Living on a Budget, Saving Money/Credit Management

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Question
Hello!

I hope I'm posting this question in the appropriate place... I have recently paid off my Care Credit card for some chiropractic services, and no longer want to use it. I generally do not like the idea of credit cards and have always tried to avoid them when necessary. I also currently have no debt aside from my husbands student loan which we are currently now in deferment until next April and his job situation will hopefully improve by then.

So, basically, my question about the card is this: Is it better or smarter to just cut it up and forget I ever had it because I have absolutely no intention of using it ever again, or should I formally cancel the card in order to stop receiving reminder notices from the company that I can still use it for such-and-such service?

I already have good credit from big purchases I've made in the past and managed to pay those off, so I don't see the need to keep this card "just in case" or to help my credit score in any way.

Thank you.

Answer
Hello Monica,

I can understand your confusion. To me, the rules of how credit bureaus work has never made a lot of sense. Here's what you need to know: yes, your credit will be negatively affected if you cancel your card, which I find ridiculous, but there you have it. The best course of action, if you are sure you will not be using the card again, would be to cut it up. The more open credit accounts that you have that are paid off, the better your credit score. Again, I know this doesn't make much logical sense.

Congratulations on your great credit score!

Good luck!


All information given is opinion based on experience and an MBA. Whether or not you take my advice is always up to you. My opinion can, in no legal way, be held against me. Thanks for writing!

Living on a Budget, Saving Money

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Kat

Expertise

I can answer questions that anyone that has never been taught about finance might be afraid to ask an expert. For instance, I can answer credit questions (how to get it and keep it), how to buy/sell your first home (I've bought 3), finance a car, invest in your 401K, and live a debt-free life. I can't answer complex questions that involve legal issues. I am here for "the little guy" who doesn't know how to buy something properly using credit, or needs a good system to remember to pay the bills.

Experience

I am fortunate enough to have a lawyer as a step-parent and a penny-pincher for a mother! I was taught from a very early age how to get credit, keep it, and buy things for myself. Young people today just aren't taught this at all and they don't want to ask "experts" for fear they will be talked down to or thought stupid. I'd like to be a sort of "Establish your Finances" expert that caters to the young crowd or those who would like to learn about finances.

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Education/Credentials
I have a BS in Recording Industry Business Management, which means I was taught how to run an effective studio or record label. My minor was Business Administration, where I learned accounting and finance. I obtained my Masters of Business Administration in 2011.

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