Credit 101 Thread
-
- NHL Fourth Liner
- Posts: 16,602
- Joined: Mon Apr 09, 2007 9:25 am
- Location: Frolik
Re: Credit 101 Thread
If one has a regular purchase balance and a balance transfer balance on your credit card, how are payments applied to the two separate balances?
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
I think it just becomes 'credit debt' on the new card, right?
Anyway, when I got my PTO payout from my last job I paid down my two credit cards to under 10% utilization. My credit score shot up 20 points, I'm now over 700 on my TransUnion (Credit Karma) rating, and I applied and was approved for a new United mileage rewards card. This also means my name can be added to our mortgage (my credit score was too low when we bought our house), which I'm excited for. My name is on the deed, but it has always bothered me that I was disassociated with the financing. I feel so grown up now.
Anyway, when I got my PTO payout from my last job I paid down my two credit cards to under 10% utilization. My credit score shot up 20 points, I'm now over 700 on my TransUnion (Credit Karma) rating, and I applied and was approved for a new United mileage rewards card. This also means my name can be added to our mortgage (my credit score was too low when we bought our house), which I'm excited for. My name is on the deed, but it has always bothered me that I was disassociated with the financing. I feel so grown up now.
-
- NHL Fourth Liner
- Posts: 15,747
- Joined: Mon Jan 30, 2006 12:36 pm
- Location: Charlotte, NC
Re: Credit 101 Thread
I believe the payments are applied to transactions based on the date of the transaction, with oldest being paid off first.Kraftster wrote:If one has a regular purchase balance and a balance transfer balance on your credit card, how are payments applied to the two separate balances?
-
- NHL Second Liner
- Posts: 48,700
- Joined: Wed Dec 20, 2006 8:06 pm
- Location: governor of Fayettenam
Re: Credit 101 Thread
Balance transfers. Are they worth it? I have a card with about a 4500 balance, 9% interest. Don't use it anymore, just paying it down from our wedding. I also have a discover with a 7000 limit but no balance for a while now. They are offering me 0% balance transfer on it for 18 months. Should I transfer it over since I am paying it off anyway? Looks like it could save me about $600 in interest, as long as I pay it off before the higher APR kicks in
-
- NHL Healthy Scratch
- Posts: 10,615
- Joined: Sun Jul 07, 2013 7:57 am
- Location: Sparta, WI
Re: Credit 101 Thread
Yes, it's worth it. Just check to make sure that if you don't happen to pay it on time that the interest doesn't back accumulate from the beginning and for the entire amount. Also check and see what the Balance Transfer fee is and weigh that against the decrease in interest rate.
-
- NHL Second Liner
- Posts: 48,700
- Joined: Wed Dec 20, 2006 8:06 pm
- Location: governor of Fayettenam
Re: Credit 101 Thread
Transfer fee is a promo rate of 3% as well. I kind of thought it was, as long as it's paid off before the promo APR expires. It's unused credit, not a new line.
-
- NHL Healthy Scratch
- Posts: 10,615
- Joined: Sun Jul 07, 2013 7:57 am
- Location: Sparta, WI
Re: Credit 101 Thread
Seems like a slam dunk. Just remember that the transfer fee is a fee, so it's set. It's not an IR that you can minimize the impact of by paying off quicker. It's a $30 upfront cost for each $1000 transferred.
-
- NHL Second Liner
- Posts: 51,889
- Joined: Tue Feb 19, 2008 11:13 pm
- Location: دعنا نذهب طيور البطريق
Re: Credit 101 Thread
I noticed that my credit score went down 6 points after paying off my car.
Because that just makes total sense....
Because that just makes total sense....
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
Well, you no longer have that line of credit to manage. Derh. 
What's infuriating to me (similar to the I-paid-this-off-and-my-score-went-down silliness) is that my FICO score is being dinged by one late payment in a ten-year credit history. That one late payment was 75 months ago. (Will that fall off after seven years?) The infuriating bit is that the late payment was on my car loan, and I had just set up for the account to autobill.... except I didn't realize the autobill was going to start on the next month's payment. So I missed it because of a brain fart that I immediately made good on as soon as I realized the error. To me, that doesn't seem like something that should still be an albatross on my score 6 years after the fact.
My MileagePlus card has been sweet. Use it for everything, then pay off enough of the monthly balance to maintain about 15% utilization. Was planning on keeping my car until 200k on the odo (currently at 135k), but it's starting to go south on me. So I want to keep my score as high as I can for now in case I suddenly find myself in need of a new car loan.
Speaking of that miles card, my sign up and usage bonus miles were just added to my account, and I now have about 118k miles. I never realized what I was missing out on.

What's infuriating to me (similar to the I-paid-this-off-and-my-score-went-down silliness) is that my FICO score is being dinged by one late payment in a ten-year credit history. That one late payment was 75 months ago. (Will that fall off after seven years?) The infuriating bit is that the late payment was on my car loan, and I had just set up for the account to autobill.... except I didn't realize the autobill was going to start on the next month's payment. So I missed it because of a brain fart that I immediately made good on as soon as I realized the error. To me, that doesn't seem like something that should still be an albatross on my score 6 years after the fact.
