ZphisticatedLady

ISO: Credit Card Advice - Cancelling unused/old credit cards & doing balance transfer

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Maybe you credit guru's can help me out. I have 2 secured credit

cards with ActionCard/BankFirst that I am trying to get rid of. I obtained the cards in my senior year of college (2000) to clean up my credit score after the mess I made during my freshman/sophomore year.

I've cleaned up my credit since college and have purchased a

townhome and a new car over the past 5 years, but these secured card

fees are eating me alive. I want to close them, but since they are

my oldest accounts I don't want to screw up my score. They both have

a zero balance and I haven't used the cards in a few years. (I've

even cut them up to make sure). I hate ActionCard's customer service. They continue to put 30 day late payments on my credit reports when I am not late, then I have to go through disputing and calling just to get it off. This has gone on for 2 years and I am tired of the games.

I've heard of balance transfers, but since I have no balance, not

sure how to switch to a new card. My score is high enough to get a

good rate (678), but I'm worried that cancelling the old cards might hurt

my score.

Has anyone done this before? Or does anyone know of a good credit

card company that will make this a smooth transition?

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Balance transfers don't transfer history to a new card - just the balance.

Can you get your Bank to convert you to an unsecured card with no fees? If you don't want to do that, you can always cancel your cards anyway. There's no way to determine if and by how much your score will drop. Hopefully it should not impact you too much if you have other tradelines that have been in good standing for some time.

Also, is there a particular reason why your score is stuck at 678? Maybe we can help. Is your utilization below 30%?

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You have a home, you have a car right? Unless you plan on making a specific purchase that is score sensitive right now, get rid of those secured cards (get your money back) and get some better cards. Your score might drop 20-30 points temporarily, but it won't last long. I would apply for a card or two and wait until they start reporting a few months if you can wait that long. Then it will only take a few more months to recover. No sense in continuing to throw money away.

Just my $.02

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Balance transfers don't transfer history to a new card - just the balance.

Can you get your Bank to convert you to an unsecured card with no fees? If you don't want to do that, you can always cancel your cards anyway. There's no way to determine if and by how much your score will drop. Hopefully it should not impact you too much if you have other tradelines that have been in good standing for some time.

Also, is there a particular reason why your score is stuck at 678? Maybe we can help. Is your utilization below 30%?

I probably could get them to convert it, but I've had MAJOR customer service problems out of ActionCard/Bankfirst since 2000. I am tired of dealing with them so I want a divorce! And I'm looking for a new CC with a higher credit limit. My limit on these cards are only 500 bucks and with all the grief and fees I pay, I'd rather get a higher credit limit.

As for my 678 score. I have one collection that is due to come off in Dec 06 and I have a released tax lien that won't budge on all 3 of my reports. Other than that, most of my baddies are over 3-4 years old. (Lates on student loan payments, but they have been consolidated into one loan and I've never been late since 2004)

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You have a home, you have a car right? Unless you plan on making a specific purchase that is score sensitive right now, get rid of those secured cards (get your money back) and get some better cards. Your score might drop 20-30 points temporarily, but it won't last long. I would apply for a card or two and wait until they start reporting a few months if you can wait that long. Then it will only take a few more months to recover. No sense in continuing to throw money away.

Just my $.02

Yes, I just bought a home in 2005 and I bought the car in 2002. I haven't been late on either one of these. I thought about selling my house, but probably not for another year or two. I think I'll take your advice as for applying for a new card first then ditching the old ones. I'll probably wait until my collection comes off in December so I can get a higher CC limit. I need at leaset 5k.

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You have a home, you have a car right? Unless you plan on making a specific purchase that is score sensitive right now, get rid of those secured cards (get your money back) and get some better cards. Your score might drop 20-30 points temporarily, but it won't last long.

Exactly what I was going to say. Take the hit now rather than later so that you can rebuild quicker.

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