@Rhaeny wrote:
@hayabusa wrote:
@HiLine wrote:
@OwNt wrote:Disagree. What is the point of a credit card with a limit too low to use?
Maintaining a history of on-time payments.
What is the point of closing a credit card that costs nothing to maintain?
how about what's the point of getting credit cards you'll never use?
When starting out or rebuilding you sometimes have to start out with them. As your credit grows stronger and you get better cards then those low limit cards may become of less use to you, especially if you have a creditor that won't raise your limit. Then the question becomes the topic of this thread.
@yea kinda off topic a little, I just shake my head everytime someone applies for a useless card. For instance ANY gas cards.... WOOHOO 6 cents off a gallon. a whopping 1.5% @ $4 a gallon prices. If you get a decent card like Blue Cash Preferred at 3% that's 12 cents off a gallon. If you use the BCP to buy gas cards at a grocery store your saving 6% to get 24 cents off a gallon at $4 /gallon. Personally I found out how to get more, but it bugs me that people waste inquiries for things like 15% off your first purchase at Ross.
@HiLine wrote:Agree or disagree?
Personally, I agree...that low limit card is likely to be one of your oldest accounts. Although, yes, it'll be on your report 10 years after the fact...when you're young like me, that could mean an even better AAoA down the road when I could be applying for mortgages or need to buy that mini-van for the new family...age is a great cushion to the little bumps in the road that could happen!
Although it's not the absolute, and people do very well even with churning or dumping old cards after getting brand spanking new ones...I'm one of those perfectionists who wants that 850. So every little bit helps 
Plus, for someone who started out with a $200 annual fee Orchard, and within less than three years getting to a no annual fee $10,000 Orchard with the eventual conversion to a Cap One card...patience pays off 
Hoping that patience one day helps me bump that $800 Shell XD since I personally believe I have enough hard pulls for a while, I'll wait until March 2014 for the next hard pull CLI. Citi has never auto CLI me on that card. I use it once a month to fill up, pay it off, rinse, cycle, repeat. If there's no annual fee, it's not hurting me, but can only benefit me in the long run.
However, I do see the other viewpoint, so all the above is simply my personal take on it, for my personal goals. Everybody is entitled to their own opinions 
@hayabusa wrote:
@Rhaeny wrote:
@hayabusa wrote:
@HiLine wrote:
@OwNt wrote:Disagree. What is the point of a credit card with a limit too low to use?
Maintaining a history of on-time payments.
What is the point of closing a credit card that costs nothing to maintain?
how about what's the point of getting credit cards you'll never use?
When starting out or rebuilding you sometimes have to start out with them. As your credit grows stronger and you get better cards then those low limit cards may become of less use to you, especially if you have a creditor that won't raise your limit. Then the question becomes the topic of this thread.
@yea kinda off topic a little, I just shake my head everytime someone applies for a useless card. For instance ANY gas cards.... WOOHOO 6 cents off a gallon. a whopping 1.5% @ $4 a gallon prices.
If that's the only credit card the person could obtain during the credit building/rebuilding process I would still encourage that... Otherwise, like you said. 
@HiLine wrote:
@hayabusa wrote:
@Rhaeny wrote:
@hayabusa wrote:
@HiLine wrote:
@OwNt wrote:Disagree. What is the point of a credit card with a limit too low to use?
Maintaining a history of on-time payments.
What is the point of closing a credit card that costs nothing to maintain?
how about what's the point of getting credit cards you'll never use?
When starting out or rebuilding you sometimes have to start out with them. As your credit grows stronger and you get better cards then those low limit cards may become of less use to you, especially if you have a creditor that won't raise your limit. Then the question becomes the topic of this thread.
@yea kinda off topic a little, I just shake my head everytime someone applies for a useless card. For instance ANY gas cards.... WOOHOO 6 cents off a gallon. a whopping 1.5% @ $4 a gallon prices.
If that's the only credit card the person could obtain during the credit building/rebuilding process I would still encourage that... Otherwise, like you said.
yea that would be the only exception, minus the fact that if a person is rebuilding there's plenty of good secured card options they should go before getting a terrible gas card.... and if you can't afford a deposit for a secured card you shouldn't get ANY kind of credit card imo.
@HiLine wrote:Agree or disagree?
Disagree.
I'm on that issue with a few lenders. Very stingy with CLI's.
@OwNt wrote:
@HiLine wrote:
@OwNt wrote:Disagree. What is the point of a credit card with a limit too low to use?
Maintaining a history of on-time payments.
What is the point of closing a credit card that costs nothing to maintain?
1, A closed credit card will still exist on a credit report and be factored into FICO for an additional 10 years.
2, While the cost to maintain would be small, some charges would still have to be made to prevent the creditor from cancelling the account.
3, You would also have to routinely check the account for charges to avoid surprises.
4, Also, some creditors get edgy when an individual has a lot of credit, such as PenFed in my case.
5, I have cards with 20k limits I rarely use, so why give small limit accounts the time of day?
1, There is abosolutely no guarantee about that. According to the survey I put together, some accounts get dropped after just a few years.
2, 1 charge per 6 months is not hard to do.
3, Point taken
4, Since said cards have low limits, why would you be concerned about "a lot of credit"?
5, Because keeping the card can only help you without doing any harm? But I agree that this response has also been addressed by Point 3.
