Excessive Debt is bad. I dont want to put anything on my credit cards anymore. However. I just got a letter from CC#1. I worked very very hard to get rid of any outstanding balances on that card. This bank card was a very bad one. I at one point asked them to lower the rate (24.99%) and they said "NO, you are using this like a long term loan". Well DUH If I cant get a lower rate then It will take FOREVER to pay it off. AHHH now it has a 0 balance. I transfered some of it to 3.9% offeres and I paid off the rest. If you have tracked my progress you can see that I have slowly made every effort to be out of debt. This card had a crazy available credit of $24,000. I dont need that nor was I ever going to put a single dollar onto this most hated card ever again. EVER. So When I opened my mail today It surprised me that I was sad that they have "re evaluated" and lowered my limit to $12,500.
I am actually happy that the limit is lower. I still felt a pang of "Oh no" when I looked at the paper. Isnt that silly? I have considered closing the account. If for any reason any of the banks I have cards with suddenly change how much I owe because the bank has changed hands I wanted options. I do get 8.99% offers from them all the time. Of course as I get $0 and 3.9% offers from other banks, I would not consider using this card unless one of the other banks went out of business. Like I said I want options.
So why does it bother me? Well I dont want it to look like I did something wrong. I paid off that account fair and square. I want it to be the truth, the change is a reflection of the bank's choices. BUT what will it do to my credit score? We are talking about buying a home so dont say it should not matter. It will if we were to go for a mortgage in the next few weeks. One step at a time.
All things considered this month I thought it would be tighter then it turned out to be. We made it through April and I still made payments to my debt. I will be debt free someday.
$15,236.09
Good job girl.
I have been neglecting my desk but it turns out that I am still somewhat on track. I will get out of debt. I will I will I will.
1 comment:
It will affect your credit score no matter what you do. But a lowered limit is still better than you cancelling the card (and in your case, since the difference between what you owe and the credit limit is actually about the same now as it was when you owed money and the limit was higher--the damage should be slight). So cut up the card but don't cancel it.
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