Quote:
Originally Posted by sheepdog 44
Cancelling a credit card that you've had for a few years, especially if it's your oldest card is bad for your credit score. They average how long you've had how many cards you have, the older the better. Learned that the hard way.
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I read that! When I graduated from college in 2,007, I did not have any idea where I would work, and it was seventeen months before I found anything stable, by joining the Army. I struggled to pay my credit cards that entire time, and largely lost. I was excited when I started work as a substitute teacher, not having any idea that I would prefer going to war, but I opened a checking account with a credit union that was actually supposed to pay me interest! Then I was supposed to get a great deal with a credit card and I had balance transfers set up and everything! My life was turning around!
Except, I never received the credit card, so I could not activate it, therefore, the balances were never transferred. However, through some form of dark magic, my brand-new credit card showed the transfer anyway. Yay! My credit card debt doubled overnight! I was able to point out that it did not go through and drop the $6,000 balance, but they insisted that I needed to pay the interest on a credit card that I never had. I did not realize that the transfer did not go through until after their respective payments were due, so I was hit with late payment fines, which caused over-limit fees.
I loved that. "Oh, you can't pay your bill? I understand. Late fee! Over-limit fee! But wait! There's more! As a bonus, we are also raising your interest rate!" I remember calling and trying to get them to work with me. They just insisted that I needed to pay the bill. When I decided to end the call, I was told that they were putting in my record that I refused to pay my bill. I since heard that if you cannot pay the full amount, just make sure to pay something. Then they cannot fine you for missing a payment. Is there any truth to that?
When they joined the Army, they were offering bonuses, so I chose the job with the largest bonus. I could have had another eighteen thousand, but I would have needed to commit to another two years--I still would have been out there somewhere. When my first bonus installment came I paid off my credit cards. I did not get another one for a year or two because I could not rent a car when I was home on leave. It is basically a pre-paid. I gave them $500 and they gave me a card. I think that it is weird they charge me interest for using my own money, but I just make sure to use my checking account instead. I could totally raise my interest rate anytime and along with average age of your accounts, your debt-to-limit ratio also counts. However, I feel that I need to see if I can convert the account to a real credit card. Even if they do not give me a higher limit, at least I would have my money back!