topic Re: Newbie with basic credit card questions in Credit Cards

Newbie with basic credit card questions

Anonymous — Sat, 27 Sep 2014 23:11:31 GMT

Hi all of you who have been around; I'll learn from you and Philip! I have a 3 questions about credit cards:

1. I've been told that the FICO score banks use when determining my eligibility, depends on which FICO score they pull when I apply. Is there any control that I have over this or am I at their mercy?

2. Philip said in one of the lessons VERY early on, was that we should get 3-5 credit cards. I have my debit card which I use most of the time, but I never have 3, let alone 5! Are the credit card 'police' going to come and take me away and throw away the key if I only get 1 card? Or is this 3-5 cards, part of a broader plan to restablish credit, in which case I'll get 3-5 cards,

3. I used to have 6 cards, but I paid them off in full every month and NEVER carried a balance. He just spoke (I think it is lesson #3) of a rule (I can't think of the name), where you'r balance should NEVER exceed 30% of your limit. Does that mean AT NO TIME in your billing cycle, should you exceed that magical 30%?

Teamrns

Re: Newbie with basic credit card questions

Anonymous — Sat, 27 Sep 2014 23:17:16 GMT

@Anonymous wrote:
Hi all of you who have been around; I'll learn from you and Philip! I have a 3 questions about credit cards:

1. I've been told that the FICO score banks use when determining my eligibility, depends on which FICO score they pull when I apply. Is there any control that I have over this or am I at their mercy?

2. Philip said in one of the lessons VERY early on, was that we should get 3-5 credit cards. I have my debit card which I use most of the time, but I never have 3, let alone 5! Are the credit card 'police' going to come and take me away and throw away the key if I only get 1 card? Or is this 3-5 cards, part of a broader plan to restablish credit, in which case I'll get 3-5 cards,

3. I used to have 6 cards, but I paid them off in full every month and NEVER carried a balance. He just spoke (I think it is lesson #3) of a rule (I can't think of the name), where you'r balance should NEVER exceed 30% of your limit. Does that mean AT NO TIME in your billing cycle, should you exceed that magical 30%?

Teamrns

who's Philip? is that little voice in your head?

kidding kidding! I think credit card company pulls from certain credit reporting agency and you can't really choose which on they pull the record from.

Re: Newbie with basic credit card questions

AvadaKedavra — Sat, 27 Sep 2014 23:33:59 GMT

@Anonymous wrote:
Hi all of you who have been around; I'll learn from you and Philip! I have a 3 questions about credit cards:

1. I've been told that the FICO score banks use when determining my eligibility, depends on which FICO score they pull when I apply. Is there any control that I have over this or am I at their mercy?

2. Philip said in one of the lessons VERY early on, was that we should get 3-5 credit cards. I have my debit card which I use most of the time, but I never have 3, let alone 5! Are the credit card 'police' going to come and take me away and throw away the key if I only get 1 card? Or is this 3-5 cards, part of a broader plan to restablish credit, in which case I'll get 3-5 cards,

3. I used to have 6 cards, but I paid them off in full every month and NEVER carried a balance. He just spoke (I think it is lesson #3) of a rule (I can't think of the name), where you'r balance should NEVER exceed 30% of your limit. Does that mean AT NO TIME in your billing cycle, should you exceed that magical 30%?

Teamrns

Credit card comanies (CCCs) will pull from one of the three Credit Reporting Agencies (CRAs) or as some call it credit beureaus. These are Equifax, TransUnion and Experian. All three FICO scores could be different depending on what history reports to what agency, though most report to all three. You have some control over this. A quick example, if you know you're going to be applying for something down the line, you may want to get your utilization (UTL) down before doing so. This will positive impact on your score and you'll make lendors happy.

I think what's important here is diversity on your Credit Reports (CRs). A couple of credit cards, a store card perhaps, and another trade line (TL) such as a student loan, auto loan, mortgage or personal line of credit (PLOC). You can't really have too many as some will tell you on here with many credit cards. A handful of items to show you are credit worthy is what's imporant. You can also optimize your score by diversifying your CR. What's important is being able to trust yourself with the spending. If self control with spending is something you have an issue with, it may not be best to open multiple credit cards.

