infamouz trunkz

thanks for the tip..im gonna fill out the application

demons rage

iTrader: (1)

capital one will probably take you.. thats where i got mine.. 5 days ago /w a 500 dollar credit limit.. student credit card

r3mix3r

sup everyone i found this intresting as i was exiting out my BOA checking account online it said i was pre qualified for a plantinum card soo i applied and they said my card is in the mail with a mini key chain card also! My limit is now $6500! I went from 500.00 on my MBNA to now 6500! jeezus

Scrib

Oh dear...

Please, for the sake of your well-being and overall finacial status, cancel the card and CUT IT UP!!!

There is absolutely nothing good that can come out of an 18 year old having a $6500 limit.

Seriously... Cut it up, or call MBNA and have the limit reduced to $1000 MAX. You have plenty of time to get higher limit cards. Especially when you have meaningful employment and can afford to have higher risk.

r3mix3r

Nah my mbna one is still 500.00 limit but i got a new visa plantinum with 6500.00

NSXNEXT

iTrader: (2)

Poll:


How long till r0dxx posts how he racked up $7000 worth of debt and doesn't know what to do?


o 1 month
o 3 months
o 6 months




Do what Scrib says and close the Platinum account.

Scrib

1 month



Let me pose this situation.

You're 18, right? Do you have a steady job? Can you just go out and blow $6500 and not think about it? Could you do it again, and again? Paying it off every month?

A credit line should be representative of your income stream and previous ability to pay off short term debit. I highly doubt an 18 year old has the ability to pay off such a high limit every month. Or even half the limit.

Don't get yourself in trouble. Cancel the damn card.

NSXNEXT

iTrader: (2)

and

I can speak to that from personal experience. NEVER AGAIN. The worst few years of my life. Nothing worse than opening up the mail each month and seeing your balance go down in pennies, or worse, go up.

r3mix3r

Can someone explain how I should use my credit card im still very confused. Ok my limit is $6,500.00...Whats the best way to pay my credit card each month?! For example lets say I charge 250.00 this month, Do I wait for the bill to come in the mail? Or just pay online at the end of the statement. I spent 250.00 and it says minimum payment $10.64? Do I have to pay the whole 250.00 or is the 10.00 fine? Does it look better credit wise to pay in full? And someone at my work told me the best thing to do is pay 2x the minimum payment each month. And how is the minimum payment figured is it always 10.00? And aslong as i pay 10.00 im fine no bad credit?!? Im still confused and my mom did a bad job explaining because on her card she has no limit just has to pay at the end of the month and there is no minimum payments on hers. Soo can some1 give me the buttom down on everything.

For example this month...

Current Balance: $74.69

Available Credit: $6,157.00

Credit Limit: $6,500.00

Amount Over Limit: $0.00

Minimum Payment Due
as of Your Last Statement: $10.00

Payment Due Date: 08/30/2004

r3mix3r

OK I guess it's not always 10.00 because this is my other card...


Cash or Credit Available: $393.04

Current Balance: $106.96

Temporary Authorizations: $0 (rounded)

Credit Line: $500.00


Total Minimum Payment: $15.00 due 09/18/2004

How come this one is now 15.00? It was 10.00 before? How much should I pay 106.96 or 15.00? Or something in between?!

r3mix3r

And BTW I can controll myself with the 6,500 limit card. After this statement I'm going to stop using it...And just use the 500.00 for every day use. And maybe use the 6,500 in an emergency or something. I am responsible my sister was in credit card debt i learned my lesson from her TRUST ME!

Scrib

Pay IT IN FULL!!!

If you can't pay it off every month, cut the bitch up. All you're gonna do is screw your credit and have a bitch of a time getting a car, a house and other big ticket items when you're older.

CLpower

I was always told it was best to not pay it off at the end of every month but to have some lurking?

kensteele

Somebody lied to you.

AmooManiaK

I you CAN pay it off but don't because you're trying to build your credit every mont, you're good to go. If you don't pay it off because you CAN'T pay it off, then I'd be worried.

Think about it, all the credit card company is gonna wanna know is if you made payments each month on time, no matter if it's full or not, so if you don't pay it off at once you can slowly do it ON TIME each month to build your credit.

r3mix3r

Im kinda confused...Soo paying it in full doesn't build credit? And not paying it in full does?

I dont see the point of having a card and just paying the balance at the end of the month i might as well use my checking card then? I thought I could just pay like 1/2 the balance and be fine each month?!

1SICKLEX

Pay it off every month or don't, it doesn't matter much once you pay on time. Also once you don't max it out right away or use it for shit like gas, toothpaste and hookers and such...

