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what to do about $300 cards with only $50 of credit on them

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amity



Joined: 27 Jun 2008
amity's page
Posts: 1



59 Magic Points
Subject: what to do about $300 cards with only $50 of credit on them
 
 Posted on Fri Jun 27, 2008 10:52 pm  
I recently was referred to these credit cards which i thought were $300 limits but only turned out to be $50, i ended spending more money on the card than i had recieved after processing fees just to get the limit at from $50 to $300 now i am behind on the payments because they have been charging me high intrest rates just to keep the account open, plus i am getting charged late fees, and overdraft fees. I want to close the account but I've had it for 3 months now and I'm not sure what will happen? If anyone has any knowledge of what to do please tell me?
 
CMBV22

CMBV22

Joined: 08 May 2008
CMBV22's page
Posts: 376



4057 Magic Points
 
 Posted on Sat Jun 28, 2008 2:49 am  
So, what happened here is that you signed up for a cc that charged you 250.00 of your 300 limit in fees along with high intrest and high overdraft and late fees and you dont want it anymore.

As you were only able to get a 300. limit this tells me your CS is a bit low. I would suggest not closing the account unless you cant pay to keep it open. You should not be using this card at all. Make the payment each month but, dont use it until you almost dont have a balance. Having a CC with a balance over 40% of your limit hurts your score. Going over your limit and paying late hurts your score. You need to look at this card not as a source of money but a tool. It can really help your credit if you use it correctly. Payments on a 300 limit should not be over 30.00 a month. Put the card away and send the CC company atleast 5-10 over the min each month every month. This will help you pay it down faster and give you a good payment history.
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Mary

Mary

Joined: 06 Jul 2006
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Posts: 420



10865 Magic Points
 
 Posted on Thu Jul 03, 2008 11:13 am  
Since you have already opened the account and started using the credit card, it is always advisable not to close down the account as it may lower your credit score. Since you have a credit limit of $ 300 of which already $ 250 is spent towards processing and other charges, it is better to pay it off as early as possible. Moreover you have also made overdraft payments. So it is advisable to pay off the $ 250 to avoid further interest charges and then slowly the amount you have already spent on the card. So long as you can afford to keep the account open try to keep it so. Try not to apply for new credit cards now.
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carol

carol

Joined: 27 Jun 2006
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Posts: 459



12271 Magic Points
 
 Posted on Thu Jul 03, 2008 11:31 am  
I would also advice you not to close down the account. Try to repay the amount you have already spent and after repaying the amount try and use not more than 30% of your credit limit at a time. If you feel that you are a paying a high interest rate you may apply for a credit card offering low interest rates later, but not now.
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