@Anonymous wrote:
It isn't a major difference IMO if you use it responsibly. What would make it matter to me is if Cap One decides to CRD or close the account for whatever reason. Then only having 1 card available may become an issue. Your installment loans will eventually be paid and closed. They will still report for up to 10 years and possibly longer.
So lets just use an example;
Your installment loans are now paid and closed. They still report but no activity on installment loans which is part of your credit mix. Possible impact on scores.
With-in a year or so of your installment loans being paid and closed, Cap One decides for some odd reason or possibly you ran into financial trouble to close your account. Now since you decided to depend on the one CC you will have no revolving and no installment loans open and that would IMO have a major negative impact on your scores.
We can agree to disagree on whether you will continue to pay on time and never be late or run into financial problems in your future. Myself on the other hand takes my experience and says I do not know what tomorrow will bring.
I have a lucrative business and while I never thought I would run into a financial problem I did. It was nothing of my fault except to lay all my eggs in one basket with my bank which closed and was not bought over. Yes the bank was insured and I did recoup some of my own money back but my losses were 4x the amount. Lesson learned for myself.
While my credit took a dive and my business took a loss in revenue I was lucky enough to have vendors and employees and a positive DW who worked with me through it all. I was thankful for all their help and once back up to full speed I returned the favor with additional business for my vendors and substantial pay increases and bonuses to my employees.
Sometimes we all run into problems beyond our control and sometimes we cause them ourselves. Either way we are stuck with dealing with them. After my past experience I would never put all my eggs in one basket again. Take it from me I was cocky and on top of the world and had the attitude it could not happen to me. Boy was I wrong!
Okay. It's an interersting story, but isn't it more about not having all of your deposits in one place, since they're only insured to $250,000? Or am I misunderstanding something, here?
I'm not trying to be arrogant, so please bear with me while I explore the ideas. I don't have anyone depending on me, like employees. I think, when it comes to business there is a lot more risk and the rules are totally different, no?
I haven't used revolving credit in about 5 years, so it's difficult for me to understand how I could possibly need so much credit when I am used to paying for everything in cash. I've done everything, international travel, renting cars, securing hotel rooms, in the past without a credit card. It's a bit more inconvenient, but it can be done.
Of course I know that things can happen, people get sick and/or injured, people get divorced, banks collapse, criminey, things have happened to me, and I've done plainly stupid things, and I've ended up in a bit of trouble, but I've lived for many years on less money per year than that credit line. I don't even want to think about "needing" it, at all, let alone needing more than that much money on a credit card. Also, I should mention, my husband is Dutch, and he does not see the need for even one credit card, since we have these handy debit cards, which work like credit cards, and we're not even looking to get a mortgage, so I'm forced to look at it through his perspective, which is taking a rather hard line against credit in general.
I really appreciate everyone's thoughts on the matter, and I'm sure I will learn a lot if I hang around here. I find it a very interesting subject, in general, apart from my minor dilemma.
Thanks very much, and happy holidays.