If you don't pay it every month that is where finance charges come to bite you on the ass.

r3mix3r

LOL OMG OMG thats sooo weird I just went out to the store and got gel, and toothpaste and filled up with gas with the credit card!! How the hell did u know!??! Whats wrong with getting gas?

Soo aslong as I pay the minimum each month on time there is no problems?!

kensteele

I can see it already, you are already starting to travel down that long hard regretful road. Why don't you listen to us? When the bill arrives, pay it in full if you are able. There's no glory or honor is revolving a balance. Float is a bad 5-letter word for "sink"...in your financial world. Forget about it. The little bit of money you're talking about, it doesn't pay to float anything.

A debit card will not show up on your credit report. If it did, then you are right...you are better off using a debit card. But...the next best thing is a credit card that you treat like a [30 day] debit card. If you have a debit card, use it ALWAYS until you MUST resort to your credit card. It's a great habit to learn to live with.

If you've ever seen a credit report, there's no glory on it for showing [high] balances and revolving monthly payments. Credit building is not rocket science and at 18 years old, it doesn't matter if you "demonstrate" or not, just that you HAVE some credit and you protect it and you PAY ON TIME.

Don't let anybody tell you that shouldn't pay the balances on the bills that you owe and the debts that you've create. That's a myth created by the people who benefit from you not paying in the full....the banks. I have no [revolving] balances whatsoever on any credit cards right now and I certainly don't wish to have any for my so-called credit report. The ONLY time it is better not to pay your debt is when you are instead using your money to secure a better [future] rate of return from another opportunity such as a sound investment.

Well...good lucky anyway. Enjoy your credit cards. I hope you love them because they will sure love you. That will be evident when those credit cards "won't leave you alone." You wonder why I'm trying so hard....I'm trying to save your ass while you can still be saved.

F900

"Soo aslong as I pay the minimum each month on time there is no problems?! "

Dude, i dont think you get it. You NEVER pay the minimum, always pay $50-$100 more than what your minimum is. Its clear to me your spending more per month, than what your paying off, at this rate i give you until XMAS to me Maxxxxxxxed out. And by then you will be paying so much in interest charges, thats all you will be doing, with paying no principle.

IF you want to build up good Credit and still be able to use the card, NEVER NEVER use more then 25% of your available credit. By sticking to that rule, it wont bring down your Credit score, and most likely will increase as long as you pay it on time.

The people here have given you good advice, they have been down that road your starting on. All there trying to do is save your ass...

AmooManiaK

Alright, in a year my credit score went from under 600 to over 700.

I wasn't paying minumum balance. If you do that it's gonna take you years to pay your balance off. Pay about 1/4 to 1/3 off.

Let's say your APR is 20% and you have a balance of $400, if you only pay 30 bucks you'll owe more than $400 next month

That's not a good idea. Pay off as much as you can but you don't HAVE to pay off the whole thing. If your balance is 300, pay off 100 and you'll only be hit with 10 or 15 bucks of interest, but building your credit is priceless.

You can do it like my friend and pay off the whole balance every month IF you have a balance every month.

See the reason why I don't pay it off every month (even though I could) is because I know I don't use my credit card every month. I usually just use debit. If I paid the whole balance off at once, next month I wouldn't have a payment to make and it wouldn't go onto my credit report. I'm just trying to build my credit.

So to sumarize, don't spend more than you can pay. If you can pay it off and you have good credit already, pay it all off. Or if you use your credit card every month, pay it all off. If you're trying to build credit, pay enough not to get hit with a lot of interest, but don't even think about minimum payments, that's just how you'll get in debt. If you don't use your credit card every month, pay about 1/3rd off if you're trying to build credit. That way you can use your credit card every 3 months and never have to worry about getting in debt.

Scrib

If you can't fucking afford to pay it off in full at the end of the month, don't be charging shit. It's a SIMPLE, very easy thing to understand.

Even paying slightly more than the minumum is going to screw you long term. Carrying a balance doesn't show responsibility, it shows your inability to manage your money. And when it comes time to buy a house, finance a car... Get ready for higher rates or even a turn down on your applications.


Credit card companies love people like you. No wonder it's a multi-BILLION dollar business.

AmooManiaK

Like I said, do whatever you want.

I've been paying my balance off in 2-3 month segments after buying something (usually over $500) not because I couldn't pay it, but because I wanted to have more "payments made" on my credit history.

It's been working great.

