Is it bad Having Credit Cards,

Discussion in 'Credit Talk' started by Tony V., Oct 26, 2000.

  1. Tony V.

    Tony V. Guest

    Have these following Credit Cards:

    Providian: 2/99 $1400 @16.9%
    Capital One: 8/00 $300 @20.9%
    Chase: 9/00 $5,000 @ 13.99% prime
    Sears: 12/99 (used once) $1260 @ 21%
    Zales Jewlery: 2/00 (never used)$2100 @22.98%
    Best Buy: 6/00 (used once) $700
    ---last three cards thinking of closing since i dont use, would this look better on my report or does it not matter?? thanks a lot to everyone here....hopefully got approved for Citibank, had to send in phone bill...thanks!!!!
     
  2. GEORGE

    GEORGE Well-Known Member

    RE: Is it bad Having Credit Ca

    OPINION:
    DUMP CAPITAL ONE UNLESS THEY WILL INCREASE CREDIT LINE AND LOWER INTEREST RATE, 9.90% FIXED IS HIGH ENOUGH!
    DUMP ZALES JEWLERY...22.98% IS HIGHWAY ROBBERY!
    KEEP BEST BUY? THEY OFFER NO INTEREST FOR SIX MONTHS OR ONE YEAR, UNLESS YOU DON'T SHOP THERE VERY OFTEN, THEN CLOSE IT!
    KEEP SEARS, THEY ALSO HAVE NO INTEREST OPTION!
     
  3. Doug

    Doug Well-Known Member

    RE: Is it bad Having Credit Ca

    According to what I have read over 12 accounts will affect score negatively. All depends on debt to income ratio. Most say around 5 revolving accounts is the right number to have. If your not using cards recommendation is to close. Not using might have a negative impact.
     
  4. Doug

    Doug Well-Known Member

    RE: Is it bad Having Credit Ca

    GEORGE, people would have very few cards, if dumped anything over 9.90% Fixed. It's the best going rate with a few Arkansas exceptions.
     
  5. GEORGE

    GEORGE Well-Known Member

    RE: Is it bad Having Credit Ca

    Open unused accounts can help and hurt. If your total credit lines are $20,000 and you owe $2,000, your income is $30,000...your dept to income ratio is very low, so you will probably get a card.
    If you have two cards with credit lines of $1,000 each and owe $1,900, with the same $30,000 income, you might not get the card...reason excessive use of credit lines.

    They have used this on me in the past (it is a bogus reason to deny credit!!!
     
  6. GEORGE

    GEORGE Well-Known Member

    RE: Is it bad Having Credit Ca

    I just dumped my 11.90% (highest rate)
     
  7. dave

    dave Well-Known Member

    RE: Is it bad Having Credit Ca

    Sounds like Citibank is going to approve you. I would wait to see what the credit limit is before finally deciding what to do. After approval, your three strongest cards will be Chase, Providian and Citibank. I would dump Cap.1 because this card is not only expensive but useless. Providian may be a high interest card but they give nice increases which will help to lower your debt utilization ratio (a huge credit scoring plus). High limit cards attract more high limit cards with better terms. I would dump Zales and Best Buy but keep Sears. One factor that improves credit is having a mix of major cards and retail but you only need one retail. Sears is the best one--charge on it from time to time-- just don't carry a balance.
     
  8. roni

    roni Well-Known Member

    Dave, which should i close

    Dave,
    I have Providian 1,500, Cap 1 2,000, Citibank 9,000 and citigold 9,000 and chase 2,000 all pretty new. I also have orchard 300, the whole subprime lineup. Do you suggest I keep prov. and drop cap 1. Plus providian sent me an offer for $1k increase for $100. Should I take it. I was reading what you wrote about balance/limit ratios. Cap 1 doesnot report limits so that sucks. But they are my oldest open account 11/99. I dont know what to do. Do you?
     
  9. dave

    dave Well-Known Member

    RE: Dave, which should i close

    Hard to tell. What are the dates that you opened each of your accounts?

    Don't pay Providian for a line increase. You'll get it free in the next month or two.

    Looks like you have great limits with Citibank so debt utilization should not be a concern unless you run up high balances on Citibank. For that reason, it's probably less important to get an increase from Providian but every little bit helps I guess.

    Citibank and Chase are keepers, of course.
     

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