Reply
Contributor
jdp2134
Posts: 87
Registered: ‎07-23-2009
0

Using your CL

[ Edited ]

For good discussion purposes.

 

 

Me personally after i qualify for my dream house (years down the road im young) i will no longer play the fico point game so hardcore, but also not saying im going to cause myself to be in ridiculous amounts of debt and lose everything ive worked hard for. 

 

We work so hard for big CL that we should use them every once in a while. 

 

We dont kno what lenders think obviously but what would be a rule of thumb you guys play by if you didnt play by the FICO point system because you dont have to anymore but made sure you didnt recieve any AA becasue of it?

 

 

Using a chunk of a CL and making sure its paid of in 6 months? 12 months?

 

Making sure you have the 2 cards you use the most and their equivalent CL locked in savings so you can use those cards but if something drastic happend you could easily pay them off?

 

What ways can you guys come up with? And what advice would you offer someone like me that is in this boat now?

 

Message Edited by jdp2134 on 09-05-2009 11:41 PM
Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007
0

Re: Using your CL

I'm not sure what boat you think you are in.

 

Anyway, nothing is likely to change in terms of CC management.

 

Always PIF.  Do not revolve a balance unless it is for an emergency.

 

If you want to make a major purchase, look for a store card that is 0% for a fixed term and PIF before the term date.

 

If you decide to revolve a balance, unless it is an emergency and you dont have an emergency fund, 12 months is probably the maximum time I would go.  3 to 6 months would be better.  Do not use the card again till its PIF.

 

In terms of CC debt, you are either in or out, the amount doesn't matter.  When you apply for your mortgage, showing no CC debt is the best way to go.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Using your CL

OP why would you put yourself into debt just because you have the available credit to do so? Why not just save your money?
Established Contributor
Posts: 742
Registered: ‎12-19-2008
0

Re: Using your CL

[ Edited ]

jdp2134 wrote:

For good discussion purposes.

 

 

Me personally after i qualify for my dream house (years down the road im young) i will no longer play the fico point game so hardcore, but also not saying im going to cause myself to be in ridiculous amounts of debt and lose everything ive worked hard for. 

 

We work so hard for big CL that we should use them every once in a while. 

 

We dont kno what lenders think obviously but what would be a rule of thumb you guys play by if you didnt play by the FICO point system because you dont have to anymore but made sure you didnt recieve any AA becasue of it?

 

 

Using a chunk of a CL and making sure its paid of in 6 months? 12 months?

 

Making sure you have the 2 cards you use the most and their equivalent CL locked in savings so you can use those cards but if something drastic happend you could easily pay them off?

 

What ways can you guys come up with? And what advice would you offer someone like me that is in this boat now?

 

Message Edited by jdp2134 on 09-05-2009 11:41 PM

Using a large portion of your CL and PIF before the statement cuts will accomplish three things I can immediately think of. One, you will not pay interest. Two, your highest reported balance to the CBRs will appear high in comparison to your CL, thereby showing the CCC more financial strength than if you paid off the same balance in 6 or 12 months. Three, the usage will not adversely affect your FICO score.

 

If you will pay interest on a CC and have the funds not to, there is no need to carry a large balance on any CC, unless you have other financial goals not met (i.e. savings) in which case the charge should not be made except for an emergency. IMHO

 

 

Message Edited by plasticman on 09-06-2009 07:57 AM
Message Edited by plasticman on 09-06-2009 07:59 AM
Established Contributor
Posts: 742
Registered: ‎12-19-2008
0

Re: Using your CL


marty56 wrote:

I'm not sure what boat you think you are in.

 

Anyway, nothing is likely to change in terms of CC management.

 

Always PIF.  Do not revolve a balance unless it is for an emergency.

 

If you want to make a major purchase, look for a store card that is 0% for a fixed term and PIF before the term date.

 

If you decide to revolve a balance, unless it is an emergency and you dont have an emergency fund, 12 months is probably the maximum time I would go.  3 to 6 months would be better.  Do not use the card again till its PIF.

 

In terms of CC debt, you are either in or out, the amount doesn't matter.  When you apply for your mortgage, showing no CC debt is the best way to go.


