Too much credit!
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
Your credit limit will go up if you use the card a lot and pay on time. Basically, you show the bank that you will buy stuff on the card, and are responsible enough to pay it, making you less of a risk to the bank. Whenever mine has gone up (I only have one card), the company has always sent me this congratulatory letter (which always makes me chuckle) informing me that I've been rewarded with another $200 of purchasing power. :cool: --Mike-- Personal stuff:: Ericahist | Homepage Shareware stuff:: 1ClickPicGrabber | RightClick-Encrypt CP stuff:: CP SearchBar v2.0.2 | C++ Forum FAQ ---- "Linux is good. It can do no wrong. It is open source so must be right. It has penguins. I want to eat your brain." -- Paul Watson, Linux Zombie
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
"close" the one you never use, or leave the card at home, hidden, so in case of emergency, you can always use it ( for example, someone steal your wallet ). can you ask for a limit reduction ? I would not reduce my limit, even if I never go above 10% of it in normal use; and they always ask me before raising my limit.
Maximilien Lincourt Your Head A Splode - Strong Bad
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"close" the one you never use, or leave the card at home, hidden, so in case of emergency, you can always use it ( for example, someone steal your wallet ). can you ask for a limit reduction ? I would not reduce my limit, even if I never go above 10% of it in normal use; and they always ask me before raising my limit.
Maximilien Lincourt Your Head A Splode - Strong Bad
I second your suggestions. :-) Regards, Alvaro
Give a man a fish, he owes you one fish. Teach a man to fish, you give up your monopoly on fisheries.
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Your credit limit will go up if you use the card a lot and pay on time. Basically, you show the bank that you will buy stuff on the card, and are responsible enough to pay it, making you less of a risk to the bank. Whenever mine has gone up (I only have one card), the company has always sent me this congratulatory letter (which always makes me chuckle) informing me that I've been rewarded with another $200 of purchasing power. :cool: --Mike-- Personal stuff:: Ericahist | Homepage Shareware stuff:: 1ClickPicGrabber | RightClick-Encrypt CP stuff:: CP SearchBar v2.0.2 | C++ Forum FAQ ---- "Linux is good. It can do no wrong. It is open source so must be right. It has penguins. I want to eat your brain." -- Paul Watson, Linux Zombie
Michael Dunn wrote: Your credit limit will go up if you use the card a lot and pay on time. Basically, you show the bank that you will buy stuff on the card, and are responsible enough to pay it, making you less of a risk to the bank. Since my product targets the credit industry, I learned a lot about credit with some pretty good guys I knew (mostly, customers or leads). Some people don't agree with that "increasing" credit limit approach (it was the hype a few years ago), because this will, after some time, give you (the lender) three kinds of customers: 1. People that don't need the credit limit won't use it. 2. People who need will the limit and you'll increase their limit until they do not pay you anymore. When people don't pay you, you lose money. :doh: 3. People whose limit is still low, but some day will become (1) or (2). How smart is this? :~ Yes, even I am blogging now!
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
I once read that it's wise to have two or three - but no more - credit cards open at any given time. Of course, I've since forgotten where I've read that. :) You may want to check this out, though.. there's a good section on understanding your credit score and what you can do to make sure it remains unblemished: http://moneycentral.msn.com/content/CollegeandFamily/Moneyinyour20s/P73746.asp
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
Navin wrote: Or possibly ask to get my credit limit reduced? Why would you do that? Navin wrote: So. Do you think it'd be wise to close one? Do you pay any fee for having it? If so, close it or ask them to give you a fee-free card. Yes, even I am blogging now!
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Navin wrote: Or possibly ask to get my credit limit reduced? Why would you do that? Navin wrote: So. Do you think it'd be wise to close one? Do you pay any fee for having it? If so, close it or ask them to give you a fee-free card. Yes, even I am blogging now!
