Credit Cards....

[NOTALENT]

I have 2 cards I havent used in about 2 years. I was going to cancel them, but someone said it will ding my credit score??? Is there any truth to this? Is it best to keep them open or close them??
Gracias mi amigos :rollside:

[a catered life]

I have 2 cards I havent used in about 2 years. I was going to cancel them, but someone said it will ding my credit score??? Is there any truth to this? Is it best to keep them open or close them??
Gracias mi amigos :rollside:
i'm no credit master but i have been told by friends in the credit world that it its best to use them atleast once a month and pay off the entire ballance...this shows your have the power to pay off stuff.....which is what all companies look for...but unless your border line good credit/bad credit closing a few account wont matter

[voodoomedman]

I have 2 cards I havent used in about 2 years. I was going to cancel them, but someone said it will ding my credit score??? Is there any truth to this? Is it best to keep them open or close them??
Gracias mi amigos :rollside:
It's possible. Some of the points are determined by your ratio of revolving debt to how much you have available. So if you have 5 grand in debt and close those cards so now you only have 5 grand available but are using it all then it will hurt. On the other hand if you have too much available according to your income that won't hurt your score but creditors will frown upon it.

[Devil's Advocate]

i'm no credit master but i have been told by friends in the credit world that it its best to use them atleast once a month and pay off the entire ballance...this shows your have the power to pay off stuff.....which is what all companies look for...but unless your border line good credit/bad credit closing a few account wont matter
I've heard similar.

[voodoomedman]

i'm no credit master but i have been told by friends in the credit world that it its best to use them atleast once a month and pay off the entire ballance...this shows your have the power to pay off stuff.....which is what all companies look for...but unless your border line good credit/bad credit closing a few account wont matter
You don't have to do that with every card though. Just one. I put everything on one card and pay it off at the end of the month. It's easy, only one bill to pay, easier to balance checkbook, get a whole bunch of points and get free stuff.

[a catered life]

You don't have to do that with every card though. Just one. I put everything on one card and pay it off at the end of the month. It's easy, only one bill to pay, easier to balance checkbook, get a whole bunch of points and get free stuff.
sounds like you use americian express.... :p

[selfmade]

You should keep both cards if you don't have any other cards. You need to use them though, not in excess maybe use one for gas or groceries and make your payments on time. Always try to keep your balance at 50% of what your limit is. So if your limit is 1,000 try to only spend 499 on that card and it won't have a negative affect on you. Creditors want to see that you can borrow and payback in a timely manner and also have self control over spending habits. Its all a big game and some just play it better than others. A mentor of mine is a master at this so if you have any other questions I will try to help out

[NOTALENT]

Cool. I have 4 other cards which I use on a normal basis...I think I only opened these back then to get the 30% off deal... :p Used them a few times and havent since. I just ran my credit report and I had forgotten about them. Score is mid 700's. I just didnt want to have 6 cards opened.

[Havasu Hangin']

Creditors want to see that you can borrow and payback in a timely manner and also have self control over spending habits.
Yes.
If you take a look at a credit report, and it mostly rates you based on timely payments. There are other factors that go into your credit score such as credit line vs a database of those in a similar credit scenario, and how likely they were to default.
If it were me, I'd close them- their positive payment history will still show for awhile....but that's just me- I have a 300 score.

[MRSDRMCAT]

You don't have to do that with every card though. Just one. I put everything on one card and pay it off at the end of the month. It's easy, only one bill to pay, easier to balance checkbook, get a whole bunch of points and get free stuff.
Thats what we do!! If you are going to pay for it anyway might as well charge it for the points and pay it off at the end of the month........like you said makes it easy to pay everything at one time.

[MRSDRMCAT]

Cool. I have 4 other cards which I use on a normal basis...I think I only opened these back then to get the 30% off deal... :p Used them a few times and havent since. I just ran my credit report and I had forgotten about them. Score is mid 700's. I just didnt want to have 6 cards opened.
If you have 4 other cards I would close all of them except for two. Like selfmade stated use those two cards on a continual basis and if you can leave a little balance on them. Plus the more cards you have open the more it leave you open for identity theft.

