should i keep this card or not.. its all paid off (just finished)..

$9000 balance. ive had the card for like 6 years or something.

14.4% APR

i use my debit card mostly, but perhaps keeping this around would be fine.
ive never missed a payment on the CC. im surprised it hasnt gone more than $9000. ive requested for round $12K before. but no luck.

Do you think i will be able to get a higher limit with another card?

btw i did search. some threads were locked. some were different. i just wanted a yes/no answer and maybe a bit of advice.

[Edited on November 4, 2008 at 4:00 PM. Reason : ]

11/4/2008 3:59:44 PM

if it doesn't have a fee associated with it - it's in your best interest to keep the card open 9/10

whether or not you should carry a balance on a card with a 14.4% APR is different - you are an idiot to do so - there are plenty of 0% temporary balance transfer offers out there

11/4/2008 4:00:34 PM

its a Citi card.

i was under the impression that 14.4% is on the high side. i swear it was higher than that, but i dont remember. i havnt used this card in fore ever, ive just been paying it off

11/4/2008 4:02:01 PM

I have never really cared about the APR on my cards since Ive never carried a balance. But either way (as far as I know)if there isnt an annual fee just to have the card it is in your best interest to keep the card open.

11/4/2008 4:05:17 PM

yeah, at first i was pretty good at paying off the full balance, then i fell into the trap of "ill buy this on my credit card and you guys pay me back".... once that happened.. the credit just went higher and higher cuz of purchases

yeah... that didnt go well. but i still payed off large chunks.

11/4/2008 4:10:29 PM

If you do keep the card open, you should buy something with it every once in a while, and immediately pay it off. I had a card open that was "inactive," had no balance, and hadn't been used in six months with my last credit check, and they docked me points for that.

11/4/2008 4:10:48 PM

Quote :

"im surprised it hasnt gone more than $9000. ive requested for round $12K before. but no luck."

I want to say that having a $10,000 limit requires a large jump in credit score.

anybody confirm?

11/4/2008 4:49:22 PM

didn't want to make another thread but i am just curious:what is a good,safe, quicker way/ways to increase your credit score if you have bad credit this is not for my but the bf.

11/4/2008 4:51:03 PM

there aren't really any "quick" ways to really repair credit.

its easy to ruin it, but it takes time to repair it.

11/4/2008 4:52:18 PM

Quote :

"didn't want to make another thread but i am just curious:what is a good,safe, quicker way/ways to increase your credit score if you have bad credit this is not for my but the bf."

Pay down your balances so that you are using < 30% of your available credit. Nothing else is quick. And this one ain't all that quick.

11/4/2008 5:10:40 PM

keep the credit card open

if you use it, pay it off every month


if you are trying to repair your credit, pay more than your payment until your balance is low or 0

spend less

11/4/2008 5:22:39 PM

I'm curious: why would you think it's not a good idea to leave it open?

- the interest rate doesn't matter if you're not carrying a balance (and 14.4% isn't all that high, given that 26%+ isn't uncommon; I've got 8.9% with one of *THE* best out there)
- even if you can get a card with a higher limit (why would you want to do this), where will the harm be in keeping open at long-standing card? If you're not carrying a balance, that means you have 9K available, and that should cover you for a good number of scenarios.
- You're in your 20s. A card with a 6.xyr history is pretty significant and not something you should discard just because you paid off a card.
- If there is no annual fee, keep the card, and use it every once in a while

Again: assuming no annual fee, it would be absolutely retarded to close this card just b/c you paid it off. I say this in the kindest possible way: it sounds like you need some personal finance 101. Asking whether or not you should keep this shows that you don't fully understand how credit is scored, or the impact of closing it and asking for another card.

Quote :

"what is a good,safe, quicker way/ways to increase your credit score if you have bad credit "

http://www.smartmoney.com/spending/deals/6-ways-to-build-credit/

Both of you should begin reading consumerist (esp under the personal finance roundup tag - they provide many helpful links in these articles) and the simple dollar

[Edited on November 4, 2008 at 6:02 PM. Reason : links]

11/4/2008 5:58:34 PM

me?

i was just curious about leaving it open and the inactivity on it.

i wasnt going to close it unless i came across a better card.

my credit score is pretty darn good, and has probably gotten better now that they have resolved the issue with my dads information being on my report.

its no 800. but ive held my own.