My MileagePlus card has been sweet. Use it for everything, then pay off enough of the monthly balance to maintain about 15% utilization. Was planning on keeping my car until 200k on the odo (currently at 135k), but it's starting to go south on me. So I want to keep my score as high as I can for now in case I suddenly find myself in need of a new car loan.
Speaking of that miles card, my sign up and usage bonus miles were just added to my account, and I now have about 118k miles. I never realized what I was missing out on.
-
- NHL Second Liner
- Posts: 51,889
- Joined: Tue Feb 19, 2008 11:13 pm
- Location: دعنا نذهب طيور البطريق
Re: Credit 101 Thread
I'm wondering if you actually agree with that tortured logic.tifosi77 wrote:Well, you no longer have that line of credit to manage. Derh.![]()
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
I mostly agree with you. But on the other hand, your credit rating is a measure of your ability to manage credit, not eliminate it. Basically, lenders want to know if they can reliably get finance charges and interest out of you. So I sorta get it from their perspective, but it's still pretty dumb.
-
- NHL Healthy Scratch
- Posts: 14,876
- Joined: Wed Oct 03, 2007 4:41 pm
Re: Credit 101 Thread
My only blemishes were 6 years ago in college.. My parents opened a credit card for me to buy groceries that they would pay off, so I could build credit instead of them giving me cash. Well that works if you don't miss two payments. Ugh
-
- NHL Second Liner
- Posts: 51,889
- Joined: Tue Feb 19, 2008 11:13 pm
- Location: دعنا نذهب طيور البطريق
Re: Credit 101 Thread
Ok, just checking.
Maybe I should take out a $5K loan, pay it off in 6 months and watch my credit score go down further.

Maybe I should take out a $5K loan, pay it off in 6 months and watch my credit score go down further.

-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
Well, that's precisely the point. They want three years of interest out of you, not six months.
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
Oh, speaking of credit.......
I went to Experian to order my annual credit report. They have a new thing now like Credit Karma, and signing up for the free trial was the only way I could see to order my reports online. So I did, whereupon I was told that the report would be $1, and that I would get a 7-day free trial of the Experian Direct thing which I could cancel at any time, or else the account would be billed $20 on a rolling monthly subscription. I hate these negative option things, especially as regards banking type stuff, but I just wanted the report. Flash forward a couple days to today........... the $1 charge is on my bank account, but so is a charge of $49.99!! And looking at their website, there is no easy way to cancel the membership; you have to call customer service.
I went to Experian to order my annual credit report. They have a new thing now like Credit Karma, and signing up for the free trial was the only way I could see to order my reports online. So I did, whereupon I was told that the report would be $1, and that I would get a 7-day free trial of the Experian Direct thing which I could cancel at any time, or else the account would be billed $20 on a rolling monthly subscription. I hate these negative option things, especially as regards banking type stuff, but I just wanted the report. Flash forward a couple days to today........... the $1 charge is on my bank account, but so is a charge of $49.99!! And looking at their website, there is no easy way to cancel the membership; you have to call customer service.
-
- NHL Second Liner
- Posts: 55,335
- Joined: Sat Dec 09, 2006 1:42 pm
- Location: I'm sorry you feel that way
Re: Credit 101 Thread
My blemish is that my utilization sky rocketed in the months i was unemployed a year and a half ago...like an idiot, i decided to take advantage of time off work. Also i took a drastic pay cut when i moved back to pittsburgh...easily more than the cost of living change.
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
Well the call with Experian went better than expected. They agreed to refund the $50 and canceled the account on the spot. Jerks.
CS rep said, "The charge was made because you ordered a three-bureau report. Do you remember ordering the three-bureau report?" I said, "I do, but why would I pay $50 for something I can go to another website and get for free?" So she reversed the charge. Considering it was my mistake, I thought that was good of them. But man, they don't make it easy to cancel stuff.
CS rep said, "The charge was made because you ordered a three-bureau report. Do you remember ordering the three-bureau report?" I said, "I do, but why would I pay $50 for something I can go to another website and get for free?" So she reversed the charge. Considering it was my mistake, I thought that was good of them. But man, they don't make it easy to cancel stuff.
-
- NHL Third Liner
- Posts: 27,917
- Joined: Thu Aug 23, 2007 3:28 pm
- Location: Fredneck
Re: Credit 101 Thread
So I knew NOTHING about credit when I hit 18 and needless to say it screwed me. Honestly I know very little about it now except that I wish I had taken better care of it when I was younger. I paid off all of my debts in 2006 and haven't taken on anything new since 2001 as far as loans. I checked my credit report with Equifax last night and noticed that my student loan and car loan from 1999 were on the report as paid in full in 2006. Both were very delinquent at one point. Are these negatively affecting my credit even though they were paid off 9 years ago?
