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RE: Is it better to close your secured credit account after several years

Postby montyloree » Thu Jul 01, 2010 05:38:46 AM

secure credit cards are little different than travel rewards are low interest cards. Although you can get a low interest your card.

Secure credit cards I recommend that people don't carry a balance, and pay off their statement every month. I guess if you paid off your statement every month you wouldn't have a credit balance.

the whole idea of a secured credit card is to build up your credit.
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RE: Is it better to close your secured credit account after several years

Postby jonathanpaul » Thu Jul 01, 2010 05:25:05 AM

hi monty..

what are the drawbacks of having a secured credit card that does carry a balance?

would that credit balance matter if i will settle my payables every month?

thanks.
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RE: Is it better to close your secured credit account after several years

Postby montyloree » Tue Apr 27, 2010 06:38:15 AM

Agreed, you should never carry a balance on a credit card... however if you find yourself in a situation where you've already got a balance, then getting a low interest credit card and then doing a balance transfer to that card is the way to go.... the key is to pay off the credit card as soon as possible.

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RE: Is it better to close your secured credit account after several years

Postby average_joe » Tue Apr 27, 2010 06:24:30 AM

I didn't mind giving capital one $59.00 annual fee and 19.8% on my buggered up credit.Heck, they gave me a unsecured credit card after I settled all my debts in late 2009.The limit is $500.00 and I don't need to use it but I put a few hundred dollars on it and give them payments every month with a few dollars in interest which is peanuts. When I use their card for a year I will have no problem getting a no annual fee and low interest card from one of the major banks again.
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RE: Is it better to close your secured credit account after several years

Postby RichardC » Tue Apr 27, 2010 05:11:26 AM

Guys, credit cards should never EVER receive an interest payment from you. Thats the path to trouble. Only use a credit card if you can afford to pay off what you bill when the statement arrives.

Interest should never be the determining factor when getting a credit card.
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RE: Is it better to close your secured credit account after several years

Postby Ottawa_Chap » Tue Apr 27, 2010 01:00:37 AM

Bluey,

How the heck can you complain about a $59.00 fee when your credit is buggered? When one looks at the big picture, $59.00 is peanuts considering what you are trying to accomplish. Shake your head Mate!
Infuriating one C/A at a time..
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RE: Is it better to close your secured credit account after several years

Postby Vitzbitz » Mon Apr 26, 2010 07:05:22 PM

Monty, Capital One will not allow you to have two credit cards with them here in Canada. He would have to cancel the secured card first, and then (after waiting the requisite 3 months or so that Cap1 requires) apply for the no annual fee card.
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RE: Is it better to close your secured credit account after several years

Postby montyloree » Mon Apr 26, 2010 02:17:08 PM

Agreed... You should have at least two revolving credit items to maintain good credit with the credit bureaus...

Why not apply for a no annual fee capital one card... once you build up your credit history with that card, then you can drop the secured card.
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RE: Is it better to close your secured credit account after several years

Postby Bleuishbleumssie » Mon Apr 26, 2010 01:20:17 PM

I phoned Capitol One to check how much my annual fee was and it's $59.00 I find that a bit too much plus their interest rate on this card is going up to 19.8% by June, now I am really thinking whether to keep this card for the sake of my credit history or just use my low interest Visa from TD which I acquired recently. Is it even a wise decision to have 2 credit cards at hand? Please help... Thanks :)
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RE: Is it better to close your secured credit account after several years

Postby average_joe » Sun Apr 25, 2010 08:21:06 PM

I wouldn't close it because it can impact your a score a bit. I would tuck it away and every so many months make a $10 to $20 purchase on it to keep it active.

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