caligeekgrrl

16 Contributions 258 People Helped Top Contributor

Member Since: June 2013

About Me: I am a Disabled USAF Veteran in my 30's, Computer Science is my education and part of my work history. Now I'm just trying to get myself out of my apartment where a neighbor blasting their music can't give me migraines.

To get a place where I can get the quietness I dream of, a good credit score means better interest rates on a home loan. I set up a computer spreadsheet to stay on top of my account balances and keep track of due dates, but I keep automatic payments on just in case I have to go an extended period of time without internet access.

My closest relatives are very good with finances and following their advice as well as that here on Credit Karma has helped me up my score and allowed me to get the credit cards that have cash rewards. But just by paying off my entire balance every month, only using the cards to buy things like gas, groceries, medical stuff, and an occasional upgrade part for my computer, I've actually been making a PROFIT from my credit card use. Pay balance in full = no interest + cash rewards = profit.

With all my credit scores being excellent now, it's time to get rid of stuff and start filling the nail holes in the walls of this apartment, and then just waiting for a dip in housing prices and the right home to catch my eye. And spend a Friday night or two on that block to make sure my potential new neighbors don't have loud house parties.

Most Helpful Contribution

Why a Perfect 850 Doesn't Matter

Jan 31, 2015
Helpful to 88 out of 109 people

I like to carry higher debt on 0% intro APR rate cards with higher credit limits, and then make a single charge on other cards that have higher ARPs and pay them off every month. And yes, staying below the 20% is important. If you've had any of the cards a while and start using them regularly, you can always ask the card company for a credit limit increase. That is a way to carry a larger amount of debt and still be able to keep it below 20%. Just don't spend outside your means, it can be trouble in the long run.

Activity (16 Total Contributions)

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How closing accounts affects your credit health

Jan 31, 2015
Helpful to 7 out of 7 people

If the account is not renewed, the account is closed, and affects your credit no differently than if you had closed the account yourself. Total credit limits drops, average account age drops, credit utilization increases. How much these affect your score depends on the number, age, limites and utilization of all your other card accounts.

Why a Perfect 850 Doesn't Matter

Jan 31, 2015
Helpful to 88 out of 109 people

I like to carry higher debt on 0% intro APR rate cards with higher credit limits, and then make a single charge on other cards that have higher ARPs and pay them off every month. And yes, staying below the 20% is important. If you've had any of the cards a while and start using them regularly, you can always ask the card company for a credit limit increase. That is a way to carry a larger amount of debt and still be able to keep it below 20%. Just don't spend outside your means, it can be trouble in the long run.

How closing accounts affects your credit health

Jan 31, 2015
Helpful to 46 out of 59 people

Besides "closing" an older account, I wouldn't be surprised if creditors wouldn't like getting less interest pay for those last two years you avoided. 

Why a Perfect 850 Doesn't Matter

Jan 31, 2015
Helpful to 47 out of 61 people

You could have asked Cap One for higher credit limits instead of closing them... But getting new cards with into 0% APR is always nice.

Citi® Double Cash Card

May 25, 2016
Helpful to 3 out of 3 people

I never charge more than I can pay off evey month on this card after the intro 0% interest period. And I've made money off of them. I ignore the balance transfer offers they send now, as I never charge enough on any of my cards to need them anyway. Haven't had any problems in the year or so I've had this card, have not had to call except to get a new card when I thought my wallet was stolen (really, I just lost it at home). But I live by the rule that unless there's an emergency, all cards combined should not be charged more than can be paid off in a month. Use them to buy gas and groceries, the stuff you need to buy no matter what, save the cash back towards paying down a future balance or to buy something extra when your reward balance can cover the price.

How closing accounts affects your credit health

Jan 31, 2015
Helpful to 3 out of 3 people

Not a scam, I closed an account with an annual fee and my score went down because it was one of my OLDEST account, so it reduced my AVERAGE AGE of accounts, which is a factor that potential creditors consider important. The older your average account age is, the longer of a credit history the lender has, and if payments are made on time, that looks REALLY GOOD. So by closing an account, your giving potential future lenders less knowledge of your ability to responsibly handle your debt.

But it's worth the TEMPORARY ding on your credit if the annual fee is unreasonable. 

How closing accounts affects your credit health

Jan 31, 2015
Helpful to 3 out of 3 people

If you don't have any other cards, keep it. Buy groceries or something with it once a month and then pay it off every month. If you have a lot of older cards, and if this one has a low credit limit, it may be better to get rid of it. 

How closing accounts affects your credit health

Jan 31, 2015
Helpful to 6 out of 7 people

Discharged or written off generally implies that no activity had been made on an account with debt for a period of years. Generally, if no payment is made and no legal action has been taken by the creditor such as being served and you going to court and them suing for what you owe. Eventually they may write off the debt, generally after the statute of limitations has run out, which varies by state, the write off for them is a tax write off for debt that they never got repaid and therefore counts against the card companies income.

I  did have one store card close my account simply because I did not use it at all for 3 years or so. So in order to keep an account open, an occasional charge does NEED to be made.

How closing accounts affects your credit health

Jan 31, 2015
Helpful to 5 out of 6 people

As long as he is the original account holder, there is no law holding you responsible for the charges on the card, but if he misses a payment or charges too large a percentage of the total limit, it will affect your credit. It all depends how much you trust his financial responsibility. If you are uncomfortable with the unpredictable, call the card company and say you're the authorized user and you want to remove yourself from the account.

I have this experience from when I thought my fiance and I were going to break up. Some of the cards are still showing in my scores, my credit limits, but the balances are reported as $0. The full removal of the account from your report may take time, and it may have already been done. Check the section carefully, look for words like "account terminated", "closed", "responsibility terminated", things like that. But if it says the acount is active and you are an authorized user, it is most likely your card is still activated. Removing yourself will affect your score, based on that card's credit limit compared to the remaining total of your cards credit limits, and could raise or lower your debt to limit ratio. Hope this helps.

Why a Perfect 850 Doesn't Matter

Jan 31, 2015
Helpful to 28 out of 38 people

I think they may have tweaked the algorithm they used to calculate our credit scores when they added EquiFax to CreditKarma. Or perhaps something like a car loan you paid off 10 years ago just fell off your credit reports. My scores dropped too. Don't get too worried about it, just keep being a responsible borrower and the numbers will go back up.

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