January 19,2009
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Trimming your Credit Card Collection, Pt.3 –
– Good times not to close.If you already have many better offers flooding you in the mail: If you're in a land-of-plenty and feel you could do better with a new credit card account you have more freedom. However, if this stream has recently dried up, it could signal that, somehow, you've lost favor with the credit card industry. It may be a time to shore up your standing before burning bridges. Keep in mind that age helps. If you have a very old credit card you aren't using anymore, consider that this old account may be your ticket to new opportunities. Use that old card at least once every six months to keep the lender from closing the account on you. You want to keep an old account in good standing for as long as you can to foster new opportunities.
If you're a ‘Dodge Charger': If you're an excessive compulsive ‘charger' and like to ‘dodge' payments, then you might be better off losing the temptation. You may not want to burn all the credit card bridges but, it may be best to cut your risk by slimming down to just one card with low charging limits. It's simple and, again, credit card lenders are not offended when you request they lower your available credit limits. Just make sure you won't be charging over 33% of the available credit left to you. Also remember, like all businesses, credit lenders have one main goal – to turn a profit. That is why they set minimum payment standards so low. They're not looking out for you. They're looking out for themselves. Running up high debt and only paying the minimum they ask is playing right into their hands and out of yours. Just making minimum payments can keep you giving extra money away for years.