Credit experts... got a question.

[s dubl]

Long story short... prob 4-5 years ago I went buck wild on one of my credit cards accompanied by my job having a major slow down landed me with a very high balance.

I was never late on my payments (any payment for that matter), but it just seems to never go away.

My credit card company told me I could settle for less than the amount owned, but would have a neg impact on my credit, I have my house, I have vehicles so Im not too worried about "new credit" I just want to keep another credit card I have.

Anyone have any experience with this, or know what would/could happen? I called the cc that I want to keep and they cant give me a concrete answer of what would happen.

 

[returnbama]

not sure, seems like you should if you don't need the credit

 

[s dubl]

^^but my thing is I dont want to lose my other credit card...

 

[iamsaikotic]

I don't think they're going to take away your other credit card.

Your credit score might drop but you still have payment history with your other card that they take into account.

 

[mrkane]

usually if you keep paying on and keep using the one credit card you do want, nothing will happen. worst case they could lower your limit if you did
not use it for a long period of time.

the best thing to do would be to get rid of credit cards all together....they are nothing but trouble

 

[returnbama]

^ I agree, prob won't lose one you already have

 

[solefood229]

How long have you had the account?

as long as the balance is paid in full keep it, length of credit history plays a big role in your credit score, closing the account could see your score dropped significantly. I made the same mistake of closing a credit card account I had for six years because I never used it, caused my score to drop 40 points


Also check out creitboards. Com alot of useful info on their

 

[s dubl]

Card I want to cancel I've had since 05, the card I want to keep I've had for less than a year.

I can pay it in full, bu if I settle I can save about $2000 which makes it very tempting. Like I said Im not in real need of credit at the moment, but would like to keep one card because you never know...

all my cards and payments are always on time, so I'm hoping they won't mess with the card I want to keep...

 

[mmg]

Originally Posted by s dubl

Card I want to cancel I've had since 05, the card I want to keep I've had for less than a year.

I can pay it in full, bu if I settle I can save about $2000 which makes it very tempting. Like I said Im not in real need of credit at the moment, but would like to keep one card because you never know...

all my cards and payments are always on time, so I'm hoping they won't mess with the card I want to keep...

what you got for cheap size 12, NT will help you out

with that payment

 

[s dubl]

I'm a sz 13

 

[mmg]

Originally Posted by s dubl

I'm a sz 13

good luck with that

 

[mrkane]

like you said...ur not in the need for credit anytime soon so that bank that 2 stacks, because what if you pay it back in full and you still got docked some points
because you were over 90-120 days late or delinquent. Credit is a &^%# like that sometimes

 

[s dubl]

Originally Posted by mrkane

like you said...ur not in the need for credit anytime soon so that bank that 2 stacks, because what if you pay it back in full and you still got docked some points
because you were over 90-120 days late or delinquent. Credit is a &^%# like that sometimes

My payment will not be late... But I am really considering holding on to that 2k if I can.... I just don't want to screw myself over.

 

[mojodmonky1]

Originally Posted by s dubl

Card I want to cancel I've had since 05, the card I want to keep I've had for less than a year.

I can pay it in full, bu if I settle I can save about $2000 which makes it very tempting. Like I said Im not in real need of credit at the moment, but would like to keep one card because you never know...

all my cards and payments are always on time, so I'm hoping they won't mess with the card I want to keep...

if you dont need ANY credit for the foreseeable future (several years) then minus whale save the $2K and settle.  If for some reason you end up needing credit though, it could cost you that $2K and then some because you may not qualify for good rates with a poor score.

as to whether or not it will mess with your other card, that I don't know.  It is possible that the other card could cancel your account but then again they may not.

Originally Posted by mrkane


the best thing to do would be to get rid of credit cards all together....they are nothing but trouble

lies.

credit cards are no good for people who are irresponsible, have no self control, or are too dumb to understand what they are signing up for.  if you fall into that category, then yes... credit cards are nothing but trouble.  if you know how to utilize the benefits of credit cards, it can really be to your advantage.  some of the benefits of using credit cards include:

1.  fraud prevention - most good cards offer some form of fraud prevention.  if someone steals your wallet and starts rackin up charges using your debit card? RIP.  Might not be able to get that money back.  If they start charging on your credit card?  More often than not youre covered and you wont be liable for those charges.  I've had sellers try to juke me out on ebay before and I just made 1 call to Amex and it was all taken care of.  Paypal?  If its linked to your CC and doesnt come from your paypal balance, dont even bother dealin with Paypal's BS fraud prevention team, just call your CC and let them handle it.