I also have a Comcast debt that was sent to a collection agency in 2009 that I paid off in 2011. That is still sitting there as paid in full as well but it shows a negative on my report. I guess since it was only paid off 3 years ago (Dec 2011). Is there any way I can get this negative mark removed since it was paid off?
I applied for an was approved for a secure card through Capital One. I think that's my best option to build credit. Equifax does not give the credit score for free so I don't know what my score is but I know it has to be low. What is my best use of this card? Currently I am going with a $50 limit so I was thinking I could fill up our car twice a month. Would it be best, as far as credit building is concerned, to pay the balance every month, make the minimum payment, or keep the balance at a certain percentage?
Thanks for any help.
I also have a Comcast debt that was sent to a collection agency in 2009 that I paid off in 2011. That is still sitting there as paid in full as well but it shows a negative on my report. I guess since it was only paid off 3 years ago (Dec 2011). Is there any way I can get this negative mark removed since it was paid off?
I applied for an was approved for a secure card through Capital One. I think that's my best option to build credit. Equifax does not give the credit score for free so I don't know what my score is but I know it has to be low. What is my best use of this card? Currently I am going with a $50 limit so I was thinking I could fill up our car twice a month. Would it be best, as far as credit building is concerned, to pay the balance every month, make the minimum payment, or keep the balance at a certain percentage?
Thanks for any help.
-
- NHL Third Liner
- Posts: 28,922
- Joined: Tue Mar 13, 2007 9:10 am
- Location: Pittsburgh
Re: Credit 101 Thread
The collection account is till going to show on the report. It's going to show as zero balance, which is better than an outstanding one.
Paid off debt eventually drops off the report after a number of years. A credit report isn't a snapshot of your current credit status, it's a history of your debt repayment.
It would be best to use the card some each month and pay the balance in full every month. that builds up a history of paying debt on time and optimizes the credit utilization.
Paid off debt eventually drops off the report after a number of years. A credit report isn't a snapshot of your current credit status, it's a history of your debt repayment.
It would be best to use the card some each month and pay the balance in full every month. that builds up a history of paying debt on time and optimizes the credit utilization.
-
- NHL Healthy Scratch
- Posts: 14,082
- Joined: Sat Jan 28, 2006 2:33 pm
- Location: White-Juday Warp Field Interferometer
Re: Credit 101 Thread
Yeah, once I paid off my car loan my oldest credit account became a terrible, high-interest 'rebuild your credit rating' card. I can't really close it, because it will negatively impact my rating, but I can't let it sit dormant. So I use it for monthly billing stuff (Autosport.com, latimes.com, Dropbox, Google, etc) and pay 100% of the balance every cycle so I don't accrue any interest.
-
- NHL Fourth Liner
- Posts: 24,978
- Joined: Fri Oct 31, 2008 2:59 pm
- Location: The Panda Will Fly Away On A Rainbow
Re: Credit 101 Thread
my mail man sucks. he routinely switches all of our mail around (we have a communal mail box with about 100 people). there is a formal investigation with the post master general ongoing. apparently my doctor sent me to collections because my FSA card was rejected. i never received the notices OR the collections info. i immediately paid it when the collection agency called me. two day after that, i received the bills and notice from the collection agency. i really hope this doesnt show up on my credit report
-
- NHL Second Liner
- Posts: 48,700
- Joined: Wed Dec 20, 2006 8:06 pm
- Location: governor of Fayettenam
Re: Credit 101 Thread
I thought they usually give you a 90 day buffer when it goes to collections. But I could be wrong.
-
- NHL Third Liner
- Posts: 28,740
- Joined: Mon Jan 22, 2007 4:00 pm
- Location: From Hockey Siberia to Hockey Hell
Re: Credit 101 Thread
They can remove it if you didn't get notice.Letang Is The Truth wrote:my mail man sucks. he routinely switches all of our mail around (we have a communal mail box with about 100 people). there is a formal investigation with the post master general ongoing. apparently my doctor sent me to collections because my FSA card was rejected. i never received the notices OR the collections info. i immediately paid it when the collection agency called me. two day after that, i received the bills and notice from the collection agency. i really hope this doesnt show up on my credit report
-
- NHL Second Liner
- Posts: 51,889
- Joined: Tue Feb 19, 2008 11:13 pm
- Location: دعنا نذهب طيور البطريق
Re: Credit 101 Thread
For someone who once have bad credit, I'm pleased to have finally topped the 800 mark.
-
- NHL Healthy Scratch
- Posts: 10,615
- Joined: Sun Jul 07, 2013 7:57 am
- Location: Sparta, WI
Re: Credit 101 Thread
Congrats. 
I hope to join you in the next few years. I've been working hard on it by time is the only thing that can help me now.

I hope to join you in the next few years. I've been working hard on it by time is the only thing that can help me now.