Comments on: Loyalty means zilch to credit card issuer

By: lizweston

lizweston — Thu, 01 Jul 2010 17:24:50 +0000

I wouldn’t count on issuers to be that smart. Typically, the ones who want to chase down your balance will do so whether you pay off the card over time or in a lump sum, so you might as well save yourself some interest by paying in full and looking for a different issuer.

By: Kal

Kal — Wed, 30 Jun 2010 07:52:08 +0000

Thanks for your response I brought up paying them off slowly, because 6 months ago I made a $500 payment on one of the cards, and they lowered the limit by $500. I called them and they cited as reasons my credit score and also that for a while, I had been paying only the minimum and spending the remaining credit.

My thinking is if for a few months I paid a couple hundred dollars and not put anything new on the card, it would build up a “habit” and they might recognize that. Do credit card companies work that way at all?

Thanks,
Kal

By: lizweston

lizweston — Mon, 28 Jun 2010 20:29:46 +0000

Unfortunately, Kal, it’s impossible to predict what the issuers will do. I’m not sure that paying them off slowly helps, since some issuers will “chase down the balance” no matter what you do.

By: Roy

Roy — Mon, 28 Jun 2010 03:07:03 +0000

I know what this is like. I had a fallout in credit the last 2 years because of my business and paid down credit cards to have them cancelled and my oldest which never carried a debt as the balance was always paid off on time was cancelled despite my history of payments. Your credit score is the only thing that matters.

By: Kal

Kal — Sun, 27 Jun 2010 22:07:08 +0000

Hi Liz,

I have several maxed out credit cards, and have been paying only the minimums for almost a year. I will soon have the ability to pay them off.

Obviously my credit ratio has lowered my credit score by a lot. If I pay the cards off over several months (rather than all at once), do you think that there’s a lower risk of them lowering my limit?

What would you recommend that I do to preserve the credit limits I have now?

Thanks,
Kal

By: lizweston

lizweston — Mon, 21 Jun 2010 20:35:45 +0000

Pay it off. No sense rewarding a company that’s going to treat you this way.

By: Katie

Katie — Mon, 21 Jun 2010 19:50:43 +0000

So what do you suggest? Pay off a credit card or leave a small balance on the credit card?

By: Chip Workman

Chip Workman — Mon, 21 Jun 2010 17:47:07 +0000

Definitely shop for a better potential fit for you, but don’t be so fast to close down the old card. Closing an account you’ve held for nearly 40 years could prove hazardous to the credit history portion of your credit score.