You want to keep your total utilization under 30%. This can go for across all cards you have. If I'm not mistaken, the magic number is to keep at least a 1%-9% utilization at all times to ensure scoring optimization but that number can look different for those with higher available credit. If it means paying a high APR, perhaps it's not the best idea. I personally pay all my cards in full each month and keep about 1-5% on one to let it report. Now luckily I don't have the need for any excessively big purchases at the moment so I can afford to do that. Rule of thumb if emegency spending happens, pay off AT LEAST the minimum, preferably more each month.

Hope that helps. I'm sure others will have more, potentially even better advice. That's the best thing about these forums. Different opinions and so much knowledge. I learn more everyday!

Oh, who is Philip?

Re: Newbie with basic credit card questions

Themanwhocan — Sat, 27 Sep 2014 23:36:55 GMT

@Anonymous wrote:
Hi all of you who have been around; I'll learn from you and Philip! I have a 3 questions about credit cards:

1. I've been told that the FICO score banks use when determining my eligibility, depends on which FICO score they pull when I apply. Is there any control that I have over this or am I at their mercy?

2. Philip said in one of the lessons VERY early on, was that we should get 3-5 credit cards. I have my debit card which I use most of the time, but I never have 3, let alone 5! Are the credit card 'police' going to come and take me away and throw away the key if I only get 1 card? Or is this 3-5 cards, part of a broader plan to restablish credit, in which case I'll get 3-5 cards,

3. I used to have 6 cards, but I paid them off in full every month and NEVER carried a balance. He just spoke (I think it is lesson #3) of a rule (I can't think of the name), where you'r balance should NEVER exceed 30% of your limit. Does that mean AT NO TIME in your billing cycle, should you exceed that magical 30%?

Teamrns

1) Forget what this Phillip person said.

2) You can use that Debit card all you want. For decades even. But it is still NOT credit, and doesn't establish or grow your credit reports or score. Do you actually have a Credit card, or a loan, in the past 10 years? If so, tell us exactly which cards, when you obtained them, their credit limits, and how much you have charged on each card/loan. If not, you have no credit reports and no FICO score.

3) You can buy your credit score from a lot of places, including the 3 main credit bureaus (assuming you've had credit for at least 6 months). However, the scores most places sell you, aren't the scores you want. You can buy real scores from Myfico.com, but you probably don't need those either. When you are starting out, you can pretty much figure out when you have a shot at a card, and when you apply if you are denied they will send you your score via US Mail. If you are approved, but not with the best terms, they also send you your score. In other words, you're just starting out, so you can pretty much count on them sending you the score afterwards.

Well, we need to know the answers to #2 before we can give more advice.

Re: Newbie with basic credit card questions

takeshi74 — Sun, 28 Sep 2014 00:42:52 GMT

@Anonymous wrote:
Is there any control that I have over this or am I at their mercy?

Nope. If it could be controlled then everyone would do so in their favor. Even if you could there are cases when a creditor may pull multiple (even all 3) CRA's. Further, some creditors also use agencies that are not the major 3.

Not only do you not have any control over the CRA used but you have no control over the scoring model used.

@Anonymous wrote:
Are the credit card 'police' going to come and take me away and throw away the key if I only get 1 card? Or is this 3-5 cards, part of a broader plan to restablish credit, in which case I'll get 3-5 cards,

Or course not. It's your call as to how many you get. General recommendation is at least 2-3 for optimal scoring but that doesn't mean you should get them all at one time. Consider what your credit profile supports and the impact that the inquiries and hits to AAoA will have on your credit.

@Anonymous wrote:
I used to have 6 cards, but I paid them off in full every month and NEVER carried a balance. He just spoke (I think it is lesson #3) of a rule (I can't think of the name), where you'r balance should NEVER exceed 30% of your limit. Does that mean AT NO TIME in your billing cycle, should you exceed that magical 30%?

That's one way to approach it. Another would be to charge whatever you want and pay down balances prior to whenever your accounts report. It's not the current balances that matter but the balances reported to the CRA's since your scores are based on the data in your reports.

If you're going to micromanage your utilization 30% is a suggested maximum. Ideal is typically much lower -- like 10% or less.

