Paying off Credit Card

We've got a potentially big payday coming at the shop, which I plan on using to pay off our AMEX bill (shop card - no personal CC's.) They've been berkeleying us for years. Raising our interest rate and dropping our limit every time we pay off a big chunk.

Anyway, should I CLOSE the account when I pay it off? Leave it open? Leave a little balance and transfer it to a zero interest card? Transfer it to a zero interest and then pay it off?

I've got screamin' good credit and I don't want to berkeley it up.

My understanding is that the more available, unused credit one has,the higher the credit score. If that is the case,leave it open & you'll have $X available,unused credit to improve your credit score a smidgen.

Y'all correct me if I'm wrong..

If they have been berkeleying you - pay it off and then call them and ask them to beat the interest and limit of your other option or you are taking your business elsewhere. Loyalty should never be rewarded with ass fisting.

Giant Purple Snorklewacker wrote: Loyalty should never be rewarded with ass fisting.

Just think if you treated your dog this way.

I usually close the accounts one every once in a while. I am not in a hurry to open credit cards or close credit cards.

Find a better business card and pay off the AMEX, dump it if it has annual fees, keep it for available credit (but don't use it unless you have too) if no fee to maintain.
Personally, I'd find a better card for business and dump the AMEX, less worries.

I have great credit. I have zero percent interest capital one card. I had one before that and requested a lower interest rate after the free part was up and they said no so I cancelled it and they gave me the new card.

I've actually made 400 dollars on it so far and have zero percent interest until December.

I do believe ill just keep this up. Haha. However I've gotten hit pretty hard on the car and truck this month and am trying to purchase some land and I darn well better get it paid off by then or it's %14

I agree with purple, tell them you're shopping and that their original terms aren't competitive BEFORE you pay it off.

If they still dont want to work with you, say you want to close the account and pay it in full right then and there.

Its likely you'll get hot-potatoed off to a 'customer retention' person whos job it is to throw stuff at you until you're happy enough to not leave.

That's exactly what I did. Chase (motherberkeleyers) did that to me. Raising rates, despite consistent, never, ever late payments. I paid them off. Then said I'm closing the account. They kept throwing things at me but I didn't budge. I probably should have kept it, but it felt so good the tell Chase to go berkeley themselves.

In reply to Appleseed:

I did that to capitol one.........they were berkeleying with me over one late payment. 7 months later they were still raising interest rate each payment I made. They didn't want to play ball, so I paid it off and closed the account. Then reported them to the attourney general 10 months later for claiming I owed $924 over a never mentioned thus unpaid $5 closing account fee.....Never heard another word out of them.

Poop, I'd play their game and see what they'd do, but I've always noticed it was better on your rating to carry some type of balance on the cards.

I gave up on credit cards 10 years ago.. everything is in cash now. hate those things and what they do to you

mad_machine wrote: I gave up on credit cards 10 years ago.. everything is in cash now. hate those things and what they do to you

This is for my business. If I didn't have that thing in 08-09, I would've had to close the doors...me and a lot of other folks.

Thanks for the advice, guys.

Most of the advice I've read is geared towards consumers, not businesses, so it's hard to say if it applies.

One thing I read recently was that part of your score is not just how many card you have, but how long you've had them. If you've had the card for a long time, it may be worth keeping it and not closing the account even if you do start using a different card for regular purchases.

All of the c-card companies are berkers. That's their job.

Personally, I try to get my card (I'm currently at one) down to a zero balance about once a year or once every 15-18 months. If nothing else, I'll keep it minimally active (a tankful of gas) for a few months after it hits that zero balance. I've never come closer to my limit than 1/2, but my credit union wasn't bothered as they have kept the available credit edging upwards. Consistently paying more than the minimum required and keeping a decent balance will help your credit score.

(The above is just my own opinion. However, I've never been denied a loan for lack of credit.)

Quick note on a business credit line...

If you need the credit line, don't pay it off entirely. When the balance hits zero, they have the right to redefine your available credit line.

I know of people who had (and needed) $25K or more in credit line on their cards, and thought they'd be smart and pay them off. The credit card company (who was watching their credit exposure risk) jumped on the opportunity to drop their credit line to $2K or less, and there was NO WAY to get it back.

As long as there is a balance, they can't change the terms of the credit line. The minute it hits zero, they can.

Ian F wrote: Most of the advice I've read is geared towards consumers, not businesses, so it's hard to say if it applies. One thing I read recently was that part of your score is not just how many card you have, but how long you've had them. If you've had the card for a long time, it may be worth keeping it and not closing the account even if you do start using a different card for regular purchases. All of the c-card companies are berkers. That's their job.

Yeah. That's the kind of stuff that freaks me out. We've both got 800+ credit scores, and I don't want to berkeley that up.

SVreX wrote: Quick note on a business credit line... If you need the credit line, don't pay it off entirely. When the balance hits zero, they have the right to redefine your available credit line. I know of people who had (and needed) $25K or more in credit line on their cards, and thought they'd be smart and pay them off. The credit card company (who was watching their credit exposure risk) jumped on the opportunity to drop their credit line to $2K or less, and there was NO WAY to get it back. As long as there is a balance, they can't change the terms of the credit line. The minute it hits zero, they can.

that's good to know

In reply to SVreX:

Odd... I've been paying my balances off every month for the past 8 or 9 years and they keep increasing my credit limits for some unknown reason.

Giant Purple Snorklewacker wrote: Loyalty should never be rewarded with ass fisting.

Unless that's what your into...

Ian F wrote: In reply to SVreX: Odd... I've been paying my balances off every month for the past 8 or 9 years and they keep increasing my credit limits for some unknown reason.

Different situations. It doesn't happen every time. It might not even happen a majority of the time. But it CAN happen if you pay it down to 0, whereas it cannot if you leave some balance on there.

Ian F wrote: In reply to SVreX: Odd... I've been paying my balances off every month for the past 8 or 9 years and they keep increasing my credit limits for some unknown reason.

It probably only seems like you are paying it off, you pay the statement but in the meantime you've used it for a trip to lowes and amoco so it is keeping a balance. I noticed this also and so even though we pay it off each month I always make sure I've made another purchase.

mtn wrote:

Ian F wrote: In reply to SVreX: Odd... I've been paying my balances off every month for the past 8 or 9 years and they keep increasing my credit limits for some unknown reason.

Different situations. It doesn't happen every time. It might not even happen a majority of the time. But it CAN happen if you pay it down to 0, whereas it cannot if you leave some balance on there.

Yeah, it depends on which is more favorable to the lender.

As long as you have a credit line with the lender, you CAN represent a liability to them.

So, you get a card, and pay on it in a timely manner. Things go well, and they keep extending your credit line. That's because you are making them money, and proving that you are trustworthy.

But over time, you also building up other credit lines. You amass a bunch of credit, and ping something in their system that suddenly pushes you over a line past their comfort level. You could go out and USE all that credit, and then not pay them. Now you are a liability. They could loose much more than they make on you.

They will be looking to renegotiate that credit line the minute that they legally can. It's completely their choice.

Like mtn said, it doesn't usually happen, but it CAN.

And loss of credit line to a business can be devastating.

This may not be poopie's situation at all. Just figured I'd mention it.

Hey Poop, will any of your suppliers offer 30 day terms? Then you don't need the card. Pay it off, close the account and tell them to go berkeley themselves.