Credit Card Advice Appreciated

**LongBall52** · 07-17-21, 11:01 AM

Damn ******* = c-r-e-d-i-t cds

**gauchojake** · 07-17-21, 12:53 PM

Keep the ones that are the oldest and have the highest limits.

**gauchojake** · 07-17-21, 12:55 PM

You want to maximize length of credit history and available credit.

**maxell** · 07-17-21, 12:58 PM

I thought if you cancelled your ************, it would be scored as if the banks cancelled those cards. That would hurt your credit rating. I'd cut up the ones you don't want to use and keep all open. Closing a bunch at the same time could be detrimental.

**RudyRuetigger** · 07-17-21, 01:04 PM

Originally posted by gauchojake

Keep the ones that are the oldest and have the highest limits.

**Roger T. Bannon** · 07-17-21, 01:08 PM

I don't think you are going to hurt your credit score. Having had all that debt hurt your score. Paying it off increases your score. Supposedly paying regularly on a card is supposed to increase your score a little. But that is for people with bad credit scores. If you have no debt you do not really need to worrying about credit scores. You will not have a hard time getting credit with no debt.

**LongBall52** · 07-17-21, 01:19 PM

Great Advice.
I want to buy a small condo to live in and get out of this stinking senior's apartment. It changed ownership in the last couple of years and these people don't care about the residents 1 single bit! Multiple pipe breaks with flooding at time on the first floor at times. They put band aids on rather then fix.
I won't be a first time owner, so a mortgage may not be so easy so it was long ago. My credit score should be excellant at the least.

Thanks

**gauchojake** · 07-17-21, 01:22 PM

Originally posted by maxell

I thought if you cancelled your ************, it would be scored as if the banks cancelled those cards. That would hurt your credit rating. I'd cut up the ones you don't want to use and keep all open. Closing a bunch at the same time could be detrimental.

It reduces your overall available credit and can also change the length of your credit history which are two large components of how the scoring works. If you are going to close cards, it's fine as long as you don't close the oldest cards or significantly reduce the overall credit available.

I would actually suggest you spend some time on Reddit in their credit card forums.

**Ian** · 07-17-21, 01:29 PM

AFAIK cancelling a credit card can hurt your credit score. If your credit card has an annual fee, then imo it's definitely worth taking the credit hit to avoid paying the fee. If the card has no fee, then there's no harm in putting it in a box and not using it instead of outright cancelling it.

**Ryermkd** · 07-17-21, 01:32 PM

Originally posted by Ian

AFAIK cancelling a credit card can hurt your credit score. If your credit card has an annual fee, then imo it's definitely worth taking the credit hit to avoid paying the fee. If the card has no fee, then there's no harm in putting it in a box and not using it instead of outright cancelling it.

**Stallion** · 07-17-21, 01:37 PM

Pay off the cards and lower the limits on them, don't cancel them.

**LongBall52** · 07-17-21, 01:48 PM

Originally posted by Ian

AFAIK cancelling a credit card can hurt your credit score. If your credit card has an annual fee, then imo it's definitely worth taking the credit hit to avoid paying the fee. If the card has no fee, then there's no harm in putting it in a box and not using it instead of outright cancelling it.

I pay 0 annual fees. I'm only going to actually cancel 1 card, because they were assholes by cutting my credit limit when I had never even come close to missing a payment.. They cut my limit while I was on vacation years ago at a Casino.... It's AMX. I actually dispise them! The rest have been fair!

**7deuceoff$uit** · 07-17-21, 02:56 PM

I used to have 3 cards with one of them having just a 500 limit. Kept it in a drawer and never used it. Got notices from my bank saying the card would get canceled if I didn't use it. They eventually did and my score dropped a few points because my credit limit decreased. I would keep all of them open if you can. If you do have to close a couple, i'd suggest closing the newest accounts with the smallest limits. Good luck!

**LongBall52** · 07-17-21, 03:14 PM

Originally posted by 7deuceoff$uit

I used to have 3 cards with one of them having just a 500 limit. Kept it in a drawer and never used it. Got notices from my bank saying the card would get canceled if I didn't use it. They eventually did and my score dropped a few points because my credit limit decreased. I would keep all of them open if you can. If you do have to close a couple, i'd suggest closing the newest accounts with the smallest limits. Good luck!

I have read on a credit website, that if the customer closes the card and it's in good standing, it must be reported to the credit reporting industry as
"closed at customer's request".

However, I'm not sure they can be trusted..... Seems like a rooster in the hen house. So maybe just cut some up without closing.

**stevek173** · 07-17-21, 03:19 PM

As a Mortgage Originator for a long time I always told people this, and it's good advice:

Keep all CC's under 50% of the limit to improve score, and under 30% if you really want to have the best score possible.

