Applied for a credit card and...
#81
teh Senior Instigator
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Originally Posted by 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.
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.
that's what I thought
#82
teh Senior Instigator
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Originally Posted by 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.
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.
So I just bought a 2,000 sofa and recliner set. I won't be able o pay this off at once but will pay 200-300 a month until it's off. You are telling me this is a bad thing and is gonna effect me when it comes time to finance a car or buy a house?
#83
teh Senior Instigator
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Originally Posted by r0dxx
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.
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.
one thing you'll have to watch out for is if you pay $100 then go spend $400 it'll catch up to you quick. I've seen it happen way to many times. I RARELY use my CC for anything and definately not things like gas or food. Usually big purchases I can't afford on the spot but can pay off in a few months.
#84
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Originally Posted by Scrib
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
You're right, just like I said You better make sure all your balances are zero WHEN you apply for a loan. They won't know if the balance was 0 5 months ago and they won't care. They just wanna make sure that you don't owe a lot of money to other companies before they give you a loan.
This is what I said above:
"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."
#85
Administrator Alumnus
Originally Posted by CLpower
So I just bought a 2,000 sofa and recliner set. I won't be able o pay this off at once but will pay 200-300 a month until it's off. You are telling me this is a bad thing and is gonna effect me when it comes time to finance a car or buy a house?
Read the above post on how your FICO score is calculated... It talks about carrying revolving balances and how it affects your score, which is ultimately what car dealers, and mortgage lenders look at.
I understand not everyone can pay things off, but all I'm saying is it's not good for your credit history.
I've never once carried a balance on any card, I've never been late and my FICO score from the three major companies is averages at a 794. I must be doing something right.
#86
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Does anyone have a good card w/ 0% transfers for over a year?
Scrib, I bought my sofa on a JC penney card w/ 0% for 3 months. I plan on transfering it to a 0% card after that 3 months. Is that gonna have a negative effect?
Scrib, I bought my sofa on a JC penney card w/ 0% for 3 months. I plan on transfering it to a 0% card after that 3 months. Is that gonna have a negative effect?
#87
Administrator Alumnus
Originally Posted by AmooManiaK
You're right, just like I said You better make sure all your balances are zero WHEN you apply for a loan. They won't know if the balance was 0 5 months ago and they won't care. They just wanna make sure that you don't owe a lot of money to other companies before they give you a loan.
This is what I said above:
"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."
This is what I said above:
"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."
#88
Administrator Alumnus
Originally Posted by CLpower
Does anyone have a good card w/ 0% transfers for over a year?
Scrib, I bought my sofa on a JC penney card w/ 0% for 3 months. I plan on transfering it to a 0% card after that 3 months. Is that gonna have a negative effect?
Scrib, I bought my sofa on a JC penney card w/ 0% for 3 months. I plan on transfering it to a 0% card after that 3 months. Is that gonna have a negative effect?
#89
Administrator Alumnus
Originally Posted by AmooManiaK
You're right, just like I said You better make sure all your balances are zero WHEN you apply for a loan. They won't know if the balance was 0 5 months ago and they won't care. They just wanna make sure that you don't owe a lot of money to other companies before they give you a loan.
This is what I said above:
"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."
This is what I said above:
"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."
#91
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Originally Posted by Scrib
I have my credit report right in front of me from my bank when I got my latest mortgage. It has historical data on there; balance carries, delinquent payments, etc...
They also said that you can have a score of 700 and still not get approved because they wanna see that you can keep that 700 over a period of time.
They never said anything about our past balances. But then again, it takes them a while to update everything. For example, I could have had a balance of $1000 last month and I just paid it off, it's not gonna update in their systems for probably another month or so, and the loan company still sees a balance of $1000.
#92
Administrator Alumnus
Originally Posted by AmooManiaK
But then again, it takes them a while to update everything. For example, I could have had a balance of $1000 last month and I just paid it off, it's not gonna update in their systems for probably another month or so, and the loan company still sees a balance of $1000.
#93
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Originally Posted by 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.
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.
Even if your balance is $0 for several months in a row, you'll get a positive credit rating, just like the previous month when you paid the balance, and it WILL go on your credit report. It will be noted as "paid or paid as agreed." Your credit reported to the agency on a period basis but the period reported is every single billing period. If there is nothing to pay, that's good (positive) and you get credit for yet another ON TIME payment. Same as if you paid part of the balance. The only difference is if you pay in full, you win and you don't pay any interest. $10/$15 is too much interest to pay in a month.
This is based on credit reports that I have seen from Trans Union.
#94
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Originally Posted by r0dxx
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?
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?
that's kind of thinking will put you in the poor house inside of 5 years.
#95
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So I just read the rest of the posts and what you guys are doing in not necessarily bad or wrong, all I am offering is advice and a word of warning....this is how it starts and evenually you'll be looking at higher balances and slightly more minimum's due and you're still paying very little of the balance. Before you know it, you're $25k even $45k in debt.
