I know most of us have Credit Cards. How do you guys pay/use your Credit Cards to maintain the highest credit score? I've heard a few things about it. -For sure always pay on time. -Never go over 50% of your credit limit. -When you charged something, send a check in a few days(maybe about 1/2 of what you charged). This way you're using the banks money to buy. anything else you guys can add to the list. Any hints and tips.
pay it off every month...never pay them any interest. Not sure how this works for your credit score, but it can't be bad and you can still get free rewards stuff
mmm, not sure I agree there. Most Retail cards are still distributed through Visa, mastercard, Citi, etc. If you get a best buy bill it doesn't say "best buy credit card" on it, it says the actual credit institution. Its all considered credit and by having it you are credit worthy. Shouldn't be a difference.
I thought too much available credit compared to you're income level could also be seen as a risk, lowering you're score...at least that's what Chase told me when they jacked my interest rates sky high...didn't even give me time for a reach around...
In a way your correct... Even though u have 10 CC's with $0 balance and 5k credit limit on each one = $50k total limit...Whose to say you won't go out one of these days and charge the crap load out of everyone of them or if stolen even worst...The more u have doesn't neccessarily mean you have better credit, it can lower your score...I've seen it happen with a few Credit Reports we've pulled... I've paid and cancelled the ones that gives me the highest rate with no benefits..i.e. rewards, cashback, etc. I think 4-5 is a good number to have... 1-Visa 1-M/C 1-American Express 1-Discover 1-Emergency only At least this way u have everything u need to be accepted anywhere...Try to find the ones that do not charge you annual fees, maintenance fees, etc. Get the ones that reward you back i.e. Subaru Chase Visa (Subaru bucks), Discover (3% cashback), Northwest (Mileage) etc...
+Your credit to debit ratio. Meaning add up your credit limit on all cards and divide by how much you owe. A higher number here is obviously better. +Number of accounts. Too many is bad and can harm you. If you have 10 credit cards all with zero balance close out a couple. If you have department store cards or other high interest rate cards close them, too. +While paying a credit card off every month is good for you since you'll pay no interest it doesn't do much for your credit score. If you are just interested in miles or points this is great but if you are trying to build up that credit number you need to carry a balance month to month. Doing this proves you can pay what you owe each month and have a stable income. The best way to do that is using installment loans such as autos and homes. +Too many credit checks can harm your score. For this reason don't open new accounts all the time or have places (other then yourself) check your credit. +Check your credit report yearly (all 3 places) and make sure it's accurate. It's free, doesn't count against your credit and you'd be surprised at some of the stuff they miss... or you missed. If you're really serious about your Fico and want advice on how you raise it and what's keeping it down check out myfico.com. If you are interested in a rewards card check out the citi platinum rewards (currently at 10.99). For non rewards cards check out Simmons First (currently at 7.25). As you can tell, you'll almost always pay a percent or more for a rewards card so if you pick one of those use it wisely.
You know what's wierd is that my high credit scores (with all 3 reporting agencies) still don't get me above Tier 2 credit when applying for financing with Subaru. My score flirts with 800 and yet I rarely get offers from my existing cards to lower my interest rate so I use them more. I thought a higher credit score would allow me to appeal for better rates but so far it only secured me a no-limit Amex Platinum and Corporate card. If you have a mortgage than you're going to be well off for credit scores as long as you're meeting payments. Owning a house is probably what is keeping me from Tier 1 credit considering how huge of a debt a home loan is. Of course the equity is there pretty quick. Never go over 75% of your total credit available. If you can afford it let the lower interest cards get some money off of you by not paying the entire amount. Use the high-interest cards on purchases you pay off before the interest accrues. Keep in mind that loans still matter a lot, especially unsecured loans (which is essentially a credit card anyway). Make sure payments of any sort, even phone and utility bills, are always paid on time. When making payments to credit cards that you're carrying balances on try to pay about twice the minimum payment. I almost never pay the minimum, even it's only $5 more than the min. I have almost all my bills, even my rent, paid with the Amex so that I only have one due date to remember for bills. This has helped me a lot and it seems my scores don't vary as much as they once did. It also earns me loads of points :biggrin:
how about this? make a good sized charge, (i.e. 1000-2000) pay it off quickly and cut up your card. card companies report only that you payed your debt. not exact numbers and payments. rinse repeat.
That's the nature of the beast. I had to call Citi and talk to the first reps supervisor to get my rate lowered. In the end I "walked away" with prime +1% on a rewards card so it was worth the time spent. The first rep wouldn't budge though.
I get through the mail from Citibank a choice of rate reduction, get rewards, or special transfer balance crap...I never use my CC to purchase much anymore...Most of my CC I have used are for transfer balances...I'm @ 2.9% until paid off on 2 of my CC and would never use it to charge, I believe I'm @ 11.99% on one of them if I do charge...Plus if I pay it will go towards my transfer balance of 2.9% before it even pays of my standard charges...*Credit Card Companies will always pay off the lower interest principle first than the higher standard ones* That way they can make $$$ out of u...And they will not allow u to pay the standard charges first, if you have a low rate transfer balance...I've ask them about it and got into a big arguement.. lol