+1

 

The highlighted part of this post is particularly important with respect to your goals. IMO

Established Contributor
jackg
Posts: 558
Registered: ‎04-26-2007
0

Re: Using your CL

DEBT is the devil
FICO scores on 07/31/14:
EX=730
EQ=716
TU=740
Contributor
jdp2134
Posts: 87
Registered: ‎07-23-2009
0

Re: Using your CL

[ Edited ]

im not in any boat (gardening credit i guess could be a boat).

 

And we all know its not good to use/apply for credit during underwriting.

 

The point is ( which maybe some of you missed) is why get a 20k+ CL when you will never ever use even close to that? Whats the point? Esp. after you have high scores (760+) and are in a mortgage.

 

You could get something you want have a plan to pay it off in 6 or 12 months or whatever while having your money work somewhere else for you for the time being. Obviously in a emger. it doesnt really matter at the time your just worried about what is happening now and fixing it.

 

No need for high CL to keep util down if your not even worried about util since you are PIF before statement cuts anyway. So whats the point?

 

If thats the case why not cut your CC down to your 2 fav and a store card and be done with it? But most of us wont and will keep 5+ cards at any given time making sure they are all active so no AA happends.

 

All im saying is why get high CL if you wont use them and are not obviously worried about util since you PIF anyway.

Message Edited by jdp2134 on 09-06-2009 02:09 PM
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

Re: Using your CL


jdp2134 wrote:

im not in any boat (gardening credit i guess could be a boat).

 

And as i stated in my post it says AFTER you got a mortgage as we all know its not good to use/apply for credit during underwriting.

 

The point is ( which maybe some of you missed) is why get a 20k+ CL when you will never ever use even close to that? Whats the point? Esp. after you have high scores (760+) and are in a mortgage.

 

You could get something you want have a plan to pay it off in 6 or 12 months or w/e while having your money work somewhere else for you for the time being. Obviously in a emger. it doesnt really matter at the time your just worried about what is happening now and fixing it.

 

No need for high CL to keep util down if your not even worried about util if you are PIF before statement cuts anyway. So whats the point?


 

I think that when I no longer need a high FICO for personal mortgages, financing of any type, etc. that I will likely still try to maintain a good score, and having decent CLs can impact that score. We PIF before statement cut and hopefully will be able to maintain that practice, so I may never have a need for those credit lines. Can't see that it hurts to have them.

 

FICO scores make a difference in what we are charged for car insurance, for example. What if I decided to help a grandchild out in college? If I signed for a school loan, for example, I'd like to see it at the best rates. Right now, CLs are one tool in the FICO toolbox.

 

Hopefully I won't have a need for a high FICO someday soon...but, if I do...I want it to be ready for me.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Using your CL

Do you actually think that if you go in somewhere, make a $5K purchase on your CC and PIF before the statement hits that you are not using your CL? Or are you of the impression that it only "counts" if you revolve a balance for one or more months.

 

Personally I both PIF and revolve balances, whatever suits my needs best at the time. I also have all but $500 of what I revolve at ARP's <= 2.99%. I also play the "FICO game" pretty hard. It is in my best interest to do so. I don't like AA and I do like lower APR's. Keeping my CL's topped off helps make that happen.

Contributor
jdp2134
Posts: 87
Registered: ‎07-23-2009
0

Re: Using your CL

[ Edited ]

what is the point of making a 5k purchase on a CC if your going to just PIF anyway? Mine as well just pay the 5k at time of sale. That to me isnt using your CL at all since your PIF anyway. Using your CL to me is making a big purchase and having a plan to pay it off in 6 or 12 months or whatever and having your money work somehwere else for the time being.

 

Dont get me wrong here people im not saying that i wont continue to play the game for years to come im just playing devils advocate.

 

If you know you are going to be helpin a kid out with loans or whatever you already know how to play the "game"  to get your scroe where it needs to be but why continue to play it so religiously after you have mortgages,cars, etc.?

Message Edited by jdp2134 on 09-06-2009 09:05 PM

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}