If you pay the balance in full and do that for the rest of your life, when you are 39 years old like I am and you look at your credit card statement, guess what the total balance due on all my cards are? $0.00
If you pay the balance in full and do that for the rest of your life, when you are 39 years old like I am and you look at your credit card statement, guess what the total balance due on all my cards are? $0.00
#96
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So I believe it is a myth that the best way to build credit is the pay less than your balance and pay more interest to the bank. I believe there are other way, better ways, to do this. I believe your friend/roommate had other issues (other than history) that lowered his score because history is only a portion of the total calculation.
Yes you want to show some responsible history. You can get credit history by repaying a car loan. You can take out a personal loan, too. If you have to do this thru credit cards, why not repay on a low or no interest revolving credit card? Not only will this prevent you from going into debt but it will also keep you from paying interest to the bank. AND you won't get into the habit of borrowing money, which is what you are doing. Sometime in the future, this might come back to bite you.
If you own $500 and the minimum is $20 and you think by paying $100 is good for everybody, then pay $100 to the bank and pay $400 to your savings account. That way next month when you buy something for $200, when your balance goes up ($500 -> $400 -> $600), you can pay $500 (that $400 from savings plus another $100) and then you get credit for it but you continue to pay your balance in full just one month delayed (plus some interest).
Yes you want to show some responsible history. You can get credit history by repaying a car loan. You can take out a personal loan, too. If you have to do this thru credit cards, why not repay on a low or no interest revolving credit card? Not only will this prevent you from going into debt but it will also keep you from paying interest to the bank. AND you won't get into the habit of borrowing money, which is what you are doing. Sometime in the future, this might come back to bite you.
If you own $500 and the minimum is $20 and you think by paying $100 is good for everybody, then pay $100 to the bank and pay $400 to your savings account. That way next month when you buy something for $200, when your balance goes up ($500 -> $400 -> $600), you can pay $500 (that $400 from savings plus another $100) and then you get credit for it but you continue to pay your balance in full just one month delayed (plus some interest).
#97
Suzuka Master
Originally Posted by r0dxx
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.
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.
Do the math and you'll see that paying the minimum the credit card company requires can double the amount that you pay out in total.
NOT paying it off in total is a bad idea.
#98
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Look guy, here is what you do:
It worked for me, and at one time I was in hock to the credit card companies almost $19,000. It wasn't irresponsible, but it was over exhuberant home remodeling. Now I have a $32,500 credit line, and every month when the bill comes, it is paid down to $0.00.
Start what is called the "envelope system". Label several envelopes, starting with the ones you absolutely cannot avoid. Rent. School tuition. Car payments, etc. Even include an envelope for "mad money", going out, dating etcetra. When you come to the last envelope, you will able to pay that "CREDIT" card.
Now every time you use the credit car and pump $20 worth of gas into the car, you take $20 out of your wallet, and put it into the CREDIT envelope, and if you do this FAITHFULLY, you will always have the coin when the bill is due. Cheating is not allowed!
Credit is hard for young people to get. Treat your bills wisely when you are young and it will pay off in the future. When a friend of mine had a real problem with a catastrophic car problem, I was able to help him in in the short span of a few hours by charging for him a used, $9,000 acura integra at the local dealer.
It worked for me, and at one time I was in hock to the credit card companies almost $19,000. It wasn't irresponsible, but it was over exhuberant home remodeling. Now I have a $32,500 credit line, and every month when the bill comes, it is paid down to $0.00.
Start what is called the "envelope system". Label several envelopes, starting with the ones you absolutely cannot avoid. Rent. School tuition. Car payments, etc. Even include an envelope for "mad money", going out, dating etcetra. When you come to the last envelope, you will able to pay that "CREDIT" card.
Now every time you use the credit car and pump $20 worth of gas into the car, you take $20 out of your wallet, and put it into the CREDIT envelope, and if you do this FAITHFULLY, you will always have the coin when the bill is due. Cheating is not allowed!
Credit is hard for young people to get. Treat your bills wisely when you are young and it will pay off in the future. When a friend of mine had a real problem with a catastrophic car problem, I was able to help him in in the short span of a few hours by charging for him a used, $9,000 acura integra at the local dealer.
#99
Suzuka Master
Originally Posted by dfreder370
Credit is hard for young people to get. Treat your bills wisely when you are young and it will pay off in the future. When a friend of mine had a real problem with a catastrophic car problem, I was able to help him in in the short span of a few hours by charging for him a used, $9,000 acura integra at the local dealer.
I just got accepted with a $2500 limit on a 12% card w/ 0% until May (after being rejected for a $500 limit/20% card ). It will be really nice to have in case shit - like if my transmission were to explode and Subaru would refuse to cover it, or i ruin a rim and tire or two on these wonderful michigan roads.
#100
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Abreece just curious what CC company gave you a 2500 limit with 0% until May ?
I always wondered if lets say you had a 1 person had a $1000limit Credit card and another person has $10000 CC, they both charged them to 50% of there limit I.e 500/5000. Would FICO give them the same credit score as they had both used 50% of there credit but different limits, or does FICO take into account the Credit Limit they have.
I always wondered if lets say you had a 1 person had a $1000limit Credit card and another person has $10000 CC, they both charged them to 50% of there limit I.e 500/5000. Would FICO give them the same credit score as they had both used 50% of there credit but different limits, or does FICO take into account the Credit Limit they have.
