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Anybody use Capital One? (pg. 2)
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| zoogla |
| quote: | Originally posted by geroin
this is why you do a balance transfer on an account that has 0 balance and the only thing you will be paying off is the low interest rate. for example if your balance transfer is around 9grand at around 1.9% balance transfer offer your interest charges per month will be around 20 bucks, that really ing good if you ask me. If you need to make purchases use another credit card and accumulate miles (points) on it ;) |
Bingo and
| quote: | Originally posted by Atho
Does it bother you lowering your credit score by constantly openeing and closing retail cc's accounts? |
bingo! |
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| yankeeBaby |
Capitalone has been fine for me, but I know my mother got a random (large) increase in her interest rate thi summer. She was really pissed about it.
Ok, fahad master, I am seriously concerned because I had a CC during grad school and racked up $5G on it :( Worried my credit is gonna blow, and I seriously need to own an apt in the city soon because paying rent my whole life here is just not gonna fly. Any tips on how to handle this best? lol ;) (ie: is it better to pay off a huge chunk when I CAN or monthly lower payments, etc......essentially need advice on keeping my credit decent :( ) |
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| exstasie |
AMEX for the Win :D
They gave me a charge card, ie. No maximum! :D
I love this thing! |
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| exstasie |
| quote: | Originally posted by devnull
Dont worry, I know how it works.
I have 1 cc for my day to day stuff. The rest, i get for free rides.
Home Depot 1yr no interest...then move off and cancel card
Leons - 2 years equal pmt, no interest.....cancel after
Staples - 1 yr no pmt no interest....move off after and cancel
LOC is already on 1.9% BT rate.
My home depot free ride is almost over, so im looking for a BT to extend the free ride and also consolidate my LOC that are at 7%...then after 9month...i bring it back to the LOC
Banks/CC companies dont make much money off me. I know the process...i work for a bank :)
cant scam the scammer hihih |
except that you're only hurting your own credit score! |
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| patpicos |
| quote: | Originally posted by Atho
Does it bother you lowering your credit score by constantly openeing and closing retail cc's accounts? |
My credit score is in quite good shape. Ive been paying my major CC in full every month since i had it (almost 5 years now) and the avg monthly bill is $700-$1000. So that built my credit pretty good.
I dont have any major expense to do in the next 5 years anyways. I already have my mortgage..
The reason I opened so many lately is because I reno'ed my entire basement, got new furniture and got a new car....so with 23K left in debt from these expenses....i sure want to get as many free rides I can so I can pay it off faster. and hopefully in 1.5-2 years ill be all paid off. At that point ill be closing all uneeded credit and keep 1 CC for purchases and 1 LOC for offloads/bigger purchases. |
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| patpicos |
| quote: | Originally posted by exstasie
except that you're only hurting your own credit score! |
only to an extent. At least i know to close CC's and stuff and not let them open forever once i dont use them. |
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| zoogla |
| quote: | Originally posted by devnull
only to an extent. At least i know to close CC's and stuff and not let them open forever once i dont use them. |
That's smart, but the problem as pointed out by Atho is that every time you open a new account, there is a credit inquiry done, and each inquiry is tracked on your history for 12 months (then it comes off). So within a 12-month period you want to keep those hits to a minimum (I believe anything less than 6 is acceptable but I prefer to keep it to 1 or 0, until I get my first mortgage).
Kellster, you don't have to worry about making full balance payments; just make sure of the following:
1. All your payments are up to date and none of your payments should have been overdue for greater than 30 days on any of your credit accounts for the past 2 years.
2. No credit inquiries were made on your profile for a period of 12 months.
3. You minimize all your available credit limits for your cards and close any cards you hardly use. e.g. if you have a limit of $5,000 but you only every use $2,000 max then lower that limit. Having high authorized limits send out a red flag, used or not.
4. When you negotiate for the mortgage, make sure you let the bank know that you will consolidate all your other debt and cancel those accounts, so as to minimize your authorized limits as much as possible. Of course, if you have points with certain accounts, you'll want to keep those accounts open, which banks will understand, but reduce those credit card limits if you can (e.g. $2,000, as mentioned earlier).
5. AND STOP SPENDING ALL THAT MONEY, YOU SUGAR MOMMA!!!! lol
:p <3 u |
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| patpicos |
One funny thing I noticed after getting my mortgage. I started getting offers left and right by all those vulture CC companies!
its like it unleashed them on me. I dont mind the paper offers, but gosh do I ever get annoyed by the phone offers! |
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| geroin |
| quote: | Originally posted by fayraree
That's smart, but the problem as pointed out by Atho is that every time you open a new account, there is a credit inquiry done, and each inquiry is tracked on your history for 12 months (then it comes off). So within a 12-month period you want to keep those hits to a minimum (I believe anything less than 6 is acceptable but I prefer to keep it to 1 or 0, until I get my first mortgage).