My credit score is "higher than 70% of the nation" and I'm only 20 - my friend who's been paying his balance off every month but only had 4 "Payments made" on that particular credit card - he paid each balance off at once and only used it 4 times in a whole year. He's even had a credit card for a year longer than I have and he has NEVER not paid the full balance and yet I have a better credit score than him.

See, when they look at your report, they see 12 months and they see "payment on time" in each of the months IF you had a balance. My friend had a balance for 4 out of 12 months so he only had 4 "payments on time" out of 12. The other 8 months were just empty.

My credit report showed 12 "payments on time" for the same exact credit card.

Guess what, when they look at our reports next year and we both have a balance of 0 and they see that I've made 12 payments and he only made 4, guess whom they're gonna give better credit to?

A year from today they won't see that you paid $250 out of a $600 over 3 months. All they're gonna wanna look at is "payments on time" and the balance you owe now, which is 0.

The reason I know both of our credit reports is because we tried to buy a house together and even though he was building credit longer and is 3 years older, I had better credit because I had made more payments ON TIME, and his report was blank because he paid off the full balance 4 times in a year and he never used his credit card again. I did this for 4 different credit/department store cards. All my balances are 0 right now and my credit report is full of green "paid on time" marks. They don't know HOW i've been paying my balances off. All they see is that for 12 months I was never late and that I don't owe anything anymore.

If you already have good credit just pay the whole thing off every month. If you don't, use your credit card once every 3 months and pay the balance off over 3 months. It's worked for me.

Also, when you apply for credit, the less balance you owe the better. So before you get your next car or try to apply for a different credit card, make sure all your credit cards are paid off because they will look at that.

When you finance a car, you will have a balance for years so don't listen to Scrib's "carrying balance doesn't show responsibility" If you're on time and you have no problems paying at least 30% of the balance, you'll always have good credit.

r3mix3r

Damn man I appreciate you typing all that...What I have been doing is paying 30-50% of the balance each month. If I owe 200.00 i pay like 70-100.00, and it seems to work fine? Why dish out the whole 200.00 if it doesn't negatively affect me. I dont spend money I dont have I just would rather not pay it all at once if there is no need to. Actually when I first got the card I was paying the balance 2 weeks before I even got the bills lol like I would have extra credit because I paid too much.

when is the best time to pay (i pay online) when I get the bill in the mail? Or on the closing statement date?! My mom said just wait til I get it in the mail then go online and do it.

AmooManiaK

Also, none of my friends could even get approved for a car loan without having ridiculously high APR. You have to build your credit with time, it doesn't happen in a month. They have to see that you can make the payments. The car I just bought which was my first car I ever financed (I never even had co-signed for any cars before) has an 8% APR which is good considering it's a used car and I'm a first time car buyer.

F900

AmooManiaK

Your right to a point

Carrying no balance on your credit, will do more harm then good long term, for reasons you have pointed out. its 25% not 30% on credit limit ( Very important) Go to TU, EX, EQ where they have tips or sign up for there news letter. I only started to build up credit in March thru Honda Finance, i had no credit as i had a brand new SS. My score is just under 700. Other than my car note i have AMEX blue ( gives 0% interest for the 1st 15months ) So you cant beat that, they gave me a Credit line of $7000. If i go over $1500 used on credit i just pay it off no matter what it is.

Just this last week I got approved for $31700 @ 4.9% on a 04TL thru Honda Finance reason been all my payments been made on time on the above. 2months ago i Maxed the AMEX card out, and 2 days later paid $5500 reason been it shows the highest amout borrowed and what has been paid off on your Credit report and does alot to boost your credit rating, and i'm still under that 25% mark.

I've learned all this from the 3 different Credit websites. So doing a bit a reading helps

Scrib

Dude, you're 20 years old. Wait until you have a real job, with real bills. Then let us know...

r3mix3r

Current Balance: $340.11

Available Credit: $6,150.00

Credit Limit: $6,500.00

Amount Over Limit: $0.00

Minimum Payment Due
as of Your Last Statement: $10.00

Payment Due Date: 08/30/2004

Ok I owe 340.11...

Lets say I pay 120.00...When is my payment due by 8/30/04? If after that is it considered late?!!?!? Im sooo confused its 8/26 and I didn't get a bill in the mail yet!!

Do I gotta pay online right now? Or can i wait?

Scrib

Call and ask where the bill is. If you can pay it online, do it. I'd still call and see wtf is up, though...

r3mix3r

Yea I pay online its like 1 login with my savings,checking,and credit card all I do is transfer funds and it pays ;-) Im gonna pay right now.

AmooManiaK

I don't think it matters when you pay it, but I'd do it at least 3 days before the due date.

