Approved for Discover, but nothing else. . .

[Anonymous]

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@myjourney wrote:

High UTL in a lender eyes runs the risk of default so this makes them nervous.

Yes they make money on interest but why take the chance is the way most think about it

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Maybe I don't understand credit cards well enough, but what I'm trying to understand is how they make money off of you when you AREN'T paying interest? Aren't the PIF guys basically freeloading?

In any case, I've been paying reliably on my CapOne card for 12 years, carrying a balance most of that time. Eventually you have to stop worrying.

[myjourney]

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@Anonymous wrote:

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@myjourney wrote:

High UTL in a lender eyes runs the risk of default so this makes them nervous.

Yes they make money on interest but why take the chance is the way most think about it

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Maybe I don't understand credit cards well enough, but what I'm trying to understand is how they make money off of you when you AREN'T paying interest? Aren't the PIF guys basically freeloading?

In any case, I've been paying reliably on my CapOne card for 12 years, carrying a balance most of that time. Eventually you have to stop worrying.

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They are hoping you continue to carry that high UTL beyond the 0%

And yes we PIF people are freeloading and being rewarded with cash back/miles

But they know we are spending money for them, creating swipe fees which is also extra money for the lenders...

So they make a lot of guaranteed money on us freeloaders as you put it..LOL

[RushXTC]

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@Anonymous wrote:

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@myjourney wrote:

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Discover was IMHO looking for a BT all others said no way...Get your UTL down and all doors will open

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Indeed. Maybe that's the case. I would actually like the keep the Discover card open due to my current financial situation. If an emergency strikes, and it may . . . things have been quite perilous lately . . . I need something to fall back on. I'd like another card to do a BT with though.

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Why not just use your discover card for the BT? They're offering 0% for 14 months on balance transfers made before october (IIRC) you can have your Capital one and WF card paid off and leave THOSE 2 cards open, It'd lower your utilization a bit as well and it'll give you 0% + only 1 payment instead of 2...

Just my opinion. P.S. Amazon card is a GREAT card to have. I currently have a $2,600 limit on it, They do automatic CLI's and offer 0% interest for 6-12 months depending on how much you spend. I'd wait it out a bit until you're around 20% UTL though.

[JonStur]

Credit card companies understand people carry a balance time to time. But when someone sustains a high util, it can give the impression that they can't manage their finances or could be in financial distress and trying to live off their cards. If they continue to have high balances and have to choose between eating, the electric bill and paying rent, or paying credit cards, which one do you think wins out? These scenarios happen all the time.

[Anonymous]

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@myjourney wrote:

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They are hoping you continue to carry that high UTL beyond the 0%

And yes we PIF people are freeloading and being rewarded with cash back/miles

But they know we are spending money for them, creating swipe fees which is also extra money for the lenders...

So they make a lot of guaranteed money on us freeloaders as you put it..LOL

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Hmm, I didn't think about the swipe fees.

I have just been wondering why they would care about utilization. It really seems like someone with high utilization is EXACTLY the kind of customer they'd want . . . just a constant source of money for years and years and years.

[myjourney]

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@Anonymous wrote:

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@myjourney wrote:

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They are hoping you continue to carry that high UTL beyond the 0%

And yes we PIF people are freeloading and being rewarded with cash back/miles

But they know we are spending money for them, creating swipe fees which is also extra money for the lenders...

So they make a lot of guaranteed money on us freeloaders as you put it..LOL

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Hmm, I didn't think about the swipe fees.

I have just been wondering why they would care about utilization. It really seems like someone with high utilization is EXACTLY the kind of customer they'd want . . . just a constant source of money for years and years and years.

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And this is true but no one else wants to give you more credit thinking when the dominos fall they could be at the bottom of the list so why take the chance if all the other lenders a person has aren't being PIF or under say 30% of limit ever...Not good and just and FYI...some lenders as a direct result of high UTL over extended periods result in AA,FR or CLD YMMV tho

[Anonymous]

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@RushXTC wrote:

Why not just use your discover card for the BT? They're offering 0% for 14 months on balance transfers made before october (IIRC) you can have your Capital one and WF card paid off and leave THOSE 2 cards open, It'd lower your utilization a bit as well and it'll give you 0% + only 1 payment instead of 2...

Just my opinion. P.S. Amazon card is a GREAT card to have. I currently have a $2,600 limit on it, They do automatic CLI's and offer 0% interest for 6-12 months depending on how much you spend. I'd wait it out a bit until you're around 20% UTL though.

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Yes, I guess that makes sense regarding the BTs. My thought was that I would keep the Discover card wide open for the rewards, but I guess realistically I'll save a lot more money by transferring the balances to a 0% interest card than I would ever get back via the rewards program. I'll have to think about this.

As for the Amazon card, yeah, I want it as long as they don't want to give me a 20%+ interest rate. I shop on there quite a bit.

[Anonymous]

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@JonStur wrote:

Credit card companies understand people carry a balance time to time. But when someone sustains a high util, it can give the impression that they can't manage their finances or could be in financial distress and trying to live off their cards. If they continue to have high balances and have to choose between eating, the electric bill and paying rent, or paying credit cards, which one do you think wins out? These scenarios happen all the time.

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I imagine if that was a the choice then EVERYONE would choose basic necessities. But that doesn't mean everyone with a high utilization rate doesn't care about their credit or isn't financially responsible. To be honest, I didn't even realize utilization was a "thing" until researching it recently. I always figured the only real concern was whether or not you pay on time. So I paid on time and just took the hit on the interest because more often than not I felt like using my cash for something other than paying off my cards. (Of course now I wish I had paid off my cards, when I was in a better position to do so.)

[Anonymous]

Credit cards initially were designed to be short term credit. Many consumers revolve balance for years paying high interest rates. Do not fall into the trap more and max out your new Discover card also. I would recommend using library instead of buying books from Amazon. You should check the amount of interest you are paying on yearly basis and it might motivate you to pay down your cc debt. Also rewards is a game worth playing only if you can pif. Best of luck in your job search. You might also want o join a local credit union. CU would offer better rates then most banks for a stable customer like you.