I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

On 01/16/2011 09:56 PM, Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. you have to have some credit in good standing for
a really high credit score. they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

nate

--
replace "roosters" with "cox" to reply.
http://members.cox.net/njnagel

On Jan 16, 8:56*pm, Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). *I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. *??? Is this true? *Or is it a marketing
gimmick?

Your real-world experience valued.

HB

Yes,it can lower your score. For example, if you have 3 cards with a
$10,000 limit on each, and a $10,000 credit card debt, you have used
up 33% of your available credit. If you now cancel one of the cards,
you have used up 50% of your available credit and this makes you more
of a risk, in the eyes of the credit folks, even though you haven't
increased your actual debt.

Do you ever watch Suze Ormon on Saturday nights, she is big on this
sort of stuff?

On Jan 16, 6:58*pm, Nate Nagel wrote:
On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). *I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. *??? Is this true? *Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. *you have to have some credit in good standing for
a really high credit score. *they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.

*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB



nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel

On Jan 16, 7:02*pm, "hr(bob) "
wrote:
On Jan 16, 8:56*pm, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). *I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. *??? Is this true? *Or is it a marketing
gimmick?

Your real-world experience valued.

HB

Yes,it can lower your score. *For example, if you have 3 cards with a
$10,000 limit on each, and a $10,000 credit card debt, you have used
up 33% of your available credit. *If you now cancel one of the cards,
you have used up 50% of your available credit and this makes you more
of a risk, in the eyes of the credit folks, even though you haven't
increased your actual debt.

Just effing INSANE! Even for people like moi who never carry a
balance??? It sounds so soulless and mechanical!

Do you ever watch Suze Ormon on Saturday nights, she is big on this
sort of stuff?

She's the one with a lot of teeth? OK, I'll give her a try.

Tx for the "real world" input!

HB

On Jan 16, 9:21*pm, Higgs Boson wrote:
On Jan 16, 6:58*pm, Nate Nagel wrote:





On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). *I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. *??? Is this true? *Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. *you have to have some credit in good standing for
a really high credit score. *they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

That's exactly what I do. *I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.

*of which I was proposing to cancel one. *So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB





nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel- Hide quoted text -

- Show quoted text -- Hide quoted text -

- Show quoted text -

If you don't carry a balance, and don't use up much of your available
credit, then dropping one should not make any significant difference.

On 1/16/2011 10:21 PM, Higgs Boson wrote:
On Jan 16, 6:58 pm, Nate wrote:
On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. you have to have some credit in good standing for
a really high credit score. they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.

*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB



nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel


Ignore it long enough, and their computer will cancel it for you. You'll
get slammed to a different card, or they'll just never send a new one
when that one expires.

--
aem sends...

On Sun, 16 Jan 2011 18:56:06 -0800 (PST), Higgs Boson
wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.


That link says you lose the history of good credit on that card.
If you're never use it it's worthless for credit history.
But it does add onto your "available" credit, and that's not good.
When I got the mortgage on this house I canceled unused credit cards
first, and I always cancel cards I don't use.
Available credit in your hand is potential debt to lenders.
I say dump it.

--Vic

On Sun, 16 Jan 2011 18:56:06 -0800 (PST), Higgs Boson
wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true?

I believe so, yes. Those who talk aobut credit on the radio, who work
for no credit company, have said so.

Even if you still have other credit cards and use them, it's bad to
cancel a credit card.

And my friend who follows what theyse people say, says that's what
they say.

I forget the details of this including when it's okay to cancel one.

For details, this might be a topic better read about on the web than
here.

Why not just let it sit there? Maybe when the banks you're dealing
with now go belly up some day, you'll need it.

Or is it a marketing
gimmick?

Your real-world experience valued.

HB

On Sun, 16 Jan 2011 19:23:11 -0800 (PST), Higgs Boson
wrote:



Just effing INSANE! Even for people like moi who never carry a
balance??? It sounds so soulless and mechanical!

