Comments on: When to Close an Account http://www.littlehouseinthevalley.com/when-to-close-an-account Tue, 07 Feb 2012 15:56:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Little House in the Valley Company body on me http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1128 Little House in the Valley Company body on me Tue, 09 Mar 2010 20:56:13 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1128 [...] Little House in the Valley tags: credit-score, debt, fixed-rate, goals, mess-since, not-necessarily, [...] [...] Little House in the Valley tags: credit-score, debt, fixed-rate, goals, mess-since, not-necessarily, [...]

]]> By: Little House http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1125 Little House Tue, 09 Mar 2010 14:39:43 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1125 @Mike - thanks for these tips. It looks like I should keep these cards open a bit longer if I intend to take out a mortgage. But, yes, fees stink! That's why I can't wait to eventually ditch these cards. @Mike – thanks for these tips. It looks like I should keep these cards open a bit longer if I intend to take out a mortgage. But, yes, fees stink! That’s why I can’t wait to eventually ditch these cards.

]]> By: Yakezie Roundup – March 9th | Foreigner's Finances http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1122 Yakezie Roundup – March 9th | Foreigner's Finances Tue, 09 Mar 2010 13:33:08 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1122 [...] Little House in the Valley – When to Close an Account [...] [...] Little House in the Valley – When to Close an Account [...]

]]> By: Serg http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1119 Serg Tue, 09 Mar 2010 12:02:11 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1119 www.studioflorist.com Thank you very much for the Tips with fresh flowers presented on your site! I did as it is written there and the flowers that my beloved presented me are still alive! And besides now I know the meaning of all the flowers! And I am even thinking of becoming a florist myself! Thank you, studioflorist.com! http://www.studioflorist.com
Thank you very much for the Tips with fresh flowers presented on your site! I did as it is written there and the flowers that my beloved presented me are still alive! And besides now I know the meaning of all the flowers! And I am even thinking of becoming a florist myself! Thank you, studioflorist.com!

]]> By: Sara James http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1118 Sara James Tue, 09 Mar 2010 08:23:56 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1118 Hi I visited your site: www.littlehouseinthevalley.com today and I must say that your site has got really good and worthy information. While reading your article I found them to be really good and informative. I am a regular visitor of your site and I keep on reading it during my spare time. Being a content writer I was just wondering if I can do something for a wonderful site like yours. The best part is I wont be charging you a penny, but in return all I need is just one link within the article. I have got few finance sites also which I keep on updating on the regular basis. I would be really honored if I can do something for your site :) Please feel free to get in touch with me regarding this anytime you want. Looking forward for your positive reply. Thanks, Sara James sarajames27@gmail.com Hi

I visited your site: http://www.littlehouseinthevalley.com today and I must say that your site has got really good and worthy information. While reading your article I found them to be really good and informative. I am a regular visitor of your site and I keep on reading it during my spare time. Being a content writer I was just wondering if I can do something for a wonderful site like yours.

The best part is I wont be charging you a penny, but in return all I need is just one link within the article. I have got few finance sites also which I keep on updating on the regular basis.

I would be really honored if I can do something for your site :)

Please feel free to get in touch with me regarding this anytime you want.

Looking forward for your positive reply.

Thanks,

Sara James
sarajames27@gmail.com

]]> By: Mike http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1116 Mike Tue, 09 Mar 2010 03:48:16 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1116 Hey Little House Closing credit cards will affect your debt usage which is a measure of credit utilization calculated by taking your total debt divided by your available credit. For example, $800 of credit card debt with a $10,000 credit limit will produce a debt utilization of 8%. Having a utilization of less than 10% will help you earn the most points for your credit score. To make sure you earn the most points from this category, keep your credit card balances low. People who max their credit out are perceived to be the biggest risk. On the other side of the spectrum, people who never use their credit lines have no history at all. The people who get the most points from this category are those who keep their balances low and their credit limits high. However, you shouldn’t open new accounts or request credit limits that require a pull on your credit report; both can negatively affect your credit score. The safest option would be to continue using your existing credit, keep your credit balances low, and accept credit limit increases that don’t require a pull on your credit report. That being said... In aggregate this is 30% of your total score and you won't be affected that much if you close a $1,000 credit card. Plus, if you don't plan on taking any large loans any time soon, your credit score has plenty of time to recover. Annual fees stink! .-= Mike´s last blog ..<a href="http://feedproxy.google.com/~r/PersonalFinanceNinja/~3/tliBTO0juXs/life-style-inflation-why-your-savings.html" rel="nofollow">Life Style Inflation: Why Your Savings Is Not Growing as Fast as Your Income</a> =-. Hey Little House

Closing credit cards will affect your debt usage which is a measure of credit utilization calculated by taking your total debt divided by your available credit. For example, $800 of credit card debt with a $10,000 credit limit will produce a debt utilization of 8%.

