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Email this5:11 pm
August 28, 2013
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Does it really matter if you often get new credit cars (take advantage of whatever promotion) and then cancelling it after a year or so?
Beside that, I have PC Master Card I have not used in ages and most likely will never use again. Should I cancel it?
All this talk about credit score does not bother me at all. I do not plan to get a mortgage, any kind of loan and similar, lake ever... I pay ll of my bills on time... Should I care?
When did YOU request your credit check last time? How long it took? What docs you faxed/e-mailed? I did that some 15 years ago. Maybe something changed since?
Thank you.
6:16 pm
December 23, 2011
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I feel similar to you in regards to having to know your credit rating. I never apply for a card for "goodies" and I must have intentions to use it. But after reading here I think it is prudent to know what the total liability of credit you may have. I have BMO MasterCard that went up to a limit of $22,000 much to my surprise!!!! I have reduced it to $20,000 and intend to drop to $15,000. Also have a BMO dormant LOC for $15,000 that still counts as credit liability. So do I cancel it or let them give me MasterCard for it and use it for parking meters??? That way it will not go with out use in a 2 year period and go dormant on me. When Costco dropped Amex, Amex sent me a new card and I cancelled it and also did not get the new Costco MasterCard either.
Bottom line...know what liabilities you have for credit and do some house keeping on it. Yes we have cards we don't use a lot...but I am a firm believer that both husband and wife have cards in their own names. And what about that American dollar credit card that is rarely used....keep it...cancel it...or find a no exchange transaction fee card???
8:48 pm
July 10, 2011
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I use no fee cards.. I've never cancelled a credit card.. When you do so you want it marked "closed at your (customer)request. I think it'll have be paid off..
You don't want to do this though. Part of your credit score is determined by length of total credit history.. Type of credit and utilization ratio of all available credit..
So a long history and lower utilization is good.. If you know you have good credit score this is of less importance..If your young just leave card open.. You don't want to go from just established credit to no credit history whatsoever.. You would probably get rejected applying for another credit card etc..
Everytime you apply for credit your score takes a hit. So don't apply constantly as it looks like your desperate for more borrowed cash..
I like the capital one travel or cashback cards (fee free - system is faster then almost any other provider - near realtime).. Maybe pair it with Amazon card for int'l purchases/travel..
My schedule for CC maintanence is simple.. Every 10 years ill go through all the active cards and close whatever is still open that is unused. I currently have 3 cards total = 1 x TD Rebate Rewards Card \ 1 x Capital One Aspire Travel Card \ 1 x Amex Simply Cash Card..
I carry the mastercard/amex on me for rewards/benefits.. TD card is retired.. 
10:41 pm
October 21, 2013
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I don't like to have any credit cards that I don't expect to use at least once a year. A number of years ago, Canada Trust cancelled one of my cards for non-use, which really annoyed me as I had used it quite a bit until recent years and intended to use it again. Also, at that time I didn't have a job, so it would have been more difficult for me to get a new one.
We have cancelled maybe 2 or 3 of them over the years with no negative repercussions.
I don't go after them just because they're available on some deal or other. These deals occur regularly. To me, it's not worth it to extend my credit limit just for another small "reward", and I do not envision ever borrowing money again. I also don't open bank accounts just to get $50 or whatever. I just find it too much of a nuisance. Too many cards and too many accounts will likely get me in trouble as it's too much work to keep track of.
Advice I have heard or deduced:
Never cancel a card until you have its replacement in hand.
Don't apply for more than one new card per year.
Always keep at least one of each kind of card - MasterCard, Visa, maybe Amex if you like Amex. When MC system goes down, you want to be able to turn to Visa, etc.
Aim to not come anywhere close to using up your credit limit on any card at any time, as this can count against you. I have heard you should keep it under 50% - which might motivate you to get more cards!
Agree with kanaka that each spouse should have at least one card in their own name (where they are the primary account holder). Technically, when the primary card holder dies, the account is supposed to be closed, and the secondary person is not necessarily issued one in their own name if they ask for it.
I have only asked for my credit report once, and it was so out of date as to be a bit of a joke. The strangest thing about it was that none of the credit cards that I had were on it. We hear about the necessity of making sure things get taken off the report which are no longer true but I have never heard of anyone trying to add on things that ARE true. I didn't try.
I have never been refused a credit card, but I have only ever had a handful over the last 40 years. The only borrowing I've ever done has been student loans and mortgage, and I have always paid credit cards off in full. I have never taken out a car loan.
I did give up a "secondary " card not too long ago (secondary card on spouse's account) because my usage was low and did not justify the fee involved.
I'm not opposed in principle to cards that charge a fee. It all depends on cost-benefit analysis. We find it's worth it (and cheaper) when just one of us uses it, to pay most of the chargeable costs.
7:56 am
October 27, 2013
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I have the Equifax package that Home Depot stepped up to the plate with for one year when their customers credit cards were compromised. It has been interesting to watch how things change and why with respect to credit scores. Based on what I have read in my Equifax account this past year with respect to understanding the details behind credit scores, I have concluded the following:
1. Total credit does matter. So if you have 5 cards, the Equifax account will show the total of possible liabilities and a high liability does matter, e.g. $100k total limit starts to cause discomfort versus a total of $40k. It would be best to reduce high totals to improve score.
2. Equifax does keep a record of longest standing credit card so a very old account is helpful to show one has been responsible for decades (something like 40+ years for my oldest card I think). I will keep that card regardless for that and nostalgic reasons.
