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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Credit Score question
I doing some major paying off and building my credit up...gradually and I know its working( got my score recently).
I wont close cards that are $0 balance since I hear that can lower your score but if I ask them to lower my amunt of credit...will that hurt me?
EX: $0 balance
Available credit/Credit Line: $5000
I hear that having that amt available dosent help either and looks like potential to spend that amt, therefore....cause credit issues.
TIA! I hope I made sense.
Message edited 11/30/2006 10:54:17 AM.
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Posted 11/30/06 10:53 AM  |
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Michelina627
LIF Adult
Member since 2/06 1071 total posts
Name:
Michelle
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Re: Credit Score question
From what I understand, if you are going to cancel a credit card, you should make sure you say "canceled at card holder's request" so it doesn't look as bad.
Also, part of the credit score is calculated based on the percentage of credit you are using versus what you have available, so if you have a huge credit limit, and only are using a little, that's a good thing.
I read the book "Young Fabulous and Broke" By Suze Orman a few years ago, and she did a good job of explaining all of this stuff.
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| Posted 11/30/06 10:57 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
I was also told by a mortgage guy recently that the more available credit you have on the least number of open accounts, the better.
So if you have 20k available credit on 3 cards, that's great.
If you have 10k available on 6 credit cards, not so great.
Don't ask them to lower anything except your interest rate. To my knowledge, no one offers 0% for the life of the card - find out what the rate is after the introductary period.
Also, too much activity is bad, so playing the balance transfer game can hurt in the long run too. Or if you apply for cards that you don't get approved for.
It took me 5 years to get my credit and DH's credit straight after a charge-off and him defaulting on his school loans. But we both have excellent credit now. Anything I can do to help, let me know.
Good luck! 
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| Posted 11/30/06 11:06 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Credit Score question
according to my DH- who deals with credit everyday
don't close the cards
and if you still have debt- don't lower the amounts available
b/c if you owe $2500 and have only $5000 in credit- that looks worse
then owing $2500 and having $10K available
the most important thing is on time payment
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| Posted 11/30/06 11:08 AM |
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sirk1020
*************
Member since 9/06 3046 total posts
Name:
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Re: Credit Score question
so if you have a zero balance on some old cc's that you had in college with only like a 1000 credit line - you should not close these?
I need help in this area too
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| Posted 11/30/06 11:08 AM |
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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Re: Credit Score question
ok, TY everyone!!
Here is the situation, NO debt!
I paid off the high balance cards....I own under $500 for 3 dept store cards..thats it.
So, I guess I should just leave that credit line alone and just not use that card...EVER!!
The APR is disgusting!!!
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| Posted 11/30/06 11:12 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
Posted by sirk1020
so if you have a zero balance on some old cc's that you had in college with only like a 1000 credit line - you should not close these?
I need help in this area too
Call them and find out if they'll raise your limit and lower your interest rate. Threaten to cancel and go with someone else.
A lot of them won't do it if they don't see a lot of activity on your cards or if your credit isn't that great. But it doesn't hurt to ask.
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| Posted 11/30/06 11:14 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
Posted by Smileyd17
ok, TY everyone!!
Here is the situation, NO debt!
I paid off the high balance cards....I own under $500 for 3 dept store cards..thats it.
So, I guess I should just leave that credit line alone and just not use that card...EVER!!
The APR is disgusting!!!
How many total cards do you have - including the majors and the stores?
Be careful with not using the cards either. That can also bite you in the @ss.
We realized that recently and I got a good card with 0% interest and which earns me points that I can redeem for gift cards. I put DH on the same card. We use it for small amounts, pay it off. Use it, pay it off.
They want to see activity, but not large balances that get carried every month because you're only paying the minimum.
They want to know that you're using your credit but paying it off responsibly and on time.
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| Posted 11/30/06 11:16 AM |
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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Re: Credit Score question
Posted by greenfreak
How many total cards do you have - including the majors and the stores?
Be careful with not using the cards either. That can also bite you in the @ss.
We realized that recently and I got a good card with 0% interest and which earns me points that I can redeem for gift cards. I put DH on the same card. We use it for small amounts, pay it off. Use it, pay it off.
They want to see activity, but not large balances that get carried every month because you're only paying the minimum.