Of course. They don't make the rules for people who pay their bills
right away. Too few of them.

In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

Is it a card you've had for a long time? Longer than your other
cards? Aside from what cancelling it might do to your credit
ratio, your length of credit history accounts for a percentage of
your score, too. Why not just use it once in a while and pay it
off when the bill comes in?

nancy

On 1/16/2011 10:33 PM, aemeijers wrote:
On 1/16/2011 10:21 PM, Higgs Boson wrote:
On Jan 16, 6:58 pm, Nate wrote:
On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. you have to have some credit in good standing for
a really high credit score. they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score
high.

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.

*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB



nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel


Ignore it long enough, and their computer will cancel it for you. You'll
get slammed to a different card, or they'll just never send a new one
when that one expires.

Mine never get canceled without me asking them to. Actually a few times
I had to fight them to cancel my account. I called over and over. I
wrote notes on the $0 balance bill asking them to cancel it. Still kept
sending me monthly statements. I finally fixed the problem. On the
outside of the return envelope I wrote with red marker something like
"To the ****ing ASSHOLES at (name of bank) who won't ****ing cancel my
****ing account" and a bunch more. I filled the front and rear of the
envelope saying what assholes they are. I also packed it full so it
couldn't make it through the automated machinery and had to be handled
by hand. I'll bet a few people there got a few good laughs before
someone higher up saw it. That was the last invoice I got from them. :-)

On Sun, 16 Jan 2011 20:19:39 -0800, Smitty Two
wrote:

In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

Just keep moving money through the account. To the credit reporting agencies
it will look like a balance and you collect the 1%, or better.

On Sun, 16 Jan 2011 23:16:33 -0500, mm wrote:

On Sun, 16 Jan 2011 19:23:11 -0800 (PST), Higgs Boson
wrote:



Just effing INSANE! Even for people like moi who never carry a
balance??? It sounds so soulless and mechanical!

Of course. They don't make the rules for people who pay their bills
right away. Too few of them.

That's actually not true. Only a little over half have carried a CC balance in
the past year.

On 1/16/2011 9:56 PM, Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB


I once carried a large introducory interest rate balance on a card.
(about 1.9%, much lower % than the car I bought with the money) My
balance was about $4500 and my credit limit was $10,000. I asked them
to lower my limit to $5000. Big mistake. Now the credit companies
looked at it as if I had the card almost maxed out! That's a bad thing.

I read ahead and saw you don't carry a balance, so you will be OK
canceling it. But if you carry a balance on one card, it is good to
have more credit available on that and/or other cards. They do like to
see a lot of available credit that you aren't using, but if you have
three cards paid in full each month, you are looking good to them.

On 1/16/2011 6:56 PM, Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

It can definitely lower your credit rating. It's counter-intuitive, but
the way the credit reporting agencies look at it, the greater the
available unused credit the better, because your debt to credit ratio is
lower.

However one strange thing I came across when re-financing my house was
that a high HELOC limit was bad. They said that they treat the HELOC as
if it were maxed out and I were paying the minimum amount each month,
even when it's not being used at all. Yet high limits on credit cards,
that could also be maxed out at interest rates 4-8 times as high, were
not a problem. Or maybe because it's so expensive to get cash advances
on credit cards they are less worried about it. Yet a HELOC is a secured
loan so I'd be much less likely to default on it, while credit card debt
is unsecured.

On 1/16/2011 7:34 PM, Vic Smith wrote:

That link says you lose the history of good credit on that card.
If you're never use it it's worthless for credit history.
But it does add onto your "available" credit, and that's not good.

No, it's good, because it lowers your debt to credit ratio. It's
counter-intuitive, but that the way it works.

Well, I cancelled most of my cards two years ago and some of them
threatened my credit, but I didn't notice.



