Suggestions about keeping a card open

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6 posts
chas0039
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Suggestions about keeping a card open

Postby chas0039 » Fri Jan 03, 2014 8:06 pm

I have a few older credit cards which I haven't used for a while. Some go back 20 years. I know there can be a bit of a downside if closed, but is there any downside to keeping them open?

Assume very high credit score and no outstanding balances and no new cards expected to be opened in the near future.

Thanks


daniel2304
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Postby daniel2304 » Fri Jan 03, 2014 9:26 pm

Downside is you have to use it sometimes to avoid being closed by issuer. And maybe you will slip a payment since you don't regularly use it.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

takeshi
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Postby takeshi » Sat Jan 04, 2014 9:57 pm

If you don't regularly monitor them then fraud could be a potential concern. Your card have fraud protections but there are specific timeframes and if you're not routinely checking in you might be out of luck.

JoDa
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Postby JoDa » Sat Jan 04, 2014 10:41 pm

Overall, if you're not paying fees, as others have mentioned, the only harm is keeping them active and avoiding fraud. I'd do a back-of-the-envelope on how shutting some down would effect your overall line and AAOA. If shutting some down wouldn't really hurt you on those fronts, and you don't have the energy to remind yourself to use them once in a while or monitor for unauthorized charges, you may not suffer from shutting them down. It also depends on your credit diversity. If you've got major accounts like mortgages, car loans, student loans, etc. that are reporting and in good standing, shutting down a credit line won't hurt as much or for as long as if you were a renter with no other credit accounts (also, should you be a renter, ask if your LL can report your on-time rent...because I use TU for screening my tenants, I have the option to report for them, and I do if they ask for it).
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chas0039
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Postby chas0039 » Sun Jan 05, 2014 7:33 pm

Thanks for the feedback guys.

MemberSince99
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Postby MemberSince99 » Mon Jan 06, 2014 6:44 am

On the whole thing of screening tenants, I kind of have a problem with that.


I've started thinking more and more lately, you should be able to also screen landlords. Why you say, when they are the "rugged individualists" and great patriots saving this nation? Simple - they can get into trouble just as easily as tenants can. I used to work with a guy who had a few properties he rented out, slummy kind of places, and he was 72k in credit card debt and going to lawyers looking at bankruptcy options. I've heard about how the bank comes when they foreclose on these places and tells the tenants they have a week to get the hell out, and their beef is with the landlord, who of course has sometimes conveniently disappeared.


So it's not just landlords who get shafted on this kind of thing.



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