Just curious, how much credit is too much. I cancelled alot of my cards and heres what I have left, is this too much for a $30K a year salary? I have no derogs and very few IQ's in the last 2 years: Next Card $6k Juniper $6k Plat Visa $2K Get Smart $500 Citibank $1500 AMEX Blue $3K Sears $2k Best Buy $2k What you think???
GET RID OF THE $500 CARD, unless it is your lowest interest rate. ALSO, it would help if you stated the interest rates...
You also need to say what you intend to do with the cards... An unused card helps F.I.C.O. (debt to credit limit ratio)...so you might not want to close anything except the $500 account (unless they will raise it to match your next lowest).
Well the highest rate I have is the $500 card at 19%.. the rest are between 9.9 and 15.9. I was just keeping the $500 b/c they extended my membership for another year free. I hear its a good card. They will most likely up my CL soon I think.
Membership? As in annual fee? If you pay interest...The MOST IMPORTANT thing is to pay the LOWEST RATE POSSIBLE!!! NEVER pay an annual fee...unless you get something for your money like MILEAGE... As for the INCOME part...I HAD WAY OVER $100,000 OF UNSECURED CREDIT CARDS (WITH ALMOST $20,000 INCOME)...BUT IT WAS BEFORE THE STUPID F.I.C.O. PROBLEM... NOW WITH F.I.C.O. IN THE PICTURE, I HAD TO CUT WAY BACK...UNDER $100,000 OF UNSECURED CREDIT LIMITS...EVEN THOUGH THE HOUSEHOLD INCOME IS $100,000+
Yes, it is too much credit compared to your income, but the issue won't come up until you apply for even more credit. Unless one of your creditors tries to reprice your account, in which case THAT is the card you need to drop. Best Buy is a good starter card, but with a high interest rate. Use it as you see fit, but then pay it off and close it. Also, Get Smart just doesn't fit your portfolio. You don't need any bank cards that aren't platinum. The big question is: what else do you want to apply for? If it's a mortgage, then you do need to close a bank card, maybe Juniper (I assume that's your 15.9% account.) If it's a better bank card, then you need to close one of your lesser bank cards (again, maybe Juniper.) If you aren't applying for anything soon, then just enjoy having so much available credit, but don't dare use it all. One big mistake would be to apply for new cards simply because they're easy to get. You have enough credit already, you have some excellent cards, and you don't need to prove anything to anyone. You can wait for some really good preapproved offers, and meanwhile work your better accounts like Citibank and Amex to get more favorable terms.
Well, my plan is not apply for anymore cards or run up debt for the next 3 years. I want to get a new house when I'm 30. I think by then, I'll have an even better score since I'll have no IQ's and a longer history. Thats the hope.
I think George's question is the most important thing to consider: "What do you intend to do with the cards?" Obviously, if you intend to run up high balances on $20,000+ worth of revolving credit, then you're probably looking for serious trouble with an income of $30k. It's a good idea to keep your balances less than 15% of your income. In other words, someone with an income of $100k could probably put up with $15k of revolving (i.e., non-mortgage, non-auto) debt -- and, frankly, that would be a lot. At $30k, you shouldn't owe more than $4,500 total on your cards before you begin to feel the crunch. Doc
Well, I just paid off nearly $30K in debt. It took alot of hard work and determination, but I guess I want to keep them as a reminder of both how hard I worked and how NOT to get myself in that situation again. I want them there for emergencies and just knowing I am an adult that can be responsible for that much debt and not run it up. I really don't "need" any of them. Just gratifing to know they are there and at a ZERO balance.
Too much is when your balances go up every month, and you are in denial that there is no end to this pattern..
Where exactly did you hear that a $500-limit card @ 19% APR is a good card, for someone w/ prime credit? Close that devil card now, along w/ one of the 2 retail cards. Saar
Well, 19% now is not good, but from what I hear, they have frequent offers and frequent Credit increases over time. I was figuring after awhile, I could get them to lower my IR and increase my CL
Hellllloooo, this is PROVIDIAN we're talking about! The lowest APR you'll ever get is 16.9%, and under the new ZERO-RETENTION policy, you have to PAY for each and every credit line increase. Do you know what you get for accepting an increase-for-payment offer? That's right, a secured card; Except you never see your security deposit ever again... Effectively making it what Steven Z would call, a sub-sub-prime card. But hey, don't let me stand in your way. Saar
Really?? Well good info, let me call them right now and cancel!! Thanks!! I wasnt sure if I should keep them or not, now I'm convinced NOT!!!
DON'T FORGET...YOU WILL GET THE BILL FOR THE $50.00 CANCELLATION FEE... Just kidding...OOPS NOW THEY WILL DO IT!!!
WHAT??? They better not!!! When I cancelled they didnt mention a $50 fee. That is crazy!! All I can say, they better not, I'm not paying it if they do!
