I signed up for an American Express preferred Blue card and got approved for a limit of $25,000. I have a 830 credit score. I realized that the places I shop don’t accept that card and you have to pay for it yearly so I canceled it.
Then I decided I was going to get a Costco Visa. Once I signed up the credit limit was only $5,000. So I canceled that one. So I stupidly signed up for a Wells Fargo Visa and that was $4,000.
Don’t leave yet and please don’t make fun of me but I’m not done being stupid. I decided I wanted a different American Express card and when I signed up for it the credit limit was $2,000 so I canceled that one.
Again I know I’m fucking stupid but how bad did I just fuck up my credit?
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I have a chase sapphire reserve (visa) that has a credit limit of $24,000. I don’t understand why you keep picking cards with low credit limits. Do your research first then apply. Plus credit limits are based on your history with the bank and your annual income. If you have a low income, then they won’t approve a large credit limit.
Also do you not read the sign on the stores you shop at? Pretty sure they advertise which card network they accept.
You can also literally call customer service and ask for the stipulations for an increase.
Credit cards are not your clothes.
I know. That’s why I said I’m stupid. I’m beating myself up enough. I know I’m fucking stupid and don’t deserve what I have. I don’t need some internet jerk to tell me how fucking stupid I am so they can feel good about themselves. Thanks, though.
Damn, now you made a stupid comment too. Time to retract and reflect.
You’re being a jerk.
Exactly what you wanted
No. I specifically said what I did was stupid and asked you NOT to be a jerk.
Brother, you need this
I’m a piece of shit. I get it.
I work in the credit card space for a living. DM me if you actually want to chat about how to fix your situation.
No way Jose
Regardless of how everyone took my message I was being genuine, I hope you get the help you need. The advice in this thread is not great, and I hope you seek a professional outside of this platform for some actual assistance.
Why not share with the class?
Because they’re gonna need OP’s social security number and credit card info in order to look into what can be done to help.
Also their mother’s maiden name and the names of their childhood best friend and 1st pet.
Remember OP, when you get scammed, call them back and ask nicely so they can refund you onto a different card number since that first one is toast.
Just cancel that Amex card and get another one, but before you get too comfy with it, consider cancelling it and getting another one.
Talk about a life lesson. Credit cards shouldn’t be a willy nilly oh this one sounds fun. They should take research, making sure it’s what you want.
You don’t know the limit until you sign up
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a credit card shouldn’t be about the limit at all. Even with a big project you could have just done it in parts or only done on part on the card. You should never take out cards for a higher limit.
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you could have just called and asked for a limit raise.
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My cycle is:
- Get new 2% back on everything card
- Card changes rewards so it is no longer a 2% back on everything card
- Repeat
Also, finding out the card isn’t used anywhere and canceling it shouldn’t count against your credit score.
Credit scores at total bullshit in the first place.
Costco only accepts Visa and I didn’t know until after. I’m an idiot.
Their main issue is all of the sudden hard pulls for new accounts. Each one hits your credit for something like 30 points. I expect doing that over and over rapidly increases that ding each time. They dont want to loan you money if you are desperate for money, so they hit your score if you ask for too much too fast.
Their second issue, credit utilization, i.e how much credit you have that’s not in use, is affected each time they cancel a card. That’s hitting their credit as well, as each canceled card closed reduces their total unused credit percentage.
Between the two, i wouldn’t be suprised if that 830 is 600 right now. The good news for OP is that the new credit dings wear off fast. If they just stop opening credit cards, their credit will be in the 800s again in a few weeks.
They dont want to loan you money if you are desperate for money, so they hit your score if you ask for too much too fast.
Credit score is ‘who can we fleece for the most money’ so that checks out.
It’s credit, a loan, and I’d say this is actually great example of why it’s useful. OP showed one after the other how likely they are to take out credit. Like it or not OPs behavior is a warning sign
Warning sign of what?
The amount this matters in relation to your 830 score is likely going to be negligible. Are you making a large purchase via a line of credit anytime soon that would rely on a stellar credit report? If that answer is no, fuck it, go make some more mistakes you earned it
It could be much worse. I was ready for you to tell us about the massive debt you racked up. At least this is something that will go away over time with no cost or effort on your part.
Ok that’s good. Thank you
Lol ikr. I read the beginning of the post and the minute I saw them mention the rather large credit limit I thought the story was going in the opposite direction that it ended up going.
Hard inquiries stay on your report for 2 years but stop impacting your credit after a year
It’s not a huge deal unless you’re planning to buy a car or a house or something relatively soon
You can dispute them but they were all legitimate so you might as well just wait, it’s not that long. Your score was excellent so unless you incur a ton of debt It shouldnt go down all that much. And again, unless you’re planning to do something that is contingent on your credit within the next year or two it doesnt really matter
Was it dumb? Yes
Is it easily corrected with some on time payments over the course of 6 months? Yes
They cacel each other out. You good
For what in the hell does anyone use a credit card, like ever?
Debit cards have all the same functionality as far as I can tell, and you don’t need to worry about building up debt at predatory interest rates.
