Credit Card Addiction

[Anonymous]

When applying for credit for like a mortgage or auto, does it not hurt you by having to much available credit?

I have heard that having to much available credit can hurt you since you have access to it and could go overboard. This may not be true, I've just heard it.

Message Edited by cbjn1103 on 07-23-2007 12:44 PM

[Anonymous]

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@Anonymous wrote:

When applying for credit for like a mortgage or auto, does it not hurt you by having to much available credit?

I have heard that having to much available credit can hurt you since you have access to it and could go overboard. This may not be true, I've just heard it.

Some mortgage lenders care, some don't. I think auto lenders rarely care. If you get locked in to a specific mortgage lender who is paranoid about your available credit, you can always close accounts at that time - there's no need to worry about it months or years before.

In reality, demanding that a customer close some of their accounts to reduce total CL is pointless. In many cases, customers could simply reopen those accounts immediately after the loan is approved and escrow closes. Or the customer could go on an application spree and open new accounts.

[Anonymous]

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sunkysd wrote:

I like the fact that having the cards brings my utilization way down. I just today got a Union Plus with a $3500 limit. I think I'm done. I was approved for my mortgage 4 months ago. First time buyer; 3% down at 5.625% interest. The interest rate has gone up a little though. Now I'm just waiting to see what the market is going to be like once the ARM's reset. I'll probably start looking again around February.

_________________________________________________________________________

EWWWW...watch those adjustable rate mortgages (ARMS).  I am refinancing right now because when I originally got the ARM, it saved me about 200.00 a month. I've had it about 4 years now and my payment now is 200.00 more than before I got the ARM. So, in other words, my mortgage payment has gone up 400.00 per month within a matter of 4 years. My mother warned me this would happen, but at the time, I was really excited to save the 200.00 each month. She is doing my loan now.....and locking it in!!!! NO MORE adjustable crap for me, thank you very much!!!  

[Anonymous]

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@Anonymous wrote:

Hi All! Do you ever feel that you have an addiction to credit cards since you've started rebuilding your credit?

I don't NEED any more credit I just want more. It's been sooooo long since I've been credit worthy that I just get giddy when I'm approved for another card.

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Heh, I know exactly what you're talking about. Having decent credit is such a nice thing! Addiction? My approvals since January...


Limit Card
$8,000 AMEX Clear
$5,000 Discover Open Road
$5,000 Citi Platinum Select
$7,000 Chase Disney
$10,000 Bank of America MLB
$5,000 Royal Bank of Scotland
$4,000 AMEX Blue Cash
$5,000 HH FCU
$3,800 Citi DPR
$2,750 HSBC Platinum
$500 WAMU ESPN
$3,000 Hooters

$5,000 Home Depot
$5,600 Circuit City
$2,900 BestBuy
$2,500 Levitz
$750 Lowes

Doesn't include a 50K HELOC, 19K Auto Loan or Pending approval for a 7.5K CCCU Visa.

I am still rebuilding though and finished applying for now. Time to let these age...

Prior to this I had a $500 Orchard and 2 $500 Capital Ones.

Message Edited by db23 on 07-24-2007 08:20 PM

[Anonymous]

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sunkysd wrote:

Do you ever feel that you have an addiction to credit cards since you've started rebuilding your credit?

...

I don't NEED any more credit I just want more. It's been sooooo long since I've been credit worthy that I just get giddy when I'm approved for another card.

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I do know the feeling, but there's a certain wisdom to it because credit has inertia.

Overcoming that inertia to stop your credit score from falling due to a late payment reporting and fee, overlimit fee, universal default, ratejacking, et al. can be darned difficult.

A low score can feel like it just sits there as you attempt to lift it skyward.

Once you get it moving, inertia can take hold and drive it higher. Company A gives you a chance with a $500 CL, Company B sees an even better score later and gives you a $2K CL. Company C decides they want a piece of you do they trump with a $3K CL. And so it goes. You want to break outta begging for credit and get into a position of being sought after.

The CCCs know that not everyone is going to be responsible with their CCs, and many are going to carry a balance. But they'll never find out who are the savers and who are the debtors until they issue some CCs. Even if you are a saver, perhaps they can entice you into becoming a debtor.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Hi All! Do you ever feel that you have an addiction to credit cards since you've started rebuilding your credit?

I don't NEED any more credit I just want more. It's been sooooo long since I've been credit worthy that I just get giddy when I'm approved for another card.

---

Heh, I know exactly what you're talking about. Having decent credit is such a nice thing! Addiction? My approvals since January...


Limit Card
$8,000 AMEX Clear
$5,000 Discover Open Road
$5,000 Citi Platinum Select
$7,000 Chase Disney
$10,000 Bank of America MLB
$5,000 Royal Bank of Scotland
$4,000 AMEX Blue Cash
$5,000 HH FCU
$3,800 Citi DPR
$2,750 HSBC Platinum
$500 WAMU ESPN
$3,000 Hooters

$5,000 Home Depot
$5,600 Circuit City
$2,900 BestBuy
$2,500 Levitz
$750 Lowes

Doesn't include a 50K HELOC, 19K Auto Loan or Pending approval for a 7.5K CCCU Visa.

