Credit Card Thread

Quote from Leb : Why would banks want to give you a CLI if your utilization rates are low? Wouldnt it make more sense to give you the CLI if your utilization rates are high but you pay the entire amount on time each month?

To encourage you to spend more?

Can't say for sure, but I've never come close to my limits (rarely exceed 30%) yet they still give me increases.

Quote from tadc : To encourage you to spend more? Can't say for sure, but I've never come close to my limits (rarely exceed 30%) yet they still give me increases.

So if my limit on a card is 8k and my monthly spending habits on it are roughly 5.5 k (all of which I pay in full at the end of the month), should I start paying off my CC balance every time it hits 1k or 2 k eventho I havent received a statement yet? Would that reduce my utilization ratio and therefore improve my credit score and my chances of getting offered an increase?

Quote from Leb : So if my limit on a card is 8k and my monthly spending habits on it are roughly 5.5 k (all of which I pay in full at the end of the month), should I start paying off my CC balance every time it hits 1k or 2 k eventho I havent received a statement yet? Would that reduce my utilization ratio and therefore improve my credit score and my chances of getting offered an increase?

That would probably improve your score (by reducing utilization) but whether it would improve your chances of an increase is less certain.

In other news... $5500/month?? wtf are you spending on?

Did a little app-o-rama this morning with the goal of raising my credit score (long term) Will update when I receive decisions
TransUnion: 799, Experian: 795, Equifax Unknown; 27 male, 60K annual; current lines Discover More 6K, Cash Freedom 6K,
PriceLine Rewards Visa - approved 14.1K
Amex Fidelity Investment Rewards - approved 2.5K
Amex Blue Cash Everyday - approved 10k
Capital One Cash Rewards - approved 7.5k
Chase Sapphire - approved 10k
Citi Diamond Preferred - approved 3k
Citi Forward - approved 6.5k
Citi Thankyou - not processed due to number of applications
Discover Open Road - offered to split my current credit line, I declined; increased discover more to 9k
BarclayCard Rewards - not processed due to number of applications

Quote from tadc : In other news... $5500/month?? wtf are you spending on?

reimbursable business expenses comes to mind

Quote from Leb : So if my limit on a card is 8k and my monthly spending habits on it are roughly 5.5 k (all of which I pay in full at the end of the month), should I start paying off my CC balance every time it hits 1k or 2 k eventho I havent received a statement yet? Would that reduce my utilization ratio and therefore improve my credit score and my chances of getting offered an increase?

In short, Yes.

I've already stated everything that should answer your question in previous posts but let me reiterate by using an example instead:

Your credit card has a $8,000 limit. Let's say you have a statement balance due of $1,500 on the 11th of June. Your card's current balance is $6,000. Your current billing cycle closes on the 14th of June (basically you're accumulated $4,500 worth of charges since your last billing cycle ended). It is true (and beneficial) if you paid your statement balance of $1,500 by June 11th you would pay zero interest. However, if you paid nothing additional, your billing cycle would end on June 14th with $4,500. Now you will be due for $4,500 on July the 11th and the process starts all over again.

In this scenario you would have a reported balance of $4,500 to the major credit bureau's (over 50% utilization). This would have a negative impact. To prevent these types of situations, just make sure your balance is where you want it before your billing cycle ends and the statement is issued. Whatever you carry in-between doesn't matter.

Quote from Leb : Why would banks want to give you a CLI if your utilization rates are low? Wouldnt it make more sense to give you the CLI if your utilization rates are high but you pay the entire amount on time each month?

As previously stated, to encourage spending. Banks want to loan money to those who don't need it, yet use it. Confused yet? So is 99% of the world. Think of it from the credit card company's perspective. You have two customers that lost their jobs or major sources of income. Which one would you rather have on your books: the one that reports an average daily balance of $5,000, or $500? The latter is more credit worthy, because he has less need for the credit.

Hello guys,

Does anybody know of a card I can apply for today (monday) and receive it by Friday? I'm typically not a credit user and no longer have access to a credit card (I always use my visa debit). However, I'm leaving for a month long vacation in Thailand on Friday night and it just now occurred to me that it might be smart to have a second form of payment incase something goes wrong with my bank account while I'm over there. (I know...bad planning by me). I want the chase holiday inn priority club card. I saw that its instant approval, but I doubt that I'd receive it before I leave.

What do you guys think? What are my options? (if any) thanks!