Also remember, pay off all the balances you can before applying for a loan for anything. That's the only time they will look at your income and how much money you owe on other loans/credit cards.

r3mix3r

When I go to pay the bill it says this

Balance: $340.11
Last Statement Balance as of: 08/10/2004 : $30.30
Amount Due: $0.00
Payment Due Date: 08/30/2004

so i actually owe nothing?

r3mix3r

Im still 18 soo its gonna be atleast 2-3 years til I even try to purchase/apply for any loans that require a credit report

Also how do you feel about using the visa card as an ATM card they just send me a pin # for it...

AmooManiaK

I consider a "Finance Administrator" for a software company a real job. I pay half the rent on the house that my friend and I got and we split all the bills (Gas, Water, Cable...), plus I have my car payments, insurance...etc.

Also, I am going to school to get a "realer" job

Scrib

Call the company and find out???!!!???

r3mix3r

Sorry to keep making different posts but I just read the papers that came with my card and it says...

0% fixed introductory APR on purchases and balance transfers until May 1, 2005

r3mix3r

Oh i see what I did I paid

08/20/2004 08/19/2004 Online Pymt from CHK 4531 -$50.00

I paid 50.00 a week ago and I guess not my balance due is 0.00 since the minimum was 10.00 sooo I guess I should still pay 120.00 anywayz.

Scrib

What is a credit score?

A credit score is a number that lenders use to estimate risk. Experience has shown them that borrowers with higher scores are less likely to default on a loan.

How are scores determined?

Scores are generated by plugging the data from your credit report into software that analyzes it and cranks out a number.

The three major credit reporting agencies don't necessarily use the same scoring software, so don't be surprised when you discover that the scores they generate for you are different.

Why are they sometimes called FICO scores?

Because the software used to calculate a vast number of reports was created by Fair Isaac Corporation (FICO).

Which parts of a credit history are most important?

The pie chart above right shows a breakdown of the approximate weight each aspect of your credit report brings to the calculation.

35% - Your Payment History
30% - Amounts You Owe
15% - Length of Your Credit History
10% - Types of Credit Used
10% - New Credit



Payment history considerations:


Number of accounts paid as agreed

Delinquent accounts:
length of past-due status

total number of past due items

how long it's been since you had a past due payment
Negative public records or collections


Amount you owe are considered:


How much you owe on accounts and the types of accounts you carry balances on

How much of your revolving credit lines you've used (looking for indications you are maxed-out)

Amounts you owe on installment loan accounts
Number of zero balance accounts


Credit history length considerations


Total length of time tracked by your credit report

Length of time since accounts were opened

Time that's passed since the last activity

The longer your (good) history, the better your scores


The types of credit you use


Total number of accounts and types of accounts (installment, revolving, mortgage, etc.)

A mixture of account types usually generates better scores than reports with only numerous revolving accounts (credit cards)


Your new credit


Number of accounts you've recently opened and the proportion of new accounts to total accounts

Number of recent credit inquiries

The time that's passed since recent inquiries or newly-opened accounts

If you've re-established a positive credit history after encountering payment problems

In general, checking to make sure you aren't out there opening up numerous new accounts
Credit scoring software only considers items your credit report, but lenders typically look at other factors that aren't included in the report, such as income, specific employment history, and the type of credit you are seeking.

What's a Good Score?

Credit scores (usually) range from 340 to 820. The higher your score, the less risk a lender believes you will be. As your score climbs, the interest rate you are offered will probably decline.

Here's an overview of credit scores among the US population in 2003:

Up to 499: 1%
500 - 549: 5%
550 - 599: 7%
600 - 649: 11%
650 - 699: 16%
700 - 749: 20%
750 - 799: 29%
Over 800: 11%

Borrowers with a score over 700 are typically offered more financing options and better interest rates, but don't be discouraged, because there's a mortgage product for nearly every score.

Mortgage lenders look at more than one score...

Your bank will pull credit reports and scores from all three major credit reporting agencies: Transunion, Equifax, and Experian. They'll probably use the middle score to work your loan application. Ask your lender to explain which scores will be used and how they affect your application.

AmooManiaK

This is my guess what you did.

You bought something on your credit card after you were supposed to receive a bill.

So let's say the last day for the August invoice is July 30th and you didn't have a balance on July 30th because you paid it off. So on, lets say August 1st you bought something for 340, it won't show as "due" on the August invoice because the last day for the August invoice was July 30th. So they know that you have a balance of 340, but it won't be due until next month because the thing you bought on August 1st would be on the September invoice.

r3mix3r

hehe I keep like paying 50-100.00 every 2 weeks and I never seem to ever get a bill in the mail?!