I am still rebuilding though and finished applying for now. Time to let these age...

Prior to this I had a $500 Orchard and 2 $500 Capital Ones.

Message Edited by db23 on 07-24-2007 08:20 PM

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WHOA!!! Since January???!!!! You're making me look innocent... and I don't like being too innocent. hahahaha! I wonder what your scores were when you applied for these cards... if you don't mind sharing...

[Anonymous]

Scores have gone down a bit since they started reporting, as was fully expected. At the time of the apps the scores were:
TU - 676
EX - 701
EQ - 692

All scores have gone down 15-20 points, which really isn't bad at all considering the number of new accounts that I've added. I fully expect the scores to be even better off than I was in another 6 months or so and then way better at the 1 year point when they stop reporting as new cards.

I've already bumped TU down from 18 Inqs at the highest point to 6 right now and they should be gone in another week or so at my current pace. EQ is at 7 Inqs right now and will probably take 2-3 months to get down to 0. EX - well that'll take 2 years to be at 0.

All in all I got denied 2 times, from PenFed and Citi. Citi basically yelled at me and said to stop applying, reason for denial was too many apps within a short time span.

I only need a PenFed and Navy FCU card to complete my *Collection*

Oh, looks like I left off the GEMB / JCPenny card - they only gave me a $200 CL so they didn't really deserve to make the list anyway.

I also left off 2 Juniper cards and a Target Red card as I canceled them pretty much right away because of useless CLs.

[Anonymous]

Hi Flygirl. Believe me, I am not getting an ARM.  I'm just curious to see if housing prices will be lower once the ARMS begin resetting. There will probably be very many in foreclosure and up for sale.

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flygirl wrote:

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sunkysd wrote:

I like the fact that having the cards brings my utilization way down. I just today got a Union Plus with a $3500 limit. I think I'm done. I was approved for my mortgage 4 months ago. First time buyer; 3% down at 5.625% interest. The interest rate has gone up a little though. Now I'm just waiting to see what the market is going to be like once the ARM's reset. I'll probably start looking again around February.

_________________________________________________________________________

EWWWW...watch those adjustable rate mortgages (ARMS).  I am refinancing right now because when I originally got the ARM, it saved me about 200.00 a month. I've had it about 4 years now and my payment now is 200.00 more than before I got the ARM. So, in other words, my mortgage payment has gone up 400.00 per month within a matter of 4 years. My mother warned me this would happen, but at the time, I was really excited to save the 200.00 each month. She is doing my loan now.....and locking it in!!!! NO MORE adjustable crap for me, thank you very much!!!  

---

[Anonymous]

WOW! I'd be afraid to have THAT much credit. Scared I would accidentally miss a payment!

@Anonymous wrote:

---

@Anonymous wrote:

Hi All! Do you ever feel that you have an addiction to credit cards since you've started rebuilding your credit?

I don't NEED any more credit I just want more. It's been sooooo long since I've been credit worthy that I just get giddy when I'm approved for another card.

---

Heh, I know exactly what you're talking about. Having decent credit is such a nice thing! Addiction? My approvals since January...


Limit Card
$8,000 AMEX Clear
$5,000 Discover Open Road
$5,000 Citi Platinum Select
$7,000 Chase Disney
$10,000 Bank of America MLB
$5,000 Royal Bank of Scotland
$4,000 AMEX Blue Cash
$5,000 HH FCU
$3,800 Citi DPR
$2,750 HSBC Platinum
$500 WAMU ESPN
$3,000 Hooters

$5,000 Home Depot
$5,600 Circuit City
$2,900 BestBuy
$2,500 Levitz
$750 Lowes

Doesn't include a 50K HELOC, 19K Auto Loan or Pending approval for a 7.5K CCCU Visa.

I am still rebuilding though and finished applying for now. Time to let these age...

Prior to this I had a $500 Orchard and 2 $500 Capital Ones.

Message Edited by db23 on 07-24-2007 08:20 PM

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[Anonymous]

Thanks Noah_Bodie. That really is a great piece of advice.

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Noah_Bodie wrote:

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sunkysd wrote:

Do you ever feel that you have an addiction to credit cards since you've started rebuilding your credit?

...

I don't NEED any more credit I just want more. It's been sooooo long since I've been credit worthy that I just get giddy when I'm approved for another card.

---

I do know the feeling, but there's a certain wisdom to it because credit has inertia.

Overcoming that inertia to stop your credit score from falling due to a late payment reporting and fee, overlimit fee, universal default, ratejacking, et al. can be darned difficult.

A low score can feel like it just sits there as you attempt to lift it skyward.

Once you get it moving, inertia can take hold and drive it higher. Company A gives you a chance with a $500 CL, Company B sees an even better score later and gives you a $2K CL. Company C decides they want a piece of you do they trump with a $3K CL. And so it goes. You want to break outta begging for credit and get into a position of being sought after.

The CCCs know that not everyone is going to be responsible with their CCs, and many are going to carry a balance. But they'll never find out who are the savers and who are the debtors until they issue some CCs. Even if you are a saver, perhaps they can entice you into becoming a debtor.

---