Kellster, you don't have to worry about making full balance payments; just make sure of the following:
1. All your payments are up to date and none of your payments should have been overdue for greater than 30 days on any of your credit accounts for the past 2 years.
2. No credit inquiries were made on your profile for a period of 12 months.
3. You minimize all your available credit limits for your cards and close any cards you hardly use. e.g. if you have a limit of $5,000 but you only every use $2,000 max then lower that limit. Having high authorized limits send out a red flag, used or not.
4. When you negotiate for the mortgage, make sure you let the bank know that you will consolidate all your other debt and cancel those accounts, so as to minimize your authorized limits as much as possible. Of course, if you have points with certain accounts, you'll want to keep those accounts open, which banks will understand, but reduce those credit card limits if you can (e.g. $2,000, as mentioned earlier).
5. AND STOP SPENDING ALL THAT MONEY, YOU SUGAR MOMMA!!!! lol
:p <3 u |
exactly, i believe every time you ask for a credit limit increase or for another credit card it's called a "hard hit" to your credit score, so it basically lowers your score because you are somewhat looking for more money to spend and when the cc company gives you an automatic increase it's a "soft hit" because you didn't ask for it so it doesn't affect your score.
btw for people that make a payment a few days late, i used to do that and i didn't know how damaging that is to your score (like fahad said, not as bad if it's below 30days mark, after its over 30 days collections get involved and your credit goes to ) if you use your cc make sure you pay of as much as you can from your balance every month. |
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| yankeeBaby |
| quote: | Originally posted by fayraree
Kellster, you don't have to worry about making full balance payments; just make sure of the following:
1. All your payments are up to date and none of your payments should have been overdue for greater than 30 days on any of your credit accounts for the past 2 years.
2. No credit inquiries were made on your profile for a period of 12 months.
3. You minimize all your available credit limits for your cards and close any cards you hardly use. e.g. if you have a limit of $5,000 but you only every use $2,000 max then lower that limit. Having high authorized limits send out a red flag, used or not.
4. When you negotiate for the mortgage, make sure you let the bank know that you will consolidate all your other debt and cancel those accounts, so as to minimize your authorized limits as much as possible. Of course, if you have points with certain accounts, you'll want to keep those accounts open, which banks will understand, but reduce those credit card limits if you can (e.g. $2,000, as mentioned earlier).
5. AND STOP SPENDING ALL THAT MONEY, YOU SUGAR MOMMA!!!! lol
:p <3 u |
haha suga mama my ASS!!! haha the only reason why I even have all this CC debt is because we had to move out of our rent controlled apartment, and I went from paying $750 a month to $1500. When I was in school I only had a PT job and had to start making some of my monthly bills (ie: gym, phone, etc) on my card because I wasnt making enough to pay both my rent and all these bills :(
thanks for the advice hunny!! (btw my payments are NEVER late and I only have one card......are you saying that once I pay it off a little I should lower the limit??) :)
anyways, I just really wanna make sure my credit isnt ASS by the time I try to own an apartment in a few years :( :( <3<3 |
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| zoogla |
| quote: | Originally posted by yankeeBaby
are you saying that once I pay it off a little I should lower the limit??) :) |
Awww hunny, I think you're fine, based on the fact that you only have 1 card and that you don't miss payments. You have nothing to worry about. But yeah, if your credit limit is, for e.g. $20,000 and you pay it down to $5,000 by the time you're ready for a mortgage, you have 2 options:
1. If the interest rate on the card is less than what a bank can offer for a line of credit, reduce the limit to say, $7,000 to allow the $5,000 balance remaining plus a couple of thou for monthly purchases (which should be paid down in full). This doesn't make that much sense to me because I think you might be making monthly purchases and not paying them in full, and only paying minimum payments. If that's the case, you must be paying a crazy interest rate and you should get a line of credit from a bank RIGHT NOW to reduce your interest rate, to say, 6% vs. 20+%. We should talk about that off-line.
2. If the interest rate from the bank is lower than your CC (which is the case 9 times out of 10) then you should have the bank pay off the CC balance (as suggested above) and reduce the limit to $2,000 for monthly purchases which should always be paid off in full (as you'll have a lower-interest LOC for longer-term debt).
And I guess this means you won't be coming to T.O. anytime soon :( so I should get my ass to NYC :) |
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| patpicos |
| quote: | Originally posted by geroin
btw for people that make a payment a few days late, i used to do that and i didn't know how damaging that is to your score (like fahad said, not as bad if it's below 30days mark, after its over 30 days collections get involved and your credit goes to ) if you use your cc make sure you pay of as much as you can from your balance every month. |
some companies only report late payments once you get to 2 months late (well i only know 1 company that does it !) |
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