How to terminate a credit card?

[CnoteMD]

Originally Posted by tl_boy

due to the safety factor, I purposely limited my credit cards. In fact, I only have a debit card, not even a credit card for personal, but my business i do have a credit card.

I have opened up GAP, American Eagle, etc. cards before to avail of discounts, then immediately pay off and close them.

Would it be prudent to sign up for a BUNCH of credit cards, like 5 or something, and just let them sit??

I would recommend opening a few major credit card accounts. They (FICO) base your score on the age of your accounts as well as the percentage of utilization.

Scenario 1: You have 1 credit card with a $5000 limit and you spent $4000.

Scenario 2: You have 5 credit cards (each with a $5000 limit) and you spend the same $4000

In scenario 1, you would have a significant drop in your credit score because are using 80% of your available credit. However, in scenario 2 you would have a utilization of less than 20% and your credit score would remain high.

It is true that if you open too many accounts within a short period, they will lower your score slightly, but within a few months the score will come right back up. But run up a single credit card beyond 80% utilization and you will see a much larger drop in your credit score.

I know people with 10-20 credit cards (mostly major credit cards) with FICO scores approaching 800. But personally, I think 5 is an ideal number. Just use them wisely (preferably pay them in full each month unless you can get a promo rate less than what your savings account pays).

[tl_boy]

I guess i'm lucky because for some reason I have a 770 FICO according to my BMW salesguy. I've only done a free, basic credit check once that showed that i had no complaints against me, but it didnt' give me a number. How do I find out which companies have the best deals? Are there credit cards out there with very low finance rates and no monthly fees? The finance rate shouldn't be an issue as long as I'm on top of things, but if I forget, then I dont want to get nailed... is there a website or something like this? I use Bankrate.com to find out the best terms on CD's, I wonder if there is a credit card website that does the comparison's for free??

Also, some of my friends are really smart and do things like: get credit cards linked to continental airlines. Then they get like double or triple rewards or something, then if they eat at specific restaurants or stay at specific hotels, they like mulitply the rewards--- i don't really know all this sh*t all i know is they are smart and i'm not at these things. i don't want them to know that though, so whats the secret??

Originally Posted by CnoteMD

I would recommend opening a few major credit card accounts. They (FICO) base your score on the age of your accounts as well as the percentage of utilization.

Scenario 1: You have 1 credit card with a $5000 limit and you spent $4000.

Scenario 2: You have 5 credit cards (each with a $5000 limit) and you spend the same $4000

In scenario 1, you would have a significant drop in your credit score because are using 80% of your available credit. However, in scenario 2 you would have a utilization of less than 20% and your credit score would remain high.

It is true that if you open too many accounts within a short period, they will lower your score slightly, but within a few months the score will come right back up. But run up a single credit card beyond 80% utilization and you will see a much larger drop in your credit score.

I know people with 10-20 credit cards (mostly major credit cards) with FICO scores approaching 800. But personally, I think 5 is an ideal number. Just use them wisely (preferably pay them in full each month unless you can get a promo rate less than what your savings account pays).

[CnoteMD]

I don't know of a site that compares the credit cards from different companies, but most companies will have a feature on thier website that will compare the cards they issue.

With your credit score (or any score above 720) you should be approved for pretty much any card except for the American Express Centurion. That card is based more on excessive spending habits ($250k per year). The better companies include American Express, Citibank, MBNA/Bank of America, and Chase. Most of the better rates seem to be mailed out (much better rates than what is advertised on thier websites). But at least you will get an idea of the benefits attached to each card (i.e., rewards points, extended warranty service, concierge services, etc).

[Asiann]

Originally Posted by tl_boy

I guess i'm lucky because for some reason I have a 770 FICO according to my BMW salesguy. I've only done a free, basic credit check once that showed that i had no complaints against me, but it didnt' give me a number. How do I find out which companies have the best deals? Are there credit cards out there with very low finance rates and no monthly fees? The finance rate shouldn't be an issue as long as I'm on top of things, but if I forget, then I dont want to get nailed... is there a website or something like this? I use Bankrate.com to find out the best terms on CD's, I wonder if there is a credit card website that does the comparison's for free??

