Comments on: "My credit card was canceled!" http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/ Money Magazine looks at a wide range of personal finance issues and asks for your feedback. Tue, 22 Dec 2009 00:19:01 +0000 http://wordpress.com/ hourly 1 By: Jay, San Antonio TX http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13999 Jay, San Antonio TX Thu, 15 Jan 2009 15:09:19 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13999 I am in the military and travel quite a bit. I have not had a credit card in many years. I rent cars, hotels, go out to eat... All with the use of cash or a debit card. So as far as not using a credit card being irresponsible I would say that is a big generalization. Why use something you don't need. Just pay cash. The chances of me ever getting charged for a late charge, 0%, my change of getting my card canceled, 0%, my chance of interest rate going up unexpectedly, 0%. I would make the argument that using credit cards are irresponsible, if you have to use credit that means that you were not disciplined in saving. Hope you like your payments! I am in the military and travel quite a bit. I have not had a credit card in many years. I rent cars, hotels, go out to eat… All with the use of cash or a debit card. So as far as not using a credit card being irresponsible I would say that is a big generalization. Why use something you don't need. Just pay cash. The chances of me ever getting charged for a late charge, 0%, my change of getting my card canceled, 0%, my chance of interest rate going up unexpectedly, 0%. I would make the argument that using credit cards are irresponsible, if you have to use credit that means that you were not disciplined in saving. Hope you like your payments!

]]> By: KP, Portsmouth, NH http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13998 KP, Portsmouth, NH Tue, 13 Jan 2009 20:47:12 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13998 I have terrific credit and have no credit card debt but did keep one or two cards in case I ever needed them. I got letters two months apart on both of them. Citibank and Discover that they closed my accounts. Here I read it is what they do. Remember when they begged us to open accounts with them? CHASE is the "worst"!!! Stay away from them. Watch your bills carefully. We could all make lots of money if WE started billing them!! As well, all the banks just got 700 billion dollars from OUR government to help us the home owners???? Don't you think it would have been a much wiser decision by the government to give the preferred families in foreclosure whose mortgages were $1000 (which was do-able)that escalated to $1800 per month and can no longer afford their homes, about $100K each toward their mortgages??? Think about it. If the government told them that they were receiving a credit of $100K toward their mortgages or some appropriate amount, the banks would STILL get the money!!!!! Thus, the bank got their money, the Americans were helped (ya know, like during wars when we help) and the taxpaying American who got screwed by the banks/mortgage companies would still have homes to raise their families in!!! Is it brain surgery or I am confused???? I have terrific credit and have no credit card debt but did keep one or two cards in case I ever needed them. I got letters two months apart on both of them. Citibank and Discover that they closed my accounts. Here I read it is what they do. Remember when they begged us to open accounts with them? CHASE is the "worst"!!! Stay away from them. Watch your bills carefully. We could all make lots of money if WE started billing them!! As well, all the banks just got 700 billion dollars from OUR government to help us the home owners???? Don't you think it would have been a much wiser decision by the government to give the preferred families in foreclosure whose mortgages were $1000 (which was do-able)that escalated to $1800 per month and can no longer afford their homes, about $100K each toward their mortgages??? Think about it. If the government told them that they were receiving a credit of $100K toward their mortgages or some appropriate amount, the banks would STILL get the money!!!!! Thus, the bank got their money, the Americans were helped (ya know, like during wars when we help) and the taxpaying American who got screwed by the banks/mortgage companies would still have homes to raise their families in!!! Is it brain surgery or I am confused????

]]> By: DL, Pflugerville, TX http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13997 DL, Pflugerville, TX Mon, 12 Jan 2009 17:10:06 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13997 Barclays lowered my limit to less than $25 above my present balance. Had I not been paying attention, I would easily have exceeded my 'new' limit. It took them two weeks to get around to sending me a letter to notify me of the change. Bye-bye Barclays! Barclays lowered my limit to less than $25 above my present balance. Had I not been paying attention, I would easily have exceeded my 'new' limit. It took them two weeks to get around to sending me a letter to notify me of the change.

Bye-bye Barclays!

