topic Re: Probably..a stupid question. LOL in Credit Cards

Probably..a stupid question. LOL

Anonymous — Sat, 05 Nov 2016 14:15:23 GMT

I've read some people intentionally leave a balance of like $10 on there credit card for their report. I think to show the credit cards are being utilized. Likewise, do you think you if you paid a little interest once in a while on a card, your approvals odds of obtaining a better card through that same card company will increase because they make money off of you?

Re: Probably..a stupid question. LOL

newhis — Sat, 05 Nov 2016 14:52:09 GMT

The $10 in one card and $0 in others is to max Score. If all cards report $0 or all report a balance, the score will not be as high.

I usually have several cards with balance. I don't want to max my Score I do prefer to use the cards and ride the grace period.

You don't need to pay interest to get better cards/limits with same bank. I started with 3.5k Freedom, then 10k AARP, now 15k CSR.

I don't think the banks give us points if we pay interest. The FICO score and bank's internal score are already too complex to add such variables as if I pay a little interest I'm better client than other that doesn't pay.

I think people that PIF are far lower risk than those that pay a little interest.

Maybe if you have other accounts with the bank, checks, savings, investment, then they will consider a higher limit, but I don't think paying interest help.

Re: Probably..a stupid question. LOL

Anonymous — Sat, 05 Nov 2016 15:24:09 GMT

@newhis wrote:
The $10 in one card and $0 in others is to max Score. If all cards report $0 or all report a balance, the score will not be as high.

I usually have several cards with balance. I don't want to max my Score I do prefer to use the cards and ride the grace period.

You don't need to pay interest to get better cards/limits with same bank. I started with 3.5k Freedom, then 10k AARP, now 15k CSR.

I don't think the banks give us points if we pay interest. The FICO score and bank's internal score are already too complex to add such variables as if I pay a little interest I'm better client than other that doesn't pay.

I think people that PIF are far lower risk than those that pay a little interest.

Maybe if you have other accounts with the bank, checks, savings, investment, then they will consider a higher limit, but I don't think paying interest help.

Thank you very much for your response. It sounds perfectly reasonable. I do pay my card (one lol) charges all off within the grace period, however, there seems to be many strategies out there I am still learning. For instance, because I always pay everything off within grace period, I didn't realize the impact my balance had at the statement cut. Lol, I don't even know if I am wording things right! Anyways, it was kind of high last report and affected my score. Lesson learned! Thank you again!

Re: Probably..a stupid question. LOL

Blodreina — Sat, 05 Nov 2016 15:42:33 GMT

The primary criteria for approval is credit worthiness/risk.

Re: Probably..a stupid question. LOL

Loquat — Sun, 06 Nov 2016 10:16:21 GMT

Please don't fall prey to the thought that you have to let the lender make money off you in order to get a decent CLI or better products. There is no validity to this and in my opinion, if a lender ever gives you that impression, don't walk, RUN away from them.

Re: Probably..a stupid question. LOL

Dalmus — Sun, 06 Nov 2016 13:07:28 GMT

And, of course, the only reason you ever need to maximize your score is if you are applying for a mortgage or auto loan if 10-15 points is going to bump you into a better interest rate.

Re: Probably..a stupid question. LOL

NRB525 — Sun, 06 Nov 2016 13:59:41 GMT

@Anonymous wrote:
I've read some people intentionally leave a balance of like $10 on there credit card for their report. I think to show the credit cards are being utilized. Likewise, do you think you if you paid a little interest once in a while on a card, your approvals odds of obtaining a better card through that same card company will increase because they make money off of you?

If you only have one card, then you always will want to have something reporting when the statement cuts.

Said another way, with only one card, you do not want it to report zero on the statement. Reporting a zero on all cards is a definite score hit.

However, you do not need to pay interest to keep the bank happy. And with only one card, once you got on that paying interest treadmill, it would probably take you a few months to get back to no interest, because it is sometimes difficult with certani banks to get the card to zero and force that No Interest refresh.

Which bank and credit card are you using?

Re: Probably..a stupid question. LOL

Berk — Sun, 06 Nov 2016 14:39:56 GMT

All I have ever done is pay my bill on the due date. I've never had a problem with getting CLI's nor have I ever had to worry about what my score was going to be. I knew in time it would keep going up. For me it is too much trouble to remember what card I want reporting a balance and what cards to pay off before next statement cuts. Its just too aggrivating in my opinion.

Re: Probably..a stupid question. LOL

Anonymous — Sun, 06 Nov 2016 15:49:39 GMT

Thank you so much for your replies. My card is with Capital One. It began as platinum and was upgraded to quicksilver 3250k limit. I guess like many others here, I was just wonderng if there were strategies to expedite rebuilding credit. I would like to qualify for better cards and move up the ladder as soon as I can. I guess I read somewhere that companies valued people they made money off of, so I guess I thought it kinda made sense. Lol..I dunno!

Re: Probably..a stupid question. LOL

sillykitty1 — Sun, 06 Nov 2016 16:03:53 GMT

@Anonymous wrote:
Thank you so much for your replies. My card is with Capital One. It began as platinum and was upgraded to quicksilver 3250k limit. I guess like many others here, I was just wonderng if there were strategies to expedite rebuilding credit. I would like to qualify for better cards and move up the ladder as soon as I can. I guess I read somewhere that companies valued people they made money off of, so I guess I thought it kinda made sense. Lol..I dunno!

The bolded is true .... when it comes to swipe fees. CC's want to make money off of you, by you using thier cards.

Re: Probably..a stupid question. LOL

Anonymous — Sun, 06 Nov 2016 16:19:38 GMT

@sillykitty1 wrote:
@Anonymous wrote:
Thank you so much for your replies. My card is with Capital One. It began as platinum and was upgraded to quicksilver 3250k limit. I guess like many others here, I was just wonderng if there were strategies to expedite rebuilding credit. I would like to qualify for better cards and move up the ladder as soon as I can. I guess I read somewhere that companies valued people they made money off of, so I guess I thought it kinda made sense. Lol..I dunno!
The bolded is true .... when it comes to swipe fees. CC's want to make money off of you, by you using thier cards.

Ooh...I get it! Lol..Thank you for giving me perspective! You're saying they make money off of merchants every time I use my card? So, using my card frequently makes me a good customer? Do you think that helps you qualify for the company's better cards? I use my card for daily expenses and pay within grace period.