College Student wants to cancel credit card. Please Help! - Page 2

Vytautas · #11 (**permalink**) 09-29-2009, 09:02 PM

It sounds like your biggest problem is lack of control, and this seems to be pretty common with credit card holders. Just cut up your card so you can't go use it anymore (it's just too easy to pick it back up when you still have it intact) and pay down the loan as fast as your means allow.

Upper10% · #12 (**permalink**) 10-16-2009, 12:16 PM

Quote:

Originally Posted by Debt Guy

If I were you, I would keep the card. Put a sticky note on there "For emergencises only." You will get it down if you stop using it!

Better yet...CUT THE CARD UP...so then you can't use it...and pay the card off...once you are at a zero balance...you can request a replacement card

and as SapphireCapital mentioned..."In fact I would pay down the card and move the account to a different bank, maybe you can get a card with a low APR and transfer to a different provider of credit cards (please no BoA or Capital One etc)"

And if you transfer your balance to a low APR card would CUT THAT CARD UP as well...until your balance is zero and you get a handle on your spending habits...you can always get a replacement card at a later date

Chris the Credit Guy · #13 (**permalink**) 10-26-2009, 06:06 PM

Because it is your oldest revolving account, you really want to keep it.. add a couple small department store cards as i think another person was suggesting.. they sometimes have lower interest rates.

Set up an account with your bank to process automatic payments, I use Chase but think most larger banks can do this for you.

tnmccask · #14 (**permalink**) 11-13-2009, 03:27 AM

Quote:

Originally Posted by Otruantmuse

Hello!

I'm a college student and I have a Wells Fargo checking account and Wells Fargo Credit Card. I'm seeking some advice. Right now I have a good credit score and my Mom says, "if you ever want to buy a house, you need a credit card and a good credit score".

Well, the reason I need advice is because I'd really like to cancel my Wells Fargo credit card. I owe close to $1000 on it and it seems like that number never, ever goes down. Once in a while, I'll be late and it's a $40 charge, on top of monthly finance charges and interest and no matter how much I pay off, it seems like the debt keeps growing slowly. I feel like this is the biggest rip off, and I'd like to cancel it but is this wise? I want to buy a house in the future so.... is canceling my card the way to go?

What you don't want to do is cancel your card. This will hurt your credit rather than help it. It will shorten your credit history, which is 15% of your FICO score. If you want to pay off your balance, however, you will need to pay more than the minimum payment. And if you can, make some extra payments. Talk to your creditor to see if they will lower your interest rate. Most of the time, they are willing to do so. And just to let you know, never carry a balance on a credit card. This is where the interest rate charges are coming from. Each month, you should pay the balance off so that you won't incur interest charges.

tnmccask · #15 (**permalink**) 11-13-2009, 03:31 AM

Quote:

Originally Posted by tnmccask

What you don't want to do is cancel your card. This will hurt your credit rather than help it. It will shorten your credit history, which is 15% of your FICO score. If you want to pay off your balance, however, you will need to pay more than the minimum payment. And if you can, make some extra payments. Talk to your creditor to see if they will lower your interest rate. Most of the time, they are willing to do so. And just to let you know, never carry a balance on a credit card. This is where the interest rate charges are coming from. Each month, you should pay the balance off so that you won't incur interest charges.

Also what you do not want to do is add to your debt by getting additional credit cards. Only if you can pay off your debt each month should you think about getting another credit card. Otherwise, you will enter into a danger zone financially.

Kenny Golde · #16 (**permalink**) 01-23-2010, 02:36 AM

Cancel it. If it lowers your credit score at all it should only be by a few points and then ask yourself, what am I really going to use my credit score for anyway? You don't want another credit card, so you do need to worry about your credit score right now.

When you are ready to by the house, years from now, your credit score will be calculated on an entirely different algorithm based on your age and income at that time.

If you can get yourself out of the habit of using credit in college, you'll save yourself the pain and trouble that so many people twice your age are feeling right now, putting 20-50% of their monthly income toward their credit card interest instead of toward their lives.

Cancel it.

owend19 · #17 (**permalink**) 02-09-2010, 11:09 PM

I agree with the people saying to keep the card and use it when you need it. Having that card can be good for you in a pinch, you just need to make sure you aren't overusing it if you have a limited income