Looking for a secondary credit card
10 years ago
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I want to quit credit cards!
Comments (35)Tricia It was my understanding the opt out stops anyone from taking a look see at your credit to know how much credit they will offer when sending a credit card offer?? As far as anyone you already have a relationship with I just called the few we got and ask to be put on their opt out list. I even opted out of our own bank, credit union and savings institutions. The only thing I get is statements and notices when a CD is coming due. We didnt get any junk mail for years until a few months ago. I will be turning 65 this year and am now getting 8 to10 offers a week from every insurance company in the world. At first I was calling and asking them to please take me off the mailing list but now have just given up and shred everything. I would like to know how I got on these lists but havent found an answer yet. SS and Medicare both say they do not share any information. I am even getting this junk addressed to me at my dads address. Very frustrating for him. We dont have home mail delivery so even my post master if upset that he cant get all my mail in my P.O. Box. I told him to just send it back but of course he cant. As far a credit scores I will never understand how that works. About 12 or so years ago our accountant ask me how many credit card I had in my wallet. We got to figuring it out and came up with an obscene amount of available credit. I had cards for way to many department stores that I never used. I had had them for years so the limits were high. I closed everything but the one credit card that was tied to our checking account and the debit card for the same account. I had our bank set out credit limit at ten thousand so it never goes any higher. I pay it off every month. I also had them set the limit on our debit card higher so each of us has a thousand dollar a day limit. When DH ordered me a new car a few years ago he was told we have the highest credit score the dealership had ever seen and mine was 2 points higher that his. I havent worked in over 20 years so how does that happen? I check our accounts every morning as soon as I get on the computer and pay the credit card from the checking account as soon as the cycle ends. We have one of those very old gold accounts so we dont have any fees or pay for anything including cashiers check and travelers checks. The manager at the bank told me to never close it. I pay all our bills on line and never have had a problem. So my next question is should I keep the checking account statements or just shred them? Claudia...See MoreCredit Scores and Open Credit Cards
Comments (3)DH & I also have several cards with no balance on them. We will be applying for a mortgage soon, so I asked my banker this question. He told me to cancel the majority of the cards, but to keep either a couple with fairly low limits or one card with a pretty decent limit. He said that banks like to see someone have $30,000-$40,000 worth open credit on cards (depending on your income). He says that lets them know that you have a source of available money that you can access quickly. He said they don't like to see huge amounts of open credit because that shows the potential for a problem. We pulled our own credit reports & they said that the amount of unused credit we have may actually be hurting our score. We have only a tiny fraction owed but a lot of open credit. Another thing my banker & the credit report mentioned was the ratio of how much you owe to the amount of open credit. Example: If you owe $5,000 & have two cards with a total credit limit of $20,000, cancelling one card that has a $10,000 limit can actually hurt you. Instead of having a balance that equals one quarter of your available credit, you will now owe an amt. equal to half of your available credit. If you want to cancel, make sure you write a letter to the credit card company & keep it & proof that you mailed it on file. Make sure to request that they note in your file that the card was cancelled at your request. Having a lender cancel your card can hurt your credit score. If you won't be applying for a loan any time soon, you can just leave them & they will drop off of your credit report after a few years....See MoreCash back and/or reward credit cards?
Comments (17)Thank you all for your suggestions. However, it unfortunately seems that here in Europe these cards are limited. I only found two cash back cards that pay money, one I'm not eligible for as you need a very large monthly spend for it to pay out (no point spending more to save), and the other is from a company I simply don't like. Other cards were linked to expensive or non-local shops I don't shop at. However, I discovered that the supermarket I almost always shop at offers a card that allows you to collect club card points anywhere you use it, which relate to 1% off everything, and double points in the store that issues it. I already spend around £1200 a year in this shop for many food and household items, so I will be able to indirectly turn all the points I collect in to real money savings. You can also turn the points in to vouchers of higher value, but they're for various products I wouldn't normally buy, so I'll just use them to save on things I do buy. If anyone is considering one of these cards, I'd suggest checking out your usual shops to see if any of them offer credit cards with rewards. Being able to use the rewards in shops you can easily get to and consider good value for money is worth far more than collecting seemingly huge rewards for shops you don't like, can't easily get to, and potentially are more expensive, thus reducing the value of the rewards....See MoreWhen did credit cards start doing this?
Comments (44)While it is true that credit ceilings are based on income and opening new cards requires income verification, credit scores themselves have little or nothing to do with income. One thing to remember when closing cards is to try to always keep the oldest and keep it active by occasional use. My own credit score took a hit when I payed off my vehicle. I pay them off early. I was still in the very good/excellent numbers but still a 24 point hit just for paying off a loan. That's the account diversity part. But it is inching back up and now I am in a good time of closing or opening new credit again and not having hard inquiries affect me much if at all. Another thing to watch for is cards that "upgrade" you to rewards cards and such. Some do it automatically, others have an opt out feature. For example some stores will upgrade you to a store card to a combined use anywhere Retailer/Mastercard for rewards. Often these upgrades are reported as new accounts creating a hard inquiry on you record....See More- 10 years agolast modified: 10 years ago
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