Penalizing the Financially Intelligent People

[Care4all]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

 

[Douger]

Credit cards are for idiots.

 

[The Rabbi]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

Yes available credit is ONE factor in scores. It might ding your score a few points. So what? Is that worth paying $25 a year? Maybe to some. Not to me.

 

[PLYMCO_PILGRIM]

Well ... if you want to go that route, you do know that many are on contract which means that canceling the card prematurely (before the contract runs out) will invoke more penalties.

Where do you get this stuff? There is no penalty for canceling a credit card.

Some banks do.

she is right ravi, some agreements will state that if you cancel your card you must pay a "cancellation processing fee"

Nothing this time


Care4All that is what bothered me about the situation, not that I plan on borrowing as I own everything I posses right now (I have zero debt), but I know it hurt my good score.

 

[Ravi]

Where do you get this stuff? There is no penalty for canceling a credit card.

Some banks do.

she is right ravi, some agreements will state that if you cancel your card you must pay a "cancellation processing fee"

Nothing this time


Care4All that is what bothered me about the situation, not that I plan on borrowing as I own everything I posses right now (I have zero debt), but I know it hurt my good score.

Link?

 

[Care4all]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

Yes available credit is ONE factor in scores. It might ding your score a few points. So what? Is that worth paying $25 a year? Maybe to some. Not to me.

right.

it does depend on your own circumstance...

a higher credit score gives you lower interest rates on loans and future credit cards that you may open up...

If you have NOT bought a home yet, it would be wise to keep the account opened with the other 10k available credit to use and pay the 25 bucks....

because 1%-2% point difference on a $250k mortgage over it's lifetime could be well over a hundred grand extra of your own money...the $25 each year would be worth making your mortgage 1%-2% lower interest rate for a 30 year mortgage....

If you are in the situation as Plymco, where you have nothing on your credit cards, then dropping the card that charges you a fee in the scenario I mentioned above, will NOT hurt your credit score because the percentage of credit used verses what is available, stays the same, at zero percent used of the avail credit.

What you should do, is find another credit card, with no annual fee, that can replace the available credit of the card you are dropping, before you actually drop the card...if that is possible for you...try to work that first.

care

 

[PLYMCO_PILGRIM]

Some banks do.

she is right ravi, some agreements will state that if you cancel your card you must pay a "cancellation processing fee"

Nothing this time


Care4All that is what bothered me about the situation, not that I plan on borrowing as I own everything I posses right now (I have zero debt), but I know it hurt my good score.

Link?

Now who is

Seriously do you think i'm going to go search through the myriad of credit card agreements that may or may not be listed online to find one for you?

I'm not going to. I believe the company that somone had do this to them was American Express if you feel like searching through the thousands of different contracts they have had in the past.

 

[Ravi]

she is right ravi, some agreements will state that if you cancel your card you must pay a "cancellation processing fee"

Nothing this time


Care4All that is what bothered me about the situation, not that I plan on borrowing as I own everything I posses right now (I have zero debt), but I know it hurt my good score.

Link?

Now who is

Seriously do you think i'm going to go search through the myriad of credit card agreements that may or may not be listed online to find one for you?

I'm not going to. I believe the company that somone had do this to them was American Express if you feel like searching through the thousands of different contracts they have had in the past.

It's not true. Credit card companies don't charge a fee if you cancel their card.

 

[The Rabbi]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

Yes available credit is ONE factor in scores. It might ding your score a few points. So what? Is that worth paying $25 a year? Maybe to some. Not to me.

right.

it does depend on your own circumstance...

a higher credit score gives you lower interest rates on loans and future credit cards that you may open up...

A higher score MIGHT change your rate. If your score is already 760 and cancelling the card will drop it to 740 then it probably wont make any difference. If it's 710 and dropping the card will drop the score to 640 (which seems unlikely) then it will make a difference.

 

[Intense]

When You Cancel Cards the Drop is temporary.

 

[American Horse]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

Care, one need not initiate a new card; they may simply call their existing credit card company and have their credit limit raised to acquire the appropriate percentages you outlined here.

 

[manifold]

Credit cards are for idiots.

Bullshit.

I use mine for everything, and pay it off every month and pay no interest. But I get to earn interest on my cash that sit's in my bank account during the month instead of the credit card company's.

