I have four credit cards. Two have zero balances, one usually does but I used it to pay for an event last night for which I will be reimbursed next week, and the fourth card has the accumulated balance from all the other cards, to the tune of $11 000 CDN.
One out of the four cards charges an annual fee of $29 because it is a "low-interest" card. However, the card that now has the $11 000+ balance is a good two percent lower than my "low-interest" VISA.
I can access probably about $45 000* (EDIT: I checked my records and it is actually closer to $60 000) in credit between the four cards. The "low-interest" card has a limit of about $30 000 of that 60 000. I was going to cancel the card this summer in order to avoid paying the annual fee, but that would drastically alter my debt-to-credit ratio. I will probably cancel it anyways and try not to worry about the hit to my credit rating.
Yesterday I received a letter from VISA telling me that they are soon going to be switching to chip-technology. My new card and PIN should arrive in the mail within a month. I am wary of this new technology, because of the things I have been reading about store scanners that can read the information about a card when its owner walks through it. As well, this change in technology makes me think the VISA will be too much like a debit card, which is also dangerous in the temptation kind of way.
I'm thinking of calling VISA and canceling the account within a few days, before they send me the new card. I want to be debt-free and card-free within a couple of years, so I don't need any fancy new technology. I want out of this game.
Seriously,
Karissa
One out of the four cards charges an annual fee of $29 because it is a "low-interest" card. However, the card that now has the $11 000+ balance is a good two percent lower than my "low-interest" VISA.
I can access probably about $45 000* (EDIT: I checked my records and it is actually closer to $60 000) in credit between the four cards. The "low-interest" card has a limit of about $30 000 of that 60 000. I was going to cancel the card this summer in order to avoid paying the annual fee, but that would drastically alter my debt-to-credit ratio. I will probably cancel it anyways and try not to worry about the hit to my credit rating.
Yesterday I received a letter from VISA telling me that they are soon going to be switching to chip-technology. My new card and PIN should arrive in the mail within a month. I am wary of this new technology, because of the things I have been reading about store scanners that can read the information about a card when its owner walks through it. As well, this change in technology makes me think the VISA will be too much like a debit card, which is also dangerous in the temptation kind of way.
I'm thinking of calling VISA and canceling the account within a few days, before they send me the new card. I want to be debt-free and card-free within a couple of years, so I don't need any fancy new technology. I want out of this game.
Seriously,
Karissa
Can you cut it up, or hide it so that you can't use it, but you keep the good credit?
ReplyDeleteI have yet to hear about the new chip-technology...that's kinda scary.
Simplelivin has a great idea. Keep the credit but not the card. You can always get a replacement when and if you need to use it.
ReplyDelete