Also, some of my friends are really smart and do things like: get credit cards linked to continental airlines. Then they get like double or triple rewards or something, then if they eat at specific restaurants or stay at specific hotels, they like mulitply the rewards--- i don't really know all this sh*t all i know is they are smart and i'm not at these things. i don't want them to know that though, so whats the secret??

You already had the answer! http://www.bankrate.com/brm/rate/cc_home.asp

I have American Express that gives you rewards for anything you spend. I also have Capital One Miles One that does the same. The best I have seen is 1.25 miles for every dollar you spend and that is with Capital One. I'm always looking for a better deal but haven't found one. Best to just use one card for all your miles and really boost earning by using the card for everyday spending and then paying it off every month. Must pay off to avoid a hit on your credit rating if you are 30 days or more pastdue. They will hike your interest rate as well to something crazy to like 19.5%. Interest rate is not really an issue since you pay off each month.

[lux.sh]

Since we are talking about credit scores..

does anyone know why the hell your credit score would go down if you check your credit score by ordering a credit report??

I was guessing that maybe they think we feel insecure about our credit if we frequently check our credit scores... is this right? if that is the reason, its pretty stupid. someone enlighten me.

[Asiann]

Originally Posted by lux.sh

Since we are talking about credit scores..

does anyone know why the hell your credit score would go down if you check your credit score by ordering a credit report??

I was guessing that maybe they think we feel insecure about our credit if we frequently check our credit scores... is this right? if that is the reason, its pretty stupid. someone enlighten me.

Once a year is fine but when you are making large purchases such as a house not a good idea since they are going to do atleast 2 credit checks. Other institutions check your report from time to time for pre-approved offers as well as your bank, current creditcard banks, and any other card you may have. Just do the annual free credit check and see if everything is correct and fix them if not. They have no way of knowing and it can affect your ability to get the best rates available.

[tl_boy]

on the bankrate.com


Thanks for the info though guys. I thought American Express was inferior because not everyone accepts it... so i never had one. I'm 28, i figure maybe I should. How do i get the American Express Black or whatever? I want that card where they will get me front row seats to concerts and games, vip travel, etc.

Right now I have:

1) 1 Gold Wells Fargo Debit Card (Visa)
1) Platinum Wells Fargo Debit Card (Visa)
1) Commercial Chase Platinum Business Card (Visa)

Thats it. What should i get?

[Asiann]

Originally Posted by tl_boy

on the bankrate.com


Thanks for the info though guys. I thought American Express was inferior because not everyone accepts it... so i never had one. I'm 28, i figure maybe I should. How do i get the American Express Black or whatever? I want that card where they will get me front row seats to concerts and games, vip travel, etc.

Right now I have:

1) 1 Gold Wells Fargo Debit Card (Visa)
1) Platinum Wells Fargo Debit Card (Visa)
1) Commercial Chase Platinum Business Card (Visa)

Thats it. What should i get?

Those cards you have are fine. The American Express in black is one of those that is by invitation only and also you have to spend like over $5k a month from what I hear. The regular American Express is pretty good and has a rewards program for all your spending. It is not widely accepted like Visa but if you use it for gas eating out then most places accept it. Here is another good site to compare cards with rewards. http://www.creditcards.com/American-...055&a_did=8153 What card to get depends on what type of reward you want. Some offer cash back like American and Discover. There are airline rewards. Just read all of the fine print and choose which one will give you the most bang for your money.
Here is an example of Capital One NO Hassle Visa Signature
It does have a $39 yearly fee but you get a 2 for 1 exchange.

Earn 2 miles for each dollar spent on purchases
Fly any airline – no blackout dates or seat restrictions
Visa Signature rewards such as complimentary concierge service, VIP dining privileges and access to once-in-a-lifetime opportunities

I do have the other veersion of this card Capital One No Hassle Miles Rewards
No annual fee
Earn 1.25 miles per dollar spent*
Fly any airline
No blackout dates—even during holidays

With this one you can purchase any ticket with any airline and they will credit you if you have enough points. Say you bought a $600 ticket. You also have 60,000 points that you can use and they will credit the $600 back to your account within a couple of days.

