topic Re: question(s) about credit and cards in Credit Cards

question(s) about credit and cards

Anonymous — Fri, 16 Aug 2013 06:28:04 GMT

being a newbie here... i have to ask .. how does it all work, couple questions i have ...

1). how does having so many open credit lines help boost your score / credit rating ( explain thoroughly if you can )... i don't get it ... having 5-6 open credit cards / lines boosts your score ?.. how do you keep up with all of that... having $100,000+ in credit lines / cards.. i just don't get it i mean i get the idea... but i just don't "get it" ... like how that works ... how is that possible

2) ( question i really want answered ) how do you keep up with all of that... where do your store or put all those cards ?... reason i ask is because i'm interested into trying to get started , or try and do something along those lines ( having mulitple cards and keep low %10 ult balances or so have you )... but yeah... how you keep up with all of that .

last but not least .

3) give me your thoughts and opinions on the matter... eager to hear from anyone who's willing ...or have some solid advice ...

Re: question(s) about credit and cards

Shogun — Fri, 16 Aug 2013 06:34:12 GMT

Autopay is your friend. Always set that up, just in case. I have 8 CCs. I carry 2, plus my debit cards. The others are kept in my safe. I rotate the one I carry, just to give it some use. I have some things autopaid to my CC, then my CC autopaid. If that makes any sense. I do have more cards and more CLs than I'll ever use now. Kind of went overboard a bit.

Re: question(s) about credit and cards

djc1puno — Fri, 16 Aug 2013 06:44:34 GMT

@Anonymous wrote:
being a newbie here... i have to ask .. how does it all work, couple questions i have ...

1). how does having so many open credit lines help boost your score / credit rating ( explain thoroughly if you can )... i don't get it ... having 5-6 open credit cards / lines boosts your score ?.. how do you keep up with all of that... having $100,000+ in credit lines / cards.. i just don't get it i mean i get the idea... but i just don't "get it" ... like how that works ... how is that possible ***one answer is utilization percentage...the more trade lines you have the lower your utilization becomes (granted of course you don't max your cards...ie...if your total tl is 1000 and you use 500 of it, then your util is at 50 percent...now if you go and open a new account that gave you 1000 cl, then your new TL is now 2000...calculating your new utilization at 25 percent...utilization is a big part in deriving your credit score...there are more reasons i'm sure, but that's just one of them.

2) ( question i really want answered ) how do you keep up with all of that... where do your store or put all those cards ?... reason i ask is because i'm interested into trying to get started , or try and do something along those lines ( having mulitple cards and keep low %10 ult balances or so have you )... but yeah... how you keep up with all of that . ***autopay is your friend here either by pushing through your bank, or scheduling it thru your cc

last but not least .

3) give me your thoughts and opinions on the matter... eager to hear from anyone who's willing ...or have some solid advice ...

hope that helps i'm sure many more will chime in...and lastly...welcome here

Re: question(s) about credit and cards

09Lexie — Fri, 16 Aug 2013 06:50:19 GMT

Welcome to the forum!

You don't need 5-6 open lines for a good FICO score; all you need is 2-3 cc's. fico suggests having a good mix of credit meaning, installment, mtgs and cc's. however, plenty members have high scores without mtgs and/or installment loans.

As Shogun mentioned, autopay is your friend. Set up all your cc's on auto pay so you won't miss any pyts. There are apps that you can use, Manilla, Mint and Pageonce to name a few.

Where you keep your cc's is a matter of personal preference. Safes, shoe boxes or as Ron with his 109 cc's you can build a special room.

Whatever you do, don't add too many too fast. Pace yourself what's good for others may not be good for you. Choose cc's based on your need and whether or not there is a benefit to you financially.

Re: question(s) about credit and cards

DaveSignal — Fri, 16 Aug 2013 06:54:03 GMT

I just closed some lower limit accounts actually. I have 3 main cards that I use, 1 card (usaa) that is only used to pay my car insurance each month, and 2 cards that I very occasionally use.

The due dates for these are all either on the 15th or the 1st, so I can use different cards if I am trying to improve utilization for an application.

It is very, very easy. I don't forget the date that I get paid twice a month. I also don't forget to pay my bills when I get paid.