]]> By: Ron, Vienna, VA http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13996 Ron, Vienna, VA Mon, 12 Jan 2009 15:17:05 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13996 Not true, Victor. Unsure about Ramsey, though that would certainly through his entire philosophy off track, since he pretty explicitly advocates NO CREDIT CARDS. But living in the USA without a credit card isn't unreasonable at all. I actually did it for five years just fine and had no problems. Got a new one, paying it off in four months because I realize that I preferred life without one. I don't mind paying in cash, using a debit card, staying within my means. Quite liberating actually. I've tried to convince my parents of this; they're finally coming around to my way of seeing things, and I rather say they agree with me on this one! Not true, Victor. Unsure about Ramsey, though that would certainly through his entire philosophy off track, since he pretty explicitly advocates NO CREDIT CARDS. But living in the USA without a credit card isn't unreasonable at all. I actually did it for five years just fine and had no problems. Got a new one, paying it off in four months because I realize that I preferred life without one. I don't mind paying in cash, using a debit card, staying within my means. Quite liberating actually. I've tried to convince my parents of this; they're finally coming around to my way of seeing things, and I rather say they agree with me on this one!

]]> By: art w. aberdeen sd http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13995 art w. aberdeen sd Sun, 11 Jan 2009 16:59:24 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13995 barclay just lowered my limit to below the balance and hit me with overlimit charge .... can that be legal barclay just lowered my limit to below the balance and hit me with overlimit charge …. can that be legal

]]> By: zeeshan76 http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13994 zeeshan76 Sun, 11 Jan 2009 05:52:16 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13994 Alot of companies are freaking out as the Credit Crunch is hitting American High Street. We Americans consume alot more than we produce. Over 100 million households carry credit card debt. And we are overly focused on FICO Scores. The solution to all of this not having High FICO Scores as that's just a measure of our Debt Ratio. We need to learn to consume less, earn what we buy and SAVE MORE $$. Here's a good blog to learn more about money management: http://community.shopaservice.com/category/money-savings/page/2/ Alot of companies are freaking out as the Credit Crunch is hitting American High Street. We Americans consume alot more than we produce. Over 100 million households carry credit card debt.

And we are overly focused on FICO Scores. The solution to all of this not having High FICO Scores as that's just a measure of our Debt Ratio. We need to learn to consume less, earn what we buy and SAVE MORE $$. Here's a good blog to learn more about money management: http://community.shopaservice.com/category/money-savings/page/2/

]]> By: Victor, Chicago, IL http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13993 Victor, Chicago, IL Fri, 09 Jan 2009 03:53:27 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13993 I'm sure even Dave Ramsey has a credit card. Living without a credit card in the USA is plain unreasonable. Try renting a car with cash when on vacation. Credit is something that's essential in todays financial reality. Dave Ramsey's big thing is common sense spending and saving - not just getting rid of all your credit cards. I'm sure even Dave Ramsey has a credit card. Living without a credit card in the USA is plain unreasonable. Try renting a car with cash when on vacation. Credit is something that's essential in todays financial reality. Dave Ramsey's big thing is common sense spending and saving – not just getting rid of all your credit cards.

]]> By: Mike Glisch, Brookfield, Wisconsin http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13992 Mike Glisch, Brookfield, Wisconsin Fri, 09 Jan 2009 03:40:43 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13992 I had 2 credit cards canceled and 1 had the limit lowered on another. I couldn't get either of the closed accounts re-opened. I always paid off the entire balance each month. Both of the cards rebated 5% on gas, groceries and drug stores and 1% on all other purchases. When I called on 1 of the cards that was from Chase the lady said they were trying to get out of the cards with the 5% rebate. It had only been about 8 months since I had used the card. If you do the math I earned $500 on 1 card and $300 on the other and never paid a penny in interest. The charge to the retailer when you use the card doesn't come anywhere close to covering the 5% rebate. They can see that they are losing money. I still have 2 cards that pay 5% on grocery gas and drug and a GM card that earns 5% on all purchases. I've saved over $8,000 on purchasing GM cars over the last 10 years. Don't believe anyone that says pay with cash. I charge everything with a credit card, buy only things that I need and I never pay any interest. I always wonder when I'm standing in line in the grocery store and someone pays with debit or cash, while I'm earning a 5% discount. When gas was $4.00 a gallon that was .20 cents off per gallon. I had 2 credit cards canceled and 1 had the limit lowered on another. I couldn't get either of the closed accounts re-opened. I always paid off the entire balance each month. Both of the cards rebated 5% on gas, groceries and drug stores and 1% on all other purchases. When I called on 1 of the cards that was from Chase the lady said they were trying to get out of the cards with the 5% rebate. It had only been about 8 months since I had used the card. If you do the math I earned $500 on 1 card and $300 on the other and never paid a penny in interest. The charge to the retailer when you use the card doesn't come anywhere close to covering the 5% rebate. They can see that they are losing money. I still have 2 cards that pay 5% on grocery gas and drug and a GM card that earns 5% on all purchases. I've saved over $8,000 on purchasing GM cars over the last 10 years. Don't believe anyone that says pay with cash. I charge everything with a credit card, buy only things that I need and I never pay any interest. I always wonder when I'm standing in line in the grocery store and someone pays with debit or cash, while I'm earning a 5% discount. When gas was $4.00 a gallon that was .20 cents off per gallon.

