Taking advantage of credit card opertunities?

faster100

I have a providian that gives free fico score updates... a chart. mine was 640 until recently dropped all the sudden.. what could cause that? No unpaid cards or debt that is current.. only medical/ER bills..

BlueMDPicker

faster100 wrote:

That's outstanding Blue, although i'll assume you have had many years to get to that point and great self control

we are working on it, but this day and age its hard for the mid to lower income family to be debt free and on top. even with self control which we sometimes lack.. I can admit it

Yeah, Cliff, Ive been at it for awhile. I had two "training aids" when I first got into the credit market. I banked with a credit union and my first card was AMEX.

The credit union had share secured loans. Basically, you're borrowing your own money, or a percentage of it, at a much better rate than normal loans. In the worse case scanerio, your money (shares) could instantly pay in full a 100% share secured loan, or be used for monthly payments. I've used that philosopy since: if I don't have it, I don't borrow it. Then why borrow at all? Flexibility for contingencies.

The AMEX card didn't allow carry-over debt. I just came to consider all cards the same way (my wife thinks I'm nuts -- which I am.)

I agree wholeheartedly that it's very tough these days for young singles or families. The rule of thumb, with respect to housing, used to be payment = 25% of monthly income, mortgage limit 2.5 times annual salary. In this whacked housing market, I don't see how families with two good incomes can afford a house -- let alone the day-to-day necessities. Sadly, credit card debt digs a deeper hole than they started with for many. But, I do understand the pressures and please don't think I'm insensitive to it. Take care!

shack

BlueMDPicker wrote:

I haven't borrowed money in many years, and recently decided to open a home equity line of credit with an eye on using it for house related inevitabilities (roof, driveway, etc) versus savings. I have two credit cards with limits of $15K and $20K respectively -- neither has ever had a month-to-month balance. I have no outstanding debt, save my home mortgage. I've always considered my credit rating to be "perfect".

As part of the application, the bank sent me the credit score they used. They use the FICO score, and the FICO score uses a scale from 300 to 850 where 661 or 681 is very good. Mine was 828.

When I went to closing on the line of credit, I asked the bank (out of curiosity) why my score was 828? They said the only reason it wasn't "perfect" was the potential for indebtedness with the two credit cards! I received the best rate they offer on the line of credit, but I had honestly never thought about just having two cards in my pocket being a "bad thing".

This outlines much what I was referring to earlier. FICO credit scores above 800 are extemely good. We consider anything above 650 to be "acceptable", 600-649 "possible" and below 600 we don't want to touch at all. (we do but there are extenuating reasons).

A 828 is one of the better scores I have seen. You should be commended for that. A "perfect" score is literally unatainable, but you have demonstrated what would be the ideal to shoot for to attain a high score. A long history of no derogatory information, paid out accounts, very few inquiries, low or no existing installment/term balances and low availability of existing credit(credit cards, lines of credit).

madmax

dorokusai wrote:

I think you are doing way more than most. We also check our credit at least once a year, it's free anyways...isn't Maryland great

Yes, Maryland is great in a lot of ways! A few years ago I got to thinking with the internet and all the identity thefts that having one of those services where you could check any time you like would be a good thing. I canceled it after a few months because I heard that each time you check it a mark was put against you merely because your credit was checked. I never did figure out if that is true or not.
madmax

cfrizz

Managing CC debt is quite easy.

If you don't have it in the bank to pay it off all at one time + extra, DON'T BUY IT!

Demiurge

cfrizz wrote:

Managing CC debt is quite easy.

If you don't have it in the bank to pay it off all at one time + extra, DON'T BUY IT!

nope, nope...makes way too much sense.

BIZILL

Quit Picking On Me....

brettw22

An inquiry is not docked against you if it's your financial institution doing so (which they typically do on a month to month basis). When you're looking to have a bunch of new cards running your bureau is where the hits start docking.

The credit score that you will see from either Trans Union, Equifax, or Experian is a number that each of them individually come up with and is not a standardized method. HERE is a good site to check what your actual FICO score is.

Just like when you go and buy a house, they look at a Debt/Income ratio. Credit cards take it a step further and go with a Income/POTENTIAL debt ratio, meaning that just because you only have $200 on your card, the remaining available $19,800 is a big risk in their eyes because, as has been mentioned, you could go tomorrow and become that indebted.

At the same time, be careful of how you lower your limits if your fear is having too much avaiable credit. Let's say you have a 10k limit with a 5k balance....if you lowered your credit line to 5k, that makes it look worse to banks because it tells them that you charge to the limit. Decrease the limits incrementally with your shrinking balances and that should keep your ratios in check.

MacLeod

....

