Cut up and canceled 7 store cards

[Getback]

Received 4 or 5 letters saying they were going to raise interest rates to near 30%. My thought, Yikes!! Since I hadn't used many of them for several years I called and canceled them and then cut them up. Couldn't believe I had so many. Some with ridiculous credit limits. Like one for a golf store that had a $10,000 credit limit.

[RipChord929]

WTG man!!!  Life is better, when ya don't have all that crap hanging out there!!!

It's LIBERATING!!!  LOL!!!

RC

[CAP1]

Received 4 or 5 letters saying they were going to raise interest rates to near 30%. My thought, Yikes!! Since I hadn't used many of them for several years I called and canceled them and then cut them up. Couldn't believe I had so many. Some with ridiculous credit limits. Like one for a golf store that had a $10,000 credit limit.

i only have one visa card......through target........gonna check today. i have the money on hand to pay it off....and if they're gonna raise their interest rate that high....i will pay it off, cancel it, and give em aq piece of my mind....not that i can afford to lose another piece........

[batch]

I cant blame anyone for wanting to cancel a card thats raising their interest so high, I wouldnt want to pay it either.... but if you dont have a balance then the interest is of no consequence........

only reason I make that point is because of this point.........

be careful before you go through and start cancelling all your cards...... you may be destroying your credit rating in the process......

1 of the factors (among many) that is used to determine your credit rating is amount of debt vs amount of credit

the higher your debt/credit ratio the lower your rating..... so if you have 3 credit cards with 10K limit on each, and your balance on 1 is 5K and the other 2 is zero..... then your debt/credit is 5K/30K  ... if you cut up the 2 cards with zero balance..... now your debt/credit is 5K/10K......... and is alot uglier on your rating

there are many other factors involved of course but just pointing out to consider all angles before simply cancelling cards........ it may actually hurt you in the end

[Getback]

I cant blame anyone for wanting to cancel a card thats raising their interest so high, I wouldnt want to pay it either.... but if you dont have a balance then the interest is of no consequence........

only reason I make that point is because of this point.........

be careful before you go through and start cancelling all your cards...... you may be destroying your credit rating in the process......

1 of the factors (among many) that is used to determine your credit rating is amount of debt vs amount of credit

the higher your debt/credit ratio the lower your rating..... so if you have 3 credit cards with 10K limit on each, and your balance on 1 is 5K and the other 2 is zero..... then your debt/credit is 5K/30K  ... if you cut up the 2 cards with zero balance..... now your debt/credit is 5K/10K......... and is alot uglier on your rating

there are many other factors involved of course but just pointing out to consider all angles before simply cancelling cards........ it may actually hurt you in the end.

I understand exactly what you're are saying and took that into account. However, I no longer wish to worship at the FICA alter. Leaving these cards open subjects me to more credit damage than closing them. Further, I don't trust Citi or GEmoney. Both may decide to charge you for just having the card. No guarantee with these guys.

Side note: I was at a gas station the other day, they wanted people to sign a petition against their store care who was raising rates to about 30%.

[Maverick]

This is quoted for the financial truth it contains. Dumping a bunch of credit off of your record will hammer your credit rating. It's one of the top 10 things to not do if you want to have a good to great credit rating. Keep the account open. Use the card once in a while to exercise it and pay it off all at once. Make a small purchase, it doesn't have to be a major one to keep your credit rating looking great. Don't go applying for a bunch of cards but do increase the credit limit if they are low level cards then do NOT max them out. Like he posted, keep the available credit to debt ratio high and your credit report will benefit. This is especially critical if you are going to apply for a major loan like a home mortgage.

I cant blame anyone for wanting to cancel a card thats raising their interest so high, I wouldnt want to pay it either.... but if you dont have a balance then the interest is of no consequence........

only reason I make that point is because of this point.........

be careful before you go through and start cancelling all your cards...... you may be destroying your credit rating in the process......

1 of the factors (among many) that is used to determine your credit rating is amount of debt vs amount of credit

the higher your debt/credit ratio the lower your rating..... so if you have 3 credit cards with 10K limit on each, and your balance on 1 is 5K and the other 2 is zero..... then your debt/credit is 5K/30K  ... if you cut up the 2 cards with zero balance..... now your debt/credit is 5K/10K......... and is alot uglier on your rating

there are many other factors involved of course but just pointing out to consider all angles before simply cancelling cards........ it may actually hurt you in the end