Having a utilization of less than 10% will help you earn the most points for your credit score. To make sure you earn the most points from this category, keep your credit card balances low.

People who max their credit out are perceived to be the biggest risk. On the other side of the spectrum, people who never use their credit lines have no history at all. The people who get the most points from this category are those who keep their balances low and their credit limits high. However, you shouldn’t open new accounts or request credit limits that require a pull on your credit report; both can negatively affect your credit score. The safest option would be to continue using your existing credit, keep your credit balances low, and accept credit limit increases that don’t require a pull on your credit report.

That being said… In aggregate this is 30% of your total score and you won’t be affected that much if you close a $1,000 credit card. Plus, if you don’t plan on taking any large loans any time soon, your credit score has plenty of time to recover.

Annual fees stink!
.-= Mike´s last blog ..Life Style Inflation: Why Your Savings Is Not Growing as Fast as Your Income =-.

]]> By: Little House http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1113 Little House Mon, 08 Mar 2010 23:19:00 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1113 @RainyDaySaver- That's what I was thinking. Only because I'll hopefully be purchasing a house in 18 months or so, I'm really trying to limit the amount of changes that would be reported on my report. Thanks for your input! @RainyDaySaver- That’s what I was thinking. Only because I’ll hopefully be purchasing a house in 18 months or so, I’m really trying to limit the amount of changes that would be reported on my report. Thanks for your input!

]]> By: Little House http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1112 Little House Mon, 08 Mar 2010 23:17:48 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1112 @Mr. Credit Card - Thanks for that advice. I'm a little worried about applying for another card since lenders are being much tighter when it comes to extending credit. But, you make a very good point. Canceling those two cards would only affect my credit by a few points. @Mr. Credit Card – Thanks for that advice. I’m a little worried about applying for another card since lenders are being much tighter when it comes to extending credit. But, you make a very good point. Canceling those two cards would only affect my credit by a few points.

]]> By: RainyDaySaver http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1110 RainyDaySaver Mon, 08 Mar 2010 18:50:54 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1110 Despite the fees, I think you're doing the right thing by keeping the CCs open ONLY because you're looking to buy a house. And what you'd save on fees could be minimal compared to the additional money you'd have to spend on a mortgage with a higher interest rate because your credit score went down. .-= RainyDaySaver´s last blog ..<a href="http://feedproxy.google.com/~r/Rainy-daySaver/~3/BfvkoVPI65g/saturday-link-love-spring-is-in-air.html" rel="nofollow">Saturday Link Love: Spring Is in the Air Edition</a> =-. Despite the fees, I think you’re doing the right thing by keeping the CCs open ONLY because you’re looking to buy a house. And what you’d save on fees could be minimal compared to the additional money you’d have to spend on a mortgage with a higher interest rate because your credit score went down.
.-= RainyDaySaver´s last blog ..Saturday Link Love: Spring Is in the Air Edition =-.

]]> By: Mr Credit Card http://www.littlehouseinthevalley.com/when-to-close-an-account/comment-page-1#comment-1109 Mr Credit Card Mon, 08 Mar 2010 18:50:37 +0000 http://www.littlehouseinthevalley.com/?p=2064#comment-1109 sounds like sub-prime cards to me. Ii would say cancel them. At most, from readers emails etc, you lose a few points (since they are low limit cards). Then again, when are you getting your mortgage? If it is tomorrow, then maybe you could hold off a couple of months. If it is in six months time or a year, then I'm sure there is no harm. Alternatively, you could cancel those two, wait a bit and apply for a no annual fee card. Since your credit is much better than it was back then, you'll probably get a card with a higher limit than these 2 combined. sounds like sub-prime cards to me. Ii would say cancel them. At most, from readers emails etc, you lose a few points (since they are low limit cards).

Then again, when are you getting your mortgage? If it is tomorrow, then maybe you could hold off a couple of months. If it is in six months time or a year, then I’m sure there is no harm.

Alternatively, you could cancel those two, wait a bit and apply for a no annual fee card. Since your credit is much better than it was back then, you’ll probably get a card with a higher limit than these 2 combined.

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