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Ok I hate credit cards. We have 2 and don't use either one. 1 we've had for 7 years and has a good % rate. It has a balance of $0. The other we applied for to save $50 on my tires at Sears last spring. We had the cash for the tires but saving so much made sense. We applied and they approved us low income folks for a very, very large limit. Now it's even higher, like over 1/3 of our yearly income.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/lol.gif" style="border:0px solid;" title="lol"> Also has a zero balance. Anyhow the interest rate is 27%. We did pay off those tires before being charged interest that first billing cycle.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink"> Will it negatively impact our credit to close this card? It makes our debt ratios look fab I'm guessing. We do want to buy a house in about 3 years. Everything else is paid on time and our only other debts are a car with 0% financing and 1ish years left to pay and a small student loan thats on deferrment while dh is in school. Can anyone see any reason that I shouldn't call sears and tell them to cancel my sears mc?
 

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<div>Originally Posted by <strong>sweetfeet</strong> <a href="/community/forum/post/8152432"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Ok I hate credit cards. We have 2 and don't use either one. 1 we've had for 7 years and has a good % rate. It has a balance of $0. The other we applied for to save $50 on my tires at Sears last spring. We had the cash for the tires but saving so much made sense. We applied and they approved us low income folks for a very, very large limit. Now it's even higher, like over 1/3 of our yearly income.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/lol.gif" style="border:0px solid;" title="lol"> Also has a zero balance. Anyhow the interest rate is 27%. We did pay off those tires before being charged interest that first billing cycle.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink"> Will it negatively impact our credit to close this card? It makes our debt ratios look fab I'm guessing. We do want to buy a house in about 3 years. Everything else is paid on time and our only other debts are a car with 0% financing and 1ish years left to pay and a small student loan thats on deferrment while dh is in school. Can anyone see any reason that I shouldn't call sears and tell them to cancel my sears mc?</div>
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A consumer closed account is not going to hurt you unless it increases your debt to available credit card/unsecured credit ratio. We have all often heard that closing a credit card is bad for our credit, but most people I personally know including myself have seen scores rise with consumer closed accounts. As for buying a house, we have pretty much closed all credit card accounts and we are closing on a 5.5% conventional, fixed rate right now- we move in early June. The mortgage broker said specifically that lots of available credit can hurt an application because lenders may become skittish that you will charge things up after closing and then have too high a total debt (mortgage, car notes, credit cards whatever) to income ratio and be a default risk.
 

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Discussion Starter · #3 ·
We closed it. I don't think it'll affect things as we still have our oldest tradelines open and reporting. I was happier than I thought I would be to close it. I do like having the 1 credit card for renting cars and large purchases with some additional consumer protection that our debit card doesn't provide.
 

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Discussion Starter · #5 ·
It was a Sears gold master card, not just a store card.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile">
 

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<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>sweetfeet</strong> <a href="/community/forum/post/8156076"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">It was a Sears gold master card, not just a store card.<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile"></div>
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We had the same one that we closed a short while ago, too! It was for a discount on the tools we bought dh at Sears (which then turned into a new garage door, ugh). Besides, would you have really ever used it at 27% interest?
 
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