Whats the right move?

[Immy]

What's the right move?

Situation: I just got a letter from one of my two credit card companies. They said because of inactivity (haven't used it since Feb. 2003) they're dropping my credit limit from $5,000 to $300. What should I do about it?

A) Cancel the card
B) Call them and see if I can get the limit raised again
C) Leave it with the new $300 limit

I have a primary card I use for all my transactions and I keep this 2nd one for emergencies (such as if I lose my primary, etc.) but I know this change will affect my credit rating.

Me:
- I'm debt-free
- I have no intentions of buying anything big-ticket in the near future (home, car, etc.)
- My normal yearly credit card transactions don't come anywhere near the limit of my primary card
- I haven't had anything negative happen to my credit to ellicit this reaction from the credit card company

 

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[seger98]

Re: What's the right move?

Immy, you sound like you are in the same boat as the wife & I are, debt free, no major purchases ect. ect.

I only have one card that I use on the road for gas, only cuz I hate having to go in and pay for it first then go back in & get my change for a $100.00 bill. I sure miss northern WI where you can still pay AFTER you pump!

Anyway, if it was me, I'd call them & cancel the card altogether, less junk mail that way! They might just keep the balance alone for ya then!


Chris

 

[Ray S ECenFL]

Re: What's the right move?

I would call the credit card company and request that they restore your credit limit to the previous figure. If they do or at least raise it to a higher limit, you can then show some activity on the card, by using it for gas once a month or pay for your groceries etc...

Alternate between the two cards just to keep both active.

Ray S

 

[truckinbutch]

Re: What's the right move?

No brainer....You hired them,you fire them. Cancel the card.
The more people that do this the sooner the bloodsuckers end on the street with a tin cup and a monkey.

 

[Zephyr]

Re: What's the right move?

Cancel it. One less identity theft thing to worry about....

 

[Jagdpanther]

Re: What's the right move?

Cancel.

 

[smurf-42]

Re: What's the right move?

Within the last 3 months, hubby and I have had two credit cards cancelled due to inactivity.

With the way the economy is, since we are not using the cards, the credit card company is not making any money off of us from interest on the balance. The one card I still have a balance and the other card was never used in 5 years.

Sue

 

[Siegfried Schlagrule]

Re: What's the right move?

There are still things you can't do without a credit card like rent a hotel room or rent a car. Yes I know the NO TELL MOTEL still takes cash. I'm talking about a really nice one. For that reason everyone should have at least one active credit card. Charge a little each month and pay it off each month. siegfried schlagrule

 

[crazyjarhead]

Re: What's the right move?

I'd keep them open as to keep your credit score up. I was told that closing them hurts your score. Just don't use them If you do, pay them off right away and don't keep a high balance that drags on for years

 

[simonds]

Re: What's the right move?

I use my debit card for most all of my transactions. I'm a small time building contractor and work in many other towns where they don't me at the building supply stores. This sure made my life easier when I would stop to pick up a few small items, maybe get cash for lunch, and get gas for the trip. I have not had a credit card since back in the 70's from Sears and Aldens.
I don't owe anybody any money and nobody owes me any money. I hope to keep it this way. Very few worries and I sleep very good at night.

Happy New Year to all of you,
Clayton

 

[sniffer]

Re: What's the right move?

closing a zero balance card doesn't hurt your credit, it actually increases your credit score.
I'd still close it, they reduced your limit because card companies are nervous that people will charge to the max and then file bankruptcy

 

[GPURS]

Re: What's the right move?

If you keep any appreciable amount of money in your account, a debit card is much more dangerous than any credit card could be. Somebody steals my credit card and my liability is $50, somebody steals a debit card, and whatever you have in there is gone. So many more perks and protections with a credit card. I love cash and paying with it, but my life is not simple enough to go with all cash. If you have an American Express card in your pocket, you can go anywhere in the world and do anything that you want to do, and that little card in your wallet is not as noticeable as that $10,000 wad of cash !! Good luck, Gpurs..