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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308686  
Subject: Bank of Satan Dilema Date: 6/25/2012 9:10 PM
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I have never been a customer of Bank of America, and never wanted to be. But my oldest credit card, a FIA Card Services Visa, has now been purchased by Bank of America. This was my first credit card with a history going back 27 years. It has a $15k credit limit and a 5.15% variable rate.

According to the credit score simulator on Credit Karma (http://CreditKarma.com), my credit score would not change at all. That's due in part because I have another credit card with a 20 year history and two with an 11 year history. Also, I don't use this card a lot, paying all my cards off each month, so that my average monthly credit card debt to credit ration would rise from 6.4% to 7.7%. There would be no change to my credit utilization rate given the low utilization of this card.

The pro for closing this card is that I would not have to have anything to do with Bank of America, which I consider to be an institution that has such disregard for its deposit customers as to make me physically ill. I don't trust them to not try to chuck 27 years of favorable patronage to turn a quick buck on my back.

The con for closing this is that this has been my backup backup backup emergency card. As a contractor, I have had significant periods of time between work in the past that ate through my savings so that should the current contract end, my cushion would not be as firm as I would like it to have been. My worst case scenario is to have to live off credit and no other credit card currently comes within 6% of this rate.

Bottom line, there does not appear to be any significant risk to my credit score to close the card and not have to deal with Bank of America. But is that satisfaction worth giving up the potential of up to a $15,000 emergency line of credit at 5.15%?

Fuskie
Who is torn between making an emotional decision vs a practical decision, even though either choice would have no immediate effect on my current financial picture...
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