Posts: 101
Registered: ‎04-30-2008

Paying off debt and credit card usage

I've recently put myself on a "financial diet" and I'm aggressively paying off the debt I have in order to (possibly) buy a condo next year.  I use my credit cards a lot for every day use, but I'd like to switch to my debit card because I think that will help my overall mindset.


Now my question is, will creditors decrease my credit lines because of my lack of usage?  I'm primarily worried about Amex and Discover.  I do also have Citi, which is a $13.5K limit, and have heard all of the stories of those who have had their accounts closed, but they raised my CL last year and are regularly sending me BT offers, so I don't think this is in the near future (but I'm not dillusional to think they'll stick it to me).


Is there anything I can do to prevent them from closing or decreasing CL b/c of my own mission to do better financially?

Starting Score: 703
Current Score: 7/8/10: TU - 738 EQ - 750
Previous Score: 1/22/10: TU - 703 EQ - 714
Goal Score: 750

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Regular Contributor
Posts: 231
Registered: ‎08-07-2009

Re: Paying off debt and credit card usage

AMEX thinks that way, but if it causes you to spend more than you are able to PIF each month, then who cares!

-800 or Bust...!
Established Contributor
Posts: 674
Registered: ‎08-14-2008

Re: Paying off debt and credit card usage

I use my CCs for most of my purchases every month.  I only use my debit card for certain situations (like when the cards I have are about to hit their statement date).  The protection laws regarding CCs are much better than debit cards and if your identity becomes compromised you have better recourse.  If they get a hold of your debit card you are essentially screwed if they drain your account.  CCs usually have 0% liability against fraudulent use and I think the banks watch them much more closely.  You just have to be more diligent with paying CCs off every month and not look at them being like free money.  If you know that when you use it, you have to pay it back soon.


Congrats though on taking the initiative to be debt free.  I have to say it's a wonderful feeling.

CCs: Chase Freedom VISA Sig/World MC 2k/6.9k, CSP VISA Sig 5k, BofA Amex 12.5k, Discover 10.5k, US Bank Cash+ Visa Sig 12.5k, Macy's Amex 8k/1.5k, Gap Visa 10k, Best Buy 11.1k, Citi TY MC 9.2k, Citi AA Amex 6k, Nordstrom Visa Sig 10k, Amex Zync, Costco Amex 12k, BofA CR Visa Sig 17k, Amex BCP 9.5k, Amex Blue 5k, Sears MC 9k, HD 7k, Target 600, Amazon 7k, US Bank MC 15k, US Airways MC 4k, NFL Visa 4k, Patelco Visa 10k, Penfed PR Visa 15k, Chase United Visa Sig 13k, Chase Marriott Visa Sig 8k, Citi Simplicity 11.4k, PayPal MC 5k, Compass Visa 4k, WF Visa Sig 14k, FNBO Amex 14.1k, OCCU VISA 15k, TR Visa Sig 10.8k, Capital One QS Visa 3k, FRN MC 12k, Vitacost MC 12k, HSN 4k, Saks WEMC 10k/4k... FICOs as of March '14...EQ 808 TU 807 EX ?

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