Dave Ramsey Followers....

[Jasminerk13]

We have a CC that recently sent us a letter raising our interest rate... just like many other people out there. We are paying on this CC following Dave's plan so, instead of taking the interest rate hike we decided to "opt out". This means the CC gets closed next year after it gets paid off in full. No problem right??

So why do I feel like opting out and having the CC company close the account is a bad thing? Do I really need to worry about my credit rating if we are following Dave's plan? We have excellent credit, but want to be completely debt free with no credit cards, no car payment, etc. So if this card gets closed, will it hurt us?

 

[minnie1928]

Technically speaking, yes it will hurt your credit score. However, assuming that you have other lines of credit that have some history behind them...I don't think this will have lasting impact on your credit.

 

[wmharley]

assuming that you will have no debts (other than a house and any he says is ok) and you then have cash to pay for things, not having a CC won't hurt too much.

yes it will take a hit, but if you to buy something major, like a car, or a house and you don't have a 750 FICO (maybe a 700 or 680 due to no CC's), it will EASILY be offset by the fact you SHOULD (following Dave) have the cash, or a majority to put down. I know plenty of mortgage folks who would rather have someone with a large $$ down and a smaller loan, than something with great credit. The large $$ down can easily get a good rate, just as good as someone with good credit.