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Good Credit Card Day

August 28th, 2014 at 04:10 pm

Well, I know credit card debt can never really be "good", but I logged into my bank today and found that the balances on my two in-repayment credit cards with them are both below $1000. Yay! (These two are actually on the bottom of my avalanche plan, because they're at a low "hardship" rate, and will actually be paid off in the next six months just with the minimum payments. Still, it's nice to get down to three digits!)

And, they raised the limit on my paid-off-each-month card (by a few thousand dollars) -- which I know in the grand scheme of things just means I have more available credit, but it also lowers my utilization ratio. (We generally have a balance on it that at times gets somewhat near the limit; the new limit means our typical balance will be at around 50% utilization, still a little higher than ideal but much better than 90%.)

I'm also seeing it as meaning they have faith in me, that since I've been good at paying my card they're rewarding me with more credit. Smile (I know the reality is that they're hoping I'll use the additional credit and then be unable to pay it back in full, thus having to pay interest, so that they'll make money -- but I choose to believe otherwise!)

Based on my past habits, of course, that's exactly what would have happened -- I wouldn't be as strict about paying on the card every week, I'd let the balance creep up, and then "suddenly" I'd be unable to pay off the statement balance each month. Which means I need to be extra-vigilant for the next several months -- but recognizing the danger is half way toward avoiding it, right?

4 Responses to “Good Credit Card Day”

  1. creditcardfree Says:

    You are doing great! Yes, three digit balances are better than four or more. Smile

  2. Permanent Temp Says:

    Keep up the good work! I had a similar thing happen to me after I paid off my credit cards. They just kept upping my credit limit and now they regularly send me balance transfer statements.

    One time I was trying to lower the interest rate on my card again and they tried to offer that as a plus. I then explained to them that I had no balances to transfer. If I hadn't had that card for so long I would just straight up cancel it.

  3. Moxie Moneypenny Says:

    Progress indeed is good to read! Love the drop from four digits to three on those credit card balances!

  4. snafu Says:

    Good on you! You made a plan and have stuck with it to current successes. Do you think it was for a specific factor like your Excel program, holding yourself accountable to cyber friends, reality of negative net worth or? You've helped a lot of people during your process.

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