Cancel Your Credit Card Will Bring Down Your Credit Score!


Before I cancel one of my credit cards, my credit score was in the upper 740 and now it is in the low 700.

I was a bit confused about that so I did some investigating. I found out a few things not to my liking. Depending what you do financially, you can either lower or raise your credit score. Who knew cancelling a credit card can lower my credit score.

Under the Fair Isaac’s credit scoring system, canceling the credit card will affect my credit-utilization ratio. This is the second most heavily weighted category in the credit scoring system.

So what does this all mean? It means that the financial institutions do not like to see a ratio that is higher than 30 to 35 percent or less. For an example, let say you have three credit cards with a total credit balances of $30,000 and your total outstanding balances is $6,000. This will put you in the 20 percentile and you are in good standing with them.

However, my credit score was reduced because I somehow increased the percentage when I canceled it. I think this rating system is kind of stupid. I can understand if you default on a payment you get penalize for it, but canceling one’s credit card and get penalize for it, is just ridiculous to me. They just do not want us to cancel our credit cards.

The reason why I brought this up because your credit score determine if you can get a loan, the type of interest rate and other matters such as buying a car uses your credit score. There is a difference between paying 5 percent and 13 percent on interest rate. Do you seriously want to throw away your hard earn money? Think about the time we are in right now when everything is going up (gas price, price for eggs and milk). That is another matter which I will not go into.

Written By Leah

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April 15, 2008 | Filed Under Your Credit Score | 1 Comment 

Get Gas For 35 Cents a Gallon!


We all know price at the gas pump is too high. It seems like its getting higher and higher everyday. What if you can pump gas at 35 cents a gallon?

Would you tell the gas attendant the price for the gas might be a mistake because it is too cheap?

The Wilmington Star News reported on this past Friday (April 11, 2008) that hundreds of drivers lined up at a BP station for cheap gas. How cheap is the gas?

The gas price at the BP station located in Wilmington, North Carolina was “accidentally” set at 35 cents a gallon! As a result, traffic was backed up and police were called to control the crowd.

Not one single customer said a single word to the gas attendants about the gas price. They just get the gas, pay the price and go. The gas price was supposed to be $3.35 a gallon.

It was not until around 6 p.m. that the gas attendants found out about the mistake. They found out because of the heavy traffic and mainly because of calling their district manager for permission to change the price as a way of stemming the flow of customers.

What a lucky day for the drivers living near the BP station in Wilmington, North Carolina. Paying 35 cents is much better then paying over $3 a gallon for gas.

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April 14, 2008 | Filed Under Humorous and Odd Story | 3 Comments 

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