]]> By: Tammy, Warrenton, Virginia http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13991 Tammy, Warrenton, Virginia Thu, 08 Jan 2009 18:25:22 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13991 One of my credit cards was canceled. (only used it a couple of times in the past few years). Another credit card the limit was decreased. a third credit card the interest rate went from 15% to 25% I have not defaulted on any of my credit cards. Am I paying a higher interest rate because other people are defaulting and they are trying to compensate? One of my credit cards was canceled. (only used it a couple of times in the past few years).
Another credit card the limit was decreased.
a third credit card the interest rate went from 15% to 25%
I have not defaulted on any of my credit cards. Am I paying a higher interest rate because other people are defaulting and they are trying to compensate?

]]> By: Steve Brown, New York, NY http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13990 Steve Brown, New York, NY Mon, 29 Dec 2008 20:19:37 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13990 My WaMu card was cancelled too, but I still have access to my account online: http://www.debthelp.tv/personaldebt/2008/12/chase-cancels-my-wamu-credit-card.htm My WaMu card was cancelled too, but I still have access to my account online:

http://www.debthelp.tv/personaldebt/2008/12/chase-cancels-my-wamu-credit-card.htm

]]> By: Will, Orangeburg SC http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13989 Will, Orangeburg SC Sun, 28 Dec 2008 13:23:22 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13989 Use one credit card only.....and pay it off each month. Use cash as much as you can. I could care less what my credit score is. Never checked what it is and never will. It only matters if you borrow. Use one credit card only…..and pay it off each month. Use cash as much as you can. I could care less what my credit score is. Never checked what it is and never will. It only matters if you borrow.

]]> By: Ryan Jones, Columbia, SC http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13988 Ryan Jones, Columbia, SC Sat, 27 Dec 2008 06:19:40 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13988 You've been living in a dream world, Neo... You are a slave... You've been living in a dream world, Neo… You are a slave…

]]> By: Bob, Austin http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13987 Bob, Austin Fri, 26 Dec 2008 18:27:40 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13987 I have also just received a letter to cancel an unused credit card and was told by the issuing bank that they have closed the account and forefitted all my reward points we have accumulated. I was told they sent a warning letter which I have never received. I wonder if anyone else, dealing with Barclay’s Bank, has had this same experience. ____ This is why using a card for "rewards" is bogus. Those points can go away at a momements notice. Better start using all those rewards points now. I have also just received a letter to cancel an unused credit card and was told by the issuing bank that they have closed the account and forefitted all my reward points we have accumulated. I was told they sent a warning letter which I have never received. I wonder if anyone else, dealing with Barclay’s Bank, has had this same experience.
____
This is why using a card for "rewards" is bogus. Those points can go away at a momements notice. Better start using all those rewards points now.

]]> By: JeffB, Houston, Tex http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13986 JeffB, Houston, Tex Fri, 26 Dec 2008 18:24:13 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13986 It's only a temporary drop when the card is cancelled. If anyone even knew how the scores were calculated, you could know how much, but as others have said, unless you are about to buy a house or car, who cares. We all need less credit avaialable to us. It's only a temporary drop when the card is cancelled. If anyone even knew how the scores were calculated, you could know how much, but as others have said, unless you are about to buy a house or car, who cares. We all need less credit avaialable to us.

]]> By: Nelli, Shelton, WA http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13985 Nelli, Shelton, WA Thu, 25 Dec 2008 04:20:49 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13985 What a farce! The only thing that matters really is that you are making a good salary and have held a job for a long time and have not had any delinquent payments. I used to open and close credit cards and bank accounts after like 3 months because they offered some freebie incentive to open it, but not really needing it would just cancel it. Never had a loan ever, and every single credit card bill has always been paid in full each month, and the one time I bothered to check my score was 780 which would qualify for any minimum interest rate loan. Thats all crap that you have to go into debt to raise your credit score. its a big dummy scam, don't fall for it. What a farce! The only thing that matters really is that you are making a good salary and have held a job for a long time and have not had any delinquent payments. I used to open and close credit cards and bank accounts after like 3 months because they offered some freebie incentive to open it, but not really needing it would just cancel it. Never had a loan ever, and every single credit card bill has always been paid in full each month, and the one time I bothered to check my score was 780 which would qualify for any minimum interest rate loan. Thats all crap that you have to go into debt to raise your credit score. its a big dummy scam, don't fall for it.

