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  1. #1
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    Default Paid off 1st CC!

    It wasn't much but it's paid off! We plan on paying off another one as soon as our refund hits the bank. It's another small one but it's a start. Paying off that cc was an amazing feeling. It has me motivated to find more ways to live frugally and cut down spending.

    Here's a question though....I'm getting two sides on this issue. Should I close the accounts or leave them open? Which is worse for my credit score? I really don't want to leave an account open and honestly, I think it's kind of stupid to leave an account open if you're not going to use it. Plus, there's that temptation to actually charge the card right back up.

    And I think it's been mentioned somewhere on these boards before...Dave Ramsey seems to have his head on straight. I checked out 3 of his books at the library (yeah, that was a small accomplishment since I almost bought the books at Barnes & Noble but went to the library instead), and so far, I love him! I do find some of his "Total Money Makeovers" stories hard to believe. I read one of the success stories where the couple was over $62,000 in debt and had it paid off in 22 months with an annual salary of $42,000.

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  3. #2
    Deal GURU
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    Default Re: Paid off 1st CC!

    your debt to credit ratio is used in part when figuring your credit score, so it may help to leave it open. I have heard though if you dont use the cards at least once a year it will also hurt but I don't know how true that is. Congrats on paying off the card though, i know it makes you feel great
    Mdowdy

  4. #3
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    Default Re: Paid off 1st CC!

    I have heard that depending on the amount you can charge to the card it could be a bad thing for your credit. It shows that you have the potential to owe the full amount should you choose to charge on it.

    This might be something to check with your bank to see what they have to say.

  5. #4
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    Default Re: Paid off 1st CC!

    Duh-forgot to add-CONGRATULATIONS ON A MAJOR ACCOMPLISHMENT!!!!

    Just wait to you get that next one paid off it will feel even better

  6. #5
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    Default Re: Paid off 1st CC!

    its an awesome feeling isnt it??

    Congrats!!!!!!!!!!

    It can actually damage your Credit score to close all your cards. My advice (because Im going through it) is look at all of your credit cards, and make a determination as to which ones and how many you want to keep open. If you have 10, I would close 4-6. I would only close them after you pay your other debt down. its always good to have SOME credit open to keep your credit positive.

    i would also recommend you charge a small balance every so often and pay it off in 1 month to keep your credit fresh.
    Terra , Wife to Kevin, Mom to Cassidy (12) and Ciara (2)

  7. #6
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    Default Re: Paid off 1st CC!

    We have 9 cards. We are planning on keeping at least 2, the 2 that have the lowest interest rates. There are 2 cards, Kohl's and JC Penney, that I'm 50/50 on. I shredded my cards for the time being to prevent charging but I'm not sure if I want to close them. I love shopping JC Penney for the same reason I like shopping Kohl's. Sales and clearance!

  8. #7
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    Default Re: Paid off 1st CC!

    I agree... JC Penneys is the one we keep as well. FOr all the same reasons. LOL

    My kids get good clothes there on sale.
    Terra , Wife to Kevin, Mom to Cassidy (12) and Ciara (2)

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    Default Re: Paid off 1st CC!

    GREAT JOB ... now what was the minimum payment on that card? Take that amount and add to the next lowest amount card. It will start to 'snowball' really soon, which will make you feel so much better

    BTW when we were in the military I had 38 CC. Back when I was younger getting a card as a women was darn near impossible unless you had a male sign it for you - ditto loans. I swore I would NEVER be in that posistion again and somewhat went way over <g>

    For reg CC keep the ones with the LOWEST interest rate. IMO
    If you have 7 reg CC cut that number in half (***make sure at least ONE you keep has YOUR name as primary)

    I love Penny's too .. I avoid it like the devil though

    When it comes time for buying the house, remember to go for less cash price. A house nickel dimes you to death the first few years. You can add in the fancies later.

    Don't have the mortage payment at max, if anything happens you may not be able to afford it. We bought with the idea of making the payments from ONE paycheck which was a good thing later.

    Ria

 

 
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