 

[Care4all]

btw, you are penalized for canceling your credit cards in another manner....with your credit score...

if you cancel a card that gives you $10,000 in a credit limit, and your other credit cards added up gives you another $10,000 in credit and you have $5000 on those credit cards, then you come up with a figure of having used 50% of your allowed credit vs the figure of using on,y 25% of your allowed credit if you still have the other 10k in credit avail....this lowers your credit score.

soooooooooo, DO NOT EVER cancel your card, without having a new card that replaces the credit amount your canceled card had....is what i heard on Suzi Ormann

Care, one need not initiate a new card; they may simply call their existing credit card company and have their credit limit raised to acquire the appropriate percentages you outlined here.

Absolutely Mustang!

I meant to say that also....try that FIRST, in fact!

Care

 

[KittenKoder]

Credit cards are for idiots.

Bullshit.

I use mine for everything, and pay it off every month and pay no interest. But I get to earn interest on my cash that sit's in my bank account during the month instead of the credit card company's.

That's a smart way to do it ... however, most people who use credit cards simply don't seem to get it.

 

[JakeStarkey]

My spouse is wonderful. About six years ago my wife sat me down and demonstrated how the tech money had fled the bubble into the housing market. She said a bust would be coming, and thought that it would be pretty bad for those who had not prepared. We moved over to an one-income family budget, paid off the cards, invested some money in lower-end stocks. Was she ever right when she said, "$4 or $4,000, we pay off the balance in full each month, and we won't have that kind of worry that has unprepared or undisciplined people staring at the ceiling at night."

 

[Intense]

My spouse is wonderful. About six years ago my wife sat me down and demonstrated how the tech money had fled the bubble into the housing market. She said a bust would be coming, and thought that it would be pretty bad for those who had not prepared. We moved over to an one-income family budget, paid off the cards, invested some money in lower-end stocks. Was she ever right when she said, "$4 or $4,000, we pay off the balance in full each month, and we won't have that kind of worry that has unprepared or undisciplined people staring at the ceiling at night."

Well You did one thing Right at least.

 

[JakeStarkey]

I have done a second and most subsquent things right. I know delusionalists when I see and hear them. You folks out there with Sarah, the Teabaggers, etc., are delusional. You are not mainstream. The mainstream rightfully hates you. You will not get power back in a generation.

And, unlike the majority of your delusionalists, I will put my word where my thinking is. If the Dems lose control of legislature next year, I will not post here for a month from the day after the election.

All right, delusionalists, who will match me?

 

[Intense]

I have done a second and most subsquent things right. I know delusionalists when I see and hear them. You folks out there with Sarah, the Teabaggers, etc., are delusional. You are not mainstream. The mainstream rightfully hates you. You will not get power back in a generation.

And, unlike the majority of your delusionalists, I will put my word where my thinking is. If the Dems lose control of legislature next year, I will not post here for a month from the day after the election.

All right, delusionalists, who will match me?

You have got to do what You have got to do. That's your Business, no effect on me, one way or another. I just want to give you a Quote to think about, Not Republican or Democrat. Just consider it if you will. Right and Wrong have little to do with the count and everything with the principle.

After all, the practical reason why, when the power is once in the hands of the people, a majority are permitted, and for a long period continue, to rule is not because they are most likely to be in the right, nor because this seems fairest to the minority, but because they are physically the strongest. But a government in which the majority rule in all cases can not be based on justice, even as far as men understand it. Can there not be a government in which the majorities do not virtually decide right and wrong, but conscience? — in which majorities decide only those questions to which the rule of expediency is applicable? Must the citizen ever for a moment, or in the least degree, resign his conscience to the legislator? Why has every man a conscience then? I think that we should be men first, and subjects afterward. It is not desirable to cultivate a respect for the law, so much as for the right. The only obligation which I have a right to assume is to do at any time what I think right. It is truly enough said that a corporation has no conscience; but a corporation on conscientious men is a corporation with a conscience. Law never made men a whit more just; and, by means of their respect for it, even the well-disposed are daily made the agents on injustice........

........It is not a man's duty, as a matter of course, to devote himself to the eradication of any, even to most enormous, wrong; he may still properly have other concerns to engage him; but it is his duty, at least, to wash his hands of it, and, if he gives it no thought longer, not to give it practically his support. If I devote myself to other pursuits and contemplations, I must first see, at least, that I do not pursue them sitting upon another man's shoulders. I must get off him first, that he may pursue his contemplations too. See what gross inconsistency is tolerated. -Thoreau


Henry David Thoreau: On the Duty of Civil Disobedience