@Themanwhocan wrote:
You can buy real scores from Myfico.com, but you probably don't need those either.

...and creditors don't all use the same scoring model as what myFICO offers anyway.

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 15:39:51 GMT

Whoops! I should have prefaced my question with the fact that I am emerging from bankruptcy, and I included ALL cards except my debit in the bankruptcy. So, I have NO cards whatsoever. I did have a Target card with LOC $15,000, BOA card with LOC of $18,000 3 Chase cards with LOC @$5K each, Capital One MC with $3000 limit and PayPal cc with $700 LOC. I include all of these cards in our chapter 7 bankruptcy which was discharged and am in the process of rebuilding my credit. 2 CRA report 615 and TU reports 595. 'Philip' is Philip THrone who appears in many of these tapes.

Re: Newbie with basic credit card questions

Themanwhocan — Sun, 28 Sep 2014 18:35:05 GMT

@Anonymous wrote:
@Whoops! I should have prefaced my question with the fact that I am emerging from bankruptcy, and I included ALL cards except my debit in the bankruptcy. So, I have NO cards whatsoever. I did have a Target card with LOC $15,000, BOA card with LOC of $18,000 3 Chase cards with LOC @$5K each, Capital One MC with $3000 limit and PayPal cc with $700 LOC. I include all of these cards in our chapter 7 bankruptcy which was discharged and am in the process of rebuilding my credit. 2 CRA report 615 and TU reports 595. 'Philip' is Philip THrone who appears in many of these tapes.

When was the bankruptcy discharged? Some companies are known to be more tolerant of bankruptcy, but it does depend how long ago it was.

You cannot control what credit report(s) are pulled. They often do vary, but you can sometimes make an educated guess. Check the Credit Pulls Database, or Who Gave Me Credit, for reports on what people have recently reported as being pulled.

I believe the 3-5 credit card recommendation, is so you can get 3-5 postive credit lines reporting every month. In other words, get some positive credit reporting to dilute the bad stuff that is already there.

That 30% rule is probably for people recovering from bankruptcy and such. You need cards right now, but they are not so that you can have the convienience of credit. You need them so that you can show that you are squeaky-clean on your credit reports now. Anything that even hints like you are comfortable in using most of a credit cards limit is going to look real bad with the bankruptcy on your reports... So having cards and not using them doesn't prove you are responsible, but having cards and using then maybe 10% each month and always paying in full, that shows you can and will use your cards responsibly.

Once that bankruptcy and all baddies are off your reports, then you can afford to occasionally use more of a card. I once intentionally let a card report 55% usage before paying it off, just to set a high usage on my credit report for that card. It was only $1550 or so, but it was a card with only a $2800 limit, so letting one card report in the 50's plummeted my fico score at least 20 points (I was expecting the score to increase slightly due to 3 inquiries becomming more than a year old, instead it went down 20). And that is with pristine, but very short, credit reports.

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 18:34:21 GMT

I forgot to mention that one little factoid; my bankruptcy was discharged, no creditors contested it, in August 2014. Both my husband and I filed, jointly. However, we were told that in reestablishing credit, we needed to take this class and apply for INDIVIDUAL cards. We're now paying cash for everything (we do have our debit card), but it would be nice to make a rare larger purchase. We're trying to rebuild our credit as we'll need to rent an apartment and credit is important there (I think the fact that we declared bankruptcy is important, but that we're doing something about it is more important)

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 19:38:32 GMT

@Anonymous wrote:
'Philip' is Philip THrone who appears in many of these tapes.

Remember you are posting on a web site and we have no context, and certainly don't know what "these tapes" are (except apparently a Philip Throne appears in many)

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 19:45:43 GMT

OH! I thought that everyone on these forums was watching the same video or sometimes audo tapes as I, but I guess not. Philp Thron is the fellow who authors many of the tapes. My mistake, Sorry!

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 19:48:56 GMT

what are these tapes? is it one of those informercials on tv after 12 o'clock?

Re: Newbie with basic credit card questions

Anonymous — Sun, 28 Sep 2014 19:52:10 GMT

No late night TV infomercial!! LOL!

Re: Newbie with basic credit card questions

nightglider — Sun, 28 Sep 2014 20:27:49 GMT

We're looking for the actual name of the tapes you're talking about. Is it 720creditscore with Philip X Tirone?