Quote from bigemu1 : your billing cycle would end on June 14th

Just my 2 cents... from my reading on the subject, it is common but not universal for cards to report on the cycle date.

Quote from minerman : Hello guys, Does anybody know of a card I can apply for today (monday) and receive it by Friday? I'm typically not a credit user and no longer have access to a credit card (I always use my visa debit). However, I'm leaving for a month long vacation in Thailand on Friday night and it just now occurred to me that it might be smart to have a second form of payment incase something goes wrong with my bank account while I'm over there. (I know...bad planning by me). I want the chase holiday inn priority club card. I saw that its instant approval, but I doubt that I'd receive it before I leave. What do you guys think? What are my options? (if any) thanks!

Not likely. Some banks will overnight a replacement card to you, but I've never heard of them doing this with a new card as it would promote fraud.

Another remote possibility would be for them to send you the new card in Thailand, but that doesn't seem likely either. Or have someone at home forward it to you when it arrives.

FWIW (and I know you didn't ask and probably have your reasons) I think you're crazy for using your debit card exclusively. Not only do you give up any rewards/benefits, but you are also putting your own money (checking account) at risk to fraud, while with a credit card it's the bank's money and risk.

In your present situation I think your only recourse would be travelers cheques. Also you could ask your bank for a second ATM card, which you could keep separately in case your primary is lost, but that's not going to help if your account is cleaned out or shut down due to suspected fraud (overseas use).

Speaking of fraud, you should let your bank know if you haven't already that you're traveling so they won't lock you out of it due to suspicious activity.

UPromise will be switching from Bank of America to Barclays for credit cards. If you apply for a UPromise credit card now, it will be for a Barclays card. Existing BoA card holders will be switched over on September 24, 2012.

Useful info:

• There will no longer be two separate cards (gas/grocery or dining/grocery).
• 5% bonus cash back for online shopping through UPromise member sites in addition to the contribution rate of the merchant (all of which are currently 5% or greater [excluding travel], giving you an effective 10% back). BoA currently gives a 3% bonus for online shopping.
• 4% cash back for dining at participating UPromise restaurants.
• 3% cash back for gas purchases at Exxon or Mobil stations
• 2% cash back on movie theatre merchants
• 1% cash back on everything else.

Terms and Conditions: https://www.upromisemastercard.co...CCMWC46390

There are limitations on the card that you won't see with other cards (like gas only at Exxon/Mobil, dining at only participating restaurants), but if you already do this or are already a UPromise BoA card holder, this could be an improvement for you.

I was approved Cap One Journey(Student) card yesterday at their usual $500 CL. Would applying a second card so shortly be a bad move? I want to build credit and I've heard that having multiple lines of credit helps with this.

I will be a Junior in college this fall and have 3.5k in loans with a steady income part-time job.

Quote from Coperni : I was approved Cap One Journey(Student) card yesterday at their usual $500 CL. Would applying a second card so shortly be a bad move? I want to build credit and I've heard that having multiple lines of credit helps with this. I will be a Junior in college this fall and have 3.5k in loans with a steady income part-time job.

Each application only hurts your score a bit. In your case your score is probably bad/nonexistent anyway, so one more app probably won't make a big difference.

The worst they could do is decline you, and in any case the damage goes away over several months, so not really a big deal to try.

My parents just opened a restaurant last month and I started working there. Since they just opened I am being paid cash. I am turning nineteen in a few weeks and I have absolutely no credit. I wanted to get a credit card if possible just not sure of which ones I should be looking at. Again if it is even possible for someone with no credit to get one. I would also like some advice on how to build credit correctly and efficiently. Really appreciate all replies.

Quote from paperfc : My parents just opened a restaurant last month and I started working there. Since they just opened I am being paid cash. I am turning nineteen in a few weeks and I have absolutely no credit. I wanted to get a credit card if possible just not sure of which ones I should be looking at. Again if it is even possible for someone with no credit to get one. I would also like some advice on how to build credit correctly and efficiently. Really appreciate all replies.

This is pretty relevant:
http://slickdeals.net/forums/show...tcount=417

Also one thing to remember - they have no way of verifying your income, and they ask for "household" income. I've always interpreted that to include parents, roommates, girlfriends, etc. Just sayin'...

Quote from tadc : This is pretty relevant: http://slickdeals.net/forums/show...tcount=417 Also one thing to remember - they have no way of verifying your income, and they ask for "household" income. I've always interpreted that to include parents, roommates, girlfriends, etc. Just sayin'...

household info should be the income that will be put towards paying the card off