A couple of years ago, SWLACU member Danielle Harrell felt it was time to start establishing credit. She applied for her first credit card at a retail department store and got approved.  Excitement flooded over her.  How easy it was to shop!

She then went shopping for more credit cards.  Building credit is so much fun, she thought.  Shopping was even more fun.  Next thing she knew she was paying a monthly bill on 13 different department store credit cards and was in debt for $3,000.00.  On top of that, her credit had quickly declined to a "C" credit rating.  What to do?

Danielle decided to talk to someone at her credit union to get advice. Renee' Thomas, one of our Southwest Louisiana Credit Union loan officers, sat Ms. Danielle Harrell down and explained how too many cards can negatively affect your credit.  Also, if you cannot pay off the monthly balances of your credit cards, it is best to keep the balances under 40% of the limit. 

They talked about consolidating the credit cards into an installment loan. Renee' asked Danielle to bring all 13 department store credit cards with her prior to signing the loan papers.  Danielle and Renee' painstakingly cut up all 13 cards one by one together and sent letters to the credit card companies to close the accounts.  Danielle said it was hard but she knew paying one bill would be so much easier than paying 13.

A year and a half later, Danielle paid off the consolidation loan, and is enjoying a SWLACU fixed low rate credit card.  She also recently purchased a second vehicle with a Credit Union loan and was thrilled to find out that she now has "A" credit.  She doesn't miss those 13 department store credit cards and is looking forward to purchasing a home in a couple of years.

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