Thursday, August 11, 2011

Bittersweet Money Decision

So, I have a credit card that my mom still pays for, we'll call it my "bonus" credit card. Yes, I know I'm grown, but she gave it to me as a teenager and I've just never closed it. I use it from time to time to treat myself to something nice. (Think $100 once a quarter). I also use it for cash advances when I have emergencies (like getting my cousin's car towed from in front of my house).

I pay the cash advances back, but when I charge things I let my mom pick up the bill.

I was checking my credit and found out that my "bonus" credit card carries a balance that's higher than all my other credit cards. What I'm not going to do is call my mom and tell her she needs to refocus her energy to paying that card down, so my credit can improve.

And while I like the idea of free treats, the card is making it look like I have more debt than I actually do. So after a couple of months of consideration, I decided to close the card. Doing so will improve both my actual outstanding debt AND my debt to available credit ratio. (If a card is maxed out, it's available balance isn't really helping my debt to to available credit ratio.)

I closed it this morning [read: the day I wrote this post] and I'm going to wait about 30 days to see how this has improved my credit score. I am simultaneously paying down big balances on the cards that "I" actually ran up. (No dis mom, no dis.)

I'm excited that I made a sound decision in my financial journey and I'm sad that no one's going to just buy me shoes for no reason anymore.

Have you had to make any money decisions lately that suck? Please tell me it's not just me.

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