No wedding debt but might as well...NWR but makes me think about the what ifs lol....

So we paid for our share of the wedding in cash, used credit card for plane tickets only. So tell me why did DH jus get his credit score lowered as if we had high credit card debt..because my loving hubby paid odd most of his credit cards but never closed the accounts..so he has on his credit report a whopping 20K of available credit becasue they kept increasing his CC limit..no letters or anything and he only found out becuase one card raised his interest rate and we were like ***? So I told him (jokingly) wish I had known, I would have splurged since we are getting dinged anyway lol.

Thank goodness all he has to do is call and close the accounts and it will be corrected.

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

I was always told that you should not close out your accounts after you pay off your balance. Because then you still have a large amount of credit available to your name, and that is a good thing. Like if you pay off a card that has an available credit of 15,000, and then you cancel it, that is 15,000 less credit available you have to your name. I don't know, the accountant who does my taxes told me this, and I have also read it in some articles. However, i have also heard its not good to have a lot of accounts open at the same time!?

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

HUH? I am mucho confused... I hate finances!

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

Apparently it is actually a bad thing.
His credit is excellent..no late pays but all the cards are platinum and they are smart..they dont send u notices. We are keeping an emergency card but the others are history..its like damnded if you pay..damnded if you dont.

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

Wow! It's like we can't win!!! All this financial stuff can get so confusing.

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

I also heard that it isn't great to have that many open accounts...especially if you are trying to buy a house (going for a mortgage). My aunt and uncle had to clear out and cancel all of their credit cards when they were buying their house because any available credit the bank sees as money you can spend and it works against you. But then again it is good to have some credit cards open to establish a good line of credit for youself.

Damned if you do and damned if you don't!

Good luck!

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

That stinks! I guess they are trying to 'reward' you for being a good customer, but when they don't notify you of changes it can be more annoying than anything.

Re: No wedding debt but might as well...NWR but makes me think about the what ifs lol....

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Posted by jaibird

I was always told that you should not close out your accounts after you pay off your balance. Because then you still have a large amount of credit available to your name, and that is a good thing. Like if you pay off a card that has an available credit of 15,000, and then you cancel it, that is 15,000 less credit available you have to your name. I don't know, the accountant who does my taxes told me this, and I have also read it in some articles. However, i have also heard its not good to have a lot of accounts open at the same time!?

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Dh and I did A LOT of reading on this before we bought our house. It is a BAD thing to have too much credit available to you. It is also a BAD thing to have too many open accounts even if you don't use them. Mortage companies and such do not want to see you with the opportunity of getting yourself too deep into debt, ie having a huge credit line. It is much better to call your CC companies and have them lower your credit limit to a lower amount. If anyone wants the names of the books that we read on this please feel free to fm me!!

It really is a good idea to order a copy of your credit report every year from all three agencies, close any unused accounts and write letters of disputes when need be!!!