**LongBall52** · 07-17-21, 03:33 PM

Originally posted by stevek173

As a Mortgage Originator for a long time I always told people this, and it's good advice:

Keep all CC's under 50% of the limit to improve score, and under 30% if you really want to have the best score possible.

Good to know. As a second time home (condo this time) buyer, how much generally is required to be put down (%) by the borrower. Housing on the expensive side here in Virginia..at least where I am.

**stevek173** · 07-17-21, 03:47 PM

5% if you go conventional, 3.5% if you go FHA.

Ideally you want to put at least 20% down to avoid Private Mortgage Insurance.

Glad to help man, feel free to ask more questions.

**LongBall52** · 07-17-21, 03:58 PM

Originally posted by stevek173

5% if you go conventional, 3.5% if you go FHA.

Ideally you want to put at least 20% down to avoid Private Mortgage Insurance.

Glad to help man, feel free to ask more questions.

That is GREAT to know...20% down it will be! I remember something about that the first time.

**stevek173** · 07-17-21, 04:06 PM

Yeah man, PMI is expensive! 20% down/Conventional is your best option, unless you're doing VA or Rural Housing neither of which I think applies to you.

**gauchojake** · 07-17-21, 04:24 PM

Orrrr u can gambol it up

Put down 5%

Wait a few months

Refi when the value goes up

Boom free money

**stevek173** · 07-17-21, 04:31 PM

Or that....but he will be paying MI in that case

**Ryermkd** · 07-17-21, 04:55 PM

Originally posted by gauchojake

Orrrr u can gambol it up

Put down 5%

Wait a few months

Refi when the value goes up

Boom free money

**HockeyRocks** · 07-17-21, 05:16 PM

Originally posted by LongBall52

Thanks to a recent inheritance, I am now 100% debt free on ************. How many should I get rid of that won't hurt my credit score. I had 11 cards and must keep a couple at least. My cable/internet monthly bill needs to have a credit card for the ease of paying and that one was always paid in full monthly. I will keep at least 2 more cards.
But will closing 8 ************ hurt my score badly?
The one thing that I kept seeing on my credit report was the % of debt owed on ************. All my cards have zero annual fee.

Thanks

DON'T cancel any of them. Read first about the 30% rule and the credit utilization ratio. Cancel them and it WILL affect your FICO score.
Amount owed versus the available credit is the second most important category used to calculate your FICO score.

**HockeyRocks** · 07-17-21, 05:29 PM

Originally posted by maxell

I thought if you cancelled your ************, it would be scored as if the banks cancelled those cards. That would hurt your credit rating. I'd cut up the ones you don't want to use and keep all open. Closing a bunch at the same time could be detrimental.

100% Correct.. Sounds crazy but true.

**HockeyRocks** · 07-17-21, 05:31 PM

Originally posted by Roger T. Bannon

I don't think you are going to hurt your credit score. Having had all that debt hurt your score. Paying it off increases your score. Supposedly paying regularly on a card is supposed to increase your score a little. But that is for people with bad credit scores. If you have no debt you do not really need to worrying about credit scores. You will not have a hard time getting credit with no debt.

No so fast. With no debt, you have no FICO score. Some debt is a good thing..Only with debt and a FICO score will you be able to borrow.

**SBR_Guest_Pro** · 07-17-21, 05:36 PM

Don't cancel any of them. Why bother? Debt to credit ratio is big part of your credit score. If you close accounts, your available credit goes down. Score can go down also. Just cut em up and trash em if you want so you don't use them. Keep them in a drawer. Doesnt hurt your score to keep them

**LongBall52** · 07-18-21, 11:53 AM

Yes, my score was going up each month from 1 to 4 points before paying off these cards in full. I see now the logic in NOT cancelling any, if I want to buy a place to live. I got most of the cards when I was still working full time before retirement. My salary was fairly decent nearly 20 years ago. Now on retirement it's much lower. The thing about buying a house : if I can pay $990 / month rent, that would seem to be a major issue for a monthly mortgage. If memory serves correctly, my first mortgage was a H U G E ordeal, even with a 10% downpayment. The red tape was crazy and I was fully employed with a major employer for many years. Now what will the process be like?

**gauchojake** · 07-18-21, 12:32 PM

Originally posted by stevek173

Or that....but he will be paying MI in that case

Right but only until he gets to that magic 80% LTV

Worst case is he could make an additional capital payment to get out of the MI which he was going to do anyway.

Definitely depends on the market and based on my assessment of his knowledge about credit and debt I would just put the 20% down and call it a day especially if he is going to live there.

**stevek173** · 07-18-21, 12:37 PM

Originally posted by gauchojake

Right but only until he gets to that magic 80% LTV

Worst case is he could make an additional capital payment to get out of the MI which he was going to do anyway.

Definitely depends on the market and based on my assessment of his knowledge about credit and debt I would just put the 20% down and call it a day especially if he is going to live there.

Agreed.