@Anonymous wrote:
As hard as major credit cards are to obtain, I don't think I would close a card because they want to charge a 5% interest rate if one chooses to do a balance transfer.
I would keep the card to lower utilization and increase the amount of balances I can carry when needed without lowering my scores. I would use the card for other purchases.
I didn't close it because of the 5% BT APR. I closed it because of a few reasons. One being that they charge a fee to lower your APR for a set period of time. Other banks will simply lower your APR permanently. (I just called Discover, Amex, and Barclays, they all lowered my APR without asking for a fee. I also got FNBO to lower my APR a few months ago without a charge to lower it.) Another was too much available credit. I really do need to prune back some of my cards.
I will admit I got the card knowing they would give me a fairly nice limit. However there is really no benefit to me to keep the card open. Their rewards are not that great. I really just have no use for the card. It served it's purpose and I figured it was time to simply be done with it. I would rather work on getting the US Bank Cash+ card at a later date and I know they will care about available credit when I apply there.
There really shouldn't be an impact on my utilization to much with the new Voice and Lowes card. But I appreciate you pointing that out! I did and do consider such things when I close accounts. I actually think that in the future for some banks I have cards with that I will merely ask for a lower limit in the future, but still close one or two. The bulk of my utilization is from two sisters and a niece who use my cards also. My niece is paying a fair amount to get her balance down, my one sister is now getting her own cards and that should help too, and I will work on the other sister to get her own cards in the future and then balance trasfer or whatnot to get her balances on her own cards. (The second sister will be the hardest, she seems to like having both my guidance and the pressure of it not being on her cards. I think it actually makes her pay more than she would normally. However, at the rate she is going it will take 3 more years to pay off the balance.)
BBVA to me seems to be a second tier builder/rebuilder. It served a purpose. I have not used the card in over a year, I think, so it has suprised me that they haven't simply closed the card anyway! I think this was the begining of that process and I would have rather closed it on my own than have them do so.
It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
