A new blog I discovered called ManVDebt.com has an interesting post about 4 sneaky charges credit card companies zap you for. It ain’t pretty.
But I think he was rash in cutting up his credit cards and closing the accounts. If he wants to buy a car or home down the line, his credit history would be more impressive if he had paid them off and kept them open. By canceling the cards he is erasing part of his credit history!
The credit history stays, but what is affected is the credit score. A large percentage of the credit score is based on “credit utilization” — or the comparison of how much credit you have available vs. how much credit you’ve used. Closing cards takes away the “credit available” part. Far better to keep the cards and use very occasionally.
I haven’t had a card in years and I truly don’t miss them. I use bank card like a credit card.
It is my understanding that the Agreement the credit card company provides (which most of us don’t read) states the company can change rates, etc., without notice. So it’s a “buyer beware” situation, and the consumer is responsible.