03-19-2010 04:45 PM
So I just signed up for Bill Me Later. Partially because it was offering $10.00 off my purchase, and partially because I'm interested in building up my credit history. I did a LITTLE reading before I opted in to make sure it wasn't a scam and that it didn't have any fees, and then I said "Whatever," and signed up.
Then I did MORE reading and found out that it only has the potential to hurt your credit rating and has absolutely no potential to help your credit rating.
I'm pretty uninformed on the whole credit thing anyway, so any info will help. I'm just wondering if I should cancel my Bill Me Later account. Since Bill Me Later doesn't really report like most credit accounts, will it hurt me to cancel it? If so, for how long and how badly? I'm not too concerned with short term credit dings since I don't foresee actually needing significant credit for quite a few years. I'm pretty young and still in school.
If I do cancel it, should I wait for a while? And if so, how long?
I guess it's not really a big deal either way, it probably won't hurt me much if at all, but I'm just kind of trying to learn about all of this, and it's not exactly easy. I'm also worried that my credit is taking a lot of small dings. I don't have a very long credit history, just a smallish ($5,000-$6,000) car loan that I paid off quite quickly, and then student loans which are currently deferred. There might be one or two other little things, but I don't think so. Most of my bills have been either in my roommate's names or my parents' names. I also applied for a credit card recently (Again, mostly just to build credit) and was denied for insufficient income. I guess I should have forseen that since I'm in school and basically living off savings and student loans with part time temp work only occasionally.
Any tips are appreciated!
03-20-2010 01:13 AM
Welcome to the forums,
Sorry but I don't know anything about Bill my later accounts.
But I can tell you in order for something to hurt your (CS)credit score, 1st it would have to be
reporting on your (CR)credit report, and 2nd what hurts a CS is like not paying on a account,making
late payments or having an account be sent to a (CA) collection agency.
Also there are other things that also hurts a CS.
Wow, you have came to the right place, if you are wanting to know all about FICO scores
and credit reporting.Learning all of this does take time, but as young as you are it will be
well worth it. You may just will save yourself years of heartache and of course money.
Having a high CS means you will be able to get a lower interest rate,like for a auto or a home loan.
Now a days, a persons CS will determine whether or not they can rent, get a mortgage or a job.
Car insurance companies also use CS's
Do you know whats on your CR's?
By law, you can pull your Free CR's every 12mos, from each of the 3 CRA's.
Go to annualcreditreport.com or you may use the link below.
Do you know your FICO score? Be careful where you buy CS's,because there are only a few places
to buy a FICO score. You can buy a TU & EQ FICO scores with CR's here.
You can find info about FICO scores and Credit stuff under the blue tap,at the top Education.
I would suggest reading Credit Scoring 101,only have to read the 1st post.
also check out the common abrev , so you can understand what we are talking about.
Have a good time reading Maybe others will chime in soon about your other questions.
03-20-2010 04:16 AM
Bill Me Later is a per-purchase account so you can't cancel it. It does not report on your CR and they do an INQ for each purchase. It won't do anything for your credit, as long as you make the required payments.
It is a great product for someone who wants to make an extended puchase at 0% interest but not deal with a new account or util ding.
03-21-2010 12:18 AM
Ooooohhh. Ok. I think I'm understanding it more. A few of the sites I was reading were saying that the inquiry it would make for each transaction (and the initial opening of the account) would hurt your credit score mildly. However, further reading says that it doesn't report and it only makes a new reported inquery for every new transaction with a new merchant.
And the whole bit on credit used vs. credit available ratio is irrelevant since it doesn't actually report.
I saw on their website that you can cancel your account with them by calling or writing, but you're right. Not using the service should be about the same as canceling the account.
Thanks for the response.
03-21-2010 12:30 AM
And thanks for the info and response, lightnin. I appreciate it. I'm going to stick around and do some more reading.
My roommates are just closing on their first house and one of them is the most financially secure and responsible person I know. She's gone to school, has no debt, is only 21 and already had $20,000 in savings, which is right around the same amount that most of the students I know are IN debt.
Yet it was still a nightmare for her to get a home loan because she had no credit history. She and her fiance had to wait a year while she built up credit history just so they could get approved for a $200,000.00 home loan.
I figure I'll try to start early, just in case the desire for a house ever hits me.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.