2.  purchase protection - lot of cards also offer extended warranty/purchase protection.  Say you bought some electronic device (PS3, HDTV, whatever) and it only comes with a 90 day manufacturers warranty and the thing craps out 6 months from now.  If you bought it with your CC and properly recorded it with their extended warranty program (usually no extra charge), your broken item is covered.

3.  REWARDS - A lot of the best rewards cards have annual fees, but there are some free cards that offer some sort of cashback or rewards programs.  I have a free card (Amex Blue) where you accrue Amex Membership Rewards points with each purchase.  Don't gotta do anything special, just use the card and accrue points.  Over the lifetime of my card, I have probably cashed out for close to $1,500-$2,000 of free stuff (gift cards, amazon purchases, a new baseball mitt, etc...).  I recently made the switch to a travel rewards card this past December and I have already accrued almost $1,000 worth of travel credit.  Planning on saving those points to book a free flight for me and the wife to go check out Turkey or Greece at the end of the year.  I just run everything through my card.  From the $2 coffee at Starbucks to my cellphone/utilities/cable bills.  I should probably see if there was a way I could set it up to pay my mortgage payment on my credit card each month.  At the end of the billing cycle I payoff the outstanding balance in full and accrue no interest or other fees.  No harm no foul.  Just free points.

2. 

  

 

[hizzle]

It will be reported to the credit bureaus that the account is paid and settled for less than the amount owed. It will impact your credit score, but not as bad as you may be fearing because a settled account is better than having an outstanding or delinquent account. Also, your other card will most likely not be taken away but they do have the power to increase your APR. However, I personally don't think they would do that.

 

[crcballer55]

Originally Posted by solefood229

How long have you had the account?

as long as the balance is paid in full keep it, length of credit history plays a big role in your credit score, closing the account could see your score dropped significantly. I made the same mistake of closing a credit card account I had for six years because I never used it, caused my score to drop 40 points

Also check out creitboards. Com alot of useful info on their

He's got a mortgage though, so that should nullify most of the point drop from the settlement due to the size. I closed a card and barely noticed a blip in my score due to my mortgage.

 

[mercutio]

From the looks of it, once you take that settlement, your score will take a hit (might be large), but it shouldn't affect your other card in terms of keeping it. The other card might increase it's interest rate or lower your limit, but you might be able to negotiate that over the phone if/when it happens or when your credit score climbs back up.

Drawback would be that once you take that settlement, it might be on your credit history for several years. Perhaps not to the extent of a bankruptcy (approx. 7 years), but I imagine a settlement would garner a similar punishment on your credit score.

 

[solefood229]

Originally Posted by crcballer55

Originally Posted by solefood229

How long have you had the account?

as long as the balance is paid in full keep it, length of credit history plays a big role in your credit score, closing the account could see your score dropped significantly. I made the same mistake of closing a credit card account I had for six years because I never used it, caused my score to drop 40 points

Also check out creitboards. Com alot of useful info on their

He's got a mortgage though, so that should nullify most of the point drop from the settlement due to the size. I closed a card and barely noticed a blip in my score due to my mortgage.

ok, might as well save 2k then, if you dont see yourself needing new credit soon

 

[s dubl]

Originally Posted by solefood229

Originally Posted by crcballer55

Originally Posted by solefood229

How long have you had the account?

as long as the balance is paid in full keep it, length of credit history plays a big role in your credit score, closing the account could see your score dropped significantly. I made the same mistake of closing a credit card account I had for six years because I never used it, caused my score to drop 40 points

Also check out creitboards. Com alot of useful info on their

He's got a mortgage though, so that should nullify most of the point drop from the settlement due to the size. I closed a card and barely noticed a blip in my score due to my mortgage.

ok, might as well save 2k then, if you dont see yourself needing new credit soon

I don't see myself needing new credit any time soon... And if the card I want to keep doesn't cancel me I'll continue to use it to rebuild my credit for the future.

Appreciate all the replies/info from you guys!