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Established Member
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Registered: ‎07-29-2007
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US Bank Credit Card...

[ Edited ]
Hello, this is my first time posting here I've been lurking here for awhile. My situation is that I currently have two credit cards with BoA, a student visa platinum card with 1000 (19% interest) limit given to me before I even had a job when I was 18, and another BoA (12% interest) World points ( card given to me a year later with 1200 limit.


I'm 19 now and I've been using my world points for every purchases I make since for a year now, since I rarely keep cash on me and I PIF every month, no lates. For some reason ever since I started using my credit card to make all my purchases I've receive several credit card offers, it started off one or two credit card offers a week and to several offers sent to me per day haha.


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.


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?


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. What what do you think? Should I apply for more credit? I've tried requesting a CL increase with BoA but they say they won't do it because my income doesn't qualify for a bigger CL, which is stupid because having high income doesn't mean they're more responsible with credit...


My Eq score is about 723, don't know about my other scores.

Message Edited by mataspeed on 11-09-2007 11:50 PM

Message Edited by mataspeed on 11-09-2007 11:58 PM
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Registered: ‎05-14-2007
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Re: US Bank Credit Card...

Ask the current cc's to increase your cl. then do not use cards for one month after pif. So know util will show. After that apply for it. Make odds in your favor
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Re: US Bank Credit Card...

mataspeed ... can I talk to your parents?!? :smileywink:
 
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.  :smileysurprised: 
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Re: US Bank Credit Card...


mataspeed wrote:

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.
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.

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?
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.

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.
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.

I think you're on the right track! Nice work.
* 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
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Re: US Bank Credit Card...



denbar2003 wrote:
mataspeed ... can I talk to your parents?!? :smileywink:
 
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.  :smileysurprised: 


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.
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Re: US Bank Credit Card...

Oh yes, and after you get a CLI or another card try to get it under 10%. You can always pay ahead of time too.
 
RE: your points- call your CC co and ask how the points work.
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Registered: ‎07-29-2007
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Re: US Bank Credit Card...

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". :/
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Re: US Bank Credit Card...


mataspeed wrote:
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". :/

That's what moms are for! You've adopted some back-up moms on these forums, I think. :smileywink:
* 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
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Re: US Bank Credit Card...



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?   :smileysurprised: 
 
Keep an eye on the balance between "wants" and "needs" and you will do well. :smileyhappy:
 
 
 

 
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Registered: ‎09-26-2007
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Re: US Bank Credit Card...



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? :smileysurprised:
Keep an eye on the balance between "wants" and "needs" and you will do well. :smileyhappy:






"Rich Dad, Poor Dad" by Robert Kiyosaki is another fun read.
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