topic Re: quick question in Credit Cards

quick question

Anonymous — Fri, 07 Dec 2007 15:04:25 GMT

I just rec'd my bill for my Target red card. My credit card limit $200.00 as u all may know..lol..My balance on the card is $36.00..I used 163.00 of my limit..the amount due is $10.00...due on 12/30/07..Should I pay the $163.00 to avoid finance charges, or do I just pay the minimum amount of $10.00? Also how far ahead should I pay the bill?

Fico's

TU-523

EQU-463

EXP-582

Thanks

badcredit1

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:07:30 GMT

If you can, I'd pay the 163.00 now. I PIF as soon as I get my statements.

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:12:23 GMT

Thanks, I will do just that.

Re: quick question

nathan — Fri, 07 Dec 2007 15:14:11 GMT

Never pay only the minimum especially with those high interest rates. If I were you I would pay $162 if possible, leaving a balance of $1.00. Remember the 1-9% utl rule. Fico will like to see the low utl if you want to increase your scores. Btw now that your statement is out, pay it immediatley before they report the high balance. $163 on a 200 cl is a recipe for substantial drop in scores. If I were you, I would never use more than 5.00 on that card, maybe a pack of gum once in a while?

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:15:54 GMT

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:17:00 GMT

Thanks for the advice. I have so much to learn.

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:20:47 GMT

bcg, I agree with cobra. PIF. Short of that, Pay $153.00, leaving a $10.00 balance, which is the ideal utilization of 5%(in my opinion).

With a balance of $163.00 on a $200 cl card, you are at 81.5% utilization, which will really hurt your score.

In addition, NEVER pay the minimum, if at all possible. Always try your best to keep any cc you have now or in the future, below 9% util. PIF also keeps everything clean and gives you a wonderful peace of mind. And peace of mind in the credit area, is priceless, I believe.

Hope that helps.

Re: quick question

Anonymous — Fri, 07 Dec 2007 15:31:19 GMT

You guys are great! I learn something new on this site everyday..before long I will hit the 700 club..

Re: quick question

Anonymous — Fri, 07 Dec 2007 20:02:12 GMT

FWIW, tey and make those payments hit the day BEFORE your statement drops. Its gonna be hard to keep uti low on that card. It reports the statement blance so if you bring it to 0 before the statement drops, you don't have to worry about taking a uti hit.

Re: quick question

jackg — Fri, 07 Dec 2007 20:08:01 GMT

badcreditone,

I don't mean to come at you hard BUT, if you haven't figured out ahead of time howyou are going to manage your credit then you are a prime candidate for, you know what it is, come on say it with me, BK!

The question you ask comes from a person who is going to let credit, or should I say DEBT, manage them.

To address your question however let me say this, on your statement it says amount due:$10 that means that's the minimum you must pay to avoid bad things from happening. The balance due is $163.00 and that is what you should pay.

I'm confused with your question, "Also how far ahead should I pay the bill"? Please explain.

Re: quick question

Anonymous — Fri, 07 Dec 2007 20:10:14 GMT

Now Jack,

To be fair, peple mange their credit in all different ways. I have some cards tht I PIF and soem that I carry a balance with a lo of things taken into consideration. I would never advise the OP to carry a balance on a card with that interest rate. But lets not paint the whole world with a broad brush and say all credit must be PIF.

Re: quick question

jackg — Fri, 07 Dec 2007 20:21:58 GMT

Brammy,

Certainly you are correct when you say that we don't PIF all tradelines, we plan what we are going to do and that was my point. To me it sounded like a person asking for an answer to a question for which there should already be an answer.

And, I certainly apoligize if I offended anyone.

Re: quick question

Anonymous — Fri, 07 Dec 2007 20:24:15 GMT

You're a meanie jackg....j/k.

Remember, this is a place to learn. Many peopel come here looking for answers to questions that, most of us at this point, take as second nature. However, I couldn't say the same thing just shy of two years ago. Sure the OP will be joining Amex in the ext few years.

I would hate for anyone to feel that htey are not free to ask any questions they feel, because we are all at different points in our credit education.

Re: quick question

Anonymous — Fri, 07 Dec 2007 20:27:18 GMT

I agree Brammy.

Besides, with the OP I think she should be worried more about the util and paying on time. Even if it is 30% interest its only a 200 CL, not saying she shoudl get in the habit of that either though, JMO.

Re: quick question

Anonymous — Fri, 07 Dec 2007 20:28:28 GMT

always pay your balance in full with store cards because of the high interest rates!
unless of course you have a special 0% financing offer and can spread your payments out to show you know how to pay down a balance.
i never recommend leaving a $1 balance because you will be hit with interest for not paying in full. if you want to show 1-9% util, pay off in full + then charge a $1.00 purchase before new statement is cut.

good luck!

xoxox jane

Re: quick question

jackg — Fri, 07 Dec 2007 20:38:20 GMT

Brammy,

I promise, I'm not a meannie, I'm not. I do admit that at times I get impatient when things seem so obvious but, you are right, and I will never again expect more than the minimum.

Ya know, I'm looking at these forums because they have a great deal to teach me and at times I see opportunities to share the experiences I've had with those asking questions that is all I'm doing is sharing, not judging.

I'm not a meannie, really. And no one should feel apprehensive about asking questions, I'm not.

Re: quick question

Anonymous — Sat, 08 Dec 2007 02:30:35 GMT

Hi, I was a little offended,but I do appreciate you being honest with me. I really do have so much to learn, and being on this site really helps alot. I just wanted to say thanks again for all the help.

Thanks

badcredit1

Re: quick question

Anonymous — Sat, 08 Dec 2007 02:33:11 GMT

badcredit1 wrote:

Hi, I was a little offended,but I do appreciate you being honest with me. I really do have so much to learn, and being on this site really helps alot. I just wanted to say thanks again for all the help.

Thanks

badcredit1

badcredit1

We are looking forward to changing your name like badcreditguy (now GCG). Glad you didn't get scared off, ask whatever you feel you need to know.

Re: quick question

Anonymous — Sat, 08 Dec 2007 02:42:08 GMT

I can't wait to have my name changed! It will take some time though. Thanks again for all the help.

badcredit1