Confused by credit card payment

[Anonymous]

There are MANY, many moving parts to credit scoring...month over month.....narrowing it down to

"I paid 'more' than the minimum payment' and 'expecting' to guess the point value is IMPOSSIBLE!

Every month is a snapshot of

debt %

aging

obtained age

age of accounts

util by account

overall util

Hp's

new accounts reporting

changes is debt %

too many things to say "well this ONE thing I did"

This is why I'm NOT fan of 'new to credit' folks or those with limited experience managing credit accounts trying to play

big boy/girl games when they are really at 'training wheel' level when it comes to managing and understanding credit...

this leads so many Americans down a rabbit hole, based upon 'some' understanding vs a better undrestanding of what the crap

we're doing regarding managing our finances.

You're heard me before TWC (training wheel cards) or those without commas are low level CL's for a reason and should not be max out,

in the 1st place...IMHO there is no way a 'new to credit' person should be maxing out a training wheel $800 in the 1st place.

It is a recipe for TROUBLE......when we are speaking in terms of MINIMUM payments of very small debt 'trouble' is looming around the corner,

if you can't pay 'that' amount off in very short order using that kind of debt is NOT for you at this time, it just isn't.

Please build your accounts to the point you actually have some 'real' CL's ...why chance your credit rating over a few 100 bucks....hold off on playing

Major League ball until you're in the Majors...don't blow your wad in B.S. single A and make no mistake having a conversation at 88% debt ratio on an

account not big enough to have 4 digits or a comma on it ...is single A.

To build and manage your accounts as you GROW into the next level of being a credit user...NEVER actually 'have to' use anywhere near that % of

the CL extended to you....you don't have the history to sustain errors yet.

Just friendly advice crawl, walk before you screw yourself up trying to RUN in sneakers you don't own yet.....

Please slow down and play where your 'at' not where you 'think' you are....if you have a $800 CL ...you should be PROTECTING a max 25% reporting util like your LIFE depended on it but again it's only your credit life we're speaking of here, Amazon and all these places do have 'cute' items and 'rewards' and bonuses and whatever flashing light to lure folks into trouble.

If you don't have mature credit, skill or money DON'T get played by marketing...stay in the freshmen line if you're a freshmen...don't try to be a senior or a grad student if you're not .....trust me they'll still be sales and rewards when you're an upper classmen too

[Anonymous]

Thank you, however I do consider myself a big boy as Im in the Army and have been for 11 years but thank you for that comment. Was just wondering because the FICO had said it was due to that account! Have a great day I will look for more decent people to get advice from. 

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@Anonymous wrote:

There are MANY, many moving parts to credit scoring...month over month.....narrowing it down to

"I paid 'more' than the minimum payment' and 'expecting' to guess the point value is IMPOSSIBLE!

Every month is a snapshot of

debt %

aging

obtained age

age of accounts

util by account

overall util

Hp's

new accounts reporting

changes is debt %

too many things to say "well this ONE thing I did"

This is why I'm NOT fan of 'new to credit' folks or those with limited experience managing credit accounts trying to play

big boy/girl games when they are really at 'training wheel' level when it comes to managing and understanding credit...

this leads so many Americans down a rabbit hole, based upon 'some' understanding vs a better undrestanding of what the crap

we're doing regarding managing our finances.

You're heard me before TWC (training wheel cards) or those without commas are low level CL's for a reason and should not be max out,

in the 1st place...IMHO there is no way a 'new to credit' person should be maxing out a training wheel $800 in the 1st place.

It is a recipe for TROUBLE......when we are speaking in terms of MINIMUM payments of very small debt 'trouble' is looming around the corner,

if you can't pay 'that' amount off in very short order using that kind of debt is NOT for you at this time, it just isn't.

Please build your accounts to the point you actually have some 'real' CL's ...why chance your credit rating over a few 100 bucks....hold off on playing

Major League ball until you're in the Majors...don't blow your wad in B.S. single A and make no mistake having a conversation at 88% debt ratio on an

account not big enough to have 4 digits or a comma on it ...is single A.

To build and manage your accounts as you GROW into the next level of being a credit user...NEVER actually 'have to' use anywhere near that % of

the CL extended to you....you don't have the history to sustain errors yet.

Just friendly advice crawl, walk before you screw yourself up trying to RUN in sneakers you don't own yet.....

Please slow down and play where your 'at' not where you 'think' you are....if you have a $800 CL ...you should be PROTECTING a max 25% reporting util like your LIFE depended on it but again it's only your credit life we're speaking of here, Amazon and all these places do have 'cute' items and 'rewards' and bonuses and whatever flashing light to lure folks into trouble.

