Lines of Credit. What to do now?

posted 3 years ago in Money
  • poll: What is your Credit Situation?
    I am in a ton of debt : (18 votes)
    13 %
    I am no no debt whatsoever : (27 votes)
    19 %
    I'm in a little debt, nothing crazy : (46 votes)
    32 %
    I'm working on paying off my debt : (49 votes)
    34 %
    I'm ignoring my debt : (3 votes)
    2 %
  • Post # 3
    Member
    9092 posts
    Buzzing Beekeeper
    • Wedding: June 2010

    A few of your terms make me think that you’re not in North America??  I know some people are hesitant to discuss their location, but if you want accurate advice, it’s important info.  For example, even between Canada and US effect on credit score by doing certain things is COMPLETELY different.  Like, closing credit cards makes a Canadian score better, but from what I understand can impact an American one negatively.

    Personally I have no consumer debt (just our mortgage).  DH and I each have a main credit card, and then I have one for online purchases/travelling with a lower limit. 

    Post # 4
    Member
    9092 posts
    Buzzing Beekeeper
    • Wedding: June 2010

    dbl post

     

    Post # 5
    Member
    2527 posts
    Sugar bee
    • Wedding: December 2011

    @Artificial-Sweetener:  as PP said, if you’re in america (which is kind of sounds like you’re not), closing the accounts will have a negative impact on your credit score. it’s best to leave them open and just not use the cards. my co-worker had an excellent suggestion of literally freezing your cards. you put them in a ziploc bag, fill it with water and stick it in the freezer (it works best if you can put the bag in a bowl until the water freezes). then you won’t even be tempted to use them because it takes so long to get them out.

     

    Post # 7
    Member
    11300 posts
    Sugar Beekeeper
    • Wedding: August 2013

    Keep them all open.

    I guess it depends on what we’re counting here. I’m in a lot of debt if you want to count my student loans. Otherwise, I have a little bit of credit card debt and a car loan.

    Post # 8
    Member
    3735 posts
    Sugar bee
    • Wedding: September 2014

    @Artificial-Sweetener:  I’m in the US and I leave my lines/cards open. Some will close by themselves over time which is fine. If I was just playing a game with the store to get X% off my purchase that day, I will close those cards when I get the statement. Even without debt, it is good to have some activity on your most long established cards. For example, buy your gas or groceries on your oldest cards since maintaining credit history counts in the US. I have my internet service go to a credit card every month and I have it paid automatically through my bank account.

     

    So far it’s worked very well for me but I also keep a keen eye on my accounts so nothing falls in arrears.

    ETA: Questions about your lcoation might have been your use of the “%” before the number and referring to your credit cards as lines of credit. Just my hunch.

    Post # 9
    Member
    11772 posts
    Sugar Beekeeper
    • Wedding: May 2013

    I have student loan debt I’m still paying off, but that’s it!

    We have four credit cards–one to a clothing store that gets used twice a year, one to a jewelry store that doesn’t get used, the card we use for EVERYTHING, and our emergency card.

    Post # 10
    Member
    1140 posts
    Bumble bee
    • Wedding: October 2013

    me personally, i have a small limit credit card with not much one it, and then my student loans, a few thousand ( which i have a payment plan set up for). My fiance had zero debt before me, and an excellant credit line. currently putting everyting on his credit card and we have a house note too. so some debts.

    Post # 11
    Member
    10384 posts
    Sugar Beekeeper
    • Wedding: September 2010

    OP says in her original post that she is in the USA.

    Keep them all open unless there is a yearly charge. It will help establish the length of your credit history and keep the debt:credit ratio lower should you use the credit lines.

    Post # 12
    Member
    6073 posts
    Bee Keeper
    • Wedding: August 2012

    I have no debt! – well OK a mortgage.

     

    I’d keep them all open, at a minimum a few of the oldest ones.  Lenders look at how much debt of all your avaialbe credit you are using.  When the ratio is small (tiny amount of credit being used compared to the thousands you COULD be warcking up), that is in your favor and helps your score.

    Lines of credit are not the same as credit cards right?  They usually are tied to one specific store rather than a card you can use at any store?

    Post # 13
    Member
    2527 posts
    Sugar bee
    • Wedding: December 2011

    @Artificial-Sweetener:  i think it’s because you said car note. i usually only see that from non-US bees. it reminds me of british english. 🙂

    Post # 14
    Member
    2527 posts
    Sugar bee
    • Wedding: December 2011

    @crayfish:  she added that in after we asked her where she is from. it was not in the original post.

    Post # 15
    Member
    1793 posts
    Buzzing bee

    Leave them open and use them occasionally, paying them off immediately.  If you have 6 lines of open credit and you don’t use them for say 12 months, you are not using or managing credit – you just a lot open to you.  Mortgage companies and banks want to see you use it and manage it, but not carry a lot of debt.  If you can manage it you are an excellent low risk customer.  Got that from 2 different mortgage officers.

    Post # 16
    Member
    9092 posts
    Buzzing Beekeeper
    • Wedding: June 2010

    @Artificial-Sweetener:  I’d just never heard of a credit card being referred to as a line of credit, and a car loan/car note 🙂

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