debt and credit rating inquiry

Discussion in 'General Discussion' started by Lumpy, Feb 28, 2006.

  1. Lumpy

    Lumpy Taylor Swift Actionmaster Super Mod

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    ok, so ive got some debt, not much, but some, and im paying off that credit card....and i was thinking about getting a new one, only using it on like $20-40 worth of gas a month, and paying it off immediately, thinking that my credit report will then show 2 cards, one payed off each month, the other (with debt) being payed down until gone....so, anyone know more about if that works out the way i think it does, or should i just stick to one, and get it paid off....and, btw, it would just be for stuff i pay cash on now, ie gas....so, nothing else would be on it (toys, dvds, cds, etc)
     
  2. gil

    gil Godmaster

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    Do you have credit card offers in the mail? What you should get is a card that gives you a 0% APR on balance transfers. So that card that you have now, transfer all that to the new card and pay that off slowly, without worrrying about paying interest. And that old card which is now paid off, you can use that for gas and other stuff which you pay off every month.
     
  3. drippy

    drippy is a freethinker.

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    As long as you will be paying it off every month, then yes, get another. It will help your overall credit rating.

    Speaking of which, down the road a bit when you decide to check up on your credit in detail (for a car or home or whatever large purchase), I highly recommend this place http://www.myfico.com/ .

    Ironically, you can have too much credit available to you (despite owing nothing) which is detrimental to your rating. My wife and I are in this situation and it dropped our FICO scores.
     
  4. Joe Moore

    Joe Moore Is Not Jim... Administrator

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    Also, keep very tight tabs on your credit. You are entitled to a free credit report every year (www.annualcreditreport.com), and I highly suggest using that. When I got my free credit report last year I saw stuff from my father on there, got it removed from my report and now my score is better for it.
     
  5. Aaron

    Aaron Master of Crystalocution Moderator Content Contributor

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    I think I'm in the too much credit boat now. I had 3 cards with moderate limits, and they all raised my limit 4 fold. I've consolidated 2 onto a new one, and canceled the old two.
     
  6. Lumpy

    Lumpy Taylor Swift Actionmaster Super Mod

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    no, its 16% i think, its the amazon.com card....i kinda want that one cuz itll be a free 30 bucks...which means beast wars season 1 2 and 3 for 60, shipped free....then, just gas...my tax rebate will take care of the initial 60 bucks....so i guess transferring would be a bad idea, cuz my other is at 11%...
     
  7. Big Nine

    Big Nine <font color= pink><b>Pink Soul<br>'Weak Humanoid G Veteran

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    My understanding about credit is that a card that is paid off every month does not do anything for your credit. Unless they charge you intrest on the balance, it does you no good. My suggestion, pay off the one you have then charge something on it, and then pay MOST of it off. Leave a small ammount on there so it shows a balance. That way you can inprove (or maintain) your credit score.
     
  8. Shin-Gouki

    Shin-Gouki Rebuilding Veteran

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    Ahhh Credit Scores, another way for the Credit companies to fuck you around
     
  9. drippy

    drippy is a freethinker.

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    35% of your FICO score is whether or not you're making payments (regardless of if they are full payments or not). There's no reason to rack up unnecessary and non-deductible finance charges on small balances left on a second credit card.

    http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

    As I mentioned before, keep in mind that you don't want to get too much credit as it can have adverse effects.
     
  10. Kickback

    Kickback Proud father Administrator Super Mod News Staff

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    I've got a $1000 debt with a collector (hehe!) but my credit seems fine. I got 2 lines of service with Verizon (Family Plan), and I was approved for an apartment and Comcast Cable with no deposit needed.

    This is the only debt I've ever had that's gone that far, everything else is receiving payments (but never the entire balance).
     
  11. funkatron101

    funkatron101 TFW2005 Supporter

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    Last time I checked my FICO was around 730. Part of what helped that was getting a radio shack card and buying a pc with it, then I paid it in full within 2 months. That was atleast 4 years ago, but it still shows up. So paying off your cards every month doesn't hurt you.
     
  12. CANNABIS PRIME

    CANNABIS PRIME Vagabond

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    everyone has valid points. rule of thumb when it comes to credit cards; have no more than three, pay more than the minimum, and keep balances below 50% of max limit. you will find a big improvement on your scores.
    and when it comes to rates, dont hesitate to call the creditor and ask to lower your rate. start off w/ asking them if they have any introductory rates for new customers. threaten to transfer your balance. they dont want to lose your business. dont take no for an answer. ask to speak to the boss if you have too. believe me it works. even if its shaving off 1 point, better than nothing.(you can even ask to raise your limit)
    payments are a big factor too. paying off a balance every month doesnt hurt you BUT it doesnt help you either. there will be no credit history. thats what its all about. creating a payment history on credit offered.
    check out the websites listed above. they are all good ones. obtaining your credit report is free. you will have to pay for your fico score tho. but get the reports from all three bureaus and make sure everything is correct on there. hope this was helpfull.
     
  13. Lumpy

    Lumpy Taylor Swift Actionmaster Super Mod

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    well, i just did my thing from coldhearts link, and basically dont understand it...apparently ive had like 7 credit cards...and i only knew about 2....but most of them got closed, which means i probably got them, cut them up, and tossed em out while in college...but theres still one open that i dont know where it came from...i need to figure that out...im sure they are all mine, but i just want them gone....but, thanks for all the info everyone, that helped alot...

    wait...i just noticed some say closed, but theres no date listed...im gonna call all these places today and get this settled...
     
  14. CANNABIS PRIME

    CANNABIS PRIME Vagabond

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    that is the case most of the time. the bureaus will usually leave them there up to a certain time. you need to call them and not the credit companies. the bureaus will investigate and then in about a months time will have them removed. make sure you get that done because even if they are closed, they still have an effect on your credit rating.
     
  15. Lumpy

    Lumpy Taylor Swift Actionmaster Super Mod

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    yeah, i was just looking them over, and the two open ones are my bank account, and an account i opened with firestone when i got new tires...which means that the credit card i have my debt on is now a closed account...so if i get a new one, thatll be my only one...and the other will just get paid off...maybe ill do a partial balance transfer and pay it off that way...and if its a free account, will the bereau still take care of it, or do i have to pay for a real thing to get it done?
     
  16. CANNABIS PRIME

    CANNABIS PRIME Vagabond

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    dont get what your asking. are you talkin bout the report you got?? if so, then no. each bureau has there own website where you can dispute entries. no charge i believe. and remember that the bureaus will NOT take care of anything unless u ask. :thumbs2: 

    https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=online_dispute

    http://www.experian.com/disputes/index.html

    http://www.transunion.com/content/page.jsp?id=/personalsolutions/general/data/DisputeCreditReport.xml&from=TransUnionHome
     

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