#102
Burning Brakes
Originally Posted by Scrib
It doesn't conform to the rules we have set here for avatars.
No NWS avatars. Sorry.
No NWS avatars. Sorry.
#103
Senior Moderator
So like i fucked myself over few years ago and ended up having bad debt with credit cards. Now all 4 cards have been stable with hardly any balances on them.
Now should i cancel 3 of the cards or would that hurt my score? What if i dont use them, would the companies cancel them? Is that bad?
Now should i cancel 3 of the cards or would that hurt my score? What if i dont use them, would the companies cancel them? Is that bad?
#104
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Now should i cancel 3 of the cards or would that hurt my score? What if i dont use them, would the companies cancel them? Is that bad?
Q. should i cancel 3 of the cards , maybe 1 or 2
Q. hurt my score? Probably not, but it wont improve your score over the long term
Q. if i dont use them, would the companies cancel them? would have to be a long time without using them , but probably not/ also depends on CC company policy
They say only use apply for CC when needed. 1-3 CC is plenty. I'd keep 3 open and keep very very low balances of them. That should improve your score over the long term.
Having them paid in full everymonth with probably show 0 usage on your credit report.
Q. should i cancel 3 of the cards , maybe 1 or 2
Q. hurt my score? Probably not, but it wont improve your score over the long term
Q. if i dont use them, would the companies cancel them? would have to be a long time without using them , but probably not/ also depends on CC company policy
They say only use apply for CC when needed. 1-3 CC is plenty. I'd keep 3 open and keep very very low balances of them. That should improve your score over the long term.
Having them paid in full everymonth with probably show 0 usage on your credit report.
#105
Suzuka Master
Originally Posted by F900
Abreece just curious what CC company gave you a 2500 limit with 0% until May ?
I always wondered if lets say you had a 1 person had a $1000limit Credit card and another person has $10000 CC, they both charged them to 50% of there limit I.e 500/5000. Would FICO give them the same credit score as they had both used 50% of there credit but different limits, or does FICO take into account the Credit Limit they have.
I always wondered if lets say you had a 1 person had a $1000limit Credit card and another person has $10000 CC, they both charged them to 50% of there limit I.e 500/5000. Would FICO give them the same credit score as they had both used 50% of there credit but different limits, or does FICO take into account the Credit Limit they have.
#106
Suzuka Master
Originally Posted by F900
Now should i cancel 3 of the cards or would that hurt my score? What if i dont use them, would the companies cancel them? Is that bad?
Q. should i cancel 3 of the cards , maybe 1 or 2
Q. hurt my score? Probably not, but it wont improve your score over the long term
Q. if i dont use them, would the companies cancel them? would have to be a long time without using them , but probably not/ also depends on CC company policy
They say only use apply for CC when needed. 1-3 CC is plenty. I'd keep 3 open and keep very very low balances of them. That should improve your score over the long term.
Having them paid in full everymonth with probably show 0 usage on your credit report.
Q. should i cancel 3 of the cards , maybe 1 or 2
Q. hurt my score? Probably not, but it wont improve your score over the long term
Q. if i dont use them, would the companies cancel them? would have to be a long time without using them , but probably not/ also depends on CC company policy
They say only use apply for CC when needed. 1-3 CC is plenty. I'd keep 3 open and keep very very low balances of them. That should improve your score over the long term.
Having them paid in full everymonth with probably show 0 usage on your credit report.
Only keep what you need.
#107
Administrator Alumnus
Originally Posted by F900
I always wondered if lets say you had a 1 person had a $1000limit Credit card and another person has $10000 CC, they both charged them to 50% of there limit I.e 500/5000. Would FICO give them the same credit score as they had both used 50% of there credit but different limits, or does FICO take into account the Credit Limit they have.
You don't want to have too much credit available, yet you don't want to have too little.
#108
teh Senior Instigator
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Originally Posted by Scrib
Your score(s) definitely take into account the limits. If you make $10,000 a year, but somehow have $100,000 in credit available, that's a problem. Versus making $500,000 a year and having the same $100,000 limit available. You're certainly in a much better position to pay off that $100,000 line if you ever used it with the $500k salary versus the $10k salary...
You don't want to have too much credit available, yet you don't want to have too little.
You don't want to have too much credit available, yet you don't want to have too little.
I have about 15K available and only make about 25K a year and my score was 750+
However, I've recently called and lowered all my limits because there is no reason at all for me to have that much available credit.
#109
Administrator Alumnus
Originally Posted by CLpower
I have about 15K available and only make about 25K a year and my score was 750+
However, I've recently called and lowered all my limits because there is no reason at all for me to have that much available credit.
However, I've recently called and lowered all my limits because there is no reason at all for me to have that much available credit.
#110
teh Senior Instigator
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Originally Posted by Scrib
But how's your debt? Limit to income ratios are only one piece of teh puzzle.
probably about $2200
#113
teh Senior Instigator
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Originally Posted by Scrib
Oooooof
old lady convinced me to buy new leather furniture
It'll get paid off, will put about $200 towards it a month , but even w/ that I still have a 75X+ rating.
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