Dorky title, huh?

Today on Get Rich Slowly (a favorite personal finance blog) was an article on how canceling credit cards affects your credit score. After years of primping and pruning our credit scores, this past year we have decided to stop worrying about that stupid “debt score”. Why the change? Drinking the cool-aid for one 🙂 Also, due to the following instance, we finally cancelled our credit cards from college. They were both low-limit, no annual fee Capital One cards. Our very first plastic. We’ve always paid them on time, and never abused them, but in recent years they kind of just hang out in our wallets and maybe get used once a year for spousal Christmas gifts. A couple of months ago we made a small charge to one of the cards and then, because of the infrequency of their use, forgot to pay the balance. Oops. One month and a $40 fee later, and we decided to cancel our Capital One cards and just retain our primary card. It surprised us both how fervently Capital One tried to convince us to stay on as “loyal customers”. Seriously? It makes me sad to think they might actually convince some poor person with less conviction to keep their plastic intact.

We still have our Alaska Airlines card. I sort of wish we didn’t, and I suspect that we really would spend less if BoA wasn’t taking up space in our spending arsenal. We’ve also been switched over to a primarily cash system (ya know, envelopes and the whole bit) for several months, but we don’t stick to the cash system nearly as well as we could. With my folks in Sitka (15k miles for a roundtrip ticket) it’s tough to give up that BofA card, but I wonder if we’d be happier if we did? Speaking of happiness, heard on the Cr0wn Financial MoneyLife podcast this morning: one study shows that happiness increases with income, up to a point. That point? Sixty-thousand dollars in annual income, after which there is no more increase in perceived happiness. Interestingly enough, as Chuck Bently points out, this is the median income of American households.

Off to work some numbers on the wisdom of keeping that BofA card…