Credit Cards

[Tomstang]

DebtSucks, I see you are a very determined and optimistic person! I feel I need that as well. I have five boys that are absolutely awesome. I have a great neighborhood and home for them, but with that I have a difficult time getting away from the interest that haunts me from taking out these cards. Dont paint me as the guy who vacations and buys, "Things I want." Im not that guy.

I have heard of a guy who on Clark Howard who dug himself out of debt by continually transfering credit to accounts with no interest periods in the first year, etc. I would call that using the CC system as a tool to pay down my debt, just like you say, without paying interest. The biggest gamble is to ensure there is no extra curricular activity on those"Debt Cards" as I like to call them. I am thinking of getting one more card to split my two maxed out cards four ways, thereby getting away from maxed out stautus and having my score begin to lower because of it.

I was also thinking of paying off my two medical collections with that card, 500.00 total, and getting that cleared up.

Whats the concensus? Get another card with a no interest period and split it 4 ways or dont and keep the debt coming down slowly until May.

Last question. As far as scoring goes, is it too close to May to get another card, thereby hurting my score?

Thanx alot to all who replied, Debt Sucks ,I will check out that site because I am always trying to learn more.

[ctrob]

I would first suggest you ignore Debtsucks.  He only has a few posts on this board and is a shill for Dave Ramsey.  And Dave Ramsey wants your money, as much as he can get.    Nobody here wants to take your money.  DS saying to save, save, save, and to pay cash is is nice, but you don't need to pay Ramsey hundreds of dollars to tell you that.   ctRob says save, save, save your money and don't send it to Dave Ramsey

Just read up here as much as possible and apply it to your credit.  You'll do fine.  Like I said earlier, you should post some more details as to what exactly you have on your reports and your scores.  It will be easier for people to respond with some good advice. 

Any new cards you add are going to help your overall utilization.  Even if you don't do transfers. 

For example:

if you have one card maxed at 5000 - you have 100% utilization

If you add 3 more new cards with CL's of 2000 each.  Your overall avail credit is then $11,000 (5k + 2k + 2k+ 2k = $11,000) Now your overall utilization is 45%  ($5,000 maxed credit / $11,000 avail credit). 

Depending on your credit scores you may be able to avoid any annual fees.  You should still pay down as much as possible to get each cards util as best as possible, but at least the new cards are helping. 

Post your scores and any other CR details you want to share.  You'll get more advice. 

good luck

ctRob

Message Edited by ctrob on 08-15-2007 04:07 PM

[Tomstang]

Thanx ctrob. My scores are 687, 675, and 651. I keep forgetting to write that. I see where youre going with util. I can certainly get in on that. Do you think me getting another card or two is too close to my refi, as far as a negative effect by opening new credit?

[onmyway3161]

I would suggest a CU since they have low rates and give high credit limits. You can apply for one of their cards and a LOC at the same time. Use the card to do a balance transfer. Penfed pulls EQ only. Not sure which one of your scores are EQ.

[ctrob]

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Tomstang wrote:

Thanx ctrob. My scores are 687, 675, and 651. I keep forgetting to write that. I see where youre going with util. I can certainly get in on that. Do you think me getting another card or two is too close to my refi, as far as a negative effect by opening new credit?

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Not at all, you have plenty of time before a refi in may.  Any minor repairs you attempt which may ding your scores a few points now will certainly recover before may.  I recently got 3 new CC's and only lost a couple of points on two of my CR's.  Of course everybody gets a diff reaction depending on your specific CR's, but no, you have plenty of time. 

With those types of scores you should be able to land some pretty decent cards.  Another thing new cards will do, as long as you keep the new ones at a low util, is show the CRA's that you can have "avail credit" without having to use it.  This will help. 

A good place to research CC's is  WhoGaveMeCredit.Com      You can see who gives what cards for all types of scores, a free service.  Also the Home Page of MyFico, there is a link at the top for reviewing and applying for diff CC's.  You should be able to approve for a couple diff AMex cards. 

I would say with those scores you have plenty of time to be well into the 700's prior to May.  No BK's or Liens, correct? 

Keep Reading & Good Luck,

ctRob

[Tomstang]

My eq is 675, sorry but what is penfed?

[onmyway3161]

Pentagon Federal Credit Union. If you are not eligible you can join through an affiliate on their website. I recently joined and applied for an 8000 credit card and a 5000 PLOC and was instantly approved. You fill in the amount of credit you want. I only ask for 8000 and 5000. They do only one pull from EQ for 90 days. I was also pre-approved for a new auto loan for 35000 but turned that down since I am not going to be buying another car until 2008. My EQ score was 714 with no baddies. I had my card in 7 days and the PLOC in 4 days.

[ctrob]

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onmyway3161 wrote:

Pentagon Federal Credit Union. If you are not eligible you can join through an affiliate on their website. I recently joined and applied for an 8000 credit card and a 5000 PLOC and was instantly approved. You fill in the amount of credit you want. I only ask for 8000 and 5000. They do only one pull from EQ for 90 days. I was also pre-approved for a new auto loan for 35000 but turned that down since I am not going to be buying another car until 2008. My EQ score was 714 with no baddies. I had my card in 7 days and the PLOC in 4 days.

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Cool, I like CU's as well.  Easy to deal with most of the time....

[Tomstang]

Thanx to all for the help, I got accepted for 10k at my employers credit union for a Mastercard. I will put no more than 10% on it and hide it from myself! 7.92% No bt fees!