Chase Bank and my new anti-credit card stance

[redav]

If you are concerned about a lower limit hurting your credit score, canceling the card only makes it worse. And I think too many people worry too much about credit scores anyway--they need to make decisions based on what is most responsible and lowest risk, not what is best for their magic number. (If you do that, the score takes care of itself.) You can have only $3k of available credit and still have a fantastic score.

Honestly, I can't fault a bank for reeling in limits. The increased interest rate, however, is clearly just a way to position themselves before consumer protection laws go into effect--all the more reason to eliminate debt so that you have control over your own life and not tossed about by the whims of others.

[Samwell]

Originally Posted by redav

all the more reason to eliminate debt so that you have control over your own life and not tossed about by the whims of others.

Amen, brother.

Seems like a lot of people get into trouble because they slip into thinking that their credit card is the equivalent of a fixed loan, which it most definitely is not. Changing the terms is a right reserved by the company extending you credit, and isn't always unfair.

Does kind of suck that the same economic climate that leads people to lean on credit cards also forces the CC companies to tighten up their exposure.

(And I double checked...turns out they're raising my interest rate 4% now, on top of another 4% hike I must have missed at some point in the past. Not having carried a balance in a while it turns out I didn't really even know the interest rate on the card.)

[redav]

It isn't just about CC debt. All debts are an obligation that limits your options. Just ask those people who bought houses at the peak and can't sell them. Not only does eliminating debt save money & make good financial sense, it increases your freedom because you have more choices about what to do with your money.