[Jordy]

if you can leave a little balance on them.
Carrying a balance will actually hurt your percentage of available credit and lower your credit score. Then again, I've only got a 275 credit score so I have no idea what I'm talking about. :D

[MRSDRMCAT]

Carrying a balance will actually hurt your percentage of available credit and lower your credit score. Then again, I've only got a 275 credit score so I have no idea what I'm talking about. :D
Who knows?!?!?!?!? When I was in my 20's I was stupid and had no control with my credit cards I always ran balances on them. I would pay the minimum balance (maybe a lil' more) but NEVER late. My husband, on the other hand, great with credit cards. He would charge and then pay them off every month. I have a higher credit score then he does. Go figure. He has cracked the whip on me and now I don't charge unless we can pay it off.

[Havasu Hangin']

what are credit cards:confused:
They are those things that if you are smart enough to use them instead of cash, they send you to the Virgin Islands every year for free!

[Jordy]

They are those things that if you are smart enough to use them instead of cash, they send you to the Virgin Islands every year for free!
Bingo, especially when you have an expense account. Go eat, drink, and be merry, put it on a rewards card, turn in expense report to company, get reimbursed, pay card, go on vacation. :D :D :D

[Havasu Hangin']

Bingo, especially when you have an expense account.
Like when you buy drinks at Bourbon Street, expense it, get reimbursed, pay it off, and use the points to go to Mexico for a few days?
:supp:

[NOTALENT]

Like when you buy drinks at Bourbon Street, expense it, get reimbursed, pay it off, and use the points to go to Mexico for a few days?
:supp:
Credit cards are free money...just go buy yourself the world!!! MUHHAHHAHAHAHA :crossx:

[Jordy]

Like when you buy drinks at Bourbon Street, expense it, get reimbursed, pay it off, and use the points to go to Mexico for a few days?
:supp:
Bourbon Street, Skin Lounge, among others. Hey my boss signed my expense report and my vacation request. He apparently doesn't see a problem with it. Hell, he was with us last week at the Merc Bar when we ran up a $300 bar tab. He's signing that one too!!! :D :D :D

[IN2-IN2MX]

I'd close the 2 cards also and keep the 4 you use. I opened several when I was younger and they either closed themselves due to inactivity or I closed them because I didn't want my credit report to show too many accounts.
My score went down some points last year when I made a balance transfer to one of my smaller credit limit cards. The amount I transferred was almost the credit limit so it showed I was almost "maxed out" on a card. I quickly moved that amount over to another card and a few months later my limit was back to normal.

[dmontzsta]

The more available credit you have, the better.

[Tyson Ross]

I was told even if no balance, the more you have open, they look at it the more debt you can get into. I used to have 4, paid them all off and now just have 1 open, no balance = Score over 800. I did get lucky back in the day and paid off a large truck payment as it was stolen in S.D.

[IN2-IN2MX]

I was told even if no balance, the more you have open, they look at it the more debt you can get into. I used to have 4, paid them all off and now just have 1 open, no balance = Score over 800. I did get lucky back in the day and paid off a large truck payment as it was stolen in S.D.
Nice. :p

[All-Star]

Seems like we are all on the same page.
But based on my employment, I have found over the years that while the three credit bureaus look at your entire history, they alos look at things like:
1. How much credit is allowed to you (High credit limit) over All cards.
2. How much you actually owe over all on your cards verse the high limit
3. How long the cards have been around.
Some times closing the cards could hurt your score. What do you think makes more sense... Having an excellent card for two years or having an excellent card for 5 or more years.
In my opinion I would leave the cards open, and in fact call all of your the credit card companies to ask them to increase your high credit limit and while they are at it see if they can reduce your interest rate for being such a great paying customer. (Only do this if they are not going to run your credit)
But if you are not using these cards, always open the bills and make sure that no one accidently got a hold of your numbers and is using the card that you forgot about.
You are intitled to a fee credit report every year so that you can review things to make sure no funky stuff is going on.
Good luck and Gredit credit scores!

[Dave C]

How long your accounts have been opened is also part of your score. (I learned this first hand just recently ;))
So keep the accounts that have been opened the longest.

