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Discussion Starter #1
Ok I just called 6 credit card companies and cancelled them, I went through my credit report and picked out the ones most recently opened as to keep the long standing ones even though I didn't use them.

I also called C1 about why my credit limit always says $0 when it's $3600, she said they are changing that and no longer just reporting your high credit/credit used but also C1 is going to start listing your entire credit limit as well, now she said this year and well I am skeptical, we will see.

I know there was talk of this before on FV about that may hurt your credit score, I told her I will check in 1-2 months to see if what she says is true otherwise C1 is hurting my credit instead of helping it by not reporting the correct information, if it's not changed I will be cancelling that account as well. She understood.

I dont care if cancelling these cards will hurt my credit score, I took a peek at my credit report and I have like 25 open account none of which i have used in over a year and figured why have all these accounts, I have 1 from 2001 and 2 from 2003 that I kept open, other ones are a paid off car loan, mortgage (that we refinanced, now mortgage is solely in DH's name so it doesnt show on my credit report), leasecomm when I ran an online business, etc... I am just feeling very proud of myself and in 2 months time I will check my credit score to see if it hurt me or not, right now I am at 742 and I dont owe anyone anything, so we will see. I am crossing my fingers.

Has anyone done the same thing and what were your results? Did your credit score go up or down?
 

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Cancelling credit cards can decrease your credit score by as much as 5 points per card I think. There's an article on msn money about it. But if you are at a 742 with no debt in your name, I'd say you are still good to go.
 

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You go girl!! Isn't it satisfying to know you can say cancel it?! I was in the same mood today and closed 8 of them. One tried to keep my business by giving me an offer they thought I couldn't refuse. To lower my interest rate from 19.99% to 18.24% and she was serious! Took me about a nanosecond to say NO, just close the account. LOL Walmart tried to keep me by reminding me I can save 3 cents per gallon on gas, I politely declined while reminding her that I had just told her my nearest Walmart is 3 hours away! Proving they don't listen to a word we say...
 

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Discussion Starter #5
I mean I dont want my score to get bad but these are accounts opened in 2006 that were never used, I thought that your credit score is based on length of account, payment history, etc... they also say opening a new store credit account can decrease your credit score by 20 points per card because most stores will offer credit to anyone.
 

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Discussion Starter #6
You know I've just been thinking, I dont plan on getting any new credit for anything in the next couple of years anyway so even closing those account while it might lower my score now, in the long run it wont hurt me as I wont be trying to get new credit in the near future.

I was just at the bankrates site and my fico score is in the range of 725-770, now that is with the simulator, I recently paid off DH's credit cards and he's at a 742, 2-3 months ago he was at 757 (until he used up some credit, which brought his score down but now again are paid in full and he applied for a new cc a few months ago).

I think I will just continue to do as I have been doing and not use my credit cards for large purchases, it does say to keep a good score to purchase something small and pay it off when the statement comes, creditors look at this as a great sign of repayment should I need credit in the future. While closing CC's does NOT take it off your credit report it does say "Account closed at consumers request" which let's other creditors know that the account was not closed due to non-payment, collections, etc...

It took me over 2 years to clean up my credit the legal way and that's by paying off collection accounts, talking to creditors about changing info. on my credit report to a positive note after re-payment, etc...

I say to others that if you dont plan on applying for any type of credit and really dont want those pesky cc's just sitting in the drawer, close them, while it may hurt your score a bit to me it shows financial stability and smarts and it will also make you feel good :)
 

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Personally I think credit is partially determined by a voodoo preistess waving chicken parts over a fresh grave during the full moon. Seriously, the formula is so complicated that you just can't say "if I do X, then my score will be Y".

You're smart to close inactive accounts if only because folks with oodles of accounts make fabulous identity theft victims. If you have a zero balance and don't receive monthly statements, an ID thief could have a hayday before you ever knew what hit you.
 

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Personally I think credit is partially determined by a voodoo preistess waving chicken parts over a fresh grave during the full moon. Seriously, the formula is so complicated that you just can't say "if I do X, then my score will be Y".

You're smart to close inactive accounts if only because folks with oodles of accounts make fabulous identity theft victims. If you have a zero balance and don't receive monthly statements, an ID thief could have a hayday before you ever knew what hit you.

:rollsmile that was a wonderful post! Thanks for the chuckle!!!

and by the way ~ I agree 110%
 

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Congratulations on closing these accounts!!

I've decided that I'd rather be debt-free than worry so much about my credit score. I have 5 cc's to pay off, with a total of about $9500. I've cut them up... can't actually close them until paid off (preferred interest rates would increase on a closed account.... I still DO care about interest rates :loop: ). But after that... I"m only going to keep one. And I may even put it in the freezer in a block of ice!!!! Having them open is just too easy and too tempting.

I think a lot of this hoopla about keeping accounts open to keep our credit scores up is :pdoff: dreamed up by the credit industry.... they certainly don't want us closing our accounts!

Good luck!
Marianne
 

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Tracy good for you girl!!! WTG!
Years ago my hubby put us in way over our heads, and creditors looking for money solid. I got rid of those cards. Of course hubby got 4 cards again, ,but were finally down to 1 because of me. I should say 2 are open , 1 to pay off.
 
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I haven't done this lately, but two or three years ago I canceled all of my store cards except one. I never used them, and figured if it hurt my score a little bit, big deal. I just can't imagine paying a higher rate on something if your score goes from, say, 720 to 710. It made me feel better not to have tons of accounts open that I wasn't using.