11/4/2008 6:28:56 PM

Quote :

"i wasnt going to close it unless i came across a better card. "

even then what would your reason for closing it be if there is no fee? that does nothing but hurt your score as far as i know

11/4/2008 6:56:36 PM

just dont see the point in having more cards.

like someone mentioned, you gotta actually keep it somewhat active i think.

i mean, ive read 50/50 on having more than 1 credit card... if it will help me a lot, then yeah. ill keep it open, but if its one of those things that probably wont help that much, then who knows.
also this: probably doesnt happen to anyone, but still.

Quote :

"If you do keep the card open, you should buy something with it every once in a while, and immediately pay it off. I had a card open that was "inactive," had no balance, and hadn't been used in six months with my last credit check, and they docked me points for that."

im not a big time CC user. i have my debit card and im pretty good at keeping track of $$, so im not gonna be surprised if i forget to use my CC in for 6 months.

11/4/2008 7:14:16 PM

if it has a 9000 limit then You are giving up a pretty nice chunk of your debt:credit ratio. Ill let other people chime in here but I just dont see the point.

11/4/2008 7:17:29 PM

well, if you have a high confidence of making sure not to over spend and paying off the balance fully every month. I would aim for a card that has some kind of points reward. I used to only use debit but now use my reward based credit card and can get over 1000 dollars back every year using my points to get checks back which is the best value per point. I pay balance fully and don't worry about the interest.

[Edited on November 4, 2008 at 9:16 PM. Reason : apr]

11/4/2008 9:15:55 PM

yeah, i want to look into rewards also. i may just stick with citi.

heck, i guess i might as well keep this one open up until i absolutely am not going to use it, even if its to just do one transaction every few months.

11/4/2008 9:28:55 PM

If you plan to take out some big loans in the next 6 months to a year (for a house), keep it open. Otherwise, any points (and they'll only be a few) you might lose for closing you'll gain them back provided you open another card and use it from time to time.

I started out with a 1500 limit a little over 5 years ago on a card I use for nearly every purchase, I'm now up to a 36k limit on this card. I should probably look into getting a rewards card for as much as I put on it (about 1500 per month).

11/4/2008 9:34:26 PM

you've had it for 6 years and it sounds like you have a good payment history. call them and ask to lower the rate. i bet you a dollar that they will drop it to 9.9% without even thinking about it.

11/5/2008 11:36:51 AM

Is now a bad time to get my first credit card? If so, should I go through my bank. I have a full time job and don't spend much. I was just thinking it might not be because of the economy. Any advice on this topic for a first timer would be great.

sorry to take this away from the op but I didnt want to start a new thread.

11/5/2008 11:44:08 AM

no way, get one now if you can be responsible. if you can't pay cash or write a check for it, don't buy it. pay off the balance every month and you don't even get burned by whatever interest rate you have. credit cards are convenient, very useful for online purchases, and are a great way to start building credit. just don't get caught up in consumerism and you'll be fine. if your credit history is young you'll likely have a $500 limit but after a few months of regular payments that will go up.

11/5/2008 12:15:55 PM

well they did drop it, but to like 12% or something like that. they said that is the lowest Citi is running right now.

11/5/2008 12:52:33 PM

I have 3 cards, all with a 20k+ limit (this includes credit and cash advanced). Ive had them all for a while, and my credit score is over 800. I think keeping 2-3 cards open, with no large balances, is good. I did cancel my American Express finally, because I was sick of the fees and not using it.

11/5/2008 12:57:05 PM

There is a "request credit line increase" button on Citi's website. Try it.

I've gotten a card with 4k initial limit all the way to 16k that way. Just requesting one every couple months or so... Most of the time it's automatic, meaning they bump it instantly without even asking what amount I'm requesting. There is no credit check associated with this UNLESS you submit a desired amount, and they decide they have to process your request. It will be clearly marked and will give you a chance to cancel before it is submitted.


No reason to cancel a credit card, ever. Unless you've got way too many. And as someone who currently has 15+ cards, I'll leave it to you to determine how many is too many.

11/5/2008 1:09:40 PM

^i did, well i could do it again, last time i did that was probably like 2 months ago.

i requested 12K, it was at 6K.. they settled for 9K. lets see how it goes now.

11/5/2008 1:14:46 PM

I just take whatever increase is available instead of requesting more (which causes them to pull your credit report which in turn knocks your score slightly)

11/5/2008 1:45:21 PM

I need to get my first credit card, mainly for business use (travel, food, hotels) and I don't really know anything about choosing the best one. This appeared to be the most current thread with relevant discussion. Any recommendations?

12/4/2008 2:23:20 PM

Ha ha I am kinda glad that i read this thread... I paid off a balance of a card over the summer and assumed they would close it for me, at least thats the impression I got when I talked to the lady.

