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0

It is highly doubtful that an account which is inactive would be left open by the bank for "years". Most banks do a good job at winnowing out accounts with no activity in fairly short order. In many cases this can be as little as six months (with NO activity at all, mind you), while others may allow for longer, but almost certainly not years. There ...


0

Both are worse but it also depends on the scoring module. When you close a credit card account or it gets deactivated, your credit limit for that card gets reduced from your overall credit limit which in turn increases your overall credit utilization ratio. If the overall ratio goes beyond 70%, your credit score might get impacted. Canceling a credit card ...


3

I think the answer could likely vary across scoring models, but in general, I would say neither is worse than the other, because most scoring models don't consider it. From the horse's mouth (dated January 26, 2017): In the past, a statement that the account was closed by the lender was considered negative. That is no longer the case. People today open and ...


1

Dealing with the knock-on effects, not just a ding on your credit, will be WAY MORE hassle than finding a way to pay Ameritrade. Just call them up and tell them you'd like to pay them and turn off margin trading. Ask how they suggest you do this. If they say to wire the money, just explain that you haven't done it before, it seems complicated, and ask if ...


0

It depends on what you need credit for. It could be that 5 years from now you want something and this $50 debt prevents you from being able to get it. Eventually you will need to pay the debt to get around that problem. Better to deal with it now than down the road.


0

If this is the only card you have then use it sparingly. Your card is being reported monthly, whether you're using it or not. In some instances, banks will close accounts after six months of inactivity, so every once in a while you buy something small and immediately pay it off just to keep the account active. Paying a $119 cable bill with a card that has ...


0

Pay them by check, credit card, or debit card. It will damage your credit enough to worry about. How much depends on the rating service, and who you want to use credit with in the future to buy something.


2

As others have said, the precise details of credit scores are well-kept secrets, so it's difficult to know the exact effect. But simply being in debt is not likely to have a negative effect -- that's what loans and margin accounts are for. Your score is impacted if you fail to pay your debts on time. Furthermore, one late payment should have a minimal impact ...


7

Based on your own info, your father hasn't made such a large purchase in years. If you were Amex, wouldn't you want to be certain before approving such a transaction? It is likely that Amex has an approval change whenever certain red flags are triggered, and clearly your father hit at least one of them (maybe, and most likely, something not covered here), ...


14

Your question is a bit silly. What does it matter if AMEX apologizes? What does it matter if they have a point? How often does your father make large jewelry purchases overseas? Economic freedom is all about choice. AMEX has a right to treat their customers anyway they choose. That could include for the representatives to never apologize to the ...


2

There is no universal "badness" factor to any delinquent debt reported on a credit report and nobody knows the precise effect it would have on any credit score because there are so many credit scoring models in existence and most of them are proprietary formats that are kept secret from as many people as possible (ie. company insiders only will ...


20

Just open another bank account with a different institution. Walk in, sit down, leave with a new bank account and routing number. (You may be able to do this online with some institutions, but either way you need to fund the new account with some money you already have.) Connect it to your brokerage account. Initiate a transfer of money that covers the ...


3

Retailers (in the US) do not charge sales tax. The government (or the voters, if you like) charges the tax. The retailers have a legal obligation to collect it from you, and you have a legal obligation to pay it. But as SRiverNet mentioned, the retailer might pay it for you just to be nice if you ask them.


6

You didn't indicate where this took place (U.S. or elsewhere), but at the end of the day, if they're supposed to charge you tax and it was legitimately a systems issue that prevented collection at the time of sale I don't think there's anything improper or illegal about it. UPDATE: It occurred to me to add the fact that the sale is not technically complete ...


5

ANY unpaid debt is negative for your credit. That being said, there are so many different scoring models, even by the same bureau, that it's virtually impossible to assess the consequences. Some might place more emphasis on small unpaid debts relative to larger ones, others may look at installment debt default as more serious than auto debt default or ...


24

Credit scores are not completely transparent, but when I look at my score there's no mention of the magnitude of any events. Truthfully I have no bad events but the only indication is a count (0), not any indication of size. A bad event is a bad event. It doesn't matter if it's a $10 default or a $10,000 default - it gets reported the same way from what I ...


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