24 Looking to build Credit... What are some good tips on your first Credit Card

[Bert.]

No pull bro

 

[crcballer55]

Can anybody offer tips or point in the right direction for dealing with COLLECTIONS. I want to pay it off asap, how does pay for deletion work?

I've posted about this several times throughout this thread if you want to find it. I would type it out, but I don't have time to.

I should probably just save it to a Word doc to copy/paste since this comes up so often.

 

[pitman13]

I'm asking why you would pay it off immediately and not just wait for the statement to come in. You'll get your cashback regardless of when you pay.

It's best to pay your CC off prior to the statement.

 

[jon4rd]

It's best to pay your CC off prior to the statement.

Not for every situation. For optimal scores you should have one card report a small balance less than 10%. So pay all cards except one down to zero before the statement cuts and pay that one down to less than 10% utilization and let it report.

 

[pitman13]

Not for every situation. For optimal scores you should have one card report a small balance less than 10%. So pay all cards except one down to zero before the statement cuts and pay that one down to less than 10% utilization and let it report.

My CScore ballooned to 805 after I paid off all my CCs simultaneously, last year.

I make sure my CC's are all at 0 prior to the statement or the closing date.

But, to each is own.

 

[jon4rd]

My CScore ballooned to 805 after I paid off all my CCs simultaneously, last year.

I make sure my CC's are all at 0 prior to the statement or the closing date.

But, to each is own.

Your scores may have gone up after paying all of your cards but your score will be higher if you let one report a small balance. If you show zero utilization across all of your cards you show no recent credit use. Let 1% utilization report on one card one month then let all your cards report zero the next month and you will see a drop.

 

[slicknick951]

My CScore ballooned to 805 after I paid off all my CCs simultaneously, last year.

I make sure my CC's are all at 0 prior to the statement or the closing date.

But, to each is own.

Your scores may have gone up after paying all of your cards but your score will be higher if you let one report a small balance. If you show zero utilization across all of your cards you show no recent credit use. Let 1% utilization report on one card one month then let all your cards report zero the next month and you will see a drop.

How much of a drop?

And is paying interest worth it?

 

[jon4rd]

How much of a drop?

And is paying interest worth it?

You won't pay interest unless you don't pay by your due date.

Example:
Statement cuts on May 26th. I let a $50 balance report on my card that has a $5000 limit (1% utilization). Due date is June 20th. As long as I pay that $50 before June 20th, I won't be charged any interest

 

[slicknick951]

How much of a drop?

And is paying interest worth it?

You won't pay interest unless you don't pay by your due date.

Example:
Statement cuts on May 26th. I let a $50 balance report on my card that has a $5000 limit (1% utilization). Due date is June 20th. As long as I pay that $50 before June 20th, I won't be charged any interest

Gotcha gotcha

Carry on

 

[based mod]

Are you guys hurting that bad in the credit score department that you're micro-managing each transaction?

 

[eyanks]

Does that 1% utilization concept apply if its a very small balance? For example, if you have a $20 balance on a card with a $20,000 limit? Or do they round it to zero if the amount is small enough?

 

[polosanddunks]

Are you guys hurting that bad in the credit score department that you're micro-managing each transaction?

I am only going to micro manage when its time for that mortgage end of the year

 

[jon4rd]

Are you guys hurting that bad in the credit score department that you're micro-managing each transaction?

Utilization has no memory. So you don't have put one card down to less than 10% unless you need your scores to be the highest they can be. You can have 90% utilization one month then 1% utilization the next and the previous month will have no affect on the current score. So you don't have to "micromanage" until you need optimal scores like for a mortgage or auto loan or something. And it really doesn't take much effort. Charge as much as you want, then a few days before your statement cuts, pay your card(s) down. That's really not micromanaging at all.

Does that 1% utilization concept apply if its a very small balance? For example, if you have a $20 balance on a card with a $20,000 limit? Or do they round it to zero if the amount is small enough?

They round it to 1% I'm pretty sure. As long as you're showing that you have some balance on the card it counts.

 

[slighted]

My FICO score (from Discover) is stagnating at 740-745.

 

 

[eyanks]

My FICO score (from Discover) is stagnating at 740-745.

 

Same thing happened to me. Then all of a sudden it jumped up about 15 points.



Also, thanks jon4rd for the response.

 

[pdino]

All of my CCs get auto paid in full each month after the balances are reported. There's no micromanaging, I don't do anything

 

[aychd]

 
its a hypothetical question so yeah lets just say limit is 100 and yes I pay off in full... or at least keep it under the 10% utilization rate 

lmfao im an idiot i meant 1000 it was a typo 

 

[doeboifreshsince88]

I've posted about this several times throughout this thread if you want to find it. I would type it out, but I don't have time to.

I should probably just save it to a Word doc to copy/paste since this comes up so often.

I searched the thread.. i can't find anything more than people saying they have done it. I just want to know how can be successful with a PFD...can anyone point me in the right direction

 

[capital sb]

AMEX has 2X points with Uber, hoping they never get rid of this. I racked up a bunch of points in Miami this weekend.

 

[Ritchie X Rich]

I have amex. Don't see what the hype is

Besides the soft pull on the 3xcli and being able to get high credit increase limits over time, I feel Amex gives you the best protection on your purchases so you can rest assure with confidence every time you swipe. Yes..all other credit companies will back you up as well, but Amex really sides with their members completely. Regardless if it's fraud or a store not granting you a refund etc...Amex will credit you back no questions asked ( or at least a more simple process). Also depending on what card you have you get certain benefits. For example, some of the charge cards automatically give you free roadside assistance 4 times per a year allowing you to tow anywhere free within 10 miles, can save you money from calling AAA in emgergenices etc.

AMEX has 2X points with Uber, hoping they never get rid of this. I racked up a bunch of points in Miami this weekend.

Nice. Didn't know Amex offered this for uber. Is it a limited time offer or permanent? Might start looking into that then. I know captial one gave 20% back on über for a while but I think it's over now and the CSP counts über as travel so it's always 2x points.

 

[polosanddunks]

Didnt know about that with Amex and them siding with the card owner making it an easy process. Looking fwd to getting a card.

 

[capital sb]

View media item 2028269
Not sure how long they will be doing it. Seems permanent since there is an option to use points to pay.

 

[oidreez]

I dont think it's all amex cards that get the uber points

 

[Bert.]

Which Amex are you guys using? I'm seeing CLI but I thought Amex basically didn't have actually limits minus their actual credit card

 

[capital sb]

Which Amex are you guys using? I'm seeing CLI but I thought Amex basically didn't have actually limits minus their actual credit card

I use the PRG charge card.
Amex has charge cards ("no limits" & paid in full every month) and credit cards (limits).