05-03-2007 08:01 AM
05-04-2007 08:56 PM
amnesian1 wrote:I am in need of building credit, so I purchased a TV using a no-money-down, same-as-cash plan with a minimum monthly payment for 3 years. Purchase amount $3,000; credit limit $10,000.Since this is a 30% utilization, what is the best way to build credit? Should I immediately pay down to 10% utilization, then maintain small monthly payments for as long as possible? Or should I slowly reduce my utilization over the next 3 years?Is this a credit card such as Best Buy? or an insotre account? If it is an instore account it may be handled by a finance company which can actualy HURT your score. That being said it may also simply report your high balance as a FI company. If it IS an actual credit card. I would take advantage of the 0% for as long as I could just remember to pay slightly more than the minimum. You can always apply for revolving credit and not use it for much. the cumulative card balances are what counts.
05-05-2007 09:01 AM
05-05-2007 09:06 AM
Yes it is possible. I havn't heard of tweeter, but GEMB is very reputable. As Brammy suggestioned, depending how they report, it could bring your score down in the short term, however, I would not let the stop you from getting the TL to help build up your file and increase your scores over the long term.
amnesian1 wrote:I appreciate all the replies. I continue to be amazed by the quality of the posts in this forum.It is a revolving credit line provided by GE Money Bank (GEMB). And it is 0% until 2009. Since I initiated this purchase strictly to build credit, I think I will pay down to 10% utilization, and then finish paying it before 2009 (before I am assessed finance charges)they also provided me a credit card, branded by Tweeter (the store I made this purchase). I never activated it. The card's brochure says "no interest if paid within 90 days." Is it possible that purchases made on the card have different terms than the original purchase that opened the credit line (as appears to be the case)?
05-05-2007 09:20 AM
amnesian1 wrote:I appreciate all the replies. I continue to be amazed by the quality of the posts in this forum.It is a revolving credit line provided by GE Money Bank (GEMB). And it is 0% until 2009. Since I initiated this purchase strictly to build credit, I think I will pay down to 10% utilization, and then finish paying it before 2009 (before I am assessed finance charges)they also provided me a credit card, branded by Tweeter (the store I made this purchase). I never activated it. The card's brochure says "no interest if paid within 90 days." Is it possible that purchases made on the card have different terms than the original purchase that opened the credit line (as appears to be the case)?Is it possible that the card is the revolving credit issued by GEMB? I would call to check the limit and the balance because if so you activated it by the purchase. That being said I would prefer it to report that way because that gives you a credit card with a high credit line. And yes they can have different financinf terms, the statement would just break it out line by line as far as interest and expiration date of offer. My Best buy card does that.Just be careful if thats the case if your thinking of buying anything else. When the payments are made they are generally made to the purchase that has the more favorable terms first. So if you make an additinal purchase of 1000.00 and the regular interest rate is 18% all your payments will go towards that sweet long term 0% before a dime is applied to the other balance. Making that interest constantly revolve until you pay off the first purchase completely
05-05-2007 09:34 AM
05-05-2007 09:37 AM
Sorry if I am misunderstanding the question but both Walmart and my 6th Avenue Electronics lines of credit use GE Money Bank and they report high credit and credit limit. I think that's a good thing.The OP didn't orignially state it was a card just a revolving line of credit ... two different things. Still don't know if the purchase is reported on the card or if they have two separate accounts.
05-05-2007 12:38 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
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.