]]> By: Heather, Santa Rosa, CA http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13984 Heather, Santa Rosa, CA Tue, 23 Dec 2008 17:26:46 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13984 People seem to me to be way too concerned about their credit scores. In 2002 (granted, a looser credit market than now), I got a market-rate home loan (5%) based on my five-year history of on-time payments on my one credit card. With a 20% downpayment and a fair price on the home, as well as 10 years of stable income, I was considered a good credit risk by a large bank. Although I believe it is prudent to have a credit card in order to have some credit history, as well as for convenience when renting cars, making travel reservations, etc., it is not necessary to have multiple cards. Trim your card portfolios to one or two cards, and use them regularly. Don't make life hard on yourself! People seem to me to be way too concerned about their credit scores. In 2002 (granted, a looser credit market than now), I got a market-rate home loan (5%) based on my five-year history of on-time payments on my one credit card. With a 20% downpayment and a fair price on the home, as well as 10 years of stable income, I was considered a good credit risk by a large bank.

Although I believe it is prudent to have a credit card in order to have some credit history, as well as for convenience when renting cars, making travel reservations, etc., it is not necessary to have multiple cards.

Trim your card portfolios to one or two cards, and use them regularly. Don't make life hard on yourself!

]]> By: Bill, Indianapolis IN http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13983 Bill, Indianapolis IN Mon, 22 Dec 2008 21:02:34 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13983 Remember that your credit score only matters if you need credit. So closing an unneeded credit card doesn't harm you. While a slightly better score may get you a slightly better rate, you can also get a better rate by making a larger down payment :) Remember that your credit score only matters if you need credit. So closing an unneeded credit card doesn't harm you. While a slightly better score may get you a slightly better rate, you can also get a better rate by making a larger down payment :)

]]> By: john mckeever, chelsea, al http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13982 john mckeever, chelsea, al Mon, 22 Dec 2008 20:55:55 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13982 Why have a credit card at all? Pay cash, if you can't afford to pay for it outright, you can't afford it. If you need help, go to www.daveramsey.com it will walk you how to live debt free. Why have a credit card at all? Pay cash, if you can't afford to pay for it outright, you can't afford it. If you need help, go to http://www.daveramsey.com
it will walk you how to live debt free.

]]> By: George, Costa Mesa, CA http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13981 George, Costa Mesa, CA Mon, 22 Dec 2008 16:59:02 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13981 your credit score goes down when you close an empty card because your total available credit goes down.. so for example, if you have 10,000 in available credit and have a balance of 1,000, your ratio of used credit to available credit is 10 to 1.. but if you close a credit card of 5,000, suddenly you're down to a 5 to 1 ratio and your available credit is reduced which hurts your score.. i personally keep 3 min. cards open and use them for recurring charges like my gym membership and my movie rental membership. this way they get charged $15-$20 a month and get paid off automatically through my online bill pay account.. mindless credit building with absolutely zero effort. your credit score goes down when you close an empty card because your total available credit goes down.. so for example, if you have 10,000 in available credit and have a balance of 1,000, your ratio of used credit to available credit is 10 to 1.. but if you close a credit card of 5,000, suddenly you're down to a 5 to 1 ratio and your available credit is reduced which hurts your score.. i personally keep 3 min. cards open and use them for recurring charges like my gym membership and my movie rental membership. this way they get charged $15-$20 a month and get paid off automatically through my online bill pay account.. mindless credit building with absolutely zero effort.

]]> By: Tom R, Cleveland, Ohio http://moremoney.blogs.money.cnn.com/2008/12/19/my-credit-card-was-canceled/#comment-13980 Tom R, Cleveland, Ohio Mon, 22 Dec 2008 16:03:51 +0000 http://moneyhelps.blogs.money.cnn.com/?p=52#comment-13980 Why can’t consumer credit scoring be more transparent? I see explanations by consumer finance writers giving general % of how scores are calculated, which is helpful. But if information is generated that effects consumers financially, why doesn’t the law demand that credit scoring formulas be made available? Anyone should be able to calculate, based on hypothetical activity reflected in their credit history (take out a new loan, cancel a credit card, etc.) what their resulting score would be. Why can’t consumer credit scoring be more transparent? I see explanations by consumer finance writers giving general % of how scores are calculated, which is helpful. But if information is generated that effects consumers financially, why doesn’t the law demand that credit scoring formulas be made available? Anyone should be able to calculate, based on hypothetical activity reflected in their credit history (take out a new loan, cancel a credit card, etc.) what their resulting score would be.

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