NT Fam what do you know about credit cards? vol. debt to my eyeballs

[firered18]

OK guys so last summer I took a trip to San Fran and decided to live outside of my means and ran up a platinum citicard with a $1200 limit. That card had no interest for a year and the year is now up.

I paid the card 3/4 off last month but car troubles have me at $1184 in the hole again. Today I signed up for a bank of America card with an $800 limit with 0 interest for a year. I think I am going to use all $800 to pay off the citicard and pay the remaining $384 myself. That way Ill owe $800 interest free and have a year to pay it off. Is this smart?

Btw, I am a 20 year old college student working min wage. Every now and then I make lump-sums of money from working camps and whatnot so I should be able to do this, right?

 

[ricky409]

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

My score is average (650) but I've only had credit for 2 years...

People that look at your credit are more concerned about defaults, collections, and showing consistent payments.

Its hard getting loans though...

 

[khemikalali]

never had a serious credit card before (im 26) and have been seriously thinking of scooping one up.. maybe just for the simple fact of collecting rewards..
have been traveling alot lately and wouldnt mind a free plane ride somewhere.. anyone have exp with this?

 

[go rilla]

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

credit card companies love people like you

 

[luong1209]

It's the devil.

 

[ricky409]

Originally Posted by go rilla

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

credit card companies love people like you

but I've paid it down to zero twice.. credit card companies don't like me cuz I pay 200-300% more than the minimum ... I'm just trying to help homey from messing up his credit since he's already gotten into it. Make sure you pay SOMETHING op... no matter what, pay SOMETHING ...

 

[ricky409]

Originally Posted by khemikalali

never had a serious credit card before (im 26) and have been seriously thinking of scooping one up.. maybe just for the simple fact of collecting rewards..
have been traveling alot lately and wouldnt mind a free plane ride somewhere.. anyone have exp with this?

people say "get a credit card, and pay it all down as soon as you get it" that's a mistake... you want to stay under %30 on your limit and carry a balance .... it will help your score... and if you do pat it down, don't close it..

 

[KMante]

I use the card from my bank. I've never spent any money that I didn't have.

 

[crcballer55]

Originally Posted by ricky409

Originally Posted by go rilla

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

credit card companies love people like you

but I've paid it down to zero twice.. credit card companies don't like me cuz I pay 200-300% more than the minimum ... I'm just trying to help homey from messing up his credit since he's already gotten into it. Make sure you pay SOMETHING op... no matter what, pay SOMETHING ...

Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

 

[ricky409]

Originally Posted by Luong1209

It's the devil.

just gotta stay discipline famb

 

[captainkicks]

Did you just say "yolo" and forget that you're a 20 year old college student and working minimum wage when you spent that money?

 

[ricky409]

Originally Posted by crcballer55

Originally Posted by ricky409

Originally Posted by go rilla

credit card companies love people like you

but I've paid it down to zero twice.. credit card companies don't like me cuz I pay 200-300% more than the minimum ... I'm just trying to help homey from messing up his credit since he's already gotten into it. Make sure you pay SOMETHING op... no matter what, pay SOMETHING ...

Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

 

[carver]

Having good credit

.. girl also having good credit

 

[lou baton]

Obviously no interest is better than paying interest. Just make sure you read the fine print. Some cards, if the initial transferred balance isn't paid off with in the allotted 0% time frame, will charge you back interest at a variable rate. And as stated above do not close the card once you pay it off.

 

[dirtylicious]

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

My score is average (650) but I've only had credit for 2 years...

People that look at your credit are more concerned about defaults, collections, and showing consistent payments.

Its hard getting loans though...

650 is not what I consider in the good range
oh... and you're screwing up your credit by having that much debt on a card with such a small limit.  3.5k on a 4k card is 87.5%

 

[luong1209]

Originally Posted by ricky409

Originally Posted by Luong1209

It's the devil.

just gotta stay discipline famb

I hear ya. No worries, I always pay it in full (every month

)...I am often tempted to pull the trigger on things I like though; so yeah...Definitely gotta stay disciplined

.

 

[crcballer55]

Originally Posted by ricky409

Originally Posted by crcballer55

Originally Posted by ricky409



but I've paid it down to zero twice.. credit card companies don't like me cuz I pay 200-300% more than the minimum ... I'm just trying to help homey from messing up his credit since he's already gotten into it. Make sure you pay SOMETHING op... no matter what, pay SOMETHING ...

Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

You'll get a better rate by putting down a larger down payment than having a better credit score. Trust me. Both my wife & I had EXCELLENT credit with a small down payment and we still got screwed.

I still have excellent credit and have gotten to the point where I'm actually closing accounts because I don't want to support the banks anymore. I also realized that when purchases are made with cash you spend MUCH less and will be able to save up more for the large purchases.

It's unfortunate that we've bought the line that we need a credit score to make large purchases. While it may be more difficult, you CAN buy a car with cash (it'll just take longer) and you can get a mortgage without a credit score (manual underwriting).

 

[ricky409]

Originally Posted by crcballer55

Originally Posted by ricky409

Originally Posted by crcballer55


Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

You'll get a better rate by putting down a larger down payment than having a better credit score. Trust me. Both my wife & I had EXCELLENT credit with a small down payment and we still got screwed.

