Comments on: Drowning in Debt? Don’t Make This Credit Card Mistake

By: OfferCreditCards.net

OfferCreditCards.net — Mon, 14 Sep 2009 11:40:53 +0000

I think there’s a trap behind if you can close your account or not. The reason why I said that is why would it affect someone credit rating if someone close a credit card account? The best thing that you can do to avoid any problem is to leave the credit card opened without using it.

By: Joe the non believer

Joe the non believer — Mon, 02 Mar 2009 21:14:36 +0000

I’m curious about your rationale of not closing an account. I’ve heard that an individuals credit report is actually 2 different reports, one that a consumer sees with partial info and one with your entire credit history from day one used by banks , the industry, etc. I would love to be enlightened with the truth.

By: Old Poor Richard

Old Poor Richard — Sat, 07 Feb 2009 03:17:46 +0000

Glad to see the great advice. I’ve read lately about angry people closing credit accounts when rates get jacked up or limits are lowered. They’re only hurting themselves, like smashing their own car with a ball bat when they’re mad about getting a parking ticket. Transfer your balance then keep the old high rate card with no debt on it.

By: Alvinsmith

Alvinsmith — Mon, 02 Jun 2008 11:48:56 +0000

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By: Anonymous

Anonymous — Fri, 25 Apr 2008 14:27:20 +0000

Though it may sound like a good idea to cut up the cards, I would prefer to have them available should I ever need them. The great suggestion was made to lock them up with other items. Also, though they are paid off make sure to check on them periodically online and by getting a free credit report every 4 months.
As Bob said, make sure to look at the intro rate expiration date. It is usually best to take a rate that has no expiration if you plan on paying it off but it’ll take longer than the intro rate’s expiry date.
The problem with taking rates that expire is that you don’t just get stuck with extra interest for what you have left — the card company will have accrued the interest over the period and can stick you with a HUGE lump sum of interest. Always read the fine print before you sign.

By: Joe

Joe — Fri, 28 Mar 2008 17:45:40 +0000

TheHungryDollar makes a good point about people thinking they’re doing a good thing canceling their cards. Another thing I see a lot of people do is avoid debt entirely, thinking that having no debt is really good for their credit score.

What they fail to consider is the lender’s point of view and that it is difficult to tell if a person with no debt history is a high risk or low risk borrower. Given that unknown, most reputable lenders will likely err on the side of caution and assume they are high risk!

By: Mark @ TheLocoMono

Mark @ TheLocoMono — Wed, 26 Mar 2008 02:05:46 +0000

If you really want to keep the card but keep it out of sight, you can always put it in your safe deposit box where you might keep your passport or will.

By: Bob

Bob — Tue, 25 Mar 2008 19:17:43 +0000

Watch out when transferring large balances to 0% introductory rate cards. Look at the rates after the introductory period and make sure they are not higher than the card your transfering from.

By: thehungrydollar.com

thehungrydollar.com — Tue, 25 Mar 2008 17:07:57 +0000

“Even if it’s bad history, you don’t want to make it disappear.”

Not enough people realize this. They’re so excited about paying off a credit card that the first thing they do is call and cancel it. Good on them for paying it off, bad on them for canceling the account. Like Linda says, just cut it up instead.

By: Hannah

Hannah — Tue, 25 Mar 2008 17:07:14 +0000

Good tips! Another one I would add is to always wait for your statement before paying the balance. I know a number of people who when they got their first credit card to build credit went home and paid the balance every day instead of after their statement came (but before the due date of course!). Their credit wasn’t as good as it could be as the credit reporting companies didn’t see that they used their card, as their statement balances were near zero.