Credit Card Forum
  1. #1
    Green Member
    Join Date
    Sep 2010
    Location
    Nyc
    Posts
    2

    Default Should I pay off my credit card?

    I have two Chase Visa cards. Lamely, they lowered one of my credit cards to $300 from $2,000 a month about two years ago. Didn't matter, I barely used it anyway, and it annoyed me so much I never use it now. I can barely go out to dinner at a nice restaurant on a $300 limit so what's the point. My other card still has a $15,000 limit, but again, lamely, two years ago they raised the interest rate to 29.9%. A couple of years ago I had about $10,000 of debt on it, now I have exactly $300. I really have no desire to even keep the $300 balance, and could pay it off today if I desired. However, I have a feeling that if I pay off my credit card they will cut my limit as they have no reason to give me the credit any longer, I am not making them 30% interest on a balance. I really do not want to continue giving them 30% interest, but I don't want the credit line cut. Perhaps its inevitable. Maybe keeping a $300 dollar balance won't even keep them from cutting it, they would only be making $90 a year off of me.

    I like my AMEX card so much better. Pay the whole thing off every month and its done. They actually don't penalize me for being fiscally responsible.

    Suggestions?
    Thanks
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  2. #2
    Centurion Member
    Join Date
    Apr 2009
    Location
    Texas
    Posts
    879

    Default

    Deliberately paying interest is dumb. They aren't going to cut your credit limit, and if they do you can get credit elsewhere, assuming your credit history supports it.

    With regard to the circumstances you describe, the only difference between an Amex charge card and traditional credit card is that Amex forces you to be "fiscally responsible;" with a credit card it's up to you to do that.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  3. #3
    Green Member
    Join Date
    Sep 2010
    Location
    Nyc
    Posts
    2

    Default

    Hi Jeff,

    Thanks for your response, however, they cut my line on the first card for no reason, so it is safe to say that since I paid off 10,000 on the other one, and have basically no debt with them, they might very well do it again.

    As far as being fiscally responsible. I was perfect with Chase, and look what they did. And, no, I had no other credit card debt that was showing on my report, everything was a zero balance and a credit score that varies between 745 and 760. No mortgage, and I paid off my car loan perfectly. And I am employed. Well employed with the same employer for 12 years at a good salary. All of which they can see perfectly well.

    But I love AMEX now. They have never played these games with me. Hence, they are making all of the money from my spending habits.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  4. Centurion Member Mogul of Pineapples's Avatar
    Join Date
    Jun 2008
    Location
    Smogland
    Posts
    1,396

    Default

    Quote Originally Posted by andrea View Post
    Thanks for your response, however, they cut my line on the first card for no reason, so it is safe to say that since I paid off 10,000 on the other one, and have basically no debt with them, they might very well do it again.
    My guess would be the high credit utilization is what triggered it. If you had a $10k balance on a $15k limit card that would be a 67% CUR. When you have a balance that high banks view it as though you are overextended. From now on try and never go past 25%.

    Should I pay off my credit card?
    I agree with jeffysdad that you should pay off your credit card. If the economy remains stable I doubt they will cancel it outright unless you have high balances on other credit cards. Remember the economy two years ago consisted of banks collapsing left and right, the Dow was tanking a thousand points in a single day, etc. That's why banks were taking aggressive actions then and cutting accounts. I haven't heard of that going on lately.
    Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

    Current Cards:
    American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
    Primary Everyday Card: American Express Blue Cash
    Primary Travel Card: Chase Sapphire Preferred
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

+ Reply to Thread
 
These forum posts are not provided or commissioned by the bank advertiser. Posts have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Advertiser Disclosure: The credit card offers that appear on this site are from credit card issuers from which CreditCardForum.com receives compensation. This compensation may impact how and where products appear on this site, including the order in which they may appear within listing categories. CreditCardForum.com does not include all credit card offers that might be available to consumers in the marketplace.