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Teacher03
07-06-2006, 09:20 AM
I have a JC Penney credit card that is close to a $0 balance. They recently raised my credit limit to $2500. All my credit cards are raising my balances, I'm not sure why. Anyways, the Penneys card has very high interest. Should I close it, or would that hurt my credit rating? Does it hurt my credit rating to have outrageous credit limits on the few cards I have, even if they don't carry a balance? I am married, but I am trying to establish credit in my own name and gain a little independence financially (no marriage problems :love: I just want to do some things on my own since I am making a little bit of money) . Any help you can give me is appreciated. Thanks!

Dizzy for Dsny
07-06-2006, 10:13 AM
If you do not use the card or plan to definately close the account. They are raising your credit limits because of a good credit score. If you choose to keep the card you can request that they lower your credit limit to any amount of your choosing. Just make sure you get a confirmation in writing. And yes, to answer your question about having the cards with $0 balance they will use the available credit you have outstanding if you ever go for a big loan (car, house, big purchase) in evaluating your debt ratio. Also, if you have any loans that get bought out by another company (very prominant with mortages), get a copy of your credit report (from all 3 companies) and double check that loan shows closed from previous company.

Hope this helps! :)

Teacher03
07-06-2006, 10:56 AM
Thanks for your help. I think I will cancel my JCPenney card....the interest rate is too high to use. I will take a look at my credit card limit and see where I can limit those. I am not planning on applying for a loan anytime in the near future, but you never know what might come up. Thanks again for your help.

DisneyGirl4188
07-06-2006, 10:59 AM
Isn't it better to keep the card open even with a $0 balance? I thought that it helped a credit score.

hockeybabe
07-06-2006, 11:42 AM
Isn't it better to keep the card open even with a $0 balance? I thought that it helped a credit score.

dulicate post...sorry!

hockeybabe
07-06-2006, 11:44 AM
Isn't it better to keep the card open even with a $0 balance? I thought that it helped a credit score.

It can help. It can look good percentage-wise for your debt ratio. For example, if you have $10,000 credit available, but are only using $3,000 of it, that is a good ratio. If you close that account, you will have, in this example, $7,500 available, so your ratio just increased.

That being said, if you have too many credit cards open, that doesn't look good either, like you have too much credit at your disposal, and if you suddenly started using it all, could you make your payments? So, yes and no, depends on what your ratios will look like.

picantel
07-06-2006, 11:59 AM
If you do not use the card or plan to definately close the account. They are raising your credit limits because of a good credit score. If you choose to keep the card you can request that they lower your credit limit to any amount of your choosing. Just make sure you get a confirmation in writing. And yes, to answer your question about having the cards with $0 balance they will use the available credit you have outstanding if you ever go for a big loan (car, house, big purchase) in evaluating your debt ratio. Also, if you have any loans that get bought out by another company (very prominant with mortages), get a copy of your credit report (from all 3 companies) and double check that loan shows closed from previous company.

Hope this helps! :)

This is bad advice. Keep the card open. If they raised the limit chances are this is an older card and is doing nothing but helping you. I have rarely seen anyone get turned down for credit because they have too much. In fact, many members on the creditboards forum have 200k+ credit available. $2500 on a card is chump change. All you need to do to get the benefit of the card is make a little purchase every 4-6 months for an update and then pay it off.