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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Advise on tossing one of my cards? Date:  7/9/2002  5:23 PM
Author:  reverbbrad Number:  133034 of 312188

I recently read somewhere that you should NOT close any accounts to improve your credit rating, as closing one can actually harm it. Creditors like to see a lot of available, unused credit.

Hope I'm not wrong here, but I always understood that this is something that home-lenders do not like to see. In their eyes, it means you can get into lots of trouble very quickly, and are therefore more risky.

As far as the cards to keep/ditch, you didn't mention rates. They don't matter much if you are paying the balance every month, but other things being equal, its not a bad idea to keep lower rates.

Discover: will you be using a card enough for the cash-back to be worthwhile? If so, might be worth it.

USAA: I have this card, and love it. Great low rates, and very lax on things like late payments (not that anyone wants to do this, but they are the opposite of issuer's that try to slap penalties everywhere they can get away with it).

Citi: The only reason that I still have one is the low life-of-loan BT they gave me. Hey, if you dump them, maybe they will start sending you their best offers.

I don't really know anything about Bank One, or airline cards.

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