[dmontzsta]

Seems like we are all on the same page.
But based on my employment, I have found over the years that while the three credit bureaus look at your entire history, they alos look at things like:
1. How much credit is allowed to you (High credit limit) over All cards.
2. How much you actually owe over all on your cards verse the high limit
3. How long the cards have been around.
Some times closing the cards could hurt your score. What do you think makes more sense... Having an excellent card for two years or having an excellent card for 5 or more years.
In my opinion I would leave the cards open, and in fact call all of your the credit card companies to ask them to increase your high credit limit and while they are at it see if they can reduce your interest rate for being such a great paying customer. (Only do this if they are not going to run your credit)
But if you are not using these cards, always open the bills and make sure that no one accidently got a hold of your numbers and is using the card that you forgot about.
You are intitled to a fee credit report every year so that you can review things to make sure no funky stuff is going on.
Good luck and Gredit credit scores!
This is the truth. I call and request increases on my cards every 3-6 months. They keep pumping it up and my score goes up as well.
One thing I do that really helps:
Buy everything with a credit card, take the receipt and deduct it from the bank book. Then when the bill comes due, go back in the check book and add up all the deductions from that card, then pay it all. That way I do not think I have that money in the bank and it is thrown on a card.

[C-2]

Debt utilization is 1/3 of your score..... 1/3 is huge. Leave them alone, the age of the accounts helps too. Spead any remaining balances over your four cards so your utilization on each of those cards is 25-50%.
BTW
The average credit score is 680 - I'm sure some mortgage peeps can verify many, many people are in that range.
The reality is, not much difference between a mid 700's score and 800's. It's just a game crditors play to charge you more money.
The low thresholdfor a mortgage approval was 620..........before they started getting *creative*. Now I hear it's down to 550.

[That Guy]

He has cracked the whip on me...
Do you have pics.....? :crossx: :crossx:

[voodoomedman]

sounds like you use americian express.... :pNope. The only Amex is the Corporate Card. I use a Citibank card. It sure was nice flying for free when we went to South Carolina. Saved about 1300 smackers.

[HighRoller]

The best thing you can do with your credit cards is introduce them to a pair of scissors! I've never heard of a wealthy person who got there by playing stupid games with credit cards, but I have known a lot of people who have suffered financially from using them. Get a rewards/cash back debit card like mine and tell the credit card companies to F**k off!!

[TexasChopper]

HERE IS THE TRUE SCOOP.......some of the things I just read make a lot of sense, but for the most part much of is inncorrect.
If I have 5 cards with a $500.00 balance on each this is going to effect my DTI (debt to income) which is a huge factor when a lender looks at approving a loan....especially boats. if you have over a 50% DTI forget a boat loan in most cases.
As far as the "charge the card each month and pay it off idea" again makes sense in concept, but... If I put $2000.00 a month a Visa card and pay it in full each month... when I get down to the Corvette store and GMAC runs my credit, the only thing they see is the balance on my card, they don't call Visa and say "how much does this guy put on this each month" if you have a zero balance on that card for 6 months, Visa will report a "1" (as paid on time) rather you use it or not, and that is what effects your score...what your creditors report using the card vs. not using your card does not change your score.....pay cash and screw the interest... there is my 2 cents.

[HighRoller]

Oh, I forgot some other juicy info on credit cards. According to Dunn and Bradstreet, you spend 12-19% more when you use a credit card than cash. Also, 75-80% of the so called "rewards" do not get redeemed for whatever reason. Finally, even if you think you have a "guaranteed" 0% card, you really don't. If you read your contract closely you'll find a "universal default" provision. Simply put, even if you pay your CC payment a gazillion months in a row on time but you're late one month on ANY other bill they can jack your interest rate up to the maximum allowable. (Usually 18-29%)It's the same if your credit score drops. So basically once you open a credit card account they've got you where they want you. If your score drops from closing one card then the other card will make you pay. If you keep the "correct ratio" of balance on your cards you pay them revolving charges. Sounds like a great financial product to me!!

