I get to close out 2 credit cards tomorrow when the electronic transfers

[hedgehog]

take place. (Borrowed money from the 401K - I'll be paying back the interest to me and not the bank.)What should I tell the person on the other end when he/she asks me to reconsider closing my account? Please bear in mind that the person on the other end of the phone probably hates the bank even more than I do.

[Kali]

1. you do know that actually closing accounts can have a negative effect on your ratings?

that may not matter or maybe offset by the immense satisfaction of saying FU to the parasites, but be aware

[hedgehog]

2. The way i figure it, i never want to open another credit card as long as

i live anyways, so this will add muscle to that resolution.

[bluesbassman]

3. This is true, depending on the depth of your existing credit capacity.

The fact is that part of your FICO score is based on the review period of your existing credit. If you close a revolving account, all of those months of "good" review vanish. Unfortunately, the opposite is not the case. If you have a recent (within the last year) 30 day late, it will not go away if you close the account.

However, if you have more than three or four accounts, and they all have at least 24 months review, closing a couple shouldn't have too much impact on your FICO score. (You should always maintain at least two active revolving accounts, and use them periodically to maintain a high FICO)

edit for typo

[gmoney]

4. consider keeping them for emergencies

you could put something like your phone bill or Netflix to charge monthly to that card, set up automatic payments on it, then put the physical cards into a safe deposit box or leave them with your parents or someone you trust.

you might also find that you need one card for rental cars, online purchases, etc. But paying them off and swearing off them is a good move. Congratulations!

you won't get penalized for taking the money out of your 401K?

[hedgehog]

5. In theory , I will pay less interest back than the account would make if the money were invested.

On the other hand, I won't be bleeding money every month paying credit card interest, so I'm ahead in the game.

[RebelOne]

6. Good for you.

I will never again have another credit card. I just came out of a Chapter 13 in April. Credit cards are what got me into trouble. I am free and clear of any debt and I intend to stay that way.

[Rosie1223]

7. Check your credit report after a couple of months

make sure the old cards say 'closed at customer request' or some such. I think that is considered by new creditors. Our credit score went up when we paid off and closed old cards.

We are down to 1 Visa card now.

:hi:

[Blue_Tires]

8. congrats!

so many more of us need to lose the yoke once and for all