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Fri, Mar. 19th, 2010, 01:08 pm
End of an era.

Something happened today that hasn't happened to me in a VERY long time.

I got turned down for a credit card.

The reasons given were that I have no real estate accounts, my average account age is too young, and I haven't got enough available credit. This last seems a little bit silly, as my credit report notes that my debt to credit ratio is 7% and my amount of available credit... well, it's kind of ridiculous. The other two reasons are defensible, however.

In any case, I already have cards with a bunch of different companies, and I'm starting to run out of places that haven't already given me a card with a zero-interest intro rate. So I've decided that it's finally time to actually pay off my credit card debt instead of keeping it around, surfing it from one zero-interest intro rate card to another, and trying to make a profit off of it (which worked for a while, and I could probably still do, but it's more trouble than it's worth). It's down to ~$4000 from a high of ~$14,000 in 2005 anyway, so I guess it's finally time to say goodbye to it and go debt-free. So off it goes to my low-interest card instead of to a new 0-interest card. Next paycheck I expect to have an overage after paying my bills, and will begin the process of eliminating this last vestige of the underemployment I tolerated before I moved to Portland.

Next up, deciding whether to keep the other (young, empty, formerly-zero-interest) cards around, or close them up to raise the average age of my accounts. 1/3 of my available credit is on my oldest account (which I'm keeping for many reasons), and another 1/3 is on another relatively old account (which I'm keeping for its AWESOME non-intro interest rate), so I'm not worried about lowering my credit limit or raising my debt-to-credit ratio -- 10.5% isn't so very different from 7%. I think I'll probably end up closing those accounts to clean up after myself. Yay, financial minutiae.

Sun, Mar. 21st, 2010 12:54 am (UTC)

I think your financial skills are fantastic; I have no ability to get credit anymore because according to the credit reporting agencies, I have no credit history now and my old credit history is poor...all medical debt and less than 10K total, but a lot of the bills are now past statute of limitations and I hate creditors. I keep dreading the idea of having to look at my credit report here again soon with the notion of having to move here in a few months. Kudos to you, I hope it all goes well as planned for you.