[Asiann]

Here is one from BMW http://fs.bmwusa.com/BMWFSPulp/CRCAR...rdBenefits.htm

[Jay_328]

Originally Posted by tl_boy

How do i get the American Express Black or whatever? I want that card where they will get me front row seats to concerts and games, vip travel, etc.

Sorry big guy, but you won't be getting an AE Black card unless you are a big time baller. (XXX millionaire XXX)

As Asiann stated, you cannot apply for the card but rather must be invited by AE and spend $150,000 in one year on their AE Platinum card. It has an annual fee of $2500 and no spending limit.

[Asiann]

Originally Posted by Jay_325Ci

Sorry big guy, but you won't be getting an AE Black card unless you are a big time baller. (XXX millionaire XXX)

As Asiann stated, you cannot apply for the card but rather must be invited by AE and spend $150,000 in one year on their AE Platinum card. It has an annual fee of $2500 and no spending limit.

The good thing abou the card is that you can go shopping at stores that recognizes the membership and they will shut down the store just as if a celebrity was shopping. I'm sure there are other benefits but that is the only one I know of.

[CnoteMD]

Yeah, the American Express Centurion card (aka, "black card") is an invitation only card. You have to already have an AMEX Platinum card and spend $250k in one year (it used to be around $120-150k, but it was increased). Many of the benefits for that card have been going away (i.e., free upgrades to Concorde from a full fare first class international ticket, etc). But the other services like Concierge, confirmed hotel upgrades, and airport lounge access are also available on the Platinum card.

As far as Amex being an inferior card because some places don't take it. That is more of an issue with smaller merchants because the fees are higher on Amex. But Amex is generally a lot more selective than Visa or MC, and thier cardholders generally spend more per transaction. If you live in a major city, almost every store will take Amex (but I do carry a backup MC, for the rare occasion they don't take Amex).

I know many people that have had bad experiences with Capital One (they used to be a credit card for people with bad credit trying to re-establish a credit history).

I have had good experiences with my current cards:
Amex Platinum
Amex Blue
MBNA Quantum MC
Chase Signature Visa
Bank of America Platinum MC
Citbank Debit (MC)

I may get a Citibank Platinum Select MC (my wife seems to like hers).

[Asiann]

Originally Posted by CnoteMD

Yeah, the American Express Centurion card (aka, "black card") is an invitation only card. You have to already have an AMEX Platinum card and spend $250k in one year (it used to be around $120-150k, but it was increased). Many of the benefits for that card have been going away (i.e., free upgrades to Concorde from a full fare first class international ticket, etc). But the other services like Concierge, confirmed hotel upgrades, and airport lounge access are also available on the Platinum card.

As far as Amex being an inferior card because some places don't take it. That is more of an issue with smaller merchants because the fees are higher on Amex. But Amex is generally a lot more selective than Visa or MC, and thier cardholders generally spend more per transaction. If you live in a major city, almost every store will take Amex (but I do carry a backup MC, for the rare occasion they don't take Amex).

I know many people that have had bad experiences with Capital One (they used to be a credit card for people with bad credit trying to re-establish a credit history).

I have had good experiences with my current cards:
Amex Platinum
Amex Blue
MBNA Quantum MC
Chase Signature Visa
Bank of America Platinum MC
Citbank Debit (MC)

I may get a Citibank Platinum Select MC (my wife seems to like hers).

I have had great service from Capital One with 3 cards and a member since 91. They use to be called Signet Bank for those that lived in VA. They are one of the few that doesn't charge for international purchases. Amex and many others do. Up to 1% of purchase. They also offer a 5% money market savings account with no minimum balance. The fraud dept is very good. My wife was in Panama and I forgot to tell them she was going there and they refused her purchases. Great for disputing purchases that you did not make. I actually had my card number lifted and they refunded all of the charges quickly. Yes they do offer cards to college students and those that have less than good credit. There are special cards for those individuals. If you look at the previous post where I linked a comparison of CC you will see what kind of credit history for any card. There are many good cards out there but you just have to choose which one is best for you.