They want to know that you're using your credit but paying it off responsibly and on time.
Total cards: 6 cards in total
I just realized my Levitz card has balance but 0% interest.
3 dept store cards, 2 with minor balances, 1-no balance
and 2 major cards....1-no balance, 1 little balance.
Thats my credit for ya. 
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| Posted 11/30/06 12:05 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit Score question
Posted by Beth1210
according to my DH- who deals with credit everyday
don't close the cards
and if you still have debt- don't lower the amounts available
b/c if you owe $2500 and have only $5000 in credit- that looks worse
then owing $2500 and having $10K available
the most important thing is on time payment
YEP - a part of your FICO is the % of revolving debt available.
people argue that a bank may look at it taht you have that much credit card availability to use, that you potentially can get yourself in trouble by maxing out all your cards- but if you have made payments on time- that shows that you use the cc wisely.
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| Posted 11/30/06 12:14 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Score question
IO would not ask to lower the amount.
I am having a huge problem because I closed some cards and even though I ALWAYS pay on time, my interest rates are getting bumped higher and higher because I have a higher debt/credit ratio, and then they see that and lower my limit so it gets worse. 
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| Posted 11/30/06 12:18 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Credit Score question
Posted by Meaghan729
Posted by Beth1210
according to my DH- who deals with credit everyday
don't close the cards
and if you still have debt- don't lower the amounts available
b/c if you owe $2500 and have only $5000 in credit- that looks worse
then owing $2500 and having $10K available
the most important thing is on time payment
yep its called debt utilization and makes up around 30% of your score
YEP - a part of your FICO is the % of revolving debt available.
people argue that a bank may look at it taht you have that much credit card availability to use, that you potentially can get yourself in trouble by maxing out all your cards- but if you have made payments on time- that shows that you use the cc wisely.
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| Posted 11/30/06 12:24 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Credit Score question
IMO...cancel the Store cards and keep the Major Credit Cards
The store ones suck...the APR will not be lowered and they always the FIRST ones to report a late payment to the credit agencies,,,,which in turn screws up your credit rating...and its a PITA to get them to reverse it....
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| Posted 11/30/06 12:25 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
I agree with Lisa, the store cards aren't as good. If you use one often that has benefits, maybe keep one. But they're not doing much for you.
You should call all the other major cards and see if they can do better for you. Doesn't hurt to ask.
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| Posted 11/30/06 12:36 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Score question
Any thoughts on how to get out of my trap?
I pay everything on time. I have cards I've had since college. My credit score is ok, but not good because I have a short credit history. Since I graduated they keep lowering my limits and raising my interest rates. Mabe it's because I graduated, maybe it's because my loans have come due, I'm not sure, but I can't talk them out of it. a card I've had for 6 years and have a good paying hisotry with is raising my limit to 30% as of jan 1. I think that's ridiculous. I called them and they said they could do nothing, it was because of a high debt/credit ratio because I don't have a lot of credit. My only choice is to pay it off by jan 1.
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| Posted 11/30/06 12:42 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit Score question
Posted by JenniferEver
Any thoughts on how to get out of my trap?
I pay everything on time. I have cards I've had since college. My credit score is ok, but not good because I have a short credit history. Since I graduated they keep lowering my limits and raising my interest rates. Mabe it's because I graduated, maybe it's because my loans have come due, I'm not sure, but I can't talk them out of it. a card I've had for 6 years and have a good paying hisotry with is raising my limit to 30% as of jan 1. I think that's ridiculous. I called them and they said they could do nothing, it was because of a high debt/credit ratio because I don't have a lot of credit. My only choice is to pay it off by jan 1.
when you say you have other loans come due, are they student loans? are you in deferrment or have you been paying them. I can't see how if you are paying all your CC on time, they would be lowering your limits and increasing your interest rate to 30%.
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| Posted 11/30/06 12:51 PM |
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leighdvm
My golden boys!
Member since 3/06 4419 total posts
Name:
Michele
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Re: Credit Score question
Does anyone know how long credit inquiries stay on your report???
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| Posted 11/30/06 12:52 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit Score question
Posted by leighdvm
Does anyone know how long credit inquiries stay on your report???
i just looked at a couple - most of them are at most 2 years old. (they all might have had no inquiries then though, i looked at about 4 different ones)
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| Posted 11/30/06 12:55 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Score question
Posted by Meaghan729
Posted by JenniferEver
Any thoughts on how to get out of my trap?