If you don't have mature credit, skill or money DON'T get played by marketing...stay in the freshmen line if you're a freshmen...don't try to be a senior or a grad student if you're not .....trust me they'll still be sales and rewards when you're an upper classmen too

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[lg8302ch]

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@Anonymous wrote:

It's not a new account...had it about 7 months now.

Amazon Retail Credit Card - Credit Limit $800 Current balance $701 (plan to pay this off within the month)

Capital One Credit Card - Credit Limit $3000 Current Balance $2200 (plan to pay half off mid April-May)

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Your score drop is utilization !  The good thing is that Fico has no memory for utilization and you will get the points back as soon as paid down.  High overall utilization combined with a maxed out card is a score killer     Get that Cap1 balance down to less than 50% and pay off completely the Amazon card with 0 balance reporting on next cycle and you should see a score increase. With two cards the ideal reporting would be 1 card less than 9% utilization and the other card reported with 0 balance

[Anonymous]

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@lg8302ch wrote:

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@Anonymous wrote:

It's not a new account...had it about 7 months now.

Amazon Retail Credit Card - Credit Limit $800 Current balance $701 (plan to pay this off within the month)

Capital One Credit Card - Credit Limit $3000 Current Balance $2200 (plan to pay half off mid April-May)

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Your score drop is utilization !  The good thing is that Fico has no memory for utilization and you will get the points back as soon as paid down.  High overall utilization combined with a maxed out card is a score killer     Get that Cap1 balance down to less than 50% and pay off completely the Amazon card with 0 balance reporting on next cycle and you should see a score increase. With two cards the ideal reporting would be 1 card less than 9% utilization and the other card reported with 0 balance

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Thank you going to keep trucking along at both of them and hope to see improvement! 

[ScoreOrBeScored]

Jamie- that was EXCELLENT advice ....... Utilization, payments, interest, statement cuts should be learned and have down packed before hand or

before obtaining big boy cards and limits. 

You need to realiz your graded twice. Individual ultilzation on each card and total utilization with TOTAL credit limits combined . Those 2 things need

to remain in check at all times. 

And 7 months is considered a new account. Your account isn't mature until it hits 24 months (according to Fico) most will say 12 months it's no longer new.

people and lenders have different view on it but if you wanna be safe and really say it's not new, then 24 months makes it not new. IJS 

please dont int take nothing said here personal but a learning tool and advice. There is lots of info here and on the Internet on credit card utilization.

[Anonymous]

Sorry didn't mean to not be a 'deccent' person (guess us former Marines, may have a way of being direct that bruises egos)

It's called sharing as a way to help but if everybody is 'wrong' even about whether an account is even 'new'

'It's not a new account...had it about 7 months now.'

it's hard not to offend.

I never said anything about you as a person (being a 'big boy) I made it clear we were speaking in terms of experience

handling credit not LIFE....a person can be 50 and still NEW or 'young' to how credit works and how credit scoring works.

I've worked with folks with AARP cards that need 'help' because they are in 'training wheels' when it comes to THIS stuff,

which has...ZERO to do with serving in the Army....the USMC definitely didn't teach me or train me to handle credit or finances, friend.

They trained us with rifles... one thing has nothing to do with the other, too many times we Americans miss the point because of PRIDE

and useless emotion.

A question was asked, seeking answers from the more experienced and I apologize if the analogy went over your head and you got STUCK on 

a silly word play....take the advice or not.... it was offered for FREE based upon helping ppl with these stuff for 25 years, college level training, in-house UW at banks and CU's....

If one doesn't want the truth, no big deal....some 'person' or read out at Fico or a CSR will say 'all the above' just to get you to move along....

I just tried to point out there are lots of plates in the air and it isn't as easy as 'they say' but hey knock yourself out.

For those that 'get' the 'love' in which I give as much as I can you're welcome (check the kudo'd ratio....) and I will keep sharing how to's as long as

'some' folks can get value for themselves.

(Honestly, I'm shocked that someone who is 'asking' a credit based question with a $800 CL and 7 months of history would be offended at that level of account being called 'new' or anything to that effect....

Did, I  miss something....isn't a $800 7 month old account a lot different than a $8000 70 month account? I mean really? the OP used the word 'confused' in the title...why the backlash, if you weren't 'confused' ...why are you aking questions?I don't get it?

Now you're upset and banging your chest that you are a 'big boy'....nobody said you couldn't get ice cream or stay up late, calm down...geez)

[Anonymous]

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@ScoreOrBeScored wrote:

Jamie- that was EXCELLENT advice ....... Utilization, payments, interest, statement cuts should be learned and have down packed before hand or

before obtaining big boy cards and limits. 

