply #10 on: October 23, 2009, 02:43:10 PM »
Here is our situation...

We have paid off and closed all of our credit cards but one.  We have saved it for "emergencies".  We have a savings account for "emergencies" too.  The credit card charges us a fee for the priviledge every year whether we use it or not.

This seems like a bad plan to me.  This is because we have not had to use it for "emergencies" in over two years.

We have a great credit score, but really don't care anymore.  We are now on the "Dave Ramsey/Pay Cash or Don't Buy It" plan.  This seems like a much BETTER plan to me.

Now, if I can just convince the DH that we'll be ok if we don't have a credit card...

Offline Imperial Goat

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Re: My shredder made some new friends
« Reply #11 on: October 23, 2009, 03:51:37 PM »


Now, if I can just convince the DH that we'll be ok if we don't have a credit card...

Get that 3-6 month emergency fund up where it needs to be, and no need for an "emergency" cc then.  We are in the same boat as you.  Empty cc, but still holding on to it just in case.  Look at getting a cc from the credit union.  They are usually without annual fees.

Offline ubergeek

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Re: My shredder made some new friends
« Reply #12 on: October 23, 2009, 06:10:39 PM »
The CC I'm keeping is from my credit union, no fees, low rate. I don't plan to use it, if I ever do it'll be purely for survival.

Offline Texasbound

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Re: My shredder made some new friends
« Reply #13 on: October 24, 2009, 06:45:14 AM »
Part of the reason that a credit score drops when you close an account is the credit limit to debt ratio.   If you have no debt, it won't change your ratio.  If you have debt, it will look like you are now closer to maxing your available credit.  Once again, if you aren't planning on getting a loan then don't worry about it.