- = -
Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist
http://www.panix.com/~vjp2/vasos.htm http://www.facebook.com/vasjpan2
---{Nothing herein constitutes advice. Everything fully disclaimed.}---
[Homeland Security means private firearms not lazy obstructive guards]
[Urb sprawl confounds terror] [Phooey on GUI: Windows for subprime Bimbos]

I cancelled a bunch of credit cards a couple of years ago and my
credit score's quite high.

One thing, though, is that it seems to have gone up when the one loan
I did have went away. It was a 0% loan for the purchase of some
equipment, but it was somewhat incorrectly reported as a fully-tapped
credit line (which hurts your credit). When I paid it off my score
went up. Of course the cash I used to pay it off was no longer
available to me, so my actual financial situation didn't change.

In theory one's credit score is a somewhat accurate reflection of your
debt-paying ability but that's on average- it's still got a lot of
problems:

1. They don't know how much money you have- you could have a million
dollars in investments, or no savings. They also probably don't know
what your house is worth, or even that you might own three or four of
them.
2. Having more credit (unused cards, for example) is seen as a
positive. In theory this is good for them because it's a source of
cash if you need to pay other debts- borrowing from Peter to pay Paul
is okay if you're Paul-- but it's stupid because if people get into
financial trouble they will max out their credit cards.
3. They have no way of knowing how secure your employment is, nor how
much your income varies from year to year in the same job.
4. They don't really even know how much you make. Sure, the credit
card companies ask you- but they rarely if ever check (I know because
they have always asked for my work phone # and only once did someone
call to check, a long time ago, and whom did they ask? ME!).

A friend of mine got a high credit limit because he was self-employed
and they asked his household income. He took their question literally-
he was living in a house with about a dozen other people, so he gave
them a high number.

To answer your question- if you have enough other credit you're not
using, cancel away. Although if you're about to get a mortgage you
might not want to change anything right now.

"Smitty Two" wrote in message
news
In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

----------------

Outstanding balance means paying interest. At 20% interest per year for
many cards, you think that's wise?

Think carefully about what types of outstanding balances are good and bad.

In article ,
SMS wrote:


However one strange thing I came across when re-financing my house was
that a high HELOC limit was bad. They said that they treat the HELOC as
if it were maxed out and I were paying the minimum amount each month,
even when it's not being used at all. Yet high limits on credit cards,
that could also be maxed out at interest rates 4-8 times as high, were
not a problem. Or maybe because it's so expensive to get cash advances
on credit cards they are less worried about it. Yet a HELOC is a secured
loan so I'd be much less likely to default on it, while credit card debt
is unsecured.

The HELOC is another encumberance on the same property. So, you were
probably hit more because the HELOC (even though unused, but could be)
effectively lowered your equity in the house. If you were buying a car
instead of refinancing a house, it probably wouldn't have impacted as
much.

--
"Even I realized that money was to politicians what the ecalyptus tree is to koala bears: food, water, shelter and something to crap on."
---PJ O'Rourke

"Higgs Boson" wrote in message
...

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

--------------

A trend is appearing that unused credit accounts will be subject to yearly
account fees. Like $25 or $35 a year fees. That's what they are starting
to do in Canada and our banking system is a lot stronger than the American
for the time being. I'm surprised it hasn't happened yet in the US.

For security and peace of mind if it were me. It's another account that's
open to fraud or misuse to theft etc etc.

I'd cancel the card and stop worrying about credit score. Your credit score
fluctuates every day anyways. As long as you are over 750 you'll always be
entitled to the best rates.

Higgs Boson wrote:

*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB


Keep it. They're only going to charge you $5-15 per month handling fee.

On the other hand, a poor rating from BoA will be ignored by everyone else.

On 1/16/2011 10:21 PM, Higgs Boson wrote:
On Jan 16, 6:58 pm, Nate wrote:
On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. you have to have some credit in good standing for
a really high credit score. they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.