Re: question(s) about credit and cards

Anonymous — Fri, 16 Aug 2013 07:09:52 GMT

you might have went " lol..overboard" a bit ... but u've got GREAT SCORES to show for it and for your steady hard dedication toward for credit .. congrats !!! that how i want to be one day...... congrats ... my current situtation is that i'm just coming from a paid charge off ok'd from june since... now that i know the importance of credit i really want to start to better myself... i got a secured card with a 1k limit ... i got autopay on my insurance and ymca bill... thats all i got on there ... i don't use it ...matter fact i hides it ... lol pretend its not there ( its not even real... untill lol its time for me to pay it lol ... )... i'm thinking about getting another secured card... anybody... whats my next step.. advice please... i'm all ears ...what should i do next ... lol get a safe?... glad you brought that up because i really was considering that ... i'll be back on tomorrow but feel free to leave your thoughts / opinions ... i'm going to bed for now ...

Re: question(s) about credit and cards

Anonymous — Fri, 16 Aug 2013 07:16:00 GMT

cool.. whats a good time period to apply for cards / credit every 6 months or so ... 3 months ?.. give me a good estimate / idea of how to go bout it ...

Re: question(s) about credit and cards

Anonymous — Fri, 16 Aug 2013 07:17:56 GMT

you can set your own dates... i didn't know that ...

Re: question(s) about credit and cards

Anonymous — Fri, 16 Aug 2013 08:12:12 GMT

@Anonymous wrote:
...

2) ( question i really want answered ) how do you keep up with all of that... where do your store or put all those cards ?... reason i ask is because i'm interested into trying to get started , or try and do something along those lines ( having mulitple cards and keep low %10 ult balances or so have you )... but yeah... how you keep up with all of that .
. ...

I currently have 13 credit cards, but will be closing 4 in the next 8/months; then when I hit the "700 club" I have two more cards I would like to apply for. I will admit, thats a good amount of cards. I don't carry around 13 credit cards, usually two or three, rather I use an Alpine Swiss 23 slot file wallet (linked below) and store it in a hidden location.

http://www.amazon.com/gp/product/B004M6UD6Y/ref=oh_details_o06_s00_i00?ie=UTF8&psc=1

Actually, keeping your utilization at/below 40% is just fine. However, many say that keeping it below 10/9% will boost your scores even higher (and I will agree with theme). I suppose if you plan on credit shopping/credit limit increase, then its a good idea to shoot for a lowlow utilization.

I personally use a spreadsheet program (Microsoft Excel) on my computer to list all my accounts. Each account (checking, savings, cc) has its own sheet that are basically like "checkbooks". Over the years I have revised the spreadsheet, and it basically does all the math on its own, including utilization%, =ROUNDOWN forumula for available credit, etc etc... Its actually somewhat sophisticated

I also have my budget on spreadsheet. I don't have auto-payments set for my credit cards, but I do have auto-payments set for other bills like my internet, insurance, cell phone, etc.. What I do have is the "due dates" listed for all my bills, so each payday I just make sure I have everything paid on time/scheduled.

I hope that gives you some inspiration

...

3) give me your thoughts and opinions on the matter... eager to hear from anyone who's willing ...or have some solid advice ...

Manage your debt, not your score...

though I'm guilty as charged

Re: question(s) about credit and cards

takeshi74 — Fri, 16 Aug 2013 12:46:58 GMT

@Anonymous wrote:
how does having so many open credit lines help boost your score / credit rating ( explain thoroughly if you can )... i don't get it ... having 5-6 open credit cards / lines boosts your score ?

It's not really about the number of credit lines. What Lexie said about not needing a bunch of credit lines for a good score is correct. Maintain whatever number of credit lines you're able to maintain.

Keep in mind the usual suspects with respect to rating credit: payment history, utilization, AAoA, inquiries, derogs, etc. Having more credit lines does tend to indicate that more lenders trust you but that factor has a minor impact compared to utilization. Utilization is your balance versus available credit. If you improve available credit (assuming that balances remain the same) you lower utilization. Your credit is also rated on age of accounts and the average age of accounts will improve the more older accounts that you have (i.e. opening a new account will have less of an impact on AAoA).

@Anonymous wrote:
.. how do you keep up with all of that... having $100,000+ in credit lines / cards.. i just don't get it i mean i get the idea... but i just don't "get it" ... like how that works ... how is that possible

I use an Excel workbook for budgeting/checkbook register/credit card tracking. It logs all transactions, current balances (and historical balances), current utilization, etc. It was a bit of work to set up and has been constantly refined over 9 years but these days it's very easy to use.

There are also online options like Mint and personal finance applications that run on your computer as well. There are also paper ledgers. You have to find what works for you and use it.

@Anonymous wrote:
2) ( question i really want answered ) how do you keep up with all of that... where do your store or put all those cards ?

