11-09-2007 11:47 PM - edited 11-09-2007 11:58 PM
11-10-2007 04:32 AM
11-10-2007 06:44 AM
Call your CCC's and ask what date they report on. Many, but not all, report on the statement date. Check your balance online 5 days before they report and pay down to under 10% or, even better, under 5%. PIF after they post.
Anyways to the point, one caught my eye the US bank rewards visa platinum with double the rewards points for a year and %9.99 fixed interest. Now the thing that usually drops my credit score down is my utilization rate because my total revolving credit is 2200 and even though I PIF each month it still shows that I have a balance on my credit report sometimes because I use about 300-400ish of credit per month and they report that amount and my ratio jumps to using 18% of my credit which lowers my score.
I think it would be a good idea to get one more card at this point. Ask for $5K and see what they say. If you don't get it, you can use the tactic above. In general, I think it is prudent to have 2 or 3 cards from different companies, in case you wind up on one creditor's fecal chart for some reason, or they get bought out and change everything. If you have 3 very good cards by the time you graduate with perfect history, you will be in a strong position for car loan, apartment lease, etc.
So should I apply for a new credit card to have a higher revolving credit so my utilization ratio won't be so high even though I use so little? I would need about 5000 revolving credit to keep my ratio below 10% and not have my score drop every time the reporting agency reports me with a balance right?
The rewards points should come from the total amount that you charge each month, not what is posted on your statement at the end. In other words, you could just melt down the plastic daily, pay it mostly off weekly, and win both ways. That's how my rewards card works. Absolutely, though, I would call them and explain that you want both maximum rewards points and minimum utilization showing on your reports. If the first CSR you talk to is baffled (this is entirely possible!), ask him/her to let you speak to a supervisor, until you find someone who understands what you are asking and can give you clear answers. In a perfect world, you could figure this out from the microscopic print on the terms and conditions statement, but this usually doesn't come until after you get the card.
Also I read that I can just pay my balance down every time I use above 150ish credit so they won't ever report me with having a high utilization ratio. But I'm not sure if I'll still get the reward points if I pay my balance down before they can tally up the statement at the end of the month and plus it'll be a hassle to pay my balance down every time I go above a hundred.
11-10-2007 08:29 AM
denbar2003 wrote:mataspeed ... can I talk to your parents?!?I want to know how they accomplished raising such a financially responsible and aware young adult. Two out of three of my kids seem to "get it" ... but the other one doesn't. I want to know where I went wrong.DH and I have no little mini me's- wish we did- posted somewhere else maybe Santa will bring us good news around Christmas...But yes, I agree w/ Denbar- you sound so bright and very responsible financially! Keep up on the route you are going w/ and you will be above 720 for good if you do what you are doing now.
11-10-2007 08:43 AM
11-10-2007 09:21 AM
That's what moms are for! You've adopted some back-up moms on these forums, I think.
Thank you for the replies.
I'll give my credit card company a call and see what results I get. If they still won't increase my CL I guess another card wouldn't hurt.
Thanks for the compliments, I've always been interested in finances and plan to major in that area for college.
And my mom still nags me every time I spend money on anything other than "necessities". :/
11-10-2007 09:50 AM
mataspeed wrote:And my mom still nags me every time I spend money on anything other than "necessities". :/
11-11-2007 03:46 AM
denbar2003 wrote:mataspeed wrote:And my mom still nags me every time I spend money on anything other than "necessities". :/A good mom she is! Read "The Millionaire Next Door" yet?Keep an eye on the balance between "wants" and "needs" and you will do well.
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