ddd wrote:
@Anonymous wrote:I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).
What's best for you might not make the highest FICO score.
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. I do not mean total Abstinence I mean abstain from buying anything that you could not pay for in cash. I just think that if we preached this more and more maybe so many people would not be in credit trouble.
Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.
I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.
I just get tired of typing it.
@haulingthescoreup wrote:
I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.
I just get tired of typing it.
I am new to the world of credit and have been following precisely this strategy. In my view, my credit lines do not allow me to spend money I don't already have, they simply allow me to keep that money in a savings account a few days longer (plus earn cash back on things I would have bought anyway!).
What I did was actually set up a special savings account to pay my cards from. Each time I make a purchase from the card, I transfer the money from my checking account into savings. As far as my checking account is concerned, the money is "spent" immediately when I make the purchase, BUT I get the bonus of earning a bit of interest on the money while it sits in savings until I pay the credit card.
@haulingthescoreup wrote:
@Anonymous wrote:
@Anonymous wrote:I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).
What's best for you might not make the highest FICO score.
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. I do not mean total Abstinence I mean abstain from buying anything that you could not pay for in cash. I just think that if we preached this more and more maybe so many people would not be in credit trouble.
Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.
I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.
I just get tired of typing it.
OMG this is exactly what I am saying. Abstain from buying outside your means becuase you end up trouble.
@Uniqua wrote:
But, what I can't stand the most is those here who seem to think CCCs owe them something after 1-2 months of PIF history so they harass them to get CLIs. It just amazes me the number of threads on "asking" for CLIs or threatening to cancel their CCCs if they don't get one. Why can't some of us just wait? Patience is a virtue, you know?! Then again, some of us NEVER learn!
I do remember a thread a while back in which someone was ranting and raving (and did seem VERY angry indeed) because they'd had some or other card for three months and "hadn't defaulted" (their words) and yet were turned down for a CLI. CLIS are nice and all, but that one did leave me a bit, errr, shocked!
@Uniqua wrote:
I agree, ddd. Far too often I see people here encouraging people already in debt with high util to apply for new credit. I also see people giving advice to others about which CCs they are SURE to get based on their credit scores specifically, which is bad advice because your score is NOT the only option creditors weigh on. I appreciated that tid bit of advice when I first got it, but I have learned the hard way!
I also see people app'ing like it's "in style" and pushing the button for others to get on the "app" frenzy bus. But, what I can't stand the most is those here who seem to think CCCs owe them something after 1-2 months of PIF history so they harass them to get CLIs. It just amazes me the number of threads on "asking" for CLIs or threatening to cancel their CCCs if they don't get one. Why can't some of us just wait? Patience is a virtue, you know?! Then again, some of us NEVER learn!
I think we need more threads on credit gardening especially the way the CC world is today.
Sorry and forgive me. Had to vent!
I agree 100% you are right on money. It seems that some of these poast encourage irresponsibility. If you need to apply for a secured you need to sit down and figure out if you really need it or not. I'm a poits freek I play the points all the time. But you can only get so many FIRST time offers so I'm pretty much done playing games.
All this ranting about canceling cards is going to be done SOON. All companies want to cancel risky credit swiftly. My thought behind the process if you only got a 1-3K limit ti's for a reason. You should be patient nurture make sure you are ok before you start percing increase button.
Irresponsiblity is way to common I know mistakes I have MADE many. I just think personal responsibiblity should be excersided. The problem is everyone feels somebody owes them something.