They just don't like as as much. Since they are still inserted into the
transaction they get to collect the non-trivial merchant fees which the
merchant is not allowed to display.


*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB



nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel

"hr(bob) " wrote:

On Jan 16, 8:56*pm, Higgs Boson wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). *I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. *??? Is this true? *Or is it a marketing
gimmick?

Your real-world experience valued.

HB

Yes,it can lower your score. For example, if you have 3 cards with a
$10,000 limit on each, and a $10,000 credit card debt, you have used
up 33% of your available credit. If you now cancel one of the cards,
you have used up 50% of your available credit and this makes you more
of a risk, in the eyes of the credit folks, even though you haven't
increased your actual debt.

Well explained. I have a 8-10 Chase cards. If they want to
pay me to open a card-- I open it. I use it once- pay it off, get
my bonus, and throw it in the safe.

A couple weeks ago I got 3 letters from Chase in the same mail.
1. You don't use this card- so we're closing it. [a $3000 limit]
2. You don't use this card, so we're closing it. [another $3000 card]

Now I'm getting concerned that they have decided to lower my available
credit by $9000. [not because I would use the cards- but because of
the credit score] I was sure the 3d was the same thing as I have
several other cards I don't use.

Nope-- The 3d letter-- A review of your credit history tells us this
card will be the best fit for you. If you choose to use it we will
credit your account $100 30 days after its first use. Credit limit
$10,000.

Thanks Chase.g

Jim

On 1/16/2011 10:24 PM, hr(bob) wrote:
On Jan 16, 9:21 pm, Higgs wrote:
On Jan 16, 6:58 pm, Nate wrote:





On 01/16/2011 09:56 PM, Higgs Boson wrote:

I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

it is somewhat true. you have to have some credit in good standing for
a really high credit score. they also look at things like debt to
credit ratio.

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.

*of which I was proposing to cancel one. So is the consensus that I
just should let it sit there, unused, rather than cancel it?

HB





nate

--
replace "roosters" with "cox" to reply.http://members.cox.net/njnagel- Hide quoted text -

- Show quoted text -- Hide quoted text -

- Show quoted text -

If you don't carry a balance, and don't use up much of your available
credit, then dropping one should not make any significant difference.

And what does it really matter? To get an uber good credit score you
have to totally run your financial life their way. Don't plan for any
purchases by saving, buy things you can't afford and carry a balance but
just make sure you pay it on time.

On 1/16/2011 11:19 PM, Smitty Two wrote:
In ,
Nate wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

Absolutely, "credit score" is simply an indicator of how much money
banks can make on you. If you are carrying a balance and paying it off
on time that maximizes the profit for the bank.

If you pay on time they still get the merchant fees that a merchant must
imbed into their selling price but they don't get the more lucrative
interest. If they have to pursue you for money then it costs them.
Carrying a balance and paying on time makes you a extra good customer
who earns a high score..

On 1/16/2011 11:42 PM, zzzzzzzzzz wrote:
On Sun, 16 Jan 2011 23:16:33 -0500, wrote:

On Sun, 16 Jan 2011 19:23:11 -0800 (PST), Higgs Boson
wrote:



Just effing INSANE! Even for people like moi who never carry a
balance??? It sounds so soulless and mechanical!

Of course. They don't make the rules for people who pay their bills
right away. Too few of them.

That's actually not true. Only a little over half have carried a CC balance in
the past year.

But your statistical sample period is way to small to catch the period
not too long ago when it was a good thing to not even have a budget.
Just simply buy what you wanted because somehow it would work out.

If you pay on time they still get the merchant fees that a merchant must
imbed into their selling price but they don't get the more lucrative
interest. If they have to pursue you for money then it costs them.
Carrying a balance and paying on time makes you a extra good customer
who earns a high score..

--------------

Paying on time means paying what they ask (usually 5% of outstanding balance
plus interest per month), not paying off the entire balance at once. If you
pay off the entire balance every month or every billing cycle, they ain't
making money off you and you are not an extra good customer.

