Questions regarding credit card APR

Started Feb 15, 2013 | Discussions thread
dad_of_four
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Re: Questions regarding credit card APR
In reply to Slider44, Feb 17, 2013

Slider44 wrote:

I agree with everything you stated except this. If you do not use a credit card you carry, you should indeed close it, and do so with the Credit Card company, then cut up the card and destroy it. Carrying a card you do not use exposes you to risk that are unnecessary and poses potential liability if lost. Also, closing a credit card HELPS your credit score. When you carry a credit card that is not used, any lender considers that card a POTENTIAL DEBT in the future, and therefore affects your potential liabilities. Let me give you an example of what I mean.

Slider,

Let me be as gentle as possible, and say that the above statement is wrong.  It may seem logical to both you and me, but it is not how Credit is scored here in the USA

A person that had the ability to borrow $100,000 but never borrowed more than $5000 is considered a better credit risk than someone that had the ability to borrow $6000, and borrowed $5000

Now, if that person with $100,000 limit slowly (or suddenly) starts charging more-and-more, then their  credit rating will start to go down.

So, I highly recommend if you are carrying a credit card you never use, to close it by calling the issuer and cutting up the cards.

Take the cards you are not using, put them in a safe location, and only take them out twice a year to "refresh" them as I stated previously. There is no liability for unauthorized use of your credit cards. I could accidentally leave all 10 of my credit-cards sitting on a bus-bench, and if a criminal charged $100,000 on them, my liability would be ZERO. (Assuming I complied with the CC companies policies)

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