Credit 101 Thread

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Re: Credit 101 Thread

Postby Letang Is The Truth on Mon May 06, 2013 11:00 am

Damn ill be dead by then
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Re: Credit 101 Thread

Postby Fire0nice228 on Mon May 06, 2013 11:12 am

What if I basically use my credit card as a debit card for the points? I get online and make payments as soon as it posts. Should I just wait until the billing cycle ends? I have had people tell me that the credit agencies don't "see" any activity because I dont let it roll over.
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Re: Credit 101 Thread

Postby pfim on Mon May 06, 2013 11:20 am

60sixx wrote:Regarding the collections removal:

A number of years ago, I had to go to the emergency room, which is a $50 copay. I was having heart palpitations (although at the time, I didn't know that's what they were.) Long story long, when you go in saying you're having a heart issue, they yank you back right away and there's no paying of copay, getting info, etc. So, the hospital sent me a bill for the co-pay, but to the wrong address. I didn't know, obviously, and forgot about it. A year or so later, I check my credit report and see it on there. I call to get it taken care of, and they tell me too bad, so sad, can't take it off. I speak to a supervisor who tells me if I pay it, they will remove it. So I paid it that day........but it's still on my credit report. It makes me so mad, because it's a damn $50 hospital bill I didn't even know about.

Is there ANY way to get this removed? I know it doesn't matter, but it still incenses me. :evil:


Did you get the agreement in writing? Will be tough if not.
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Re: Credit 101 Thread

Postby Idoit40fans on Mon May 06, 2013 11:23 am

Fire0nice228 wrote:What if I basically use my credit card as a debit card for the points? I get online and make payments as soon as it posts. Should I just wait until the billing cycle ends? I have had people tell me that the credit agencies don't "see" any activity because I dont let it roll over.


I don't know if thats true, but I usually just wait till next period starts and then pay off the balance i'm carrying...well thats what I did until I moved twice in 3 months bought out of a lease...since then i've been carrying some credit on one of my cards.
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Re: Credit 101 Thread

Postby pens9192 on Mon May 06, 2013 4:23 pm

In 2009, I joined American Consumer Credit Counseling to close out my credit card accounts and consolidate the multiple monthly payments into one payment. Next summer, I will be done making those payments. What effect will that have on my credit? I pulled my credit report last month and everything looks ok. The credit card accounts are shown as closed and receiving monthly payments from ACCC. My score is 740. Thanks.
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Re: Credit 101 Thread

Postby Idoit40fans on Mon May 06, 2013 5:13 pm

You'll have a good credit score but limited credit history. May be hard to get a loan but you should be able to open a decent card with possibly a low limit. This isn't from actual knowledge, just from limited experience with myself and what a few friends have been able to do.
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Re: Credit 101 Thread

Postby bhaw on Mon May 06, 2013 9:32 pm

been away most of the day. Tonight, I'll try to answer questions asked.
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Re: Credit 101 Thread

Postby bhaw on Mon May 06, 2013 11:48 pm

meow wrote:Does going to prison effect one's credit? A friend wants to know...


If said friend's bills were paid while in prison, no. Criminal record has no bearing on credit. In reality, bills usually do not get paid while in jail, so those people tend to have bad credit.

60sixx wrote:Regarding the collections removal:

A number of years ago, I had to go to the emergency room, which is a $50 copay. I was having heart palpitations (although at the time, I didn't know that's what they were.) Long story long, when you go in saying you're having a heart issue, they yank you back right away and there's no paying of copay, getting info, etc. So, the hospital sent me a bill for the co-pay, but to the wrong address. I didn't know, obviously, and forgot about it. A year or so later, I check my credit report and see it on there. I call to get it taken care of, and they tell me too bad, so sad, can't take it off. I speak to a supervisor who tells me if I pay it, they will remove it. So I paid it that day........but it's still on my credit report. It makes me so mad, because it's a damn $50 hospital bill I didn't even know about.

Is there ANY way to get this removed? I know it doesn't matter, but it still incenses me. :evil:


Unless you have the agreement in writing, you'll just have to wait until it falls off. At very worst, make sure the collection company has it marked as paid.

EDIT: actually, if this was resolved a couple years ago, leave it. By having them update it, you reset the clock on having it stay on your credit. If you cleared it up recently, have them mark it as paid if it's not, but get a letter from them stating you did pay it in full in case a lender wants to require you to pay it for a loan. Collection companies shut down all the time, so if you wait and need that letter, you might be SOL.

mac5155 wrote:so using credit karma really doesnt have an adverse effect on your credit score?


It does not. It is a "soft" inquiry. That being said, it's mostly accurate, but I've noticed my score is a little bit off from what shows up on a hard inquiry.

Letang Is The Truth wrote:is there a time frame for when the inquiries drop off?


Here's a good article on the whole inquiry thing http://creditcardforum.com/blog/how-lon ... it-report/

Fire0nice228 wrote:What if I basically use my credit card as a debit card for the points? I get online and make payments as soon as it posts. Should I just wait until the billing cycle ends? I have had people tell me that the credit agencies don't "see" any activity because I dont let it roll over.


All credit is is a snapshot at the time it's pulled. It doesn't track what you've done the last week, month, or year in terms of how much of a balance you have had. It only sees what is there at the time pulled. You would show a zero balance on your card (or a very small balance). Length of time it's been open and the fact it's always been on time will play a bigger factor in your score. If that was your one and only credit line you've ever had, the balance would play a much bigger role than if you had a bunch of history on your credit.

pens9192 wrote:In 2009, I joined American Consumer Credit Counseling to close out my credit card accounts and consolidate the multiple monthly payments into one payment. Next summer, I will be done making those payments. What effect will that have on my credit? I pulled my credit report last month and everything looks ok. The credit card accounts are shown as closed and receiving monthly payments from ACCC. My score is 740. Thanks.