George wrote:

Absolutely, "credit score" is simply an indicator of how much money
banks can make on you. If you are carrying a balance and paying it off
on time that maximizes the profit for the bank.

Here is what determines your credit sco

http://www.myfico.com/crediteducatio...yourscore.aspx

I'm at the point where I don't carry any balances and it doesn't
hurt my score.

nancy

Higgs Boson wrote the following:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB



Don't cancel it.
http://www.creditcards.com/credit-ca...score-1267.php

--

Bill
In Hamptonburgh, NY
In the original Orange County. Est. 1683
To email, remove the double zeroes after @

On Mon, 17 Jan 2011 07:30:58 -0500, "The Henchman"
wrote:



"Smitty Two" wrote in message
news
In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

----------------

Outstanding balance means paying interest. At 20% interest per year for
many cards, you think that's wise?

Think carefully about what types of outstanding balances are good and bad.

No, it doesn't -- the credit report only shows your average and
maximum balances (If I recall my last one correctly), and whether you
"pay as agreed" or have late payments. Charging and paying it off
without interest every month shows up the same as paying less (with a
similar ending balance, of course). Unless something's changed in the
last year or so?

Josh

A couple of years ago I looked at my mother's credit report.

Her Gimbels store credit account was listed as open and in good
standing. Pretty good for a company that went out of business over 20
years earlier. But since the company went broke and never reported
this to the credit reporting agency the account stayed listed. You'd
think somebody at the credit agency would have figured this out at
some point during 20 years and delete all the references to Gimbels
and other closed businesses, but they didn't.

20 years ago when I took a job at a bank I found out that they'd run a
credit check on me as part of the hiring process. I asked if I could
see it and they said "Sure." It listed a $20,000 loan from a company
called BoWest Financial. Called my parents, asked whom their mortgage
was with. They said Bowery Savings Bank. Aha, their mortgage was on my
credit report.

Called the credit bureau, asked them to take it off. They said I
probably co-signed the mortgage. I said "I was SEVEN." Asked them to
take it off the report. The person on the other end of the phone said
it was my fault, because I waited months from the time the credit
report was run to when I called (I didn't know about it at the time,
not that this was relevant). I said that the report was inaccurate and
that the passage of time didn't make it so, that they screwed up. By
the way, as an adult I never lived with my parents and I don't have
the same first name as either of them.

And yet lenders rely on credit scores for lending decisions! Okay,
having some information is better than no information but it's far
from a perfect system, especially when it looks only at debt and
availability of credit, and not at assets nor income and expenses.

Copyright 2011 by Shaun Eli.

In article ,
"Nancy Young" wrote:


Here is what determines your credit sco

http://www.myfico.com/crediteducatio...yourscore.aspx



Interesting, but ultimately almost uselessly vague.

George wrote:

On 1/16/2011 10:21 PM, Higgs Boson wrote:
-snip-

That's exactly what I do. I NEVER carry a balance on any of the three
cards* I have ( four, with the new Visa).
They hate people like us, nyah, nyah, nyah.


They just don't like as as much. Since they are still inserted into the
transaction they get to collect the non-trivial merchant fees which the
merchant is not allowed to display.

Zackly-- I haven't paid any CC interest in a decade. They pay me
about $100 a month in rewards. My credit is excellent- I don't know
the numbers, I just see the dealer's face light up when I go for a car
loan.

Jim

On 1/17/2011 8:23 AM, Jim Elbrecht wrote:
"hr(bob) wrote:

On Jan 16, 8:56 pm, Higgs wrote:
I want to cancel a Visa that I never use (from Bank of America, tfui,
tfui). I searched long and hard on their Web site to find a link, and
finally came across the following:

http://tinyurl.com/48p2qo7

They "threaten" that cancelling a card might lower one's credit
score. ??? Is this true? Or is it a marketing
gimmick?