3. Total actual outstanding obligations relative to total credit available matters as well. In the example above, total balances of $80k against a total limit of $100k would raise concerns. $20k balance would not. I imagine a $38k balance against a $40k total limit might also matter but I don't know. The report is relatively accurate on a monthly basis on outstanding balances.
As to other points made, I agree it is very important to carry at least 2 different cards in case one is compromised at any time (chip, HQ computer is down, locked due to suspected fraud purchase, etc.). Carry 2 of MC, Visa, Amex. More than once, I have had a card malfunction for one reason or another OR a place does not accept one of MC or Visa.
Also important for spouse to have his/her own account, not just a second card on the primary account for reasons stated. My mother went through that when father died. Had to apply for her own card and she had no credit rating other than being joint on utility bills.
I do not chase promotions either. A terrible waste of time for little gain and hard to keep track of. I like plain vailla, no fee, cash back cards. Keeing it simple, stupid.
2:10 pm
October 21, 2013
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Another reason for not applying for too many cards is that you don't want to run the risk of getting turned down because of excess outstanding credit at a time when there is a card you really want to get and keep.
3:05 pm
April 6, 2013
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Loonie said
...
I have only asked for my credit report once, and it was so out of date as to be a bit of a joke. The strangest thing about it was that none of the credit cards that I had were on it. We hear about the necessity of making sure things get taken off the report which are no longer true but I have never heard of anyone trying to add on things that ARE true. I didn't try.
...
I had asked for my credit report from TransUnion and Equifax. Neither report had all of my credit cards. Some cards appeared on both. But, some showed up on one and not the other.
TransUnion and Equifax are competitors. It looks like they don't share credit information with each other. I suspect that some lenders report to only one of them and not both.
I don't think a consumer can have things added to their report if the lender refuses to make the effort to report the info, positive or derogatory, to the credit bureau.
4:02 pm
May 28, 2013
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Do I understand from this discussion that the credit limit of one's credit card affects one's credit rating?
For example, if you have a credit card with a limit of $20,000, that is seen as a lower credit score than having a card with a $5000 limit? Even if one always pays the outstanding balance every month?
The idea that my credit limits (even when I do not use them) are seen as a credit liability is new to me.
I don't recall Equifax discussing my credit cards when they give me their reports; not sure they even know I have them.
5:51 pm
October 27, 2013
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Not any one individual card but I have read that the sum total of all credit cards 'could' affect credit rating if that sum total across all cards is high, e.g. $100k or so. It simply means there is some exposure if the client suddenly rang up $100k in bills one month.
Note: The Equifax report provided in their Personal Solutions offering ($16/month or so I believe if I was paying for it and not Home Depot) correctly records the sum total of all credit limits across all my cards so that information is given to them. Equifax also tells me how many revolving cards I have and which ones with all the necessary details and status.
10:27 pm
October 21, 2013
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My understanding (I read this somewhere, don't remember where) is that the relevant factor is how much of that credit limit you are actually using.
So,if you have a $20,000 credit limit, and typically use about $5000 of it, which you pay back every month, you would get a good rating. If your limit was $5000 and you used $5000, then your credit rating would be less good.
Thus, the higher credit limit is not a problem in and of itself, although it could be if you were maxing it out every month and had an annual income of $100,000. Sooner or later, somebody would presumably ask how you might pay this all off if you used it, and refuse to give you more credit.
10:52 pm
October 21, 2013
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See http://www.moneysense.ca/debt/.....dit-score/ for some helpful info.
2:29 pm
August 12, 2015
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JustMe said
Does it really matter if you often get new credit cars (take advantage of whatever promotion) and then cancelling it after a year or so?
Beside that, I have PC Master Card I have not used in ages and most likely will never use again. Should I cancel it?
All this talk about credit score does not bother me at all. I do not plan to get a mortgage, any kind of loan and similar, lake ever... I pay ll of my bills on time... Should I care?When did YOU request your credit check last time? How long it took? What docs you faxed/e-mailed? I did that some 15 years ago. Maybe something changed since?
Thank you.
You have not used PC Master Card in ages, why would you bother using it in the future? You should cancel it if you don’t really need it. When you use a credit card, you must have important intentions (emergency funds, etc.) to use it. I check my credit last month and it took a few minutes to view my transactions. So far my credit standing is good.
11:58 am
July 10, 2011
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wutong said
JustMe said
Does it really matter if you often get new credit cars (take advantage of whatever promotion) and then cancelling it after a year or so?
Beside that, I have PC Master Card I have not used in ages and most likely will never use again. Should I cancel it?
All this talk about credit score does not bother me at all. I do not plan to get a mortgage, any kind of loan and similar, lake ever... I pay ll of my bills on time... Should I care?When did YOU request your credit check last time? How long it took? What docs you faxed/e-mailed? I did that some 15 years ago. Maybe something changed since?
Thank you.
You have not used PC Master Card in ages, why would you bother using it in the future? You should cancel it if you don’t really need it. When you use a credit card, you must have important intentions (emergency funds, etc.) to use it. I check my credit last month and it took a few minutes to view my transactions. So far my credit standing is good.
I disagree.. Best just to leave it alone.. All of your aggregate credit is used to determine credit utlization ratio.. Which can raise/lower your score..
The biggest thing about CCs is just paying them off in full and you'll be fine.. If you can't do this don't get a credit card.
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