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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22494695 - 11/08/15 08:33 AM (8 years, 2 months ago) |
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Shiithead said: Just trying to get credit up so I don't have to piss away my check for housing and have nothing to show for it.
using a credit card for such purposes is a good start, here's a little advice, if you pay off this card each time you make a purchase it doesnt do much to build your credit, make a few payments and then pay it off, as your limit is raised extend your payoff period, once you're over a $1500 limit you need to charge small but allow a pay off period of around six months before you pay it off. use the card as little as possible because of the interest rates
in a couple of years apply for a card with a decent credit limit and a better interest rate that doesnt have any annual fees, aim for a 14% interest rate and close your account with capital one, dont simply stop using the card, close the account. after a couple of years with that card look into getting an auto loan but not buying something that will break your budget because in addition to the loan payments you will need full coverage insurance. and do not allow a dealership to run your credit EVER. each time your credit is checked it will affect your credit score, as will applying to several credit card companies at one time. never seek a loan through the dealer and any time you feel pressured at the dealer just tell them you're leaving and express the reason why
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Sun King said:
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Shiithead said: They can only make money off the interest. For me, building my credit, is the lesser of two evils.
That doesn't change the fact that your credit score has nothing to do with how much interest you have paid.
in a manner of speaking it does, if you draw out the payments over several months it does in fact reflect on your credit score just as paying off early does
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Adden

