Today, I canceled and cut up three credit cards.
Though, this act alone doesn't get my anywhere near my 101/1001 goal, living credit card debt free, because well, I haven't had anything on these cards for over a year. That's right - I had cards that I haven't used in over a year. Just...hanging out. So why did I have them?
The first was my Bank of America card...it was the first credit card I got, way back to freshman year of college. At my first apartment, we had to have credit cards to live there (insurance for them to get their funds, I suppose), and so I signed up for it. I didn't actually use it often, because it had a ridiculous interest rate (we're talking like, 24% here).
The second (well, and third, they were from the same bank) were my Citi bank cards. They had great rewards, and only an 11% interest rate. I used this card sophomore and junior years of college, and pretty regularly too. But, it still doesn't beat the rates of my bank card.
The only credit cards I have now are my Kohl's charge (which is paid off every purchase, but required to have for their great deals) and my bank credit card. I love my bank card...it has a 6% interest rate, I can see it on my bank homepage, and it only has a $1,500 limit - no matter what, my spending simply cannot get out of hand. It's wonderful. We paid this card off when Sean's loans came in, but it's now been designated the "wedding card". I use it for little wedding purchases, like my shoes that I bought this past weekend. We know we can pay it off, but it's easier to keep track of. Some months are better than others money-wise, and this way, we know we're in the black in our bank account when rent comes due.
I'm excited to cut these babies up though.