Daniel Turini wrote: So. Do you think it'd be wise to close one? Do you pay any fee for having it? If so, close it or ask them to give you a fee-free card. No, I don't pay any fees. But all this credit does show up as revolving debt on my credit reports, that's all I'm worried about. "Fish and guests stink in three days." - Benjamin Franlkin
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Daniel Turini wrote: So. Do you think it'd be wise to close one? Do you pay any fee for having it? If so, close it or ask them to give you a fee-free card. No, I don't pay any fees. But all this credit does show up as revolving debt on my credit reports, that's all I'm worried about. "Fish and guests stink in three days." - Benjamin Franlkin
Navin wrote: But all this credit does show up as revolving debt on my credit reports, :omg: In Brazil, this is forbidden! :omg: Yes, even I am blogging now!
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Navin wrote: But all this credit does show up as revolving debt on my credit reports, :omg: In Brazil, this is forbidden! :omg: Yes, even I am blogging now!
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Back in the day, when I was younger, better looking, just graduated university and had no money, I had two credit cards. Neither had a very big credit limit, and before I got a few paychecks from my first job, I really needed them. (Especially when the car broke down!) Now, several years later, I still have those same 2 cards. One I use freqently, but the other I hardly ever use, and both now have unbelievably high credit limits (I never asked for them, they just seemed to go up periodically for no explainable reason.) I haven't worried about this, but apparently open accounts like this do show up as part of my credit repot. So. Do you think it'd be wise to close one? Or possibly ask to get my credit limit reduced? Or does it really matter? "Fish and guests stink in three days." - Benjamin Franlkin
Keep the card open. It will improve your credit score. Periodically charge something on the other card. It's not a bad idea to carry a balance every now and then for several months; it establishes a history of making payments on time. One of the key indicators in calculating a credit score is the ratio of outstanding debt to your credit limit. If you do reduce your limits, make sure the total limit is still at least 3x your average outstanding balance. I've also recently read advise that if your credit report is too short, it may cause a creditor to doubt your credit worthiness (they'll wonder if you're getting turned down a lot for new cards and/or loans.) Another advantage of two cards is to have one in case another is lost or doesn't work. (On a business trip once, my credit card company got suspicious of a transaction that looked fraudulant (the reader apparently failed in the same way fake readers often fail) and shut it off. A simple phone call fixed the problem, but I had another card to use in the meantime.) Anyone who thinks he has a better idea of what's good for people than people do is a swine. - P.J. O'Rourke
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Winters are less harsh in Brazil too. So I think I'm moving. :-D "Fish and guests stink in three days." - Benjamin Franlkin
Navin wrote: Winters are less harsh in Brazil too. So I think I'm moving. It's a nice place to live. But we have a lot of problems, snow would be just a minor annoyance, believe me :) BTW, today is almost winter (June 21st) and here in São Paulo the temperatures ranged 11ºC~24ºC[^]. And this year the weather is colder than usual. :) Yes, even I am blogging now!
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Keep the card open. It will improve your credit score. Periodically charge something on the other card. It's not a bad idea to carry a balance every now and then for several months; it establishes a history of making payments on time. One of the key indicators in calculating a credit score is the ratio of outstanding debt to your credit limit. If you do reduce your limits, make sure the total limit is still at least 3x your average outstanding balance. I've also recently read advise that if your credit report is too short, it may cause a creditor to doubt your credit worthiness (they'll wonder if you're getting turned down a lot for new cards and/or loans.) Another advantage of two cards is to have one in case another is lost or doesn't work. (On a business trip once, my credit card company got suspicious of a transaction that looked fraudulant (the reader apparently failed in the same way fake readers often fail) and shut it off. A simple phone call fixed the problem, but I had another card to use in the meantime.) Anyone who thinks he has a better idea of what's good for people than people do is a swine. - P.J. O'Rourke
Joe is right. Also, the average age of your open credit comes into play. The longer the better. Equifax has some good info on their site. https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=elearning_credit31[^] [ooops replied to the wrong post] :-O BW The Biggest Loser
"People look so snooty, take pills make them moody
Automatic bazootie, zero to tutti frutti"
-Hollywood Freaks -
