Paying off CC balance all at once

[dragon8]

Pay it off.

 

[Connemara]

What about closing out a credit card? I have A+ credit, would it hurt a great deal? Should I bother with the credit utilization number?

 

[mm84321]

Originally Posted by Connemara

What about closing out a credit card? I have A+ credit, would it hurt a great deal? Should I bother with the credit utilization number?

Why do you want to close an account? It will only serve to raise your utilization percentage--something that will end up hurting your overall score.

 

[kwilkinson]

Originally Posted by mm84321

Why do you want to close an account? It will only serve to raise your utilization percentage--something that will end up hurting your overall score.

Because he knows he's a dipshit that will end up buying shots for an entire bar instead of being responsible with his money.
I told him to cut up the card but to keep the account open.

 

[mm84321]

Originally Posted by kwilkinson

Because he knows he's a dipshit that will end up buying shots for an entire bar instead of being responsible with his money.
I told him to cut up the card but to keep the account open.

Oh, well then by all means cut the card, keep the account active, and learn to impress others with your genuine character and wit, rather than with a generous wallet.

 

[Connemara]

Yeah, that card has been cut up for a while now. I'm fine with just leaving it open, but aren't banks starting to charge annual fees and ****? I really don't want to call and ask them, nothing worse than dealing with credit card providers.

 

[mm84321]

Originally Posted by Connemara

Yeah, that card has been cut up for a while now. I'm fine with just leaving it open, but aren't banks starting to charge annual fees and ****? I really don't want to call and ask them, nothing worse than dealing with credit card providers.

It depends on which credit card you have; my AMEX does, my Visa does not. It should have been stated when you opened your account.

 

[acidboy]

high expectations asian father would tell you to pay it off and never be in debt again.

 

[Gibonius]

Originally Posted by Connemara

What about closing out a credit card? I have A+ credit, would it hurt a great deal? Should I bother with the credit utilization number?

It is better to leave it open. You should be getting a statement, simply check and see if there's a yearly fee instituted. If they try and pull one, call and ask them to waive it. Many times they will (I've done this several times). If they won't, ask to cancel. Most of the time they'll waive the fee. If not, then you cancel.

 

[oneeightyseven]

I pay mine all off every month in full. don't really have a large limit because I don't have a job but still make a point to do so.

 

[mm84321]

Originally Posted by Connemara

When it comes to nefarious business practices, it's hard to top credit card companies.
This is all too true. I mentioned a while back, in another CC thread, how after only having my AMEX gold card for a period of around 6 months, my available spending limit had climbed from $2,000 to $25,000 with my maximum monthly expenditure being only around $2,500--I averaged $1-2k. I'd pay my balance off in full every month, and so my limit would increase after each payment, but even for me, that size of an increase was just insane. You really have to be careful.

 

[imatlas]

Originally Posted by mm84321

This is all too true. I mentioned a while back, in another CC thread, how after only having my AMEX gold card for a period of around 6 months, my available spending limit had climbed from $2,000 to $25,000 with my maximum monthly expenditure being only around $2,500--I averaged $1-2k. I'd pay my balance off in full every month, and so my limit would increase after each payment, but even for me, that size of an increase was just insane. You really have to be careful.

They'll stop doing that if you ask them to.

 

[mm84321]

Originally Posted by imatlas

They'll stop doing that if you ask them to.

Yes, but the point is, who would ask them to stop? It encourages one to spend more than they have the means to support. Of course, I know better, but I'm sure there are others who aren't so responsible.

 

[Gibonius]

I have more than my annual salary in available credit now. It's absurd. Never spent more than a month's paycheck on the cards, so it really doesn't matter and it helps my credit score. It could get someone with poor impulse control in trouble though.

 

[imatlas]

Originally Posted by Gibonius

I have more than my annual salary in available credit now. It's absurd. Never spent more than a month's paycheck on the cards, so it really doesn't matter and it helps my credit score. It could get someone with poor impulse control in trouble though.

Not if you have more credit than your annual income - part of the algorithm is to compare this ratio, I think the ideal is considered something like 30% of annual income in available credit. Of course, shutting down credit lines also dings your credit...so you might want to ask your existing cards to lower their limits.