Keeping up is addressed above. I keep some in my wallet. Some stay in the safe (i.e. sock drawer). I currently have 7 cards and regularly carry 4 though I'm currently carrying 5 as I'm trying to meet a spend requirement on that 5th card.

@Shogun wrote:
Autopay is your friend. Always set that up

...if it works for you. I don't use autopay but I work with my Excel workbook on a near daily basis so it has all my due dates.

@Anonymous wrote:
cool.. whats a good time period to apply for cards / credit every 6 months or so ... 3 months ?.. give me a good estimate / idea of how to go bout it ...

Again, you're focuing on the wrong item. It's not about time period. It's about the shape your credit is in and whether or not you actually need what you're applying for. There's no "apply every X months" rule for everyone.

Re: question(s) about credit and cards

Anonymous — Sat, 17 Aug 2013 02:36:08 GMT

thanks everyone for your input... just was trying to what my options were... especially with knowing were to put your cards / acoount info at... don't want that gotten a whole to .. more input is welcome i bookmarked this so i can come back for information / material on how to boost my credit... which from the username .. i'm all about ... thanks everyone .. feel free to give more or ask questions etc ... thanks

Re: question(s) about credit and cards

mikey78 — Sat, 17 Aug 2013 02:46:35 GMT

If you use auto pay doesn't it usually auto pay to statement balance??

I usually push it thru with my bank by bill payments online and payments i make varies
but definitely more then statement minimum

or If Statements comes out I pay right away (maybe not in full but more than minimum)

Re: question(s) about credit and cards

09Lexie — Sat, 17 Aug 2013 03:00:05 GMT

@mikey78

No, you can select auto pay for minimum payment required.

Re: question(s) about credit and cards

mikey78 — Sat, 17 Aug 2013 03:07:10 GMT

@09Lexie wrote:
@mikey78

No, you can select auto pay for minimum payment required.

ok i got discover to auto pay at a fix price
but chase only has balance statement or minimum

Re: question(s) about credit and cards

09Lexie — Sat, 17 Aug 2013 03:26:47 GMT

@mikey78

You want the minimum; you can choose that with Discover too.

DirectPay takes care of your Discover Card statement on time every month automatically for free. No more having to remember your payment due date, no more late fees and no more missed payments.

DirectPay Automatically Debits Your Savings or Checking Account
DirectPay is the most dependable way to guarantee that your Discover Card bill is paid every month*. Just set up DirectPay and your savings or checking account is automatically debited every month for the amount you select:
the Minimum Payment Due
the Minimum Payment Due + a Fixed Amount you specify
a Fixed Amount you specify
your Full Statement Balance
Plus, you can still make extra payments anytime if you've enrolled in Make a Payment.

You can also enroll in DirectPay by mail—just download the printable enrollment form, complete it and mail it in. (You'll need the free Adobe Acrobat Reader.)

*Please note: Your first automatic payment will be debited for your next billing cycle on the date you
select as you set up DirectPay. Please remember to make your current payment by other means, as
DirectPay may not take effect for your current payment.

Re: question(s) about credit and cards

mikey78 — Sat, 17 Aug 2013 03:29:09 GMT

so basically set up for the minimum and i can always pay more or pif gotcha~
thanks

Re: question(s) about credit and cards

09Lexie — Sat, 17 Aug 2013 03:30:40 GMT

Exactly!

Re: question(s) about credit and cards

Luscher — Sat, 17 Aug 2013 03:31:38 GMT

+1^^^^

Re: question(s) about credit and cards

Anonymous — Sat, 17 Aug 2013 03:44:02 GMT

@mikey78 wrote:
so basically set up for the minimum and i can always pay more or pif gotcha~
thanks

Well, only if you are carrying a balance. If not, my advice is to set it up PIF on statement due date. That is the "best" option financially, maximizing the float period of the credit card (so you can earn interest, however little that is today) and also as a safety net to avoid paying interest . Then, if you need to micromanage utilization because you are planning to app, or hoping to get an auto-cli, you can pay early, before the statement cuts.

Re: question(s) about credit and cards

mikey78 — Sat, 17 Aug 2013 03:52:43 GMT

well I can't really PIF right now because balances on discover is over 800 and I don't want to dig into my savings to pay it off

and i'm going to ultilize the 0APR until end of Jan in the meantime , but also having to maintain below 500 balances on bofa cash reward (0APR till july 2014)
and i'm also charging here and there to get the 100 cash back bonus

i think i already met the quota for BOfa I spent over 1000 but i just didn't have a statement that was cut saying i had 500 balance