imported_starboy869

Ok

I'm debating on what do with a credit card I have.

I have a CIBC VISA card with a $2G limit & Zero $ owning on it. I hardly use the card maybe once in a blue moon. According to my Credit Report I was late once in paying 30d in the 72 months. What should I do with my CIBC VISA? Close it? Lower the limit to $500 and forget about it? I heard closing a credit account can harm your credit score?????

J

I'd keep the limit where it is, you never know what might come up....but I would still make 2-3 small purchases a month on it and just pay them off in the 25 days you have.

But on the other hand if you lower it to $500 it's a lot easier to pay off than $2000, but if you've been good with it so far that shouldn't be a factor.

imported_Team Rukus

keep it as is.
give it to your mom or someone who will take care of it and not use it. that way you wont be tempted to use it and when you try they will stop you from using it unless its an emergency.
not having credit cards affects your credit because there is nothing to judge you on. cancelling cards can go against you aswell but that depends on how many cards you have.

the system works like this:
every person has an ultimate line of credit. this means the maximum credit a person will have at one point in time of their life based on their previous credit history and their employment and dependants. this will give you your credit score. now if you are near the top of the maximum credit line that means your credit score will be weak because no one will give you credit since you are at the peak. if you are mid point or less you will have a higher credit score and an easier approval rate for credit. if you have no cards you are at the very low credit rate and this means 1 of two things 1 is your credit score is high because you have no credit history or 2 you credit score is low because you dont have sufficient credit cards. so keeping it at a medium is always best.

if your making 20-30 grand a year your max credit limit should be 15 thousand if you want to be in the medium range. this is my theory on credit. i am turning 22 and my credit is in the 100 thousand but i am having trouble purchasing a house without putting assets up because i am at my peak reason being i have a business eventhough its all paid for i still have a high credit limit this scares banks because i can at any time max out all my cards etc and basically screw them over by disappearing or declaring bankruptcy.

imported_starboy869

Also I have an RBC Visa with 5.5k limit which I mainly use. I'm not seeing the real point in having two visa cards.

My RBC has around $1K in debt on it. Nothing too serious. I just use this card since it has the greatest rewards. (Future Shop gift cards ftw!)

btw i make 45k/yr

imported_Team Rukus

for 45k you have a low credit line. so i recommend keep it.

imported_viper_2_4

whatever has the best rewards...

imported_starboy869

I always thought if you have $X K for a credit limit that is potential debt which is a little bad for the credit score.

imported_Team Rukus

read my above advice that tells you how it works.
if you dont have credit cards how are they supposed to know if your good with your credit or not???

cibs

ya, you don't want to drop the limit back to 500.. not making 45 k... show them that you're responsible with it... there's nothing you can do about the late payment, but that's really not a big deal cuz it's just one... you're still in good territory...

they also look at how much of your credit you are currently using... not for your score but for when they approve you for certain things... if you are using like 80% of your credit and you are continuously spending more than you're paying off they'll see that it's bad because they realize eventually you won't be able to pay it off as efficiently as you were before... unless you get a raise or something...

maybe buy your gas on the credit card (shell easy pay FTW~!) and just pay that off each month, that's what I do... simple enough to remember, and convenient too...

imported_starboy869

I really don't know. I have an almost empty now VISA with a $5.5K limit, and this CIBC with $2K that only get used under blue moon conditions. I've been issued both of those cards for almost 8 yrs now.

My friend sent me this link and it's a pretty good read Credit stuff

imported_Team Rukus

then go cancel it. you clearly seem to have your mind set....i dont see the point in asking us.


oh btw there are two credit scores are person has 1 is with the credit bureau and 1 is with the bank itself.

szuberi

credit card usage is alot about personal financial discipline. since you already have the other VISA card, you can cancel the CIBC one if you think you dont need that much credit available. In my experience of working in credit cards for a bank, closing a credit card account or a line of credit does not affect your credit score. actually it happens all the time...on a daily basis and even banks go after customers when they try to transfer balances onto their own credit products from other competitors....so if you dont think you need it....close it...as simple as that.

further...that one payment you missed does not mean anything. it may have affected your score by a small margin (few points only) but nothing major cuz the bureau needs to see a pattern of payments and usage before score (FICO) is evaluated and assigned on a quarterly basis.

further to what jay said....credit score is not something you can manage or control on your own directly..so i will not worry too much about that. for limits....the general rule is you should not have overall credit outstanding more than three times your gross salary...now that includes all sorts of credit people have...mortgage, car loan, credit cards, line of credits, store balances etc.

imported_starboy869

I'm the kind of person who doesn't use something for a while I tend to get rid of things. IE. If I have something in box in the basement and don't touch for a year I tend to get rid of it. Every time I go tidy things up I always come back with a lg bag of useless stuff I either donate or toss. Now on the hand my wife is a packrat.

My wife said I should keep it for just incase. However if I max it I may be in a little trouble (cause my 5.5k would be maxed along with it.)

My friend said ' having 2-3 Credit Cards with avg size limits is a lot better than having 4+. However if your not using it you should consider to cancel it since it will effect your overall borrowing amount.

I think I'm just going to toss this card in my dresser draw and forget about it for now. I really don't use it, but when I do owe $$ I pay the total balance off (no interest FTW!)

imported_Zyepher

It will hurt your credit if you cancel your credit card .

szuberi

not true

civicnation

^listen to this guy, he works for a bank

imported_SilverSleeper

imported_starboy869

WoW. I learned a lot in the last few days. Getting a Credit Card is **** simple, but fully understanding credit and how it works in the big picture of things is another thing.

imported_dr.drew1987

they come in handy when ordering online.

imported_starboy869

Yeah... I use my main RBC VISA with good rewards for doing all my credit card needs with. I avg. about 200 to 275 a year in future shop gift cards.

My CIBC VISA is just there, no perks, nothing, I think $15 fee for the yr. 19.5% interest. A little pointless in having really.