question about 'revolving accounts'
Ohioguy
primary credit card. It advertised a 5% cash back on gasoline
purchases, which caught my eye. In practice, however, it came with a
much lower credit limit - just $2k, instead of the $6k we were used to.
We ran into issues very quickly when we tried to put a vacation on it,
and came up close to the limit. Then we found out that for 6 months we
are 'on probation', so they don't apply a payment for a week after we
wire it. During our vacation, even though I had prepaid more than $2k
on the card, we ran into a situation where we were being told the card
could not be charged. I tried applying for a higher credit limit, and
it was showing we would get an $8k limit, but then I was told we would
have to wait until the 1 year anniversary of when we first signed up
before applying for a credit increase.
That was enough for my wife. Although we had asked the old $6k visa
to cancel the account, they were still sending us statements showing our
$50+ debit on there 5 or 6 months later. She called them, and asked to
have them reinstate the account. They mentioned something noncommittal
on the phone.
A few days ago, we got a letter stating that they were declining to
reissue our cards or reinstate the account. (this, despite the fact that
they had sent us 'preapproved' letters several times, and tried to get
us to sign up for new cards!) The reason listed was "too many revolving
accounts".
How many is too many?
Rod Speed
There isnt a single number that applys to all cards at all times.
Ohioguy
somehow weighing negatively on our credit history? I thought it was
actually a positive, since that is the only credit card I have in my
name. (even though I don't use it)
BigDog811
It's less a matter of the number of cards you hold (though the fewer
the better) as it is the total amount of unsecured credit you have
access to. It's a question of your potential unsecured debt to income
ratio combined with your existing debt (mortgage, car loan, etc.)
The Real Bev
> A few days ago, we got a letter stating that they were declining to
> reissue our cards or reinstate the account. (this, despite the fact that
> they had sent us 'preapproved' letters several times, and tried to get
> us to sign up for new cards!) The reason listed was "too many revolving
> accounts".
>
> How many is too many?
If you have to ask that question, you've already answered it. Why not
call them on the phone and ask to speak to a supervisor.
If you have too many revolving accounts, they're probably worried that
you're overextended. If you can still charge to your other accounts,
why don't you? If you're maxed out on a number of accounts, I can see
why they're not willing to reinstate the one they canceled? Did they
actually cancel it? If not, why does it need to be reinstated?
Do you actually owe them $50? If so, why not pay it?
--
Cheers, Bev
==================================================
Is the Pope Catholic? Do bears shit in the woods?
Does Rose Kennedy have a black dress?
Ohioguy
> why don't you? If you're maxed out on a number of accounts, I can see
> why they're not willing to reinstate the one they canceled?
We don't "max out" accounts unless we are using the reward to get
cash back or something, and we already have the $$ for the purchase.
> Did they actually cancel it? If not, why does it need to be reinstated?
Convenience, mostly. A $2k credit limit doesn't even allow for
payment of a used car, decent cruise vacation, etc.
> Do you actually owe them $50? If so, why not pay it?
No, they owe ME $50+, because I tend to overpay bills. I guess I'll
look forward to getting the check and buying some nice steaks.
SMS
The lower the debt to available credit ratio the better. So having
higher unsecured credit limits is a positive.
Ironically, having a higher secured credit limit is a negative, i.e. if
you try to refinance your mortgage loan and have a HELOC with a high
limit, it doesn't matter that you have not used the HELOC, they treat it
as if you are paying the monthly payment on the entire credit limit.