Keep the card open. It will improve your credit score. Periodically charge something on the other card. It's not a bad idea to carry a balance every now and then for several months; it establishes a history of making payments on time. One of the key indicators in calculating a credit score is the ratio of outstanding debt to your credit limit. If you do reduce your limits, make sure the total limit is still at least 3x your average outstanding balance. I've also recently read advise that if your credit report is too short, it may cause a creditor to doubt your credit worthiness (they'll wonder if you're getting turned down a lot for new cards and/or loans.) Another advantage of two cards is to have one in case another is lost or doesn't work. (On a business trip once, my credit card company got suspicious of a transaction that looked fraudulant (the reader apparently failed in the same way fake readers often fail) and shut it off. A simple phone call fixed the problem, but I had another card to use in the meantime.) Anyone who thinks he has a better idea of what's good for people than people do is a swine. - P.J. O'Rourke
I see lots of different advice. So, I'll just wade in and add my own. Joe Woodbury wrote: Keep the card open I'd say close it - Or have the credit limit reduced. You don't actually say what the limit is so it may be okay. I just reduced the limit on my cards because I could have bought a brand new family sized car on a credit card. Joe Woodbury wrote: It will improve your credit score Or it could make it worse if the credit limit is too high. It all depends on how individual companies score your credit rating. Some may see that you have a high credit limit and even if you are not using it then they will count that against you because it is instanly accessible without you, as the card holder, having to ask any more permission to use the credit. Joe Woodbury wrote: I've also recently read advise that if your credit report is too short, it may cause a creditor to doubt your credit worthiness (they'll wonder if you're getting turned down a lot for new cards and/or loans.) I don't know about else where, but in the UK credit reports have a list of every search made in the last 6 years. The unfortunate thing with that is that it could look like I was being turned down when I was just shopping around, however it does mean that if I have a short report with few searches it means I wasn't looking. Joe Woodbury wrote: Another advantage of two cards is to have one in case another is lost or doesn't work I agree, that is an excellent reason to keep the cards. Although my advice would still be to cap the credit limit for the reasons I mentioned above.
For anyone in the UK who wishes to get hold of their credit report the two main credit reference agencies are: Experian[^] and Equifax[^] and by Law they are required to send you a copy of your credit report for a nominal fee (£2 per report is what Experian charge me - I pay a subscription of £8 to get my report quarterly). Equifax also have an online product that costs a bit more than the paper report but is accessible in a matter of minutes.
"You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar The
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"close" the one you never use, or leave the card at home, hidden, so in case of emergency, you can always use it ( for example, someone steal your wallet ). can you ask for a limit reduction ? I would not reduce my limit, even if I never go above 10% of it in normal use; and they always ask me before raising my limit.
Maximilien Lincourt Your Head A Splode - Strong Bad
Maximilien wrote: or leave the card at home, hidden, so in case of emergency, you can always use it ( for example, someone steal your wallet ). Just be wary that the credit card company might complain (send you letters) saying that you haven't used your card and might even close down the account. Greba, My lack of content on my home page should be entertaining.
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Keep the card open. It will improve your credit score. Periodically charge something on the other card. It's not a bad idea to carry a balance every now and then for several months; it establishes a history of making payments on time. One of the key indicators in calculating a credit score is the ratio of outstanding debt to your credit limit. If you do reduce your limits, make sure the total limit is still at least 3x your average outstanding balance. I've also recently read advise that if your credit report is too short, it may cause a creditor to doubt your credit worthiness (they'll wonder if you're getting turned down a lot for new cards and/or loans.) Another advantage of two cards is to have one in case another is lost or doesn't work. (On a business trip once, my credit card company got suspicious of a transaction that looked fraudulant (the reader apparently failed in the same way fake readers often fail) and shut it off. A simple phone call fixed the problem, but I had another card to use in the meantime.) Anyone who thinks he has a better idea of what's good for people than people do is a swine. - P.J. O'Rourke
Keep the card open. It will improve your credit score. Not necessarily. When you are buying a house, open credit cards with a large limit are considered "potential debt" and can actually be detrimental to the mortgage. The mortgage companies know that when you move into a new house, you are likely to have to spend money on all the little incidentals. Jeff Martin Triple20 Software