BIZILL

i was wondering when mac was gonna reply to that...i think doro just read that too rapidly.

faster100

Nah, it's called if you don't do as good as someone else your a jackass who doesn't know jack... No couth around here,

dorokusai

Mac - Take a break man, I was asking for clarification. The rest of the comment is generalized and not directed at you personally. I will amend the post as to make that clear. You voluntarily posted personal information about your previous cerdit issues and subsequent solution. My comments are questioning why it all happened in the first place. If you didn't expect a response, why post?

Faster100 - You're bar none the most worthless member of this place. How's that for uncouth?

faster100

edited now brett

MacLeod

dorokusai wrote:

Mac - Take a break man, I was asking for clarification. The rest of the comment is generalized and not directed at you personally. I will amend the post as to make that clear.

Fair enough.

Filing is not something Im proud of doing and consider it a pretty big failure in my life so Im a little sensitive to being lectured about it.

If I misinterpreted your post, my bad.

dorokusai

Faster100 - I'm positive that won't be happening, although it is certainly physically possible for him to crush me like a grape.

Macleod - I apologize if my post offended you as it wasn't the intention at all. You have learned from all that and moved on, something alot of people don't realize is possible.

faster100

Mac, don't apologize... He ripped on ya for being less fortunate and not in his financial bracket.. anyone less then people like that are dirt to them.. I say eff him and anyone else with their judgemental ways and blinded way of thinking...

faster100

dorokusai wrote:

Faster100 - I'm positive that won't be happening.

Macleod - I apologize if my post offended you as it wasn't the intention at all. You have learned from all that and moved on, something alot of people don't realize is possible.

Yeah because ya just kissed his **** and apologized..

dorokusai

Of course I apologized as his reaction to what I said was not what I had intended.

faster100

Ah blah blah blah, what kind of reaction would you expect after what you said?

Hey thanks for pointing out i'm a loser who filed chapter 13 and couldnt "realize" my stupidity Nice

dorokusai

It has nothing to do with being less fortunate and you're adding misleading interpretations to the original post. I didn't figure out financial responsibility until I was financially burdened....sometimes it takes getting screwed to realize you have options.

faster100

Hey, your the one who likes to rip then think about it.. I entered this thread for help and knowledge.. and lost all interest in the topic after it turned like it did.. Like if i offer personal info i'll be ripped on also.. Screw that,

MacLeod

Faster - Thanks for having my back bro!

Still, no need to start bad blood where none need be. If Mark says I took his statement the wrong way, I take him at his word.

faster100

No problem,

I never really had a problem with mark until he started his new way of acting around here..

I'm pretty sure after this comment,
"but...isn't it you're fault, correct me if I'm wrong? Or are you trying to pass the buck on your own negligence of financial responsibility and knowledge? "







you read it just how it was meant

Not to mention, although im controversal around here, The MOST WORTHLESS MEMBER HERE" That just blows me away..

MacLeod

On second thought, posting that information may have not been the best idea anyway. Time for some editing.

dorokusai

I typed that because it's exactly how I feel about the issue. Mac stated that he had problems and got in over his head, hence the end result. He got in over his head due to circumstances beyond his control, but the original problem was of his own design when it comes to the credit cards. I'm sorry that's my opinion, and sorry if it hurts, but he overcame that situation and moved on. I'm also sure he's more knowledgeable about things NOW then when he was not entirely in control of what was going on. Who hasn't been in that situation before? I have and never stated that I wasn't, just what my current status entailed.

Faster100 - You can continue to start the fire but I'm unaffected.

faster100

I am not starting a fire, be civil and i will... being you been there and know now, how about some help, insider knowledge, NOt a mental beating for **** up. Look im no saint with CC debt and have little to no available credit.. But i'm trying and never pay late regardless.. and calling me the most worthless member really tells tales on your character.. everyone knows i have a hot internet head when provoked, and know my buttons by now and as troy admitted,. I like to see cliff fired up" So you and others follow suit.. I'm a cool and quiet person "in person" So keep up with the theme its fine.. I'm used to it

faster100

edited brett

dorokusai

Faster100 - If it tells about my character than I'll have to deal with that. I really don't even pay attention to you and don't go out of my way to push any of your buttons normally. You seemed to want to get involved, and state something, while fairly accurate, isn't accurate in regards to my normal conduct here. So I threw a bone your way, shite happens.

I edited because I thought it might be too harsh but it doesn't matter anymore.

I hope hundreds of folks PM you, as I am as usual, unaffected.

faster100

I don't care, it pisses you guys off (you know who "you guys are") when i step in and defend and speak my mind... what ever mark, i'm moving on.. for now

dorokusai

You give yourself way too much credit. Goodbye, good luck.