Official Financial Thread

ii jovo ii

ii jovo ii

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Sep 17, 2007
So I think this may be an extremely beneficial thread to help assist those who are looking to open a credit card for the first time, or looking to maintain credit with another company. Also, other questions and concerns should be welcome.

First question : Does canceling your credit card hurt your credit score?
 
Not sure the answer to that question, but a few basic tips for those getting a CC.

1. Pay on time
2. Pay more than the minimum
3. Don't spend right up to your limit.

Trust me
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Well heres my situation. Im stupid..

I have a circuit city credit card STILL, and am in the process of paying it off. Also i have a Home Depot credit card with zero balance that i never use.Another card i have is one i used from the dentist, that i also have zero balance on. I want to close my Home Depot and Dentist credit cards becuase i willnever use them again, and both have $0 balances.
Also after im eventually done paying off the Circuit City card that is with a collections credit card company, i want to close that off and just simply have 1credit card. Any advice would be appreciated.
 
What all affects your credit score?

I hear being a home owner/renter helps. Does paying off all the other bills count as well?
Other bills being Comcast, Phone Bills, Gym Memberships, etc...

And how drastically does paying late affect your credit card bill?
I know there have been a few times where I paid the bill a few days late, no more than 5 days though.. other than that I pay early and usually pay more thanthe minimum.

Can you get credit checks from your bank? And how much do they usually cost?

I got one credit card and I am going to try to keep it that way.
 
II Jovo II wrote:
First question : Does canceling your credit card hurt your credit score?

No, cancelling a credit card helps your credit score. Everytime you attempt to apply for a loan or a credit card hurts your credit score.Thecredit company takes off a certain amount of points to apply for these credit products, once you are approved you have a chance to rebuild the points that werelost when you applied for the products. However, if you are not approved, then basically you spent your credit points on nothing.
Click to expand...
 
pay on time

don't spend too much that you can't pay back later

keep a track of how much you spend daily
 
Originally Posted by divinetecknique


I hear being a home owner/renter helps. Does paying off all the other bills count as well?
Other bills being Comcast, Phone Bills, Gym Memberships, etc...
Click to expand...

nerd.gif
 
Originally Posted by HalfKobe08

II Jovo II wrote:
First question : Does canceling your credit card hurt your credit score?
Click to expand...
Click to expand...
No, cancelling a credit card helps your credit score. Everytime you attempt to apply for a loan or a credit card hurts your credit score.The credit company takes off a certain amount of points to apply for these credit products, once you are approved you have a chance to rebuild the points that were lost when you applied for the products. However, if you are not approved, then basically you spent your credit points on nothing.


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It's the exact opposite. Part of your credit scoredeals with the debt to available credit ratio. Easy example
You have 2 cards. One with a $1,000 limit that you have maxed out, and one with a $2,000 limit with a $0 balance on it. Your debt ratio is 33% (1,000 of$3,000)
You close out your $2,000 balance and you just destroyed your ratio making it 100% which is AWFUL for your credit score.

If its at a 0 balance, and your not paying any annual fees on the card, it helps with your overall credit score.
 
Originally Posted by HalfKobe08

II Jovo II wrote:
First question : Does canceling your credit card hurt your credit score?
Click to expand...
Click to expand...
No, cancelling a credit card helps your credit score. Everytime you attempt to apply for a loan or a credit card hurts your credit score.The credit company takes off a certain amount of points to apply for these credit products, once you are approved you have a chance to rebuild the points that were lost when you applied for the products. However, if you are not approved, then basically you spent your credit points on nothing.


not it does not.
http://credit.about.com/o...ng/qt/closecardscore.htm
 
Other bills being Comcast, Phone Bills, Gym Memberships, etc...


I've heard every where that Gym Memberships, if unpaid, kill your credit. I have one that I reported my CC lost/stolen, and they sent me a few collectionletters, but tehy stopped a while ago and its not on my credit report. But, this could be only my gym. I dunno.
Click to expand...
 
If you don't got it...don't buy it.
If you don't got it to spend...don't borrow
keep your priorities in order..from most important to least important (even a computer has priorities that it follows)

because you know if you don't pay your credit cards bills...Karma is gonna get your !#!
So you might as well go out and Rob for it.
 
If you have to cancel a credit card and you have more than one, cancel the latest one. Keep the one you've had the longest.

If you do not have the cash in your pocket/savings/checking account, DO NOT CHARGE IT unless you know for a fact that you can pay it off within the month.Interest will get you.
 
i should definetley not open a cc i guess. lol my bank acct been negative for months now, im not even 18 yet though. Can that affect my credit score?
 
Excellent article in today's New York Times

How Visa, Using Card Fees, Dominates a Market

My best attempt at Cliff Notes

* A basic breakdown of the fees involved with using debit and credit cards. It mainly talks about the burden credit and debit cards put on merchants.

* The article talks about fees indirectly passed on to the consumer because merchants have to rise prices to compensate for the losses from debit and creditcard purchases.

* Talks about the possibility of offering cash and credit prices like at gas stations but no legitimate way of implementing it (plus Visa penalizes forattempting it)

There's alot in that article, really interesting read.
 
After reading the article and the readers comments, I came away with a logic that completely turned the way I'd been doing it. Most of them never usedebit cards, never use cash, and use credit cards for EVERYTHING (paying off the whole balance at end of each month).

They reasons they noted for primary c use include the customer protections from fraud, the mulitude of benefits programs, and a basic stab in the eye ofbusinesses for their high prices and sticking them with fees.
 
With American Express (Green/Gold/Platinum/Black) cards, you can't max them out or pay any interest since you always have to pay in full aka not for peoplethat only pay the minimum balance. I'm pre-qualified for a Gold card (not that difficult), but I can't justify paying that yearly fee. Although I wantone just to say I have it.
happy.gif


I also think most cash back/reward cards are rip-offs due to the difficulty in accruing points, etc (which is a good thing for the banks). I have a cash backcard and they send me a check for $50 when I reach that equivalent in "bank dollars." If I shop with certain vendors, I get points faster. Guesswhat? I still haven't got a check yet and I've already bought thousands of dollars worth of stuff on that one credit card.
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If I knew I had to spend so much money to get back a measly $50, Iwould've never signed up for it. So if you get a card that offers 3x points for gas purchases, you better use that because after the promo period is over,it'll be a P.I.T.A. to build up the same points in the same amount of time.

Originally Posted by F A Y B A N


Excellent article in today's New York Times

How Visa, Using Card Fees, Dominates a Market

My best attempt at Cliff Notes

* A basic breakdown of the fees involved with using debit and credit cards. It mainly talks about the burden credit and debit cards put on merchants.

* The article talks about fees indirectly passed on to the consumer because merchants have to rise prices to compensate for the losses from debit and credit card purchases.

* Talks about the possibility of offering cash and credit prices like at gas stations but no legitimate way of implementing it (plus Visa penalizes for attempting it)

There's alot in that article, really interesting read.
Click to expand...

Edit: Just read that today, Visa got the debit card game on smash.
 
I just got another credit card the other day.

I never have more money owed than I actually have in the bank. Never.
 
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