Yikes!!! I am shocked at how much I could theoretically buy on credit. Today, out of curiosity after reading monkeymama's post I decided to add up the credit lines on my credit cards, something I've never done before. I recently had a card closed by Cabela's because of non-use, so it also makes me wonder if I should close some accounts before another CC company decides it does not want/need me as a customer.
I only carry cards #1 and #2 with me, the rest are in the safe-deposit box. Since I pay off the cc bills monthly to avoid finance charges, I don't pay attention to the limits. And, I manage bills online, so I do not get any paper statements. Card #1 has a fee, the rest are "free."
I can see why it is so easy for people to sink into CC debt, especially if a financial crisis arises in one's life. Having this much credit could be very dangerous:
CC#1 - Airline Visa $35,000 LOC (most frequently used card, has a fee)
CC#2 - AmEx $27,800 LOC (used for Costco)
CC#3 - MBNA MC -$14,800 LOC (no longer used, opened 25 years ago)
CC#4 - LLB Visa $5,500 LOC (provides free shipping, rarely used)
CC#5 - Amazon Visa $12,500 LOC (provides free shipping, rarely used)
CC#6 - Chase Visa $8,000 LOC (provides gas rebate, rarely used)
CC#7 - Capitol One Visa $20,000 LOC (provides miles, rarely used)
CC#8 - Schwab Visa $20,000 LOC (rarely used, came with the account)
CC#9 - Macy's - Unable to determine LOC limit (rarely used)
I use the Macy's card occasionally when they have an additional 15% off promotion if you use the card (then pay it off when the bill comes). The LL Bean card gives free shipping and monogramming and this is nice at Christmas so I may keep it.
Apparently having all these cards has not hurt my FICO credit score but it still may be time to close some of them. First I have to investigate if there is an disadvantage to closing these accounts vs. keeping them open, even if I am not using them. I am not sure about the impact of closing accounts on your credit score. Does anyone know about this?
BTW, these numbers do not include dh's cards. He has 3 or 4 but only keeps one in his wallet and he uses it regularly for the rewards, but also pays it off each month.
$143,600
January 6th, 2009 at 06:02 pm
January 6th, 2009 at 06:22 pm 1231266154
Reading your post makes me think it's probably moot. (Also reminds me ID thieves were able to open, and max out, $30k in credit in the blink of an eye)
Holy Cow!
January 6th, 2009 at 06:23 pm 1231266218
January 6th, 2009 at 07:31 pm 1231270263
January 6th, 2009 at 08:03 pm 1231272230
January 6th, 2009 at 08:28 pm 1231273738
January 6th, 2009 at 09:47 pm 1231278445
My experience is closing all but one card (including erasing first 10 years of credit history) did not affect my score more than 10/20 points. When you have an 800 score, who cares. "Excellent credit" is anything over 720 or so. I don't think you could do anything at this point to lower your score 100 points. Well, besides non payment and late payments and stuff like that.
January 7th, 2009 at 04:56 am 1231304174