Stan Geiger

But Bossth, I Don't Understhand

I caught a little story on KJRH this evening, dealing with credit cards. An irate viewer wrote in about a doubling of his interest rate for no apparent reason. The reporter advised that the viewer not cancel the card, as that would hurt his credit score.

In the first instance, I disagree with the advise. I have canceled four credit cards in recent times. I canceled two because the issuers insisted on annual fees. I canceled two others because the issuers insisted on interest rate hikes on already-existing balances. I reckon they can take my credit score and shove it up their collective pooper.

Yeah, Congress, after years and years of thumb-sucking, finally passed a law. It's a law that lacks teeth. It, for example, places no limit on interest rates. If banksters want to charge 30 percent, they can. And the law is grandfathered, which allows every credit card company in the business to do whatever they want before any restrictions at all go into effect.

Very clearly, it is up to the average citizen to rein in the banksters. If they play rough, play rough right back at them. If they pull some ripoff stunt, cancel the card. We'll see how happy they are with a constantly-dwindling number of cardholders.

Meanwhile, this hurting-your-credit-score-by-canceling-a-card-thing I've heard about for a number of years now. I really don't understand that.

If I have, say, an unsecured, high-interest, credit line of $5,000 and I terminate that account, it seems to me I would be a better credit risk for other lenders because of it, not worse.

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