[tl_boy]

Capital One bought out Hibernia Bank (A TX-LA, southern Bank) recently. But I too have heard bad things about their credit card division.

I've been meaning to get an Amex. One thing is, i read on Anandtech, that a lot of computer geeks have Amex because if you buy something, and it is cheaper elsewhere, later one, I heard they give you the difference?! Also, I heard they give you an extended warranty on your purchase?!

I can't imagine who would spend 250k a year on their credit card. If you're that rich, you should have that kind of cash, and not take debts imho.

[Hunter399]

black card baby

[tl_boy]

Oh so THAT's why you spend so much modding? You hoping to hit the 250k a year mark?

Originally Posted by hunter399

black card baby

[Jay_328]

Originally Posted by tl_boy

I can't imagine who would spend 250k a year on their credit card. If you're that rich, you should have that kind of cash, and not take debts imho.

I hear ya but I'm thinking the mega rich don't carry large amounts of cash around with them. I suppose they charge everything (what they don't get free, lucky bastards) and pay the balance each month. Sounds logical, ya think?

[Asiann]

Originally Posted by tl_boy

Capital One bought out Hibernia Bank (A TX-LA, southern Bank) recently. But I too have heard bad things about their credit card division.

I've been meaning to get an Amex. One thing is, i read on Anandtech, that a lot of computer geeks have Amex because if you buy something, and it is cheaper elsewhere, later one, I heard they give you the difference?! Also, I heard they give you an extended warranty on your purchase?!

I can't imagine who would spend 250k a year on their credit card. If you're that rich, you should have that kind of cash, and not take debts imho.

I guess alot of people don't know that Visa has a double warranty for anything purchased on the card. All you have to do is contact your CC and ask to speak to the warranty manager. I believe thats the department. It should be in the agreement notice you get with every card. Haven't heard about the Amex giving the difference but I will call and find out.

[lux.sh]

I doubt any of us have one of those AMEX Black(Centurion) Card.

With annual fee of $2500, and minimum annual spending of $250,000....
if anybody is that rich, they wouldn't driving a 3 series.

People say Amex Centurion Card owners buy Bentleys and Jets with it.

[CnoteMD]

Originally Posted by Jay_325Ci

I hear ya but I'm thinking the mega rich don't carry large amounts of cash around with them. I suppose they charge everything (what they don't get free, lucky bastards) and pay the balance each month. Sounds logical, ya think?

If you get an Amex charge card (green, gold, platinum, or black), you are REQUIRED to pay the balance in full each month. Once you've been with them for a while, they will give you the option to pay higher priced purchases over time. But the rate is ridiculously high, so I have never actually taken advantage of that "feature".

Also read the wording carefully, Amex charge cards have no "preset" spending limit. They limit your purchases based on your income and prior spending habits. As the "color" of your card goes up, these unknown limits are increased. But if you spend more than they think you can handle, they will cut you off. Fortunately it hasn't happened to me, but others have told me about it.

[tl_boy]

No you wouldn't carry the cash, but you'd have it in the bank, so you could just cut a check. A credit card is still borrowing money -- even if only temporarily. Although I guess an Amex Black card would do wonders for someones FICO score, or vice versa.

Originally Posted by Jay_325Ci

I hear ya but I'm thinking the mega rich don't carry large amounts of cash around with them. I suppose they charge everything (what they don't get free, lucky bastards) and pay the balance each month. Sounds logical, ya think?

[Jay_328]

Originally Posted by CnoteMD

If you get an Amex charge card (green, gold, platinum, or black), you are REQUIRED to pay the balance in full each month. Once you've been with them for a while, they will give you the option to pay higher priced purchases over time. But the rate is ridiculously high, so I have never actually taken advantage of that "feature".

Also read the wording carefully, Amex charge cards have no "preset" spending limit. They limit your purchases based on your income and prior spending habits. As the "color" of your card goes up, these unknown limits are increased. But if you spend more than they think you can handle, they will cut you off. Fortunately it hasn't happened to me, but others have told me about it.

Thanks for the info. I don't have an AMEX card, was never really interested in obtaining one. I'll hang on to my ole' Visa and Discover.