I still have excellent credit and have gotten to the point where I'm actually closing accounts because I don't want to support the banks anymore. I also realized that when purchases are made with cash you spend MUCH less and will be able to save up more for the large purchases.

It's unfortunate that we've bought the line that we need a credit score to make large purchases. While it may be more difficult, you CAN buy a car with cash (it'll just take longer) and you can get a mortgage without a credit score (manual underwriting).

totally agree about the down payment thing... can't hurt tohave a good score AND a nice down payment, right

 

[yomegaaa]

Originally Posted by firered18

OK guys so last summer I took a trip to San Fran and decided to live outside of my means and ran up a platinum citicard with a $1200 limit. That card had no interest for a year and the year is now up.

I paid the card 3/4 off last month but car troubles have me at $1184 in the hole again. Today I signed up for a bank of America card with an $800 limit with 0 interest for a year. I think I am going to use all $800 to pay off the citicard and pay the remaining $384 myself. That way Ill owe $800 interest free and have a year to pay it off. Is this smart?

Btw, I am a 20 year old college student working min wage. Every now and then I make lump-sums of money from working camps and whatnot so I should be able to do this, right?

Yes, that is an excellent idea. Check to make sure your Citi card does not have a transfer fee, but if they do, it'll most likely still be worth it to transfer the balance in favor of having it on a 0% interest card for a year.
There is so much that people don't know about credit cards and building credit, no clue why there isn't an "Understanding Credit" class in high school... 

 

[lilpro4u]

Originally Posted by crcballer55

Originally Posted by ricky409

Originally Posted by crcballer55


Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

You'll get a better rate by putting down a larger down payment than having a better credit score. Trust me. Both my wife & I had EXCELLENT credit with a small down payment and we still got screwed.

I still have excellent credit and have gotten to the point where I'm actually closing accounts because I don't want to support the banks anymore. I also realized that when purchases are made with cash you spend MUCH less and will be able to save up more for the large purchases.

It's unfortunate that we've bought the line that we need a credit score to make large purchases. While it may be more difficult, you CAN buy a car with cash (it'll just take longer) and you can get a mortgage without a credit score (manual underwriting).

Credit is KING, Y.O.L.O.

 

[crcballer55]

Originally Posted by ricky409

Originally Posted by crcballer55

Originally Posted by ricky409



don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

You'll get a better rate by putting down a larger down payment than having a better credit score. Trust me. Both my wife & I had EXCELLENT credit with a small down payment and we still got screwed.

I still have excellent credit and have gotten to the point where I'm actually closing accounts because I don't want to support the banks anymore. I also realized that when purchases are made with cash you spend MUCH less and will be able to save up more for the large purchases.

It's unfortunate that we've bought the line that we need a credit score to make large purchases. While it may be more difficult, you CAN buy a car with cash (it'll just take longer) and you can get a mortgage without a credit score (manual underwriting).

totally agree about the down payment thing... can't hurt to have a good score AND a nice down payment, right

Ya, it may not hurt, but you should realize that you're paying for your score one way or another. I'll personally go with a manual underwriter for my next mortgage for several reasons. Primarily because it won't be one of the larger banks handling the paperwork. You don't realize how incompetent they really are until you get to deal with them on a daily basis.

 

[apocalypz]

Originally Posted by KMante

I use the card from my bank. I've never spent any money that I didn't have.

This has always been my advice for anyone who's interested in getting a credit card. It's stupid to do otherwise.

 

[ricky409]

Originally Posted by Dirtylicious

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

My score is average (650) but I've only had credit for 2 years...

People that look at your credit are more concerned about defaults, collections, and showing consistent payments.

Its hard getting loans though...

650 is not what I consider in the good range
oh... and you're screwing up your credit by having that much debt on a card with such a small limit.  3.5k on a 4k card is 87.5%

dont know who you be dealing with famb... but 650 is AVERAGE... and isnt bad for a 22 year old w/ 2 years worth of credit.
also, i guess you didnt see where i said i paid it off in large chunks rather quickly and this is my THIRD time building it up.

i also said its always best to have it under 30%... i'm going to have it under thirty percent by christimas time, famb...

 

[go rilla]

^so this is your third time almost maxing out your cards and paying off the minimums? yup, credit card companies LOVE people like you

 

[crcballer55]

Originally Posted by ricky409

Originally Posted by Dirtylicious

Originally Posted by ricky409

I have card with a $4k limit..

Up to $3500...

Second card has an $.8k limit... only have $100 on it.

As long as you pay the minimum every month, you're good.

My score is average (650) but I've only had credit for 2 years...

People that look at your credit are more concerned about defaults, collections, and showing consistent payments.

Its hard getting loans though...

650 is not what I consider in the good range
oh... and you're screwing up your credit by having that much debt on a card with such a small limit.  3.5k on a 4k card is 87.5%

dont know who you be dealing with famb... but 650 is AVERAGE... and isnt bad for a 22 year old w/ 2 years worth of credit.
also, i guess you didnt see where i said i paid it off in large chunks rather quickly and this is my THIRD time building it up.

i also said its always best to have it under 30%... i'm going to have it under thirty percent by christimas time, famb...

It would help build it up much quicker if you pay it off and cut up the card while keeping the account open. That way you'll eventually have a 0% utilization and won't have to worry about running it up for a 4th time.