I pay everything on time. I have cards I've had since college. My credit score is ok, but not good because I have a short credit history. Since I graduated they keep lowering my limits and raising my interest rates. Mabe it's because I graduated, maybe it's because my loans have come due, I'm not sure, but I can't talk them out of it. a card I've had for 6 years and have a good paying hisotry with is raising my limit to 30% as of jan 1. I think that's ridiculous. I called them and they said they could do nothing, it was because of a high debt/credit ratio because I don't have a lot of credit. My only choice is to pay it off by jan 1.
when you say you have other loans come due, are they student loans? are you in deferrment or have you been paying them. I can't see how if you are paying all your CC on time, they would be lowering your limits and increasing your interest rate to 30%.
I have student loans that came out fo deferment when I consolidated over the summer. I've been paying on time. I just looked at my credit report form a few months ago, it shows that I have not missed a payment on anything in years, and my score is ok. I need to check a newer report.
I think part of it may be that I am an "authorized user" on all of FH's accounts, I don't know how that distinguished in terms of my score, but HE has a very high debt/credit ratio, much higher than mine..so his stuff may be hurting me?
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| Posted 11/30/06 1:04 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
Posted by leighdvm
Does anyone know how long credit inquiries stay on your report???
Negative stuff stays on for 7 years! 
Just inquiries or good stuff I think is the same.
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| Posted 11/30/06 1:08 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
Posted by JenniferEver
I have student loans that came out fo deferment when I consolidated over the summer. I've been paying on time. I just looked at my credit report form a few months ago, it shows that I have not missed a payment on anything in years, and my score is ok. I need to check a newer report.
I think part of it may be that I am an "authorized user" on all of FH's accounts, I don't know how that distinguished in terms of my score, but HE has a very high debt/credit ratio, much higher than mine..so his stuff may be hurting me?
What is the amount of the school loan versus the amount of available credit on your cards? That's probably a huge difference, if you just graduated.
DH had the same issue - about 40-50k in school loans (which he went into default on and we had to fix) and only 2k in available credit on one card!
It stayed that way for years while he payed down the school loans. Finally, I put him on one of my cards with a 6k available line and single digit interest rate.
It improved his credit history, so we did it again with another card. As of a few months ago, he's got a 800 score even though he still owes 28k on the loan and still only has that one card.
I'm not sure if your husband's credit could hurt you though. If both your names are on the card, you are both responsible for the debt if, say, he declares bankruptcy. So I could see where that might be an issue.
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| Posted 11/30/06 1:13 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Score question
My loans are MUCH higher than my available credit on credit cards.
I have maybe $6K of credit cards limits, about $3K being used and I don't know, $25-30K in college loans
I guess that's what it is.
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| Posted 11/30/06 1:21 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
I just spoke to my friend who's Mom clears people's credit for a living.
If you're on your DH's card and he has negative credit or high debt, that's going to be a problem for you too. She suggests removing yourself as an authorized user. Because then, you will only have your own school loan and small debt to deal with. Not his too.
She also suggested getting a secured card from Orchard Bank. It's a good way to establish positive credit - they secure a certain dollar amount you have available (say $200 to start from your bank account) and you can only use that much as your credit limit. You're kind of borrowing against your own savings account. But it shows up on your credit history and they will up the limit over time if you're a good girl.
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| Posted 11/30/06 1:25 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Score question
Thanks so much.
Isn't ti better if I can get unsecured credit cards though? I do have some cards that are not insane rates.
I was trying to get a 0% balance transfer card to get rid of this stupid 30% card.
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| Posted 11/30/06 1:27 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Credit Score question
Absolutely, unsecured is better. But if the situation is so bad that they're lowering your available credit and raising your interest rate, you may have a problem getting an unsecured card?
If you decide to remove yourself from DH's cards, wait a bit and then contact your CC company to let them know and see if they'll reconsider these changes on your card.
If you're taking on your DH's debt in addition to your own, that may be what pushed them over the edge. If it's just your debt, that might be enough to restore you in a positive light.
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| Posted 11/30/06 1:47 PM |
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