^ Answering your question... I have found that there are credit card companies that will have a 0% APR for the first year (which is a plus).. meaning no interest is charged to the account for a year and you just have to pay the minimum. Citi card I think has something like that. Also check with your bank to see what they can offer you. But the lower the APR, the better. But be careful for those, because if you miss a payment, your APR could go up significantly (say as high as 23%) and would screw you big time.

I think that some credit cards will also offer rewards such as airline miles, gift cards etc. So if you're going to be paying if off ever so often and wouldnt mind some added benefit, even having some interest may be useful for you. And if you can join a rewards program without interest, that too would be a plus.

I believe an average APR for a credit card is about 9-11%... I do know that mortgage rates and loan rates are about 5%...

Hope this helps a little bit...

12/4/2008 2:45:33 PM

Are you in the military, or were one of your parents?
If so, get a CC through USAA.

12/4/2008 2:45:48 PM

1.) If there is no annual fee, and you are fairly young (still building credit) keep it open and use it 1-2 times/year. (not using it builds credit much slower)

2.) If there is an annual fee, I'd say get rid of that one, get another card with no fee, and then follow the rest of #1

3.) Once you've established good credit, have a house, etc, don't keep open lines of credit that you aren't using.

4.) Try to NEVER carry a balance. You don't win, ever.

5.) Get a rewards card, with no annual fee. Use it for everything.

6.) Banks typically like to see your available credit >50% (>75% is great).

7.) Credit companies prefer to keep your total credit limit to <30% of your annual income.


I have a chase rewards card and I put everything on it. No annual fee, and I don't care about apr, etc. I never carry a balance. I earn money back by using it. Way better than a debit card (even debit cards with rewards). I have about a $8,000 credit limit, and I never use more than 20% of my total credit limit. However, my total credit limit is more than 30% of my annual income (which is why I was denied my last limit increase, according to the bank. I didn't know about that guideline at the time)

[Edited on December 4, 2008 at 8:54 PM. Reason : .]

12/4/2008 8:48:54 PM

to build your credit you have to use your credit

I use my amex for everything and pay it off monthly. Just keep a budget to make sure you don't over spend, rack up points and build your credit. You just have self control and not keep a balance. At that point it doesn't matter what your APR is

12/4/2008 10:52:51 PM

yeah, i def need to look into a rewards card.

12/4/2008 11:06:39 PM

A large part of your credit score is based on how much credit you have available vs how much you utilize.

Getting rid of a 9K card that has no balance will increase your debt ratio if you have other cards with balances on them.

If you do so be weary that your ability to buy a house etc will be effected.

12/4/2008 11:38:03 PM

CUT UP CARD

LEAVE LINE OPEN

DO NOT USE

12/5/2008 12:22:03 AM

Quote :

"to build your credit you have to use your credit"

very true. you build credit faster if you use it more.

Quote :

"CUT UP CARD LEAVE LINE OPEN DO NOT USE"

DON'T DO THIS. use it at least twice per year. having an open line that isn't used isn't necessarily bad, but it doesn't do a whole lot of good either. you need to use your credit to build it. The exception is having consumer credit cards (not visa, discover, amex, etc). These are cards for specific stores only (such as a sears, lowes, etc card, that IS NOT a visa, etc). I have a GE money card that isn't a visa, etc. I used it to make one expensive purchase since it was no interest/no payments for 12 months. I no longer use it, but I didn't close it, so that I could continue to have that open line on my history.

Quote :

"A large part of your credit score is based on how much credit you have available vs how much you utilize."

true as well. I tried to communicate this, but failed I think.

12/5/2008 7:06:23 PM

I haven't read the whole thread, but it is best to keep it open as long as you've paid off your balance. A $9000 credit-limit is not bad. I'd recommend assigning 1 reoccurring bill like a cell phone payment or a monthly gym due to the credit card. Then just remember to pay it off every month. You'll help build your credit. If you want a good rewards card get a membership @ Costco...they only take debit and American express. You can sign up for a Costco rewards American Express card at the desk you take your picture at. They have good cash back rewards for gas food travel that you get once a yr in February.

jdennis86= there isn't really a bad time to get a card as long as it doesn't have a fee and you pay it off fully each month. Its good for building credit in order to get loans for cars/homes...and now a lot of jobs look at a persons' credit score before hiring them as well.

[Edited on December 5, 2008 at 7:29 PM. Reason : asdf]

12/5/2008 7:18:45 PM

http://consumerist.com/5101305/hard-and-soft-credit-inquiries-and-how-one-hurts-your-credit-score

12/6/2008 5:24:12 PM

So CitiCards just upped my rate from 9.99% to US prime PLUS 9.99%... 15.99% minimum.

