A new blog I discovered called ManVDebt.com has an interesting post about 4 sneaky charges credit card companies zap you for. It ain’t pretty.
But I think he was rash in cutting up his credit cards and closing the accounts. If he wants to buy a car or home down the line, his credit history would be more impressive if he had paid them off and kept them open. By canceling the cards he is erasing part of his credit history!
April 23rd, 2009 at 4:03 pm
The credit history stays, but what is affected is the credit score. A large percentage of the credit score is based on “credit utilization” — or the comparison of how much credit you have available vs. how much credit you’ve used. Closing cards takes away the “credit available” part. Far better to keep the cards and use very occasionally.
April 25th, 2009 at 2:58 pm
[...] Babe gave her own opinions when she linked to my Yet Another 4 Reasons To Hate Credit Card [...]
April 25th, 2009 at 11:22 pm
I haven’t had a card in years and I truly don’t miss them. I use bank card like a credit card.
May 3rd, 2009 at 9:08 pm
It is my understanding that the Agreement the credit card company provides (which most of us don’t read) states the company can change rates, etc., without notice. So it’s a “buyer beware” situation, and the consumer is responsible.