- Platinum Member
- Posts: 88
- Joined: Thu Aug 02, 2012 1:18 am
- Location: Nebraska
I know this might sound stupid, but I've had a 2 secured cards for a couple of months now, but they aren't doing a thing for my credit score and if anything it's went down slightly. Would there really be any harm in just cancelling them?
It's been really difficult for me getting along with my low credit limits, even trying to up one of the limits, I just don't have the funds to tie up right now to put my limits to where I need them. Really all these cards are good for is making 2 small purchases each month 1 on each card and that's it. Once you make a small purchase and your balance reports, using the card for daily purchases does no more good then charging $10 every 3 months to show activity on the account. Just the idea of having $800 tied up with Capital One and being told that I can't spend more than $200 using my card just plain has me bummed. I found a local credit union but they suggest if I want another credit card that I come back in 6 months after things start to settle down from all the inquiries that I've had, then they suggest something like a loan over a credit card since I already have 2 and adding one more right now will do very little to help. After doing more research, I kinda feel that I would like to dump Capital One and get my money back -- so what if they want to offer me an unsecured platinum with a $500 limit in a year? There just doesn't seem to be much point.
There really aren't good secured cards out there unless you have $$$$$ to drop on one, opening a card with a $300 credit limit and paying an annual fee of $35 for the privilege of having the card, just feels like the company is trying to screw you over. The only real benefit of having the card is the opportunity to build credit.
So what happens? I have car trouble on the road end up needing a motel for a couple of nights and in the end I have $784.23 charged on a card with an $800 limit. It's not a problem because I have some cash put away for these things, but the problem is a couple days later before I got a payment sent I got the notice that my statement was ready, so my card reported with a utilization that almost shows that it's maxed out. At the same time while making an online purchase with my other card, I accidentally ordered next day air. Not a big issue, but one card has a 80% utilization and the other looks to be maxed out and my low credit score went down.
Next thing I know my mom is yelling at me because I don't know how to use a credit card plus in her eyes a credit card should only be used in an emergency and she didn't feel this was an emergency. According to my mom, I need someone I can call and ask what an emergency is 24hrs. a day because I clearly don't know. I don't consider what I did to be so real bad because both cards have since been paid up. My mom on the other hand says if I want to keep a credit card I need to seek the help of a professional counselor.
Honestly, she needs lots of help because she won't accept any help from me. She tried to get a couple of friends to help me, but what they did was print out a copy of my report on Credit Karma and gave it to my mom. I had some not so nice words to say and now they won't help with anything, so my mom is pissed again.
My mom wanted me to find some sort of professional counselor, someone who would constantly keep an eye on my credit and tell me exactly what to do and when to do it. She said I would then need to follow their exact instructions, no thinking for myself. What I then did was I managed to open an online account with Ally Bank. Now I have 2 bank accounts, one with my back hills cornfield bank where I have a window to deposit cash and I'll use that account to pay bills. The Ally account lets me spend up to $2,500 each day on their debit card and I can use any ATM to get cash.
Right now I just don't see my credit cards are worth the stress they are causing, all I need is an Ally debit card for everything and I could get my deposit back. When I was talking to someone they said secured cards were coded somehow so future lenders looking at your credit report know the cards are secured so they really do nothing for your credit and after a couple months with them my score is lower than when I started so I really don't see any value in them.
So then if I close them now before having them open very long, it really won't hurt much, correct? Sorry if this sounds kind of stupid, but I'm sick of being preached at how to use credit cards because I know what the plan was when I applied for the cards, but in real life it's hard to follow the plan.