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Advice on old credit union account

Posted on 3/24/18 at 8:11 pm
Posted by Quidam65
Q Continuum
Member since Jun 2010
19307 posts
Posted on 3/24/18 at 8:11 pm
I currently have an account with a local credit union which I used for handling my rental property affairs. I have since sold the property.

Once everything winds down in a month or so, I will have around $60 left in the account. They require $25 minimum to keep the account open, but don't pay interest unless the balance is $100 or more.

I also have with that credit union a MasterCard which I used on rental property expenses, it has a $4,000 limit. I only owe around $425, of which $65 will be paid in April and the balance (once it hits the statement) will be paid off in May. There will be no more expenses on the card.

I'm at a point in my life where I won't be going back into owning rental property.

I'm seeking advice on which option to pursue:

Option 1--close the account and cancel the credit card.
Option 2--go ahead and deposit another $40 to put the balance over $100 so it draws interest, and keep the credit card for emergencies.

(I have three other general use credit cards: one with a $15K limit which is my primary one, one with a $10K limit which I previously used for rental property expenses but I only rarely use it, and a third with a $17K limit which I once used for an expense which is now totally paid off and again I rarely use it. The first two are with the credit union where my personal accounts are.)

Open to any suggestions on this.
This post was edited on 3/24/18 at 8:24 pm
Posted by lnomm34
Louisiana
Member since Oct 2009
12607 posts
Posted on 3/24/18 at 8:24 pm to
You’re worrying about interest on $100??
Posted by oklahogjr
Gold Membership
Member since Jan 2010
36761 posts
Posted on 3/24/18 at 9:11 pm to
my entrepreneurship teacher once told us put money in all the banks and borrow from them all as well. if they don't know you they might not do business with you
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 3/25/18 at 9:44 am to
Unless you plan to do business with them in the foreseeable future I'd just close everything and move on.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37034 posts
Posted on 3/25/18 at 11:48 am to
Credit Union interest/dividends on $100 is going to be rather paltry =) So little I wouldn't even bother adding money to get to $100.

Honestly I'd leave the $60 in there, or maybe draw down to $25, keep the account, keep the credit card. Use it a few times a year.

No reason to close an old, good credit card, doing so could potentially cause a little ding on your credit score.
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6546 posts
Posted on 3/25/18 at 11:52 am to
Vanguard index fund is a fan favorite round these parts.
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7355 posts
Posted on 3/25/18 at 8:00 pm to
quote:

Honestly I'd leave the $60 in there, or maybe draw down to $25, keep the account, keep the credit card. Use it a few times a year.

No reason to close an old, good credit card, doing so could potentially cause a little ding on your credit score.

I second this advice, unless you just want to simplify your life and not have so many outstanding accounts to keep track of. You can always reopen it if you need it. Plus, it will just be one more thing your kids have to deal with when they are unwinding your estate.
Posted by Quidam65
Q Continuum
Member since Jun 2010
19307 posts
Posted on 3/31/18 at 1:17 pm to
Thanks for the input.

I decided to keep it open and use it for some small investments that I have (Florida tax lien certificates).
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