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    How long is this going to follow me?

    How long does credit card debt follow you? If I make timely payments on it are those being reported or is it only when I screw up?


    I got a Capital One credit card right out of high school. Dumbest thing I could have ever done. The interest rates and customer service are dreadfully. I've closed it and am now just paying it off.

    Sorry for asking a lot of noob questions but I'm just trying to get a handle on things.

    #2
    Every payment is reported, those made on time and those that are made late. However closing the account probably lowered your credit rating to some degree. It's better to leave accounts open and simply cut up the card (or not use it) as far as credit scores go.

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      #3
      It follows you for 7 years from the last payment.

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        #4
        Originally posted by minnie1928 View Post
        Every payment is reported, those made on time and those that are made late. However closing the account probably lowered your credit rating to some degree. It's better to leave accounts open and simply cut up the card (or not use it) as far as credit scores go.
        Oh I wish I'd known that. I just.......good gracious the customer service is SO horrible.

        At least all my payments are being reported.

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          #5
          Originally posted by SacredFaerie View Post
          Oh I wish I'd known that. I just.......good gracious the customer service is SO horrible.

          At least all my payments are being reported.
          Don't fear every little monement on your credit report. The idea is to manage your money and debt well and good scores will follow. Having revovling credit card debt is bad, so focus on paying it off.

          Pay the bills you have on time always. Limit the debt you will have, pay cash for your consumer products. Live on less than you earn and invest at least 10% of your income.

          Do smart things with money to your benefit and not a fico score, you will find the fico score will be good also.

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            #6
            The cash thing has never worked for me. But I'm trying and so far it's going well.

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              #7
              Originally posted by SacredFaerie View Post
              The cash thing has never worked for me. But I'm trying and so far it's going well.
              Good habits have be formed. Change does not come easy but when you see the good results, it will get much easier. Don't give up, you will be glad later.

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                #8
                Originally posted by maat55 View Post
                Good habits have be formed. Change does not come easy but when you see the good results, it will get much easier. Don't give up, you will be glad later.
                Cash. Does. Not. Work. For. Me.

                I use my check card for everything and leave my credit card at home. With my check card I have a back up record of all my purchases. (I do keep my receipts but sometimes life happens.)

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                  #9
                  Originally posted by SacredFaerie View Post
                  Cash. Does. Not. Work. For. Me.

                  I use my check card for everything and leave my credit card at home. With my check card I have a back up record of all my purchases. (I do keep my receipts but sometimes life happens.)
                  To me, cash and debit cards are the same. The idea is to reduce the use of debt and self fund.

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                    #10
                    Originally posted by maat55 View Post
                    To me, cash and debit cards are the same. The idea is to reduce the use of debt and self fund.
                    Ah. My mistake then. Some people will say that even check/debit cards should be put away because charges can get out of hand and you can overdraw. Which is true but the trick is self-control.

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                      #11
                      Originally posted by maat55 View Post
                      To me, cash and debit cards are the same.
                      Originally posted by SacredFaerie View Post
                      Ah. My mistake then. Some people will say that even check/debit cards should be put away because charges can get out of hand and you can overdraw. Which is true but the trick is self-control.
                      You raise a good point, SF. I consider a debit card to be more like a credit card than cash. The person using it needs to be responsible and be aware of what's in the account at all times and have the self-control to not overspend. That's not true of cash. With cash, either you have it or you don't. You can't 'overdraw' the $20 bill in your pocket. It won't allow you to spend $21.00.

                      Of course, the amount of trouble you can get into with a CC is generally a lot bigger than with a debit card since most folks have a much higher credit limit than the balance in their checking account. I rarely have more than $5,000 in checking but I've got a $32,500 limit on my main CC (and that's not my only card).

                      I think if someone has the financial responsibility and self-control to safely handle a debit card, they should be able to safely handle a credit card just as well.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

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                        #12
                        I keep small EF's in my checking accounts. In my personal account 1k is 0 in my mind. In other words, I clamp down on spending of any kind when my balance gets to 1k.

                        Due to higher monthly expenditures I keep 7k in my business account as 0.

                        Just my crazy protection mode.

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                          #13
                          Originally posted by SacredFaerie View Post
                          How long does credit card debt follow you? If I make timely payments on it are those being reported or is it only when I screw up?

                          Run your credit report free of charge at www.annualcreditreport.com (Be sure you type the web address in exactly as I typed it. Do NOT go to the site with the similar but different name with the ads with the song that you cannot get out of your head ... I'm not even going to type it out here, but I'm sure you know the one I'm talking about.) You will see how long your credit card is going to continue to record on your credit report; I think it's 10 years after you close the account.

                          There are 3 credit reporting agencies whose reports you can access through www.annualcreditreport.com. You can get one free credit report from each annually. It's a good idea to check all 3, but you don't have to check all 3 at once. I rotate them and run one report every 4-6 months; that's one way to try to stay on top of identity theft (I can make sure no one is opening accounts in my name). Be warned: They will try to sell you additional services, such as paying to see your credit score. Unless you feel a compelling need to know your credit score (like you are going to apply for a mortgage soon), skip the add-ons that will cost you $ and just get the free credit report.

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                            #14
                            Originally posted by disneysteve View Post
                            You raise a good point, SF. I consider a debit card to be more like a credit card than cash. The person using it needs to be responsible and be aware of what's in the account at all times and have the self-control to not overspend. That's not true of cash. With cash, either you have it or you don't. You can't 'overdraw' the $20 bill in your pocket. It won't allow you to spend $21.00.

                            Of course, the amount of trouble you can get into with a CC is generally a lot bigger than with a debit card since most folks have a much higher credit limit than the balance in their checking account. I rarely have more than $5,000 in checking but I've got a $32,500 limit on my main CC (and that's not my only card).

                            I think if someone has the financial responsibility and self-control to safely handle a debit card, they should be able to safely handle a credit card just as well.
                            The $20 fee that comes in to play when I overspend is plenty of incentive to watch my spending. CCs just seem.....it's spending money I don't have.

                            I keep my receipts and fill out my ledger every evening. It works for me. It syncs up with my Mint account and it's also on my bank's online banking statement. (I have e-statements.) For example if I have 10 necessary items I have to purchase this week and I budget $40 for them, but when I get to the store one of them costs more than I anticipated, it's very likely for me to go back to the store the next day and wonder why I don't have enough for something I need. Having it online with my bank allows me to see it and have it noted somewhere.

                            Also not carrying cash keeps me from purchasing junk I don't need from vending machines or off of people or what have you.

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