And out of curiosity - was C1 by any chance a Capitol One card? That's the only card I have that reports the high balance instead of the actual limit.
 

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Congrats on closing those accounts. I no longer have any ccs. I don't want to use credit as an option. I should also say I'm on the Dave Ramsey plan!!
 

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Discussion Starter #13
And out of curiosity - was C1 by any chance a Capitol One card? That's the only card I have that reports the high balance instead of the actual limit.
Yes that's who I am talking about, the customer service lady said they are changing the way they report to the credit bureaus by noting your actual credit limit and credit used. Let's cross our fingers on this one :)
 

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That is where I am, the cross road of cancelling all the cards I have just sitting empty. I am not planning on purchasing anything big in a while, so I am considering closing the cards that I don't use and that are just in the last few years. I will however keep my older ones that I have had for years. I hear that they are good for the credit report. GEEEEE I hate having to be scored on my credit.
 

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Hubby and I are following the philosophy of "if you don't plan on using credit why be a slave to your credit score" for now. Once we're a little further along in our game plan (and I have the time) I will be contacting the three companies and straighteneing ours out. Boy what a mess they are !!!! Hubby, according to our score got a second morgage when he was 13!!! We tried to straighten them out before but it just wasn't worth the hassle at the time. There are a couple of reasons why I will go fix em eventually though: 1) because it has a connection to us, and is therefore a reflection of us to some extent. 2) It's used for things like car insurance rates.

As that's my thoughts on credit scores I'm doing the happy dance for ya.....I lov'd the feeling of cuttin em up!!!
 

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Discussion Starter #16
I just went into equifax and disputed the CC info saying they were closed and also the C1 to tell them my credit limit is reported incorrectly (I've had C1 since 2005, so I want to keep them) so for now it's under investigation, I might cancel some more but I will wait for atleast 6 months before doing that, not sure yet, just hate having all these CC's sitting around.
 

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Wow, 25 accounts. Holy cow. I don't understand that. Why? How?

Sorry I just posted this in another thread but it seems everyone thinks credit cards are so evil. I use mine for every possible purchase... even if it's less than 1$ if I can. Then I get reward points for cash, gift certificates, and air miles. The rewards really add up. I've bough 9 free air fares (my family of 4's vacations x2 plus another) all free to me from airmiles from my card. I also get $50 cards a 3 or 4 times a year that I use at home depot or some such place. This is frugal money management. The trick is that I have my bank auto pay my card balance in full every month, I've never paid a penny of interest or late charges on them. I have 2 cards that I use, one for miles, one for points.

The evil credit card reputation is everywhere. The evil is the temptation to overspend and live beyond our means. The card can be a great money saving tool.
 

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Discussion Starter #18
These 25 accounts include those opened years ago such as our car loan, mortgage loan, when I ran a business online I needed a CC processor so this account is on there and been there so far for 6 years, older accounts such as telephone, etc... as of right now I do have still quite a few CC's that I had applied for a 2-3 years ago because I needed to rebuild my credit since I had collection accounts, etc.. that I had paid off BEFORE trying to get a mortgage solely in my name in 2003... that is why I have so many accounts... I do plan on closing more in a few months after I see the damage I did to my credit score from closing the ones mentioned in the beginning of this post.

For me... I dont like to use my credit cards just to receive points, airmiles, etc.. because should something come up and I am unable to pay my CC bill in full I would not want the extra burden.
 

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Wow, 25 accounts. Holy cow. I don't understand that. Why? How?

Sorry I just posted this in another thread but it seems everyone thinks credit cards are so evil. I use mine for every possible purchase... even if it's less than 1$ if I can. Then I get reward points for cash, gift certificates, and air miles. The rewards really add up. I've bough 9 free air fares (my family of 4's vacations x2 plus another) all free to me from airmiles from my card. I also get $50 cards a 3 or 4 times a year that I use at home depot or some such place. This is frugal money management. The trick is that I have my bank auto pay my card balance in full every month, I've never paid a penny of interest or late charges on them. I have 2 cards that I use, one for miles, one for points.

The evil credit card reputation is everywhere. The evil is the temptation to overspend and live beyond our means. The card can be a great money saving tool.
I agree. I have an Amazon card that gives me $25 Amazon gift cards that I use. You just have to keep track of what you put on it and only put on it what you have to spend. I basically pretend it's my debit card and have a tally of money subtracted from my current bank balance so it's still just as if I only have that money to spend.

This is the only card I use. I also have a Capital One card that remains open but unused because it's my oldest. It also has an 8.9% interest rate so just in case I'd ever have to carry a balance, it's lower than any other I've had. Finally, I have an old Providian card that used to give me eBay points, but has since changed and I keep it because they give me my credit score each month for free.
 

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I agree with pogo about cards -- at least for myself. I use one for everything too because of the cash back. I tried using cash one month, found I did not spend any less, and wasn't getting anything back on the purchases. I am also more worried (rightly or wrongly) about being a ditz and leaving my purse lying around somewhere and having the money stolen than I am about identity theft. At least there are some protections with credit cards. I budget for this, a lump sum, that is shown in my computer financial program as a payment already deducted from my checking account, so it is covered when the billing cycle closes and is paid immediately. That might not be for everyone, but I find it's what works best for me.

And congratulations on clearing out the accounts, Tracy. It's "housekeeping" I need to take a look at too. I've been thinking of closing some of mine too. As several have said, I'm not anticipating any big credit needs coming up, so could it really hurt?
 
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