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New Credit Card question.

Contributor

Re: New Credit Card question.

Pay it down to 1-9% and let the statement cut, then pay in full. Don't let 92% util report because your scores will take a dive (though they will likely recover after paying it). This is only if you want to seek new credit. If you just want to build a history of on-time payments reporting balances will only hurt you until you bring them down. You do NOT need to pay interests charges to build credit so PIF after statement arrives (if you can/want).

As of Feb: AAoA 1 year, 10 months
CK TU: 740; Wal-Mart TU FICO: 721
CS EX: 715
8 CCs, 15 total accounts.
Negs on report: 1 30 day late aged 3 years
5 inquiries
Message 11 of 14
Regular Contributor

Re: New Credit Card question.

Thanks Croselx, for the input.
Starting: 547 +Score EX, 541 MyFico EQ,562 MyFico TU (Dec 2nd)

Current: 736 FCR "EX" (Nov. 5th), 668 MyFico "EQ" (Nov. 5th), 748 MyFico "TU" (Nov. 5th)

CC: BB&T $2,500 CL 3/2013, BarclayCard $3,000 CL 4/2013, WellsFargo $300 CL 7/2012 & Cap1 $451 CL 5/2012

Goal Score: 800's Rank
Message 12 of 14
Frequent Contributor

Re: New Credit Card question.


CreditReform wrote:

First off - adding any new credit card will immediately lower your credit. All that hard work to build up your score will take an immediate hit. Could be in the range of 15-20 points.

 

After you get by that take a nice hard look at the interest rate of that flashy new CC. That interest rate FICO wants you to pay. If you pay off your CC in full it is actually worse than if you leave a balance in their eyes. You ready to pay an interest rate to have your CC report favorable?

 

I say, save up your money and pay for your toys in full.


 

 

You don't have to pay a cent of interest ever to achieve the highest fico scores.


 

NFCU Sig Cash-20k/ Amex BCP-19.4k/ Amex Costco-1.2k/Chase Marriott-12k/CSP-13.4k/ Freedom-5.5k/ Discover IT-14k/NCSECU-5k/Walmart-10k/Lowes-25k
Message 13 of 14
Epic Contributor

Re: New Credit Card question.


dabrian wrote:

CreditReform wrote:

First off - adding any new credit card will immediately lower your credit. All that hard work to build up your score will take an immediate hit. Could be in the range of 15-20 points.

 

After you get by that take a nice hard look at the interest rate of that flashy new CC. That interest rate FICO wants you to pay. If you pay off your CC in full it is actually worse than if you leave a balance in their eyes. You ready to pay an interest rate to have your CC report favorable?

 

I say, save up your money and pay for your toys in full.


 

 

You don't have to pay a cent of interest ever to achieve the highest fico scores.


 


FICO doesn't care one way or the other if you pay interest.  FICO wants to see you use credit but use it wisely.

Message 14 of 14