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Jonsgirl04
Love my two girls! xoxo
Member since 9/08 6079 total posts
Name:
Stephanie
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Finacial Help (credit Card related) Long..
Ok So I took a loan out of my Retirement to pay off my little over $5000 Target credit card bill. I have had this debt for over 10 years. The interest was through the roof and even while paying them $150 a month it was going no where. I was tired of it and I just couldn't afford it anymore with my daughter in Daycare so I paid it off. It feels great to have it finally Gone! Anyway, so yesterday I received my statement from Target showing me I owe $0.00!! Yippeeee!!!!
But then I received a separate letter saying what a great customer I have been and they increased my card from $5,550 spending limit to $7,550!! My husband is saying Cancel the card. But I thought I heard if you cancel a card its is bad for your credit?? I don't know if that's good or bad that they increased it? How does this affect my rating? So confusing. We are trying to start to build my savings back up and then hopefully when my youngest daughter enters kindergarten I will start being able to save for a house. Sorry its so long..so what should I do Cancel the card or ask them to lower my spending limit? Or just leave it alone and don't use the card at all?
Thank you!
Message edited 7/19/2016 8:37:46 AM.
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Posted 7/19/16 8:35 AM  |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Finacial Help (credit Card related) Long..
Leave the card alone!!! Them increasing you will increase your total available credit and your credit to debt ratio is lowered. It's a good thing. Just don't rack up 7500 in charges  if you don't think you can control yourself, cut the card up. Do not cancel it.
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| Posted 7/19/16 8:43 AM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Finacial Help (credit Card related) Long..
Leave it alone. Freeze it...I mean literally freeze it if you think having it would cause you to spend again. I have taken cards when I feel like I am getting out of hand and freezing them in a Tupperware container. Its not easy to just grab them that way.
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| Posted 7/19/16 9:04 AM |
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bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
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Finacial Help (credit Card related) Long..
Canceling the card is not detrimental to your credit. You'll drop a few points. If you aren't buying a home anytime soon it won't hurt you. However, I agree often your better cutting it up or locking it away if your prone to impulse shop. Only because it's easy and tempting to reopen the card when offered 20% off to do so.
Unrelated, store credit cards are the worst, IMO. There's a reason they give them out like candy and entice people to open them with instant discounts.
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| Posted 7/19/16 9:12 AM |
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jaykaylol
LIF Infant
Member since 6/16 170 total posts
Name:
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Finacial Help (credit Card related) Long..
your card has 10 years of history on your credit report and now no balance and a higher limit - keep it but don't use it at all! as long as there is no monthly fee or any other charges by having it, its better off there, showing a lower debt-to-income ratio than losing $7500 of available credit. but how shady of these retailers, once your debt it paid off to raise your limit - to entice you to incur more.
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| Posted 7/19/16 9:21 AM |
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StaceyWill
It's a girl!!!
Member since 6/10 21539 total posts
Name:
Stacey
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Re: Finacial Help (credit Card related) Long..
Posted by MaZz
Leave the card alone!!! Them increasing you will increase your total available credit and your credit to debt ratio is lowered. It's a good thing. Just don't rack up 7500 in charges if you don't think you can control yourself, cut the card up. Do not cancel it.
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| Posted 7/19/16 9:24 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Finacial Help (credit Card related) Long..
Posted by MaZz
Leave the card alone!!! Them increasing you will increase your total available credit and your credit to debt ratio is lowered. It's a good thing. Just don't rack up 7500 in charges if you don't think you can control yourself, cut the card up. Do not cancel it.
This.
Leave the card, but don't use it!
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| Posted 7/19/16 10:28 AM |
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MrsB12614
LIF Adult
Member since 4/14 1986 total posts
Name:
Mrs
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Finacial Help (credit Card related) Long..
Leave the card alone. I have 4 cards- one being the AMEX which we use regularly and daily, I have a chase card for my tuition which will now be not used since I finished school and sit with a zero balance. The other 2, I had from when I started college as emergency cards. I've used them sporadically over the years but I let them sit, just charging maybe $50 every few months then paying it when it comes due just to keep it active. I have great credit so letting them sit doesn't negatively impact you. If you feel you want it closed for self control reasons, cut it up. I wouldn't cancel an account especially if you want to buy a house
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| Posted 7/19/16 10:32 AM |
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Jonsgirl04
Love my two girls! xoxo
Member since 9/08 6079 total posts
Name:
Stephanie
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Re: Finacial Help (credit Card related) Long..
Thanks Ladies!!
My husband has the card in a hiding place. haha!! So we will not touch it!!
We do plan to buy a house in about 3 years when my youngest goes into kindergarten.  So happy to finally get rid of my last remaining debt. Now we wil start our savings. Thanks for all your help!!
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| Posted 7/19/16 10:45 AM |
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RainyDay
LIF Adult
Member since 6/15 3999 total posts
Name:
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Finacial Help (credit Card related) Long..
Cut the card up but Def leave the credit line open
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| Posted 7/19/16 11:25 AM |
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BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
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Re: Finacial Help (credit Card related) Long..
They will eventually close it due to inactivity if you never use it. The length of time it needs to be inactive depends on the bank though. I would use it every few months.
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| Posted 7/19/16 11:53 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Finacial Help (credit Card related) Long..
Posted by BargainMama
They will eventually close it due to inactivity if you never use it. The length of time it needs to be inactive depends on the bank though. I would use it every few months.
And the best part of the target credit card is 5% off all your purchases.
So they are essentially paying YOU to use it
Use it once in a while and just pay off the balance when the bill comes.
Only buy what you have the cash to pay for
This way the card stays open.
Message edited 7/19/2016 12:02:51 PM.
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| Posted 7/19/16 11:58 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Finacial Help (credit Card related) Long..
If you love target, go for their debit card... Same perks as the cc but at least you know you only spend what you can currently pay for. I have it and have had no issues.
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| Posted 7/19/16 12:45 PM |
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Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
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Re: Finacial Help (credit Card related) Long..
Posted by MaZz
If you love target, go for their debit card... Same perks as the cc but at least you know you only spend what you can currently pay for. I have it and have had no issues.
Agreed, including the 5% discount.
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| Posted 7/19/16 1:05 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Finacial Help (credit Card related) Long..
Posted by NervousNell
Posted by BargainMama
They will eventually close it due to inactivity if you never use it. The length of time it needs to be inactive depends on the bank though. I would use it every few months.
And the best part of the target credit card is 5% off all your purchases.
So they are essentially paying YOU to use it
Use it once in a while and just pay off the balance when the bill comes.
Only buy what you have the cash to pay for
This way the card stays open.
I have the target debit card and you get the same benefits and it comes directly out of your checking account.
I would leave the credit line open but don't use it.
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| Posted 7/19/16 3:23 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Finacial Help (credit Card related) Long..
Cancel it, cut it up, put it in the freezer, whatever.
We have no self control when it comes to cards in our house and it's not a good thing
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| Posted 7/20/16 7:23 AM |
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