Question about C.Cards

[Chaser2006]

Hi, I have heard mixed things about C.Cards. I have paid mine off, but the question is, Is it not a good ideal to call the places up and close them and only keep 1 or 2 open? I think it was Susie that says not to close them, but not sure!
Thanks for the info

[Greebo]

Suzie Orman believes in keeping a good credit report so you can borrow if you need to.

Dave Ramsey believes in saving money so you never need to borrow, because if you hit a point where you NEED to borrow, then you're already in over your head and debt won't make the situation better.

I lean towards Dave's view. If debt is a good thing to get into *only* when times are good (which Suzie says when times are tough, don't take on new debt, I believe) then what you have is one view that's only good during good times (Suzie), and one view that's always good (Dave).

Since *I* certainly cannot predict when times will stop being good, I'd rather do away with debt altogether and save up money so I never have to borrow again. If I do that, then I dont' need a credit score, so I don't need credit cards.

[Denvergirlie]

I have 2 credit cards, use one of them on rare occasions.. plane tickets, etc.

I keep them only because we don't own a home yet, thus still need a good credit score to help with approval on future mortgage.

I also keep the one as a back up emergency fund. I have money in a real EF, but it would take me a few days to transfer those funds and if I ever got a flat tire or whatever, I can use that card for the few days.

I've done this one thus far, worked out fine, charged it on Discover, went home tranferrred funds, 3 days later I went online and paid off Discover.

This is PERSONAL finance we are talking about, so only you can answer that question of what your situtation will dictate. If you already own a home and have a ready access EF, then those cc might not be as much as a need for you and yours.
We don't own a home and have all other debts paid off, so for us we keep the credit line open and use the cc from time to time just to keep our credit score healthy.

[frugalbabe]

You need to keep a cc open for six months for it to count on your credit rating. If you are disciplined and know you won't go back to using them than I think it's a good idea to keep them open just to build up your credit rating (just personal opinion) this has been our strategy and our credit rating is 700+. However, you will notice from my sig I currently do have cc debt but I have since become much more financially responsible and now I have my growing EF in place so the cc just isn't used anymore. PLUS after spending 3 months hammering the card and I only have about $400 less on it to show I HATE these cards so while I will keep mine open I will not use it unless it's to buy something on-line and pay it off immediately. And I do think it is important to keep your credit score good if you ever plan on buying a new home it is your credit score that will determine your rate.

[LexTysMommy]

I personally have 2 credit cards. I have not personally closed any credit cards. The places have closed them since I have not charged on them. I figure that is the way i will go, and NEVER apply for credit again.

[fixer]

I think it is okay to keep credit cards. This is where I disagree with DR. If you do not possess the disciple to not overspend, you have bigger problems than just having a credit card. DW and I use credit cards for almost everything and the balance automatically is paid from our checking account. Spending money is the same for us whether it is paper, plastic or cash. I have always found the assumption that because you have credit cards you will overspend to be particularly insulting.

[Russ]

DW and I use credit cards for almost everything and the balance automatically is paid from our checking account. Spending money is the same for us whether it is paper, plastic or cash.

This is what my wife and I do but I pay it via bill pay. I will admit it is VERY painful to see the size of that bill sometimes but it ALWAYS gets paid in full every month.

[Greebo]

Spending money is the same for us whether it is paper, plastic or cash. I have always found the assumption that because you have credit cards you will overspend to be particularly insulting.

But it isn't an assumption. It is a statistic based on actual statistical research.

Your ability to keep your spending stable whether using cash or credit is a positive that puts you in the minority.

[fixer]

Your ability to keep your spending stable whether using cash or credit is a positive that puts you in the minority.

Thanks Greenbo, that could be the first time I achieved minority status. I still believe it come down to discipline and self-control. If you have a problem spending, the removal of credit cards does not address the issue.

[Greebo]

Thanks Greenbo, that could be the first time I achieved minority status. I still believe it come down to discipline and self-control. If you have a problem spending, the removal of credit cards does not address the issue.

*sigh*
There still isn't an N in my name.

But anyway, I agree only to a point. A person with a spending problem and cash can only go broke. A person with a spending problem and credit cards can go into debt.

0 is better than a negative number...

[fixer]

*sigh*
There still isn't an N in my name.

But anyway, I agree only to a point. A person with a spending problem and cash can only go broke. A person with a spending problem and credit cards can go into debt.

0 is better than a negative number...

Where did that "n" come from anyway? My point is that whether you have a spending problem with plastic or a spending problem with cash, the problem is the same. Also, the way the government bailout is looking, maybe a negative number is better.