Your real-world experience valued.

HB

Yes,it can lower your score. For example, if you have 3 cards with a
$10,000 limit on each, and a $10,000 credit card debt, you have used
up 33% of your available credit. If you now cancel one of the cards,
you have used up 50% of your available credit and this makes you more
of a risk, in the eyes of the credit folks, even though you haven't
increased your actual debt.

Well explained. I have a 8-10 Chase cards. If they want to
pay me to open a card-- I open it. I use it once- pay it off, get
my bonus, and throw it in the safe.

A couple weeks ago I got 3 letters from Chase in the same mail.
1. You don't use this card- so we're closing it. [a $3000 limit]
2. You don't use this card, so we're closing it. [another $3000 card]

Now I'm getting concerned that they have decided to lower my available
credit by $9000. [not because I would use the cards- but because of
the credit score] I was sure the 3d was the same thing as I have
several other cards I don't use.

Nope-- The 3d letter-- A review of your credit history tells us this
card will be the best fit for you. If you choose to use it we will
credit your account $100 30 days after its first use. Credit limit
$10,000.

Great! You get your bonus again!!!

In article ,
"The Henchman" wrote:

"Smitty Two" wrote in message
news
In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

----------------

Outstanding balance means paying interest. At 20% interest per year for
many cards, you think that's wise?

Think carefully about what types of outstanding balances are good and bad.

No, I don't think it's wise, at least not for me in my current
situation. I'm just saying that I've heard it's better for one's credit
score to *not* pay in full every month. I do carry a balance on one
card; I bought a car with it a few years ago and it's fixed at 1.99%.

In article ,
Josh wrote:

On Mon, 17 Jan 2011 07:30:58 -0500, "The Henchman"
wrote:



"Smitty Two" wrote in message
news
In article ,
Nate Nagel wrote:

I've heard tell that occasionally using a credit card but always keeping
it paid off every month is the best strategy for keeping ones score high.

And I've heard that it's better to have an outstanding balance with a
history of regular payments.

----------------

Outstanding balance means paying interest. At 20% interest per year for
many cards, you think that's wise?

Think carefully about what types of outstanding balances are good and bad.

No, it doesn't -- the credit report only shows your average and
maximum balances (If I recall my last one correctly), and whether you
"pay as agreed" or have late payments. Charging and paying it off
without interest every month shows up the same as paying less (with a
similar ending balance, of course). Unless something's changed in the
last year or so?

Josh

Do you have a cite for that, Josh? I'd like to see something definitive,
and all we're doing so far in this thread is trading opinions based on
what each of has heard in the rumor mill.

Outstanding balance means paying interest. At 20% interest per year for
many cards, you think that's wise?

Think carefully about what types of outstanding balances are good and bad.

No, it doesn't -- the credit report only shows your average and
maximum balances (If I recall my last one correctly), and whether you
"pay as agreed" or have late payments. Charging and paying it off
without interest every month shows up the same as paying less (with a
similar ending balance, of course). Unless something's changed in the
last year or so?

-----------------

I wasn't talking about credit report score activity when I made my statement
about outstanding balances being good or bad. I was referring to the fact
that 20% revoling interest per annum per dollar leaves your pocket when you
carry credit card balances forward. Paying 20 cents per year for every
dollar you carry forward make good financial sense to you? It's one thing
to borrow money to purchase a moderately priced reliable automobile, decent
housing, a good education, small business loans. Those are good debts and
are far less than 20% interest.

When you willingly carry a credit card balance at 18 to 21% per annum do you
think that's wise money management? Of course it looks good on a credit
report. Does it look good in your empty wallet?

Me I'll take the lower credit score and instead of paying 20% to a credit
card issuer, I'll park my balance into a nice little 5% dividend yielding
blue chip stock or a nice 4.15% 30 year bond fund in a tax shelter. Let's
see FICO give a score on that type of monthly balance.