[Seadog]

Only one credit card and my wife and I both have great ratings. Hers is higher because a long time ago, the hospital tried to rook me and I did not pay until it got straightened out. The idea that I would not let them cheat me, infuriated the hospital and they called me a deadbeat (in a strictly legal sense :rolleyes: ) for a 40 point loss.

[Havasu Hangin']

I've never heard of a wealthy person who got there by playing stupid games with credit cards..
Man, you are a rocket scientist.
Wealthy people did not get wealthy by redeeming points- absolutely. It's the "average joe" that benefits, since the travel break will benefit wealthy people less on a percent-to-income ratio.
Next time I'll take some pics of me sipping a dozen (or so) Mai Tais on a beach...all for free, of course. The only difference is I used my platinum card instead of cash, and paid the bill off in full online (for free, of course).

[C-2]

Oh, I forgot some other juicy info on credit cards. According to Dunn and Bradstreet, you spend 12-19% more when you use a credit card than cash. Also, 75-80% of the so called "rewards" do not get redeemed for whatever reason. Finally, even if you think you have a "guaranteed" 0% card, you really don't. If you read your contract closely you'll find a "universal default" provision. Simply put, even if you pay your CC payment a gazillion months in a row on time but you're late one month on ANY other bill they can jack your interest rate up to the maximum allowable. (Usually 18-29%)It's the same if your credit score drops. So basically once you open a credit card account they've got you where they want you. If your score drops from closing one card then the other card will make you pay. If you keep the "correct ratio" of balance on your cards you pay them revolving charges. Sounds like a great financial product to me!!
Yup, the universal default dealio. That's a nasty little trick that seems to have appeared in recent years, if you have older cards it might not apply. And to clarify, when we're talking about a late payment - we're not talking 30 days. Rather, only missing the due date, even by a day or so.
For example, you get a new card with 0% for a year. For whatever reason (especially if you pay online), your payment posts 2 days after the due date. Goodbye 0%, and any other cards held by the same issuer also get jacked up to the highest interest rate.
There are also different scoring, or "enhanced" models for whatever loan type you're applying for (auto, mortgage, LOC). The fact you might know your score doesn't mean it's accurate. If you have tier 1 credit, but an auto loan with a 30 day late, they're gonna nail ya hard if you go to buy a car. Fockers.

[MudPumper]

what are credit cards:confused:
Ask your wife!!! LOL

[centerhill condor]

do yourself a favor and get out of the debt business.... credit scores only matter if you borrow. Pay cash and see these guys in the rearview!

[dmontzsta]

As far as the "charge the card each month and pay it off idea" again makes sense in concept, but... If I put $2000.00 a month a Visa card and pay it in full each month... when I get down to the Corvette store and GMAC runs my credit, the only thing they see is the balance on my card, they don't call Visa and say "how much does this guy put on this each month" if you have a zero balance on that card for 6 months, Visa will report a "1" (as paid on time) rather you use it or not, and that is what effects your score...what your creditors report using the card vs. not using your card does not change your score.....pay cash and screw the interest... there is my 2 cents.
That is why when I went to buy my truck, I paid the card and let them sit 30 days. I knew it was time to get something, so I kept the cards paid free and clear. I do this for the long haul, it shows I use them and pay them, big amounts, in full every month.

[HighRoller]

Man, you are a rocket scientist.
Wealthy people did not get wealthy by redeeming points- absolutely. It's the "average joe" that benefits, since the travel break will benefit wealthy people less on a percent-to-income ratio.
Next time I'll take some pics of me sipping a dozen (or so) Mai Tais on a beach...all for free, of course. The only difference is I used my platinum card instead of cash, and paid the bill off in full online (for free, of course).
That's fair. But the "average Joe" probably pays way more in interest charges on a revolving account than the trip is worth. Truth be known. the freebies are just a way for most people to rationalize charging stuff they can't afford or don't need. Hence the record earnings by CC companies. But if it works for you, go for it.
P.S. Just because you have a "Platinum Card" doesn't make you a rocket scientist. It just makes you a bigger target for the Credit Card sharks.