This is actually a piece I'm not great with as it was just catching on when I got out of the business. I know that if you are in credit counseling, you can't get a mortgage until you are out (not sure if this is still the case). It was almost more of a hindrance than a bankruptcy. Sorry I can't help more here, I just don't know.
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Re: Credit 101 Thread

Postby Kraftster on Tue May 07, 2013 8:37 am

I'm going to be paying off a big chunk of revolving debt over the next couple months in anticipation of looking to refinance my mortgage. I figure I will pay down to 30% debt to credit ratio. My wife and I should have scores around 750 when we've done that. How much should I expect my score to suffer from the hard inquiries in connection with the refi? Assuming that the score is still solid, I'd then like to do balance transfers on the remaining revolving debt to a 0% for 12 months (new) card. There's no hidden negatives with balance transferring a few balances, is there?
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Re: Credit 101 Thread

Postby pfim on Tue May 07, 2013 8:43 am

pens9192 wrote:In 2009, I joined American Consumer Credit Counseling to close out my credit card accounts and consolidate the multiple monthly payments into one payment. Next summer, I will be done making those payments. What effect will that have on my credit? I pulled my credit report last month and everything looks ok. The credit card accounts are shown as closed and receiving monthly payments from ACCC. My score is 740. Thanks.


I can't answer the first part, but I would be careful about what score you're quoting. I think only one of the three agencies actually sells the rating that most lenders use (especially mortgages companies). Most new scores are on a different scale and still not widely used by lenders, but they are widely sold to consumers.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue May 07, 2013 8:45 am

I'm thinking about doing somethign similar with a new card with 0% interest in the near future as well. Probably beginning of the summer. Trying to decide what card to get. I kind of want a card partnered with a gas station, but the last one I had like that ceased to exist back in October or so.
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Re: Credit 101 Thread

Postby ulf on Tue May 07, 2013 8:51 am

I got a new credit card about a year ago, I pay it off in full each month, and have made every student loan and car payment since I graduated a year and a half ago. I'm thinking about getting a new credit card with better terms and limit.. Does it hurt your credit score to get a new one 2 years in a row? Especially if I'll be canceling the old one.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue May 07, 2013 8:53 am

Cancelling the old one will hurt your credit. The way that the new one would hurt you would be increasing the number of pulls on your credit. I would not cancel the other card, thats where all of your credit card history is right now. Use it for an occasional gas purchase or an ez pass replenishment or something that will be charged minimally and relatively infrequently just to keep it active and then have it available for emergencies.
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Re: Credit 101 Thread

Postby Kraftster on Tue May 07, 2013 8:55 am

Yeah, don't cancel the old card.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue May 07, 2013 8:59 am

What cards does everyone use? I currently have a Discover card(not sure which one it was, but gives me rotating 5% cash back or whatever. Not the It card) and the southwest visa. No idea what to get if/when I get a third card.
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Re: Credit 101 Thread

Postby ulf on Tue May 07, 2013 9:01 am

I have the discover 5% card too. Thanks guys, that's kind of what I figured, but i didn't know if having multiple lines open also hurt the credit. I'll just roll with 2.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue May 07, 2013 9:08 am

That card is worth keeping solely for the seasons when you have 5% cashback on gas purchases.
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Re: Credit 101 Thread

Postby ulf on Tue May 07, 2013 9:17 am

That is also a good point.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue May 07, 2013 9:19 am

Which happens to be coming up in the summer. :scared: Why couldn't it be in the spring so I can take advantage of it running back and forth to Pittsburgh for all of my family birthdays and playoffs. Boooo.
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Re: Credit 101 Thread

Postby bhaw on Tue May 07, 2013 10:56 am

Kraftster wrote:I'm going to be paying off a big chunk of revolving debt over the next couple months in anticipation of looking to refinance my mortgage. I figure I will pay down to 30% debt to credit ratio. My wife and I should have scores around 750 when we've done that. How much should I expect my score to suffer from the hard inquiries in connection with the refi? Assuming that the score is still solid, I'd then like to do balance transfers on the remaining revolving debt to a 0% for 12 months (new) card. There's no hidden negatives with balance transferring a few balances, is there?


If you are at 750, it will be super minimal, if anything at all. I wouldn't even think about breaking a sweat over it.
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Re: Credit 101 Thread

Postby columbia on Sun May 19, 2013 11:35 am

I just opened up another bank account and watched my credit score go down three points.
I believe that I understand why that happens, but it's a very curious system on the whole.
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Re: Credit 101 Thread

Postby bhaw on Sun May 19, 2013 2:18 pm

columbia wrote:I just opened up another bank account and watched my credit score go down three points.
I believe that I understand why that happens, but it's a very curious system on the whole.


Bc they pulled your credit.

The system is very weird and it's crazy that it determines your life.
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Re: Credit 101 Thread

Postby Kraftster on Mon Jun 10, 2013 12:52 pm

Question: What goes in to determining how high of a limit to give when applying for a new card? I want to consolidate my remaining cc debt onto a 0% card, but I don't want to waste the credit inquiry if the limit won't be enough to move the debt to the card.
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Re: Credit 101 Thread

Postby Idoit40fans on Mon Jun 10, 2013 1:21 pm

That is a good question. I am interested in the possibility of doing the same.
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Re: Credit 101 Thread

Postby Troy Loney on Mon Jun 10, 2013 1:23 pm

Kraftster wrote:Question: What goes in to determining how high of a limit to give when applying for a new card? I want to consolidate my remaining cc debt onto a 0% card, but I don't want to waste the credit inquiry if the limit won't be enough to move the debt to the card.



Debt to income to determine how much debt you can service.
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