Banks

My wife and I share all our information together as most people. As well as a joint account..we both have our own dependent accounts, like mine which is my "mad money" from my overtime.

Today, I phoned the bank concerning my "mad money" account and wanted to add a $300 overdraft protection on it (for 30 days)!! I could not believe it when I was turned down..but was told I could have a line of credit for $175,000.!!!! I did some research from banker friends (I used to work there) and was told, even with my perfect credit that it wasn't worth the paperwork for them to do that. I used to date a bank manager and she told me when people came in like that...that the code was "L". They would put their hand up to their head and make the letter "L" (loser) and that person would not get the loan or whatever. They would be told to ask a family member for the money.

My experience with banks and other lending institutions is this - If you can prove you don't need the money (because you have credit, collateral, etc.) then they will lend it to you. They love to get you into debt, providing you can pay your monthly interest.

I agree. Providing "overdraft protection" doesn't earn the bank any money, since your next deposit usually covers the overdraft -- assuming you're careful. They would much rather lure into debt and earn the interest from your subsequent payments on that debt, just as Bike said.

I've always thought that these credit ratings were a scam onto themselves. You can't get a "good" credit rating unless you're carrying some debt, and have a perfect repayment record. Even though I pay off my one and only credit card 100% each month, and have no other debt but my mortgage, I have a high, but not maximum, credit rating. When I inquired of my mortgage lender what I'd have to do to get the few extra points it would take to make my credit rating the highest possible, he said carry more debt and never miss a beat on the payments. So, I guess I have no need for a maximum credit rating. I was still able to get my mortgage loan at the lowest interest rate available at the time.

So, I surmise that high credit scores are intended to stimulate the profits of lenders by encouraging people to live beyond their means and pay way more for goods than their actual cost.

What I can't understand is why my credit is worse, just because I have a lot of credit cards that I never use?

Exactly, 99. I long ago stopped carrying a bunch of credit cards. One Visa card has served me well for over a decade.

I have several, but only use a couple and I always pay off the balances before they get any interest.

I have several, but only use a couple and I always pay off the balances before they get any interest.

Yeah, and those that you don't use but have anyway are hurting your credit rating. Cancel them and keep only the ones you use frequently. This will make you look better to potential creditors the next time you go to borrow money for whatever.

How do I cancel them??

 

I heard you are supposed to cut the card up into little pieces and mail it back to them.

They don't accept a telephone call requesting cancellation.

Yes, credit card companies make it a big deal to close an account, hoping you'll simply give up on the procedure, keep the card, and eventually use it. That's why the best way to manage credit is to have as little of it going as possible. I have been fortunate to have learned this lesson early in life, and never got another credit card. One has been sufficient, and I use it like an alternative to cash, and for making automatic payments, etc. I pay it off 100% each month, and other than the annual service charge, pay no interest whatever. My credit report is short and sweet -- and my score, as I said before, is just about maximum.

You would be best advised to close all but one credit card account, no matter what it takes to get that done. I assure you, your credit rating will go up.

How do I cancel them??

I heard you are supposed to cut the card up into little pieces and mail it back to them.

They don't accept a telephone call requesting cancellation.

You cutting up the card means nothing to them other than you aren't able to use it anymore. Cutting up the card won't cancel it in any shape or form, it will still remain an open line of credit until you cancel it. In order to cancel it you will need to contact your credit card company by phone and ask them how you can cancel your account. Most of the time they will give you a mailing address where you send a letter requesting your account be closed. You write a letter saying you want the account closed immediately, give the account number, and sign your name at the bottom. Then you mail it to the address your credit card company gave you and wait. In 4 to 6 weeks you should recieve a letter from the card company saying they've closed your account.

I think you have the correct way to do it here. If I could only tell which cards I have and where all the information is for each one. Some day I will get organized!

I've only got two cards and one has a very small limit that I had to search for. It's $300 limit is what I use for the internet or other places that require a card upfront.

My golden rule of either of them is that I never buy anything that I still don't have when the bill comes. Unless a dire emergency, I never buy food, gas, dining or stuff like that. I'm more of a debit card guy.

Hmmm I wonder how you get a card with a low set limit... I pay off my balances right away each month and my CC companies keep upping my max credit line…

I bet they are annoyed they are not making money off of me… However note each retailer pays between 1 and 7% transaction fees for various cards… So I guess they make money no matter what!

Next question why would you want overdraft protection for only 30 days? Why not just keep it on the account all the time...

The only credit cards I get have no annual fee. If it has a fee, I toss it in the shredder.

I always pay the balance before it acrues any interest.

The problem is that I have too many of them.

Hmmm I wonder how you get a card with a low set limit... I pay off my balances right away each month and my CC companies keep upping my max credit line…Next question why would you want overdraft protection for only 30 days? Why not just keep it on the account all the time...

I searched for cards with the lowest limit and found the Wal-Mart Visa to be the lowest at $300. That was a couple of years ago and I specifically told them what it was for and didn't want it higher as I would have more at stake to loose. My other card is a Visa and that's probably why they don't try to jack me around.

 

As for the overdraft..correct I should have it on all the time. My "Mad Money" (Overtime) funds are exactly that and that has paid for all the upgrades on my car and bike and other toys. Actually, on the rare occasion I'm seen doing overtime, a couple of guys ask me "what are you buying now?".

"Foot Note"..I've since been called back and been apologized to and been offered a high overdraft protection. You don't want to know what I told them back.

I added up all the cash advance credit limits from my credit cards and I can get $50,000 total. Anyone need a loan??