Comments on: A Quote About Luck, Destroying Credit Cards and Living a Life Without Credit or Debt http://www.bloggingawaydebt.com/2007/08/a-quote-about-luck-destroying-credit-cards-and-living-a-life-without-credit-or-debt/ Our Journey to a Debt-Free Life Sat, 07 Nov 2009 20:44:47 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jason http://www.bloggingawaydebt.com/2007/08/a-quote-about-luck-destroying-credit-cards-and-living-a-life-without-credit-or-debt/comment-page-1/#comment-126535 Jason Wed, 22 Aug 2007 21:53:35 +0000 http://www.bloggingawaydebt.com/2007/08/a-quote-about-luck-destroying-credit-cards-and-living-a-life-without-credit-or-debt/#comment-126535 Don't be so quick to cut up the credit cards and cancel them. After all, unutilized credit is a pretty heft component of your FICO score, so by reducing the amount of potential credit that you have, you potentially lower your FICO score. A second factor is the age of credit cards that you have, so if you do insist on canceling cards, make sure you cancel the newest ones first. If you're canceling cards with annual fees, then by all means, go ahead, but there's not much point in canceling a no fee card that's already open. To crib from a famous personal finance radio/book personality, put the unused cards in a bowl of water and then freeze it in the freezer. If you want to use the cards, then you must wait for the block of ice to melt. Don’t be so quick to cut up the credit cards and cancel them. After all, unutilized credit is a pretty heft component of your FICO score, so by reducing the amount of potential credit that you have, you potentially lower your FICO score. A second factor is the age of credit cards that you have, so if you do insist on canceling cards, make sure you cancel the newest ones first. If you’re canceling cards with annual fees, then by all means, go ahead, but there’s not much point in canceling a no fee card that’s already open. To crib from a famous personal finance radio/book personality, put the unused cards in a bowl of water and then freeze it in the freezer. If you want to use the cards, then you must wait for the block of ice to melt.

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