As long as you pay it off every month it should be the way you pay for everything. It builds your credit score and is more secure. With a credit card you’re spending their money, so if your card gets stolen you won’t be on the hook for everything. Vs a debit card you’re spending your money, it is much harder to do fraud from the consumer side with a debit card. Plus perks .
I understand if you’re bad with credit, but if you’re not, why wouldn’t you use one?
To build credit 🙃
And building credit is useful to set yourself up for future purchases - a condo/house, car, whatever. The whatever here is bigger than it semese, as having a decent credit score can let you finance all kinds of things at a pretty low rate, if not 0% even today. If you’re saving any extra money in an investment/retirement account, and can pay off your 0% financing offers in full by the time you would start to owe interest, financing at 0% is a great deal even if you have the cash on hand to pay outright.
I have A+ credit and have never possessed a credit card.
Cash back rewards cards work well, I end up with at least 2% - 5% cash back on all my shopping.
The key is to treat credit cards like cash e.g. pay your bill in full every month, never ever carry a balance. It doesn’t work for everyone and that’s okay, some people just can’t help themselves and get too spendy and end up in debt.
Other nice thing is that fraud is handled better with credit cards, if my card is lost/stolen no one has a direct line to my bank account and can’t try to drain my bank balance with debit purchases. Sure your bank may/may not void those transactions but in the time it takes for them to “investigate” you’re going to be out real money in your bank account. With a credit card you just dispute those fraud charges and never actually pay for them.
Literally every purchase. Use it like a debit card and build a good credit report before you’re even 30. Shit my credit score was over 800 before I turned 21. My credit wasn’t very thick. But what I had was solid.
Plus every card I have gives me cash back so it’s like getting 1-5% off every single purchase. Plus since I buy things for work and get reimbursed for it I’m effectively making money off of it.
I’m 44yo with A+ credit and have never used a credit card in my life.
Compared to a debit card, it adds an additional layer between my money and the rest of the world. If my card is wrongly charged, by malice or honest accident, I then have some weeks to sort that out before the money is actually going to be pulled from my bank account. That’s why I prefer to pay by credit card instead of by debit card.
Forget the credit card, tell me you’re on anxiety meds.
Iirc, closing an account impacts your credit not because you cancelled your account, but because it impacts your debt/credit ratio.
You have 2 credit cards. Card A has a 10k credit and 2k balance. Card B has 10k credit and 0 balance.
So your ratio is 2k/20k or 10%.
If you cancel card B, your credit line is now 2k/10k, which is 20%. This increases your credit utilization, which impacts your score.
Opening and closing a bunch of cards without any balance shouldn’t have a significant impact on your score, maybe a few points.
Hard inquiries can be bad but most credit cards use soft inquiries nowadays anyway
You’re financially ruined.
Opening a new line of credit is only a temporary hit to your score. Multiple cards in a short time will be a bigger hit, but it’ll eventually pass.
Most if not all of those cards offer a free credit report that could tell you how much of an impact this had on your score and how quickly it improves. If you have another existing card (don’t sign up for another one) you may be able to see the change to your score once these hard credit pulls hit your credit report.
If not, wait a month or so and use one of your free annual credit reports. You get one report per year from each agency for free, with no consequence to your credit score. There’s 3 credit agencies, so in principle you can check your credit every 4 months for no cost.
You did more damage by canceling the cards than getting them and keeping them. In the end, had you kept the cards, it would have improved your score (even if you never put any charges on them because having the space counts positively toward your debt-to-credit ratio in FICO).
Yeah and average age of credit is a positive factor too. Basically reset that with every one they cancelled.
Oof didn’t even think about that but yeah. I have a very old retail credit card I got when I was 19 that I keep open just to keep my average high. Put some on it once a year just to keep it open
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It’s at 822 now. RIP in peace credit
I’m not American, but surely going down 8 points isn’t that bad, right?
It’s down 27 points now and likely to go down a bit more. It’s not not BAD though.
That’s not a bad credit score at all.
Why do you care?
Because it matters
Plus it’ll go back up to where it was in a few months.
And you only need a credit score if you’re applying for credit. Are you financing a major purchase in the near future? If not, your credit score is literally meaningless.
No Financing. House is paid off I have like 200k in stocks and savings.
house
Lemmy assemble. let’s eat this rich guy
Let me tell you why I’m so lucky. In early 2013 I bought a 1946 Bungalow at 1400 sq with no basement for $51,900 on a 15 year loan. I paid it off. Last year, my father-in-law died and left his house to his only daughter, my wife. It had an outstanding mortgage of $60,000 left on it. It’s a 2100 sq ft colonial with attached garage and basement. I sold my house for $220,000 and moved into my wife’s childhood home. We paid off the remaining loan.
I am fortunate and got lucky on the housing market. I make $68,000 a year. My wife took the year off, but is a teacher. We are NOT rich, but very lucky. I live near Detroit, where the cost of living is lower and that helps too.
Don’t worry, I am pretty sure it was a joke. But if someone is buying up property for the sole reason of renting then we will be picking up the pitchforks.
Edit: On a unrelated note, I would be more careful about sharing my wealth and salary details to a digit on social media. You can never know when it might backfire in future.
I edited it. Thank for the tip.
Amazing! Good for you. People shouldn’t attack the few people that get lucky. ❤️