[HighRoller]

Yup, the universal default dealio. That's a nasty little trick that seems to have appeared in recent years, if you have older cards it might not apply. And to clarify, when we're talking about a late payment - we're not talking 30 days. Rather, only missing the due date, even by a day or so.
For example, you get a new card with 0% for a year. For whatever reason (especially if you pay online), your payment posts 2 days after the due date. Goodbye 0%, and any other cards held by the same issuer also get jacked up to the highest interest rate.
There are also different scoring, or "enhanced" models for whatever loan type you're applying for (auto, mortgage, LOC). The fact you might know your score doesn't mean it's accurate. If you have tier 1 credit, but an auto loan with a 30 day late, they're gonna nail ya hard if you go to buy a car. Fockers.
Universal default came about when the CC companies realized they had fully saturated the market and weren't going to see increased earnings from their product. So they turned to fees and penalties as a new revenue stream. Capital One, although reluctantly, finally admitted that 4 out of every 10 dollars they make in profits is in the form of late fees and overlimit charges. In other words, they have a vested interest in making sure you pay late and/or go over your limit. In the vernacular of the CC industry, a guy who pays his CC bill in full every month is known as a "deadbeat".
Also, several companies have run afoul of the Federal Trade commission when it was discovered they were playing dirty with the processing of payments. One company took an average of 12 business days to process its mail. Another company stated your payment had to be processed by noon on the due date. Their payment processing agents did not begin work until 12:30. And one company was even discovered to have a trash barrel full of payments from customers that that had been shredded.
IMO, the risk factor is just too high when you deal with these companies. They're like loan sharks these days. I've also found that a lot of small retailers will make you a real nice cash deal on stuff if you start waving hundred dollar bills in their face!

[SnoopJonnyJon]

I'm 24 and have never had a credit card, and have never been in debt. I've never missed a utility bill or rent cheque, so I really have no clue what my credit rating would be.
I agree with what Highroller said about cash deals. Whenever I need machining or body work done on a vehicle, the first thing I tell them is "cash, no receipts".

[Froggystyle]

I agree with what Highroller said about cash deals. Whenever I need machining or body work done on a vehicle, the first thing I tell them is "cash, no receipts".
Yeah, and then when it shits the bed in a month they ask you for the reciept...
No thanks. I use my credit cards to protect my purchases more than anything else. I have used the power of the agencies to my advantage multiple times when having problems with a store/shop and the credit card purchase protection is real, and they work hard on your/their behalf.
I don't carry cash anymore. It doesn't make any sense. Contrary to what Bradstreet may have said, I spend WAY more when cash is in my hand.

[EmpirE231]

If you know how to use them... they're awesome!!! :crossx: I haven't paid a penny in interest to credit cards since I had my first card!! and lets see... had plenty of free dinners, movies, and plane tickets to vegas on them... no cost to me :) balance always paid in full.... never late... taken advanatage of their 0% promotion rates, and kept my cash earning interest for me!
I'm 24 ... my credit score was a 780 when I bought my house. and when it came down to furnishing the house and doing some upgrades... I was going to pay cash... but left my money in the bank... making me money... and took advantage of all the o payments o interest stuff... nice!! cant go worng there! 0 interest on the best buy stuff I got for 36 months! no paymets or interest for a year and a half on my furniture... and 12 mos no interest or payments on home depot!! cant go wrong there... "Always better to use someone elses money" especially if they're letting you borrow it for free.... my $$$$$$$$ is still in the bank earning a decent risk free 5% in interest right now... and when those bills due dates come in...I just gotta cut a check :crossx:

[YeLLowBoaT]

I use my AMX to buy almost all of my materials.
I take the deposits I get from ppl and put them in a intrest eraning account. then just use that to pay the bill every month.
I very rarly use my personal cards for anything. I do use it on electronics since it automaticly doubles the warrenty. Other then that is cash or check only.

[My Man's Sportin' Wood]

Nope. The only Amex is the Corporate Card. I use a Citibank card. It sure was nice flying for free when we went to South Carolina. Saved about 1300 smackers.
We are flying to Key West for free over Christmas and New Years also thanks to Citicard. Saved $1400. Sure makes it easier to go on a trip when the hotel is the biggest expense. We can spend more on booze and shopping now :D

[lewiville]

I would have to see them first. Then I would have to use them and then get back to ya.
hope that helps