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How can I cancel a Macy's card?

Should I cancel one of my credit card accounts?

  • Hello, I recently married and my husband and I are on different sides as to whether or not I should cancel one of my credit cards that I have (currently I have 3 in my name). None have an annual fee. I have never made a late payment. I am from Canada. My credit score according to Equifax is 759. Here's the three cards I have: 1) A Mastercard w/ an 8.99% interest rate (account) that I have had for 7 years. It is a rewards card (1% cash back on all purchases) w/ a $2600 credit limit. Low balance right now but will be paid off in full in the next few days. Hubby thinks I should get rid of it but I think that would be stupid!!! 2) A VISA w/ my bank that has a 19.99% interest rate. Just got upgraded to a cash rewards card (up to 1% cash back) from my plain jane card I got as a student. Have had an account since 2006 with them. 3) Recently, I got a mastercard from the one store we registered for wedding gifts at in order to snag some extra discounts on items from the registry. I ended up saving us at least $700 just by signing up for the card and using it to make some purchases at the store. The balance has been paid and I have had it less than 2 months. If I use it I earn extra rewards points for the company's rewards program (points can be redeemed for gift certificates and the like). Actually when I signed up for it they gave me a sheet of paper as a temporary card/card number and I never actually activated the real card yet which came in the mail a couple of weeks ago. The interest rate is 29.9% until I use it at a different store, then it drops to prime + 17% (right now prime is 3% in Canada). I have only used it at this company's stores on a few transactions so far. This would be the only card I'd debate dropping. They gave me a credit limit of $5800 no questions asked. I also have a Can-Sask student loan that is in interest-free/payment-free status as I'm still a student (grad student, but working full-time). It has about $8500 owing on it but does not need to start being repaid/does not gain interest until May of 2012. I have a line of credit through my bank with an interest rate of prime +3% (so currently 6%) that has about $9000 owing (limit is $15,000). Plus my husband and I have a joint loan (basically I cosigned for him) that has about $20,000 on it that has a monthly payment of $600 (consolidated his debt, all of which he got after we moved in together, including a car loan). We have an aggressive debt repayment plan that will see us paying the debt off completely within less than a year barring any catastrophes. We currently rent our home but plan on obtaining a mortgage once the debt is paid off and we can save a little for closing costs/down payment. Our combined income this year is lower than it will be in 2012 since neither of us worked the full year but will be about $110,000 next year. Basically I'm not sure if I should keep the one Mastercard I recently got or at least ask for a credit limit decrease. My hubby thinks I should cancel at least one of my credit cards but I don''t know if that is prudent advice. I won't use them that much anyways and will be unlikely to carry a balance.

  • Answer:

    I would call your credit card companies and ask for a much lower interest rate over the ones they are currently charging you. With a 759 credit score, you shouldn't be paying more than 10%. If they refuse to meet that number, pay off then cut both cards in half and never use them again (don't cancel the accounts). Keep the first card, though. Whenever in doubt about which finances to pay off first, always go with the one with the highest interest rates.

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DO NOT cancel a credit card. That's an automatic bad credit rgiht there. It's happened to many of my friends. Just don't use it anymore and see if the company is willing to help you out due to your situation

haaj

It doesn't make sense to cancel any credit card, or decrease the credit limit unless you have like 50 credit cards, and having that many cards is hurting your credit. In your situation, leave it. Your credit score won't improve by cancelling a card, and debt repayment has nothing to do with available credit. Just don't charge up the cards anymore. It's simple.

It might sound crazy to your husband, but it's actually to your advantage to keep all the credit cards opened instead of closing them. The more diverse and the longer you have your credit the better. Since you already have two loans and 4 credit cards that is a good mix of credit. Plus you've had the credit cards for years. Here's what I recommend. Plan to pay all the credit card debt down to zero. Then, your 1st credit card make your primary credit card. Use it for most of your purchases. ALSO make sure you PAY IN FULL each month to avoid debt. ONLY CHARGE what you can AFFORD. That's how people get into debt is to charge too much and only pay the minimums. The other credit cards keep them, active the one you have. Use them at least once or so every couple of months so they keep them active. Pay them off in full each month. Only charge what you can afford. Make sure you're paying your bills on time and never be late. You can even pay your credit cards twice a month instead of once.

Scott

This really depends. Without reading the novel above, I will tell you this: (1) closing a card can hurt your credit more than it will do good (2) keepingcreit in your name with high credit limit may hurt if your income to debt ratio is of You can find some really great advice by going to clarkhoward.com at to #1 and daveramsey.com at to #2. Look at both sites with your husband and decide which option is best for you.

Kathy

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