Comments on: One reason for not canceling all my credit cards

By: lori

lori — Sun, 20 Apr 2008 20:15:18 +0000

Cancelling all of your credits WILL affect (effect?) your credit negatively. One reason is the length of your credit history. If you have a credit card for 5 years and then you cancel it, you’re shortening your credit history. And that’s negative on your report. Also if you’ve only had a credit card for 5 years, you’re going to get negative points for not having ENOUGH credit. It’s completely stupid, but that’s how it works. I’d recommend this (which is what I did, and my credit score literally SHOT up): Cancelling everything but your oldest card. PLUS – I’ve had that card for 7 years now, and I STILL get told my credit score is low because of too little credit. Again – completely stupid, but that’s just the way it is.

lori’s last blog post..Sale at Carter’s Stores!

By: Darren M. Cary

Darren M. Cary — Sat, 19 Apr 2008 21:38:01 +0000

Kacie, you wrote:

But, not relying on credit anymore, you are “the man.” So . . . you’re stickin’ it to yourself? :)

Congratulations on your road to financial peace. Yours is an inspiring road to see.

By: Bethany B-A

Bethany B-A — Sat, 19 Apr 2008 06:53:20 +0000

I've found that Enterprise is really good with renting cars to people between 21 and 25. I've rented from them and they certainly didn't put a hold on my debit card for $2,000. I believe they told me it would be $500 (the final cost was $130), but it's been a few months since the rental. There's also no extra cost for being between 21 and 25 (at least not in Hawaii). I know some agencies do that, but Enterprise doesn't. Bethany B-A's last blog post..My famous office

By: Kacie

Kacie — Wed, 16 Apr 2008 22:52:00 +0000

Yes, not having a credit card or canceling your cards can affect your credit score.

I’ll need to check into this some more, but I’ve also read that having several credit cards open with $0 balances can hurt you when trying to apply for a mortgage (I guess they think you’ll run out and charge a bunch of new furniture? Dunno).

I don’t want to have negative things on my credit report, but I’m not interested in using credit in the future. I don’t want to take out a car loan ever again, I don’t want to rely on my credit cards to pay for my living expenses, etc.

When we try to apply for a mortgage in a few years, there’s other ways they can explore your credit-worthyness (looking at your actual expenses, income, etc) rather than simply looking at your credit score, I believe.

One downside to not having a credit score (I think) is it could affect your car insurance payments. Also, some employers check your credit report before hiring you.

Credit is so complicated. The other day, I called American Express to close my account with them. The guy asked why, and I said, “I’m just trying to stick it to the man” hehe. Don’t think he’s heard that one before.

By: ashley @ twentysixcats

ashley @ twentysixcats — Wed, 16 Apr 2008 22:09:43 +0000

My husband and I don't have a credit card. We ran into that when we went up to New England a year or two ago. We had to rent a car, but both of us were under 25, so we ended up having to pay a lot. Some companies DO take you, but it's like twice the price - I think we ended up paying like $380 for a three day weekend, and they put $100 hold on our account. Yikes! I'm glad we're both over 25 now. We're going to need to rent a car for a trip in a couple of months and so we'll see what the cost is. ashley @ twentysixcats's last blog post..when insults had class

By: Melissa

Melissa — Wed, 16 Apr 2008 21:34:25 +0000

I agree. I would not cancel all the credit cards. You may have difficulty buying a house, renting a car, getting a hotel room, etc. without one. Some places do not accept debit cards, you may want to check around.

By: ~M

~M — Wed, 16 Apr 2008 20:51:06 +0000

I’ve heard that it can reflect poorly on your credit if you cancel credit cards. Thoughts?

By: Milehimama

Milehimama — Wed, 16 Apr 2008 18:41:48 +0000

I’m 30 and can’t rent a car without a credit card. The places that take debit cards can put a hold on your account of $2-3k; if there is a dispute, they can take your checking account hostage.