Re: Newbie with basic credit card questions

Anonymous — Mon, 29 Sep 2014 19:22:55 GMT

The Philip Throne who I mentioned; a misspelling! His name is Philip Tirone and I should have been commenting on the bankrutcy forum. Teamrns

Re: Newbie with basic credit card questions

14Fiesta — Mon, 29 Sep 2014 22:16:18 GMT

@nightglider wrote:
We're looking for the actual name of the tapes you're talking about. Is it 720creditscore with Philip X Tirone?

Hmm, I hope the OP only uses this book as a suggestion, not rule. I looked it up on Amazon, and not only is 720 not the "ideal" credit score (760 is ideal when talking best rates, etc.) But the comment on the cover says "Almost overnight my score jumped from a 0 to a 718". LOL There is no such thing as a 0 score.

They say don't judge a book by its cover, but based on that I would be wary of what "information" is contained inside of that book. My suggestion to OP is to spend a little time here on the forums and you will learn the CORRECT teachings of credit.

Re: Newbie with basic credit card questions

nightglider — Mon, 29 Sep 2014 23:08:07 GMT

@14Fiesta wrote:
@nightglider wrote:
We're looking for the actual name of the tapes you're talking about. Is it 720creditscore with Philip X Tirone?
Hmm, I hope the OP only uses this book as a suggestion, not rule. I looked it up on Amazon, and not only is 720 not the "ideal" credit score (760 is ideal when talking best rates, etc.) But the comment on the cover says "Almost overnight my score jumped from a 0 to a 718". LOL There is no such thing as a 0 score.

They say don't judge a book by its cover, but based on that I would be wary of what "information" is contained inside of that book. My suggestion to OP is to spend a little time here on the forums and you will learn the CORRECT teachings of credit.

I hadn't heard of it prior to finding out what OP was talking about. In my brief look, I was trying not to judge it, but it looks exactly like something you would see on those aforementioned late-night informercials.

Re: Newbie with basic credit card questions

Anonymous — Mon, 29 Sep 2014 23:12:52 GMT

@nightglider wrote:
@14Fiesta wrote:
@nightglider wrote:
We're looking for the actual name of the tapes you're talking about. Is it with Philip X Tirone?
Hmm, I hope the OP only uses this book as a suggestion, not rule. I looked it up on Amazon, and not only is 720 not the "ideal" credit score (760 is ideal when talking best rates, etc.) But the comment on the cover says "Almost overnight my score jumped from a 0 to a 718". LOL There is no such thing as a 0 score.

They say don't judge a book by its cover, but based on that I would be wary of what "information" is contained inside of that book. My suggestion to OP is to spend a little time here on the forums and you will learn the CORRECT teachings of credit.
I hadn't heard of it prior to finding out what OP was talking about. In my brief look, I was trying not to judge it, but it looks exactly like something you would see on those aforementioned late-night informercials.

Hey, it works! It says so right on the web site, http://www.720creditscore.com/success-stories/

Re: Newbie with basic credit card questions

Anonymous — Mon, 29 Sep 2014 23:54:58 GMT

"Hmm, I hope the OP only uses this book as a suggestion, not rule. I looked it up on Amazon, and not only is 720 not the "ideal" credit score (760 is ideal when talking best rates, etc.) But the comment on the cover says "Almost overnight my score jumped from a 0 to a 718". LOL There is no such thing as a 0 score. "

Who/what is the OP? And what book are you talking about. Being able to return your credit score to 720 w/in 12-24 mos after bankruptcy discharge doesn't happen all the time. I'll stick with the videos that he assigns and the homework as he assigns it, the weekly lessons and Q/A.

Re: Newbie with basic credit card questions

Anonymous — Tue, 30 Sep 2014 00:06:15 GMT

@Anonymous wrote:

I'll stick with the videos that he assigns and the homework as he assigns it, the weekly lessons and Q/A.

wait what? videos and homework? is this like an online class or something?

I feel like i'm missing a lot of information here.

Re: Newbie with basic credit card questions

compassion101 — Tue, 30 Sep 2014 00:07:18 GMT

OP=Phillip?