Finances and credit cards

[Anonymous]

Hello all, I need advice.

for the past couple of years 2 years my cs have soared. When I was younger my cs was really bad due to unemployment.

now I have a somewhat stable job, but I can’t manage my finances. 

I buy so much junk food and my fridge is full of food and when I bring lunch at work I still spend on cafeteria.

I have spent $20/day on cafeteria I know doesn’t seem to be big spend but this is regular as I go to the malls as well and spent $20 again on my days off so 30/31 days x $20 is a lot $20 or more on malls since I also buy other things like make up and shoes etc.

I feel like all I do is pay my cc and never able to save for car or better apartment.

But i feel like I’m stressing myself out too much, I have so far... a stable job and able to pay big amount but I hated how my fico score dipped just because I spent $1000 more this month. 

Last month I paid off disco and due to concert ticket and more spendings rack up another $2000 on this. 

My util came to 15% from 7%.

I don’t know if I am stressing too much about my fico score it’s almost 800, 

i don’t think it even matters since I am not making much so it’s not like a cc company Amex or something will write me and send me invite due to my score.

Also JC penny have asks me if I want to open another cc and I said I have three credit cards I don’t need another one but I also purchase a lot at JC penny. 

And Costco as well have asked if I want to apply and I said no, I spend about $140 monthly at Costco I know it’s not a lot but I don’t know sometimes I feel like maybe I’m losing on opportunities because I decline a card because I worry on my credit score.

Is 3 credit cards a lot already? 

I have also three SL so it says my open account is 6. 

And i want to purchase a car when I get the cash, this will add more to open accounts making it 7. 

Does this damage my credit score and how big dent this will be. I’m only looking on second hand car up to $7000 but I’ll hope to put down $2000.

My long term goal is to get 800+ score. 

And buy a house. Again my income is not that big so I am trying to hope my credit score can help when buying house with small income.

I also forgot to add. 

My cli is only 23k all 3 cc I have. 

I wish to get a bigger cli but so far the cap1 don’t budge this is the cc i have since I was a teenager so it’s the oldest.

is spending more on cc good for me so that they’ll likely give me bigger cli? 

Thanks sorry it’s long hope I get an advice 

[Anonymous]

Wow that's a lot! It sounds like you have a clear goal: 800+ CS and house, but some of your spending habits might be holding you back. 

First, Your scores are enough to qualify for a mortgage. Once you're over 750 I think you've got it made

 Second, your utilization might be seen as risky by banks. You have 3 cards, are you using the AZEO method for score optimization? You pay two cards to zero before they cut their statements, and the third you report a small balance like 8.9%

Third, and I say this because I also live a little like you, you need a budget. Make a list of your TYPICAL monthly expenses in one column and your total income in the other column. Add them up. Do you have a surplus? Do you have a deficit? While some expenses are fixed: rent, utilities, etc., many others are discretionary: food shopping, clothes, concerts etc etc. Meaning, you can cut back on the discretionary but not on the fixed or necessary expenses. 

Fourth, I didn't see you mention you had any savings? Do you? try the 50-30-20 rule : each paycheck you use 50% for needs, 30% for wants, and 20% DIRECTLY INTO SAVINGS. 

give yourself a plan, say six months, you'll have:

1. $X in savings

 2. total credit utilization down to 8.9% reporting

 3. maybe some CLIs or new high SL credit cards to lower your utilization rates

 4. research banks to see who might prequalify you for a housing loan: what's your %rate might look like, how much you'll need for a down payment (see number 1 above!), when you'll be financially ready to make the move et etc

 good luck and let us know how it goes!!

[Anonymous]

great advice there @Back2Reality 

if OP decides to open up a new savings account, look into high yield savings account.

due to the market, the percentages out there might be low though.

[Anonymous]

Thank you for the advice. 

Sorry I was away and having anxiety once a while so I couldn’t come check in earlier.

yes I have savings, 5k have been in checking account about 7 years already I know I should have put them somewhere.

Other than this, I basically feel like I pay my cc because of my spending and only able to save 20% of my paycheck each check( I’m paid bi weekly)

so good news though, my work is giving me food voucher due to corona and that’ll cut my expenses on lunch. 

I put 1% of my paycheck to RSU, I have RSU last I checked it was 6000 but in December this year I’m planning to cash in the vested amount? Should I? 

Because i feel like I need the money and 

If ever the economy tank so hard next year...

I didn’t know 15% util is high lol, I guess cuz I’m used with $500 in cc that it’s always 80% util. 

On boa my fico says 790 so close to 800

so getting a new cc isn’t bad then? 

I really want a visa or Amex if i can or should I wait 2 more years?

Mortgage I’m scared because I know I need a big down payment and I don’t know yet if I will be staying here likely won’t be once I finish my degree I’ll be living somewhere else for the job. 

So I’m not planning quickly on this, will be long term goal in about 6 years or so. 

Roght now just trying to figure out if I should buy a car with cc and pay it down instead and/or buy iPhone with my cc I need one my phone is dying. 

But at the same time thinking if I do the above how it will affect my cc score when I will be buying a house in 6 years. 

Again I don’t know if I ever get any bigger cli or I hit the ceiling because I don’t have high income...