Hey bank/credit guru's...

ReiKo

ReiKo

New member
I owe XX,XXX on a few credit cards... I am thinking of paying them all off... Should I close the accounts or keep them open? What would be the best bet to do with them?
 
Depends what your objective is. I'm a fan of closing unused accounts. Just make sure you have plenty of credit available if you are worried about your credit score (banks look for ratios).
 
I have a credit score of 736 and closed a few accounts that ive paid off (mostly because of poor customer service/outrageous fees). I have cards ranging from home audio to banana republic...i just pay them off and leave them open...its worked so far.

If you owe tens of thousands without secured assests it could be a different story, though...
 
Close them, unused revolving credit is bad. Now if you have debt on there <20%, thats good. It's retarded I know, but thats how they work.
 
I only keep three cards open because I've had 2 of them for over 7 years and the third has a no-interest promo on it. I don't like having giant unused accounts, but MBNA raises like crazy when you pay them off.
 
lethalss said:
Close them, unused revolving credit is bad. Now if you have debt on there <20%, thats good. It's retarded I know, but thats how they work.
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Buzz!! Wrong answer!!!

Pay them off but leave them open. Available credit > no credit available.

I'm not going into the long explanation, but I'm right!
 
Crazzy_Al said:
Buzz!! Wrong answer!!!

Pay them off but leave them open. Available credit > no credit available.

I'm not going into the long explanation, but I'm right!
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Better quote this one...

Thanks... I trust you on this...
 
You racked up $xx,xxx in credit card debit, and own a parts store, and still don't have a running car?:dontknow: :wink:

Let me know if you need help spending your money. I have some good ideas.:badass:
 
MotownPaceCar said:
You racked up $xx,xxx in credit card debit, and own a parts store, and still don't have a running car?:dontknow: :wink:

Let me know if you need help spending your money. I have some good ideas.:badass:
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Times are tough and money is spent in places here and there... Return on those investments will be good... :icon_mrgr
 
ReiKo said:
Times are tough and money is spent in places here and there... Return on those investments will be good... :icon_mrgr
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Just as long as you are talking about hookers, then we are good.:laugh:
 
Crazzy_Al said:
Buzz!! Wrong answer!!!

Pay them off but leave them open. Available credit > no credit available.

I'm not going into the long explanation, but I'm right!
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no, i'm right. :) I used to do underwriting at flagstar for 3 years man. Large open empty revolving credit accounts are not good.
 
lethalss said:
no, i'm right. :) I used to do underwriting at flagstar for 3 years man. Large open empty revolving credit accounts are not good.
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What makes you say that?


I am not trying to start a huge fight here... Just curious...
 
ReiKo said:
What makes you say that?


I am not trying to start a huge fight here... Just curious...
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Oh i know man, just trying to help. If the account has been stale, it's empty, and not used, it will hurt your cs just a tad. If you use it once a month, then thats very good. If it's just an open account sitting around, close it.
 
lethalss said:
Oh i know man, just trying to help. If the account has been stale, it's empty, and not used, it will hurt your cs just a tad. If you use it once a month, then thats very good. If it's just an open account sitting around, close it.
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One of the accounts is linked to another account that is used vigoriously... Should I close my end of that account?


Al what's your thoughts? Just curious... Again not trying to start a fight...
 
ReiKo said:
One of the accounts is linked to another account that is used vigoriously... Should I close my end of that account?


Al what's your thoughts? Just curious... Again not trying to start a fight...
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I assume these are lines of credit? One a credit card and one a bank line of credit? I assume the cc is used a lot and the bank is not? I need more details about the types of accounts and how you use them. Its hard to tell but you mention 'your end', as in, are you sharing this account with your parents? Just trying to see the whole picture. I know its sensative info, so if you want to PM me, thats cool.
 
lethalss said:
I assume these are lines of credit? One a credit card and one a bank line of credit? I assume the cc is used a lot and the bank is not? I need more details about the types of accounts and how you use them. Its hard to tell but you mention 'your end', as in, are you sharing this account with your parents? Just trying to see the whole picture. I know its sensative info, so if you want to PM me, thats cool.
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All three are CC's... One CC is linked to my mom and dad's account for emergency use only type of deal... I never use it no more anyways... The other two have balances on them and are never used that are in my name...
 
Over on the this side of the border a large unused line of credit hurts your GDS/TDS ratios as the limit balance is factored in to total debt ratio as being used. Example, enter mortgage with empty credit line of say 50K and then go blow it the week after you get the house. The ratio is worked to include those limits even if empty. That's the deal on those that I deal with for financing deals over here, may differ on your side, or even lender variations.

You would think if you had a 50K credit line and haven't used it in years that would be taken into consideration, I guess from a lender's perspective you could use it and change your debt ratio negatively.

Ryan
Viper GTS
Tahoe Z71
 
ReiKo said:
All three are CC's... One CC is linked to my mom and dad's account for emergency use only type of deal... I never use it no more anyways... The other two have balances on them and are never used that are in my name...
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The two with the balance, do you pay it monthly and on time? If so, good, keep those open. If you are worried about a debt to income ratio, ask them to lower the limits, but don't exceed 40% blanace:available. The one tied to your parents can go, the only thing that may do for you is help you get a better rate if their credit is really good.

Is your credit score fux'd or do you want a slightly better one to get a better rate on something?
 
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