topic Re: Some CC questions in Credit Cards

Some CC questions

Anonymous — Thu, 27 Aug 2009 03:08:58 GMT

Hello everyone!

Alright I apologize in advance for any silly questions I ask. I found myFico a year ago and started an account with them and just recently re-established the account. I am happy to say that my credit went from 640 to 671 which is wondeful considering the major problems I have had in the past. Anyways, now I am considering different options to up my credit score even more and the number one way to go seems to be with credit cards. Thus far I don't have any save for my debit/credit card.

1. I've been considering a BoA credit card. Is it wise to just get a secured card? Or should I try for an unsecured one? I am a bit gun shy when it comes to apping for credit cards, So nervous about being denied.

2. A year ago there use to be a thread on the boards about the number of cards needed to attain the best rating, what is the current opinion on this? 3? And is it wise to apply one after another for them? Or should I stager the applications by a few months?

3. After reading some of the board messages there are a few things I wonder about. PIFing... I THINK understand what is it, but I was under the impression it isn't smart to pay off your credit card completely. For example, lets say you get a card with a $1000 limit, you go and buy something for $500 on it. What is the best way to pay it off?

4. Gonna slip this in: My house mate has absolutely no credit, he's planning on getting a card as well, are there any recommendations you guys might have? He's thinking of going with BoA also. Can someone no 0 credit get an unsecured card?

Thanks in advance for your wonderful answers!

Love these boards.

Maj

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 03:36:55 GMT

Post some specifics of you credit profile up here for each of you so we can better help you. Are either of you students?

Re: Some CC questions

SCF — Thu, 27 Aug 2009 05:23:59 GMT

Hey Majick,

I'm glad to hear you're on your way to better credit. I'll try to help you out some here:

1) A good place to start might be the pre-selection website for BoA, that could give you an idea of what you cards and limits you might qualify for. There are other companies that offer similar pre-selection tools, a search of this forum should turn them up.

2) I honestly don't know. I think a good rule of thumb is to have less than half of your accounts report a balance (this includes installment loans) and to make sure that you can keep track of the cards you have while still using them regularly to prevent them being closed due to a lack of use. I have 3 CCs, and I find that to be an easy number to maintain and rotate.

3) You want to show a small amount of both overall and individual utlization, greater than 0% but less than 9% for the best score. If you have only one card, as in your example, you would want to pay down the balance to <$100 before the date your statement is generated (unless the company reports to the CBs on a different day, again, search the forums), let that small balance report and then pay it off fully before the due date to avoid interest charges.

4) This will be difficult, he will probably need to get a secured card. If he truly has no credit file, establishing membership at a credit union and then asking for a card secured by funds in a CD or savings account will probably be the easiest way for him to start establishing credit.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 16:54:00 GMT

Credit Unions. Most of the big ones pull EQ.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 17:43:12 GMT

Thank you for the responses!

As for specifics, the ones I posed is all there is.

No real credit cards save for the debit card.

Current score is 671.

I'm new to this is what other specifics are there?

For my house mate he's the same when it comes to cards and he has no credit history to speak of.

None of us are students.

Message Edited by Majick on 08-27-2009 10:43 AM

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 17:46:17 GMT

@Anonymous wrote:
Thank you for the responses!

As for specifics, the ones I posed is all there is.

No real credit cards save for the debit card.
Current score is 671.

I'm new to this is what other specifics are there?

For my house mate he's the same when it comes to cards and he has no credit history to speak of.

None of us are students.

What is the source of this score and which CRB does it relate to?

Re: Some CC questions

wmarat — Thu, 27 Aug 2009 17:56:44 GMT

1. I started my credit with BOA secure card 3 years ago and it worked very well for me. But 3 years ago and now is two completely different things and I would advise not to go with big banks today, but look for nice community bank or better off CREDIT UNION. Regardless, where you got your scores, without credit history or with very limited history you are doomed to be denied by big bank corporations.

2. Nobody knows. I have read different reports on different boards and they were from 1 charge card to 70 credit accounts. Pick you number, how many cards are you comfortable with?

3. Yes, you can maximize your score, letting no more than 9% of CL to be reported on no more than half of your accounts.

4. Not today. Again the best way is CREDIT UNION way.

Good Luck.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 18:01:10 GMT

I was considering getting a BoA secured card and maybe a Lowes card as my first two cards. Not sure about a third card, one step at a time I guess.

Thank you so much for explaining PIFing and util to me in a more digestable way. I understand it a bit better.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 18:05:11 GMT

Oh Im sorry the score is from Equifax.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 18:10:35 GMT

@Anonymous wrote:
Oh Im sorry the score is from Equifax.

Obtained from what source?

Re: Some CC questions

wmarat — Thu, 27 Aug 2009 18:10:59 GMT

Lowes is backed up by GEMB. GEMB is a PITA. Do your research.

If you need store card, you'll have much better experience with Macy's/Kohl's/Nordstrom.

Try to avoid GEMB store cards.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 18:41:53 GMT

@wmarat wrote:
Lowes is backed up by GEMB. GEMB is a PITA. Do your research.

If you need store card, you'll have much better experience with Macy's/Kohl's/Nordstrom.

Try to avoid GEMB store cards.

+1 (Complete ditto.)

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 19:43:11 GMT

Apologies, GEMB? I am unfamiliar with the abbreviations of companies.

As for the source of my score, well Myfico is the where I got my Equifax score from.

As I stated before I am completely new to this and you guys, from other threads I have read and your answers, seem like pros.

I'll be starting out with BoA while I try and figure out the best choice for the second card. I'll make sure to skip over Lowes. Thank you very much for the information.

Re: Some CC questions

Anonymous — Thu, 27 Aug 2009 19:50:23 GMT

GEMB = General Electric Money Bank. They issue many different credit cards. There is no consistent policy from product to product. Each is run separately according to the policies established by its management. Many have found GEMB products difficult it many various respects.

I would not chose a GEMB for the pole position in my credit card portfolio!

(Personally I have zero GEMB issued cards.)

Message Edited by creditwherecreditisdue on 08-27-2009 03:50 PM

Re: Some CC questions

haulingthescoreup — Thu, 27 Aug 2009 22:47:37 GMT

Majick wrote:

Apologies, GEMB? I am unfamiliar with the abbreviations of companies.

As for the source of my score, well Myfico is the where I got my Equifax score from.

As I stated before I am completely new to this and you guys, from other threads I have read and your answers, seem like pros.

I'll be starting out with BoA while I try and figure out the best choice for the second card. I'll make sure to skip over Lowes. Thank you very much for the information.

Then your EQ score is a FICO, which is good. Do be aware that you have two other FICO scores, one from TransUnion (TU) and one from Experian (EX.) You can get your TU FICO from this site, or from www.transunioncs.com (note the -cs at the end; this is not the regular TU site.) No one can buy their EX FICO score any more, as of 2/13/2009, when EX picked up all their marbles and went home. You can only find it out via a mortgage app or by membership in a Pennsylvania credit union called PSECU.

So anyway, as for the Lowe's card, it appears that it's one of the better GEMB cards, especially if you have better credit reports and FICO's. It's probably not great for those just starting out, though. When you're ready, and if you wanted a store card, you'd probably do better with Macy's. Even if there isn't a store where you live (the nearest one to me is 200 miles away), they do a brisk online business, and once you get on their e-mail list, you can expect a new little message every day.

Message Edited by haulingthescoreup on 08-27-2009 03:47 PM