This means it's time for a new card.

I have stellar credit but no assets. I have had revolving credit since I have had 3 car loans and also made serious payments on a Best Buy card (God bless "18months Same as Cash")...

How is Capital One for things?

I qualified for the Premier Platinum Plus 8.9% with a 0% introductory through October... And then it's US prime +3.9%... sounds like a good thing... Any Bad experiences?

[Edited on December 7, 2008 at 11:49 AM. Reason : Went ahead and searched online... but still want to hear personal experiences]

12/7/2008 11:33:41 AM

they just upped my rates too but I really don't care /shrug

12/7/2008 11:49:40 AM

^^ http://consumerist.com/5103303/on-heels-of-bailout-citi-raises-rates-on-millions-of-cardholders

12/7/2008 2:14:11 PM

You should seriously read these:

http://consumerist.com/5101342/bad-fico-heres-three-other-credit-scores-that-can-help


http://consumerist.com/5101313/whats-the-point-of-credit-repair-companies-not-much


http://consumerist.com/5101312/check-your-credit-history-year+round-for-free

12/8/2008 1:36:03 AM

gonna hijack for a minute - anyone know of any credit cards companies offering no interest/no payments for 12 months? needs to be visa/mastercard. I've got one, but the 12 month period runs out in April and its not a visa/mastercard.

12/8/2008 8:29:30 AM

Does anyone have their cc from their bank? Ive been with first citizens for ~8 years (I'm 24) and they've never voluntarily upped my limit. When I graduated last year I had a 1k limit. When I requested an increase they asked me how much I wanted. I went low with 2k fearing that a denied increase request would pull my score down. They also cancelled my old 1k card and issued a new card instead of just bumping my old one.

I am married with a household income of 60k with my wife in gradschool full time. Never missed a payment and very rarely held a balance. I've had a car payment for about 9 months. No other debt. What would be an appropriate amount to request? If I request to much will they negotiate down or deny my request?

I'm hoping to purchase a home in 30 months and just want to make my credit more attractive.

[Edited on December 8, 2008 at 9:01 AM. Reason : I plan to ask someone at the bank next time I go. Just looking at what to expect]

12/8/2008 8:58:19 AM

^I have a FC card. I'm a graduate student, earning $19,000/year and my FC card has a limit of $2,000. I've got two other cards with a total limit of $6,000 (non-FC), which means a total limit of $8,000. According to several banks, this is more than I should really have (see below).

You could get much more. However, most banks & credit card companies like credit limits to be no more than 25% of your annual income. That being said, I wouldn't ask for a limit of $15,000. If I were you, I'd make sure to stop carrying balances & always pay on time. Then ask for about a $3,000-$5,000 limit increase. Do that once a year (though I'd lower the increase each year), until you get to where you want to be. Of course, this is all dependent on your current credit score. And to the best of my knowledge, FC doesn't automatically increase your limit.

Of course, talk to a banker (not a teller) about it first, as they would know more than I do.

As for them giving you a new card when you got a credit limit increase, that's strange, unless you had an old card/account/etc and they wanted to update you to their newest whatever.

Getting denied an increase doesn't hurt you, however when you ask for an increase, banks typically have to do a hard inquiry into your credit history, which slightly lowers your credit score for 6 months.

[Edited on December 8, 2008 at 9:53 AM. Reason : .]

12/8/2008 9:48:04 AM

^^ you can get way more.

12/8/2008 10:20:47 AM

^^^ do they not offer any increases without you having to request one causing them to pull your credit report??

12/8/2008 10:37:19 AM

^my experience with FC has shown that you have to request a limit increase, thus FC will request the increase from Visa, and Visa does a hard inquiry into your credit report


I just realized that I wrote "7.) Credit companies prefer to keep your total credit limit to <30% of your annual income" in a post earlier. I'm not sure why I put 30%, I meant 25%

[Edited on December 8, 2008 at 10:54 AM. Reason : .]

12/8/2008 10:43:49 AM

Thanks for the advice everyone, I had never heard the 25% rule of thumb before. I assume thats the total of all of your credit lines?

I'm going to go to the bank sometime this week to request an increase to 7k (up 5k).

[Edited on December 8, 2008 at 12:16 PM. Reason : Total lines]

12/8/2008 12:13:54 PM

No problem. The 25% rule is fairly new to me as well. I haven't heard/seen it mentioned much, however people at FC and Chase both referred to this 25% cap.

12/8/2008 12:15:33 PM