ot: credit cards?

[bcipam]

My 2 cent... if you have the ability to pay your card off each month, do so or don't use the credit card. It's just so easy to pay 1/2 one month, then alittle more the next but still using the card and before you know it you have a balance you can't pay off.

I have struggle for 20 years with credit card debt and I hate it, just hate it. Think of all the money you throw away (by paying interest) each month by not paying off the card. I just can't seem to pay enough to get rid of the cards. I'm in that vicious, horrible circle and am drowning!!!!

Your husband sounds like a wise man; I would listen to him!

[Brandi]

[QUOTE=bcipam]My 2 cent... if you have the ability to pay your card off each month, do so or don't use the credit card. It's just so easy to pay 1/2 one month, then alittle more the next but still using the card and before you know it you have a balance you can't pay off.

I have struggle for 20 years with credit card debt and I hate it, just hate it. Think of all the money you throw away (by paying interest) each month by not paying off the card. I just can't seem to pay enough to get rid of the cards. I'm in that vicious, horrible circle and am drowning!!!!

Your husband sounds like a wise man; I would listen to him![/QUOTE
I am sorry you are in credit card hell. I would never let our credit card situation get out of hand though. I pay it off most of the time. i was just wondering if you had a balance for a couple months if that did something to your credit. We don't have much work at the begining of the year so i pay off half sometimes. and then in a month or so usaully pay it off. Good luck with your situation i hope it gets over and done with sometime soon for you!

[Robbin_G]

I, unfortunately, have too much experience with this as mine teeters from average to not so good. One of my cards reports my score to me monthy so I've watched it jump all over the place. I honestly think it maybe different for everyone!! (I was trying to get private student loans and learned all about this very fast.)

Do NOT close your oldest card and do NOT ask for a limit cap. FICO is done on a RATIO of available balance to balance carried. When my score stabilized and one of my existing card went ahead and gave me an increase of $6,000, my score went UP 40 pts the next month.

Each card should carry no more than 30% of the available balance. My friends were in the process of buying a house. They got a balance transfer offer, they threw all of thier cards onto one card. Thier total balance didn't change, just maxed out one. Thier score DROPPED and they screwed up the mortgage they had lined up and thier interest rate INCREASED.

I pay mine in full monthy. However, you may be carrying a large balance when your card reports to the agencies (which they do monthly). That will ping your score. The only thing that will raise your score is having a zero balance when they report. When I had nothing on all 3 cards for 3-4 months, my score jumped 75pts. As soon as I carried a balance, it went down 55. This movement had nothing to do with late payments, because there was none!

If you're not planning to finance anything, you don't ahve to worry about your score. However, cards will do inquirys quarterly and if you have variable interest rate cards, they can raise it if you have a low score.

I hate those access checks. It is just something to shred!

[Brandi]

So let me get this straight if i can. if I have a $14,000.00 credit limit and have a balance of $500.00 I pay let's say half that balance, what does that do to my score?

[Robbin_G]

So let me get this straight if i can. if I have a $14,000.00 credit limit and have a balance of $500.00 I pay let's say half that balance, what does that do to my score?

I'd say if everything else is stellar, nothing. Need to raise it because you're going to re-fi the house? Pay it off and leave it off.

[miffy'sFuji]

I agree with Robbin. I don't think carrying a balance helps your score. I have a friend who lived with that philosophy and her score is lower than mine. I have always paid off my cc bills in full when I recieve them. I also have never financed anything.

[Barb]

OK here is the scoop. Carrying a small balance is good for building your credit rating. Don't be late. It doesn't matter if you pay the minimum or more, just pay. If your card is maxed, it works against you. You should keep in mind your debt to income ratio. You really must try to have total credit related monthly payments less than 50% of your income. Don't close old cards, just stick them away. That can also adversely affect your score. It didn't used to work that way, but apparently now it does. They change the rules of good and bad every few years!

I just moved some debt from one card to a zero interest card to pay off sooner. It actually hurt my credit score because I maxed the new smaller zero interest card! Sometimes your payments will not show up in the same month. EX- I transfered from one card to another. It showed a new balance on the new card but not a reduction in the old card! In a month or two my score will go back up, but having cards maxed does not look good.

A good credit score is a girls best freind! Be careful girls! If anyone is in a flex rate mortgage, start looking for a fixed rate...they are on the way up.

[Brandi]

ok i think i get it. It sounds like in the long run of things it is better to just pay it off so you don't end up in some downward spiral of things. But not missing a payment is important very important. Not having a big balance is good too. And i don't think i could refinance my mortgage to a better fixed rate at this point . We got 4.7% when we refied a few years ago and we don't plan on taking out any loans anytime soon. So as long as i have had a clean record of no balance for about a half a year I should be good with getting loans and what not. and our credit history has nothing on it ever. Thank you for all the input lady's I feel a little smater now!