I just recieved my Hooters card $1,000. CL w/24.7% rate..ouch! But since it is one the two CC I just got after BK in 4/2002I guess I should be thankful.
Anybody have any thoughs on how I should use this card. Does this high interest rate effect my credit ? Should I dump it as soon as I get a better offer? I'm planning on joining JFCU, I already became a member of NSA. and am Joining the JFCU, I will wait 6 Months then apply for their CC.
(08/15/07) TU 643, EQ 660, EX653 (11/16/07) TU 643, EQ 685, EX653 (01/05/08) TU 660,EQ 660, EX685
The best way to use this card, or any rebuilding card, is to use it a lot and pay it down/ off at least twice a month. Find out when they report your balance to the credit bureaus, and make sure that at that time, there is $90 or less owing on it. After it posts, pay it off so that you don't have any finance charges.
It's a bit of a juggle, keeping the amount reported to the bureaus under 10%, but also using the card enough to make the issuer happy. It's fun when we're all being cynical to say that CCC's make their money by charging you interest and late fees (and they do!) But they also make money via transaction fees every time you use your card, so they like it when you use the card a lot.
Hooters has such a short track record that I don't think that anyone really knows yet what they'll be like in terms of CLI's, APR reductions and so forth. So do your part by being a good customer from their point of view, and that should help your chances in it becoming a better card for you!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit? FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007