You need to realiz your graded twice. Individual ultilzation on each card and total utilization with TOTAL credit limits combined . Those 2 things need

to remain in check at all times. 

And 7 months is considered a new account. Your account isn't mature until it hits 24 months (according to Fico) most will say 12 months it's no longer new.

people and lenders have different view on it but if you wanna be safe and really say it's not new, then 24 months makes it not new. IJS 

please dont int take nothing said here personal but a learning tool and advice. There is lots of info here and on the Internet on credit card utilization.

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Ok, thank you

I didn't think I totally lost my mind or was way out of whack with my advice or word play.

I will, however bow out gracefully and allow others to assist this OP

Thanks for your service btw

[Anonymous]

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@Anonymous wrote:

Sorry didn't mean to not be a 'deccent' person (guess us former Marines, may have a way of being direct that bruises egos)

It's called sharing as a way to help but if everybody is 'wrong' even about whether an account is even 'new'

'It's not a new account...had it about 7 months now.'

it's hard not to offend.

I never said anything about you as a person (being a 'big boy) I made it clear we were speaking in terms of experience

handling credit not LIFE....a person can be 50 and still NEW or 'young' to how credit works and how credit scoring works.

I've worked with folks with AARP cards that need 'help' because they are in 'training wheels' when it comes to THIS stuff,

which has...ZERO to do with serving in the Army....the USMC definitely didn't teach me or train me to handle credit or finances, friend.

They trained us with rifles... one thing has nothing to do with the other, too many times we Americans miss the point because of PRIDE

and useless emotion.

A question was asked, seeking answers from the more experienced and I apologize if the analogy went over your head and you got STUCK on 

a silly word play....take the advice or not.... it was offered for FREE based upon helping ppl with these stuff for 25 years, college level training, in-house UW at banks and CU's....

If one doesn't want the truth, no big deal....some 'person' or read out at Fico or a CSR will say 'all the above' just to get you to move along....

I just tried to point out there are lots of plates in the air and it isn't as easy as 'they say' but hey knock yourself out.

For those that 'get' the 'love' in which I give as much as I can you're welcome (check the kudo'd ratio....) and I will keep sharing how to's as long as

'some' folks can get value for themselves.

(Honestly, I'm shocked that someone who is 'asking' a credit based question with a $800 CL and 7 months of history would be offended at that level of account being called 'new' or anything to that effect....

Did, I  miss something....isn't a $800 7 month old account a lot different than a $8000 70 month account? I mean really? the OP used the word 'confused' in the title...why the backlash, if you weren't 'confused' ...why are you aking questions?I don't get it?

Now you're upset and banging your chest that you are a 'big boy'....nobody said you couldn't get ice cream or stay up late, calm down...geez)

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I took the wrong way. Just trying to learn this credit thing now that we are trying to purchase a home and knowing how important the credit scores are can be aggravating. I do appreciate the advice you have given and re-read it and I see where you're coming from, thank you again!

[Anonymous]

No biggie

How much time do you have before you need the mortgage?

Are these the only two accounts you have?

You mentioned 'we' ....how's the other party's file looking?

Who's you're DTI ratio?

Just rhetorical stuff for you and whoever your 'we' is...want to consider (again just my advice)...before it's needed under the gun.

I come on strong because I don't like seeing folks get caught and I've seen it too many times...that's why I can be 'annoyingly' through

as if I'm prepping a Marine for the field

If you have ANY question I can help with shoot it...PM, no problem (no charge

It just pains me sometimes to see ppl in straits they don't 'have' to be in based upon the industry giving piece meal info and having ppl rely

on it as 'the' info when it's only part of the story and I get it .....we like black and white answers but this crap doesn't work totally like that and YES

it's aggravating as heck....it gets a bit easier to 'see the field' but it's NEVER completely solved or 100% understood or controlled, once we admit that

It's easier to just try to control to controlable and prep for the rest....

Best of luck with the house hunting and that invite for questions is genuine.

[Anonymous]

Thank you. I am sure I will message you a few times before we get the ball rolling. 

My wife has students loans and one credit card on her credit report. Last time we checked she is about 620 credit score. 

I did a quick DTI calculator site and it showed my DTI to be about 17%. I have a few student loans under $5000, car loan under $6000 and two credit cards. 

I am set to PCS this summer and was hoping to purchase a home instead of base housing or renting off base. We could be there for a good bit so it makes sense to us to purchase something affordable, if we can.