Credit cards? Use or lose......

[Baz]

Got a letter from one of my bank card companies saying in 60 days they will cancel one of my CC accounts because I haven't used it in a while.

I have 3 cc accounts with this particular bank, so this action would leave me with just 2.

I guess I don't really need 3 of them, but also don't want a hit on my near perfect Fico score.

I did a Google search and looks like they're in their right to do this.

Right away I got my others out and bought something with each one so this wouldn't happen again.

Not sure if this is something anyone else here should worry about but wanted to pass it along.

[wildthing]

If you have 3 cards you should use all of them, but keep the total credit utilization under 30%.

[sammyg2]

I have one card. I remember back a few years ago I tried to use at a restaurant, and it was past it's expiration date by almost a year. that's how often I use it.

IMO You don't need three cards.

[Don Ro]

Got a similar letter a week or two ago, Baz.
I tossed it and introduced the card to my shredder.
I only use a couple.
I like carrying cash...2 - 3 hundred, usually...just in case.

[pete3799]

I got an answering machine message from Citibank the other day.....call about my MasterCard....please call and enter this message number yada yada. Didn't call.

Same message yesterday.....different mess. #...so I called.
Said my acct. was past due ( all automated) wanted me to press a bunch of numbers.......I hung up.

Looked in my check book....last check was in May....hmmmm. Go to my filing cabinet......last statement was May. Tear the house apart can't find a June statement.
Call the number again....message # no longer works. Press a bunch of numbers and finally get a human (no accent even). Explain the situation. He deducts the late charge, deducts the interest, and I pay the balance over the phone. He then tries his damndest to get me to go to auto pay. I said no several times before he finally gave up.

Makes me wonder if they ever sent a June statement.

[varmint]

I have two cards. One I have for travel and emergencies. Barely use it enough to keep it active.
The other is a low limit sacrificial card I use to shop online.



Last month Citibank sent me a new card offer with a low low 23% introductory rate. Wow.

[Bugsinrugs]

I have two cards. One card is for air miles. The other is in case the first card has a problem.
Always pay the balance in full each month.

[sc_rufctr]

I have NO credit cards. (Debit only for on line purchases)

Think about it. Does anyone really need a credit card?

[freeform911]

Originally Posted by pete3799

I got an answering machine message from Citibank the other day.....call about my MasterCard....please call and enter this message number yada yada. Didn't call.

Same message yesterday.....different mess. #...so I called.
Said my acct. was past due ( all automated) wanted me to press a bunch of numbers.......I hung up.

Looked in my check book....last check was in May....hmmmm. Go to my filing cabinet......last statement was May. Tear the house apart can't find a June statement.
Call the number again....message # no longer works. Press a bunch of numbers and finally get a human (no accent even). Explain the situation. He deducts the late charge, deducts the interest, and I pay the balance over the phone. He then tries his damndest to get me to go to auto pay. I said no several times before he finally gave up.

Makes me wonder if they ever sent a June statement.

Cc companies don't typically call. You would get something in the mail or email. Watch out for that.
Should use any cc you have a least once every 6 months or so. It not only keeps the card active, it also helps with credit rating.
I personally have a bill charged to each one of mine on a monthly bases. I'm going to pay the bill regardless so it's any easy way to keep them in use. Steve

[Jims5543]

Originally Posted by sc_rufctr

I have NO credit cards. (Debit only for on line purchases)

Think about it. Does anyone really need a credit card?

All my purchases and bills (that will let me) go to 2 credit cards. A Chase card and Amex card both get me points.

I use the Amex more for business and the Chase for personal / entertainment and sometimes large business purchases.

I had enough points on my Chase card to get two free round trip tickets to Ireland.

I have enough points on my Amex for Starwood Hotel visits for 10 nights.

No, I do not NEED to have 3 credit cards (I also have a Amazon Visa that we use for all our Amazon purchases and it racks us up points too) I choose to use them to my advantage. I barely carry cash, everything goes on cards and get paid off.

The points make this such an easy decision.

I would never use a debit card online, if someone gets your info they empty your checking account. If someone gets my Amex, and it has happened (thanks Miami merchants!!) Amex reverses the charges and forces the merchants to prove my charges were legit. The reversal happens as fast as I call them.

I will stick with my Credit cards. They work well for me.

[Rodsrsr]

One credit card with a low limit that I only use for on-line purchases and pay off every month. The credit card allows you to dispute a charge if needed, which I have had to do on more than one occasion.

[MBAtarga]

My understanding is that when you close/cancel a card - your credit takes a hit. "Logic" is that you are concerned about your debt level and don't want to be tempted. Years back wife and I learned this when we cancelled a few cards - mostly store specific cards that were no longer used/needed, and our credit took a hit - I think about 20 points - maybe more.

If the bank closes an inactive card - no such hit occurs.

[freeform911]

If the bank closes an inactive card - no such hit occurs.[/QUOTE]

How true is that? Seems no mater which party closes the account your credit will take a hit, it decreases the age of your credit file!

[onewhippedpuppy]

Who cares if you have PERFECT credit? I have had one card for years that's joint with my wife, just opened a second Amex that earns me miles to segregate my professional travel. Everything paid off each month, which is supposedly bad juju for credit. Mine isn't perfect, but damn near. If you are living responsibly within your means, credit really doesn't matter that much anyway.....

[Dantilla]

Originally Posted by sc_rufctr

I have NO credit cards. (Debit only for on line purchases)

Think about it. Does anyone really need a credit card?

I'm the opposite. I have one credit card that gets paid off every month.
I refuse to use a debit card. If there is ever a mistake with a debit card, one has to fight to get back the money that is already gone.
With a credit card, if there are any unauthorized charges, one files a dispute and doesn't pay that charge. The money never leaves my account.

[Bill Douglas]

Originally Posted by sc_rufctr

Think about it. Does anyone really need a credit card?

I have one and use it all the time BNZ owned by National Bank Australia. I pay it off every month and pay about $30 in "bank fees" per year. BUT they give me about $30 every month as a reward for using their card. Bacon and eggs + latte on the bank. And if I use it all the time my rewards can go up to $60. Mind you booze, drugs, protitutes I tend to still use cash

The poor retailers lose about 2% off the sale in fees from the bank.

In fact... I even worked for BNZ Credit Cards when I ought the 911.

[Scott Douglas]

I put my teeth cleaning today on a card they threatened to close on us.

[LakeCleElum]

My 2nd card is only a backup when/if there is a problem with the Visa I get air miles on. I keep it active with only 3 or 4 small charges per year......If they ever want to take it away, I'll tell the truth.......I only accepted it because they spammed me almost daily for a few years with both mail and email until I gave in and signed up.......

[wildthing]

I have one credit card, mainly for points. Paid off each month. Credit utilization under 40%. I only have one because when I got here, they said that I have to build a credit history. And that's the easiest way. Since I don't have the means to buy a car or house in cash, a good credit history and credit score is a necessity.

[JossP80]

There's beauty in the simplicity of few credit cards and paying the balance off every month. And some here have a point: who cares about credit scores/FICO?

Why you should care is for you to decide.

I'm guessing that you do care since you posted this question. I care very much... And I manage my credit score very well. Personally, I'd use the card just to keep it open even if unused. Your FICO is measured not only by untilization, but history, number of accounts, age of each account, frequency of credit checks, revolving-installment ratio.

With so few accounts, closing one will almost certainly lower your score for at least a short period of time.