Cancel credit card ?

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Years ago I've had them raise the limit on an unused card. A month or so ago I had Chase close 2 $3000 cards, and send me a new $10000 card with a $100 reward if I used it. All in the same mail.
I think if a limit was lowered, it wasn't just because the card was unused.
Jim
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There was a time a couple of years ago when banks were trying to reduce the amount of regulatory capital they had to hold so they were cutting credit lines where they thought it wouldn't affect their business much (or any).
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wrote:

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.
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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?
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wrote:

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

She's the one with a lot of teeth? OK, I'll give her a try.
Tx for the "real world" input!
HB
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On Sun, 16 Jan 2011 19:23:11 -0800 (PST), Higgs Boson

Of course. They don't make the rules for people who pay their bills right away. Too few of them.
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That's actually not true. Only a little over half have carried a CC balance in the past year.
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On 1/16/2011 11:42 PM, snipped-for-privacy@att.bizzzzzzzzzzzz wrote:

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.
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You listen to the Nightly News too much. The situation has bettered somewhat, but it wasn't just all of a sudden that almost half of the people paid off their CCs. Not everyone maxed out on their home equity, either.
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On Mon, 17 Jan 2011 18:22:13 -0600, " snipped-for-privacy@att.bizzzzzzzzzzzz"

It would still be a lot bewtter to know figures for years ago, when the credit card company rules referred to were made.
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You can probably find them on the web.
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On 1/17/2011 7:22 PM, snipped-for-privacy@att.bizzzzzzzzzzzz wrote:

There is a nightly news? What time does it come on?
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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
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On 1/17/2011 8:23 AM, Jim Elbrecht wrote:

Great! You get your bonus again!!!
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On Sun, 16 Jan 2011 18:56:06 -0800 (PST), Higgs Boson

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
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wrote:

Lots of apples and oranges. My reading of the debt/credit ratio component of FICO scoring is the debt part is based on revolving credit balance. So if you don't carry a balance the ratio is always sterling. And even if you occasionally carry a balance, since FICO is periodically recalculated, having useless credit cards around is senseless, especially if they are sending you zero balance bills and adding to the junk mail.
Much of this FICO stuff is lender and CC scamming. They want you to keep the card so they get transaction fees. FICO is a decent tool for creditors, but way too much of it made for those who pay their bills on time and use their CC's as a convenience, and not as a loan machine Of course the FICO algorithms are "trade secrets."
You're right about the debt/credit ratio having a FICO score effect for those with revolving credit balances. But you can't say how much. That factoring is a "secret." Good way to scare those folks to get more credit cards, get into more debt, and ultimately increase the already usurious interest rates on their cards.
When I got my mortgage in 1997 my mortgage broker told me to cancel unused cards. I had a hefty balance on one card. And a couple other unused cards with high limits. According to him the lenders didn't like all the "available credit." So FICO was only one criteria they used. Of course lenders had a sense of fiduciary responsibility then. Similarly, insurance companies use a modified "insurance FICO" to assign risk and determine premiums - some of them don't use FICO at all. It's all "trade secrets" of course.
No question that you don't want a poor FICO score. And you want to avoid felony convictions too. But for the average Joe who pays his bills on time and doesn't carry a CC balance, you don't have to worry about it. Certainly not enough to listen to bankers threatening your FICO score if you don't keep their credit card.
--Vic
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I get a real kick out of the commercials for the credit score "monitoring" people. They keep an eye "on all three of your credit scores", while the one used most often and probably the most important (the FICO) isn't included. Is to guffaw.
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koala bears: food, water, shelter and something to crap on."
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On Sun, 16 Jan 2011 18:56:06 -0800 (PST), Higgs Boson

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.

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Higgs Boson wrote:

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
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On 1/16/2011 9:56 PM, Higgs Boson wrote:

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.
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