Registered: 06/04/03
Posts: 39,201
Loc:
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22494708 - 11/08/15 08:37 AM (8 years, 2 months ago) |
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Paying loans off early hurts your score. They don't like breaking the agreement that you're going to be paying capitalized interest for however long. However, there's really no true score except running your experian/equifax/transunion reports. Everyone gets a freebie every 365 days or whatever.
Paying your electric bill on time will raise your credit. How long you've been employed, how long you've had cards, your liquidity vs. how maxed cards are etc.
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Adden]
#22494733 - 11/08/15 08:45 AM (8 years, 2 months ago) |
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Dys said: Paying loans off early hurts your score.
only if you're paying off too early. if you draw out the payments on a $200 item for 6 months it benefits your score, instead of paying the $25/month you pay $40 a months it reflects positively because it demonstrates that you didnt use the card as a temporary payment hold and that it wasnt exceeding your budget
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They don't like breaking the agreement that you're going to be paying capitalized interest for however long. However, there's really no true score except running your experian/equifax/transunion reports. Everyone gets a freebie every 365 days or whatever.
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Paying your electric bill on time will raise your credit. How long you've been employed, how long you've had cards, your liquidity vs. how maxed cards are etc.
duration of employment is a factor in lending but it doesnt affect your credit score, having a dozen cards that remain maxed out will in the regard that it affects the ability of a person to pay on a new loan if their pay doesnt manage to make the payments on the new loan but does cover the outstanding debt
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22495055 - 11/08/15 10:26 AM (8 years, 2 months ago) |
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Prisoner#1 said:
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Sun King said:
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Shiithead said: They can only make money off the interest. For me, building my credit, is the lesser of two evils.
That doesn't change the fact that your credit score has nothing to do with how much interest you have paid.
in a manner of speaking it does, if you draw out the payments over several months it does in fact reflect on your credit score just as paying off early does
Source?
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22495078 - 11/08/15 10:37 AM (8 years, 2 months ago) |
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Sun King said:
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Prisoner#1 said:
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Sun King said:
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Shiithead said: They can only make money off the interest. For me, building my credit, is the lesser of two evils.
That doesn't change the fact that your credit score has nothing to do with how much interest you have paid.
in a manner of speaking it does, if you draw out the payments over several months it does in fact reflect on your credit score just as paying off early does
Source?
http://blog.readyforzero.com/does-paying-off-a-loan-early-hurt-your-credit-score/#.Vj-H3r_Re70
Quote:
Paying Off Your Credit Card
When you pay off your credit card, you can see a boost to your score, especially if you have carried credit card debt for quite some time. Getting rid of that debt can boost your score, thanks to the importance of credit utilization. However, even if you pay off your credit card, you might not want to cancel it.
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22495118 - 11/08/15 10:48 AM (8 years, 2 months ago) |
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Sorry, that doesn't support your case. It doesn't compare paying in full each month to carrying a balance.
Same site
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When you pay your credit cards down regularly, you benefit from making on time payments, as well as from the fact that you keep down the amount of credit you are using relative to how much you have available. Installment loans are a little different, though. Since an installment loan is paid off over a set period of time, you don’t get the credit boost from debt utilization. The benefit of an installment loan is that you can show you can manage your credit responsibly over a long period of time, seeing a good credit history as well as loan diversity and regular payment.
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22495158 - 11/08/15 10:59 AM (8 years, 2 months ago) |
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Sun King said: Sorry, that doesn't support your case. It doesn't compare paying in full each month to carrying a balance.
Same site
Quote:
When you pay your credit cards down regularly, you benefit from making on time payments, as well as from the fact that you keep down the amount of credit you are using relative to how much you have available. Installment loans are a little different, though. Since an installment loan is paid off over a set period of time, you don’t get the credit boost from debt utilization. The benefit of an installment loan is that you can show you can manage your credit responsibly over a long period of time, seeing a good credit history as well as loan diversity and regular payment.
what you quoted actually supports what I said
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22495166 - 11/08/15 11:01 AM (8 years, 2 months ago) |
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If you think so.
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Sun King]
#22495186 - 11/08/15 11:06 AM (8 years, 2 months ago) |
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https://www.bankofamerica.com/credit-cards/education/5-facts-about-credit-cards.go
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Fiction: You must carry a balance on your credit cards to build a credit history.
Fact: You do need to use your credit cards to build a credit history, but that doesn't mean you must carry an unpaid balance. In fact, your best strategy is to use your credit cards and pay off the bill in full each month so you keep your overall debt-to-credit limit low.
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22495188 - 11/08/15 11:06 AM (8 years, 2 months ago) |
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you arent penalized for paying it off early or monthly but carrying no more than a 30% balance and paying some toward principal as well as that monthly payment is more beneficial
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22495196 - 11/08/15 11:07 AM (8 years, 2 months ago) |
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Prisoner#1 said: you arent penalized for paying it off early or monthly but carrying no more than a 30% balance and paying some toward principal as well as that monthly payment is more beneficial
source?
See my last post.
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22495213 - 11/08/15 11:11 AM (8 years, 2 months ago) |
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paying off monthly aids you in your finances because you arent paying the interest, it's certainly in the interest of the bank to have you pay off each month
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Sun King]
#22495221 - 11/08/15 11:13 AM (8 years, 2 months ago) |
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Sun King said: https://www.bankofamerica.com/credit-cards/education/5-facts-about-credit-cards.go
Quote:
Fiction: You must carry a balance on your credit cards to build a credit history.
Fact: You do need to use your credit cards to build a credit history, but that doesn't mean you must carry an unpaid balance. In fact, your best strategy is to use your credit cards and pay off the bill in full each month so you keep your overall debt-to-credit limit low.
What part of "your position fiction, my position fact", don't you understand?
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Sun King



Registered: 02/15/14
Posts: 4,069
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Re: Got approved for a credit card! [Re: Prisoner#1] 1
#22495225 - 11/08/15 11:14 AM (8 years, 2 months ago) |
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Prisoner#1 said: paying off monthly aids you in your finances because you arent paying the interest, it's certainly in the interest of the bank to have you pay off each month
So the banks don't want you to pay them %20 APR.
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Srirachi
Mold Hand



Registered: 10/18/05
Posts: 11,411
Loc: Fare Thee Well.
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Re: Got approved for a credit card! [Re: Sun King]
#22495226 - 11/08/15 11:14 AM (8 years, 2 months ago) |
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It'll be hard to prove anything because the people who generate your FICO score won't tell you how it is calculated - but here's what they look at and how much each factor affects your score.
http://www.doughroller.net/credit/a-rare-glimpse-inside-the-fico-credit-score-formula/
However, it's generally understood that the factors are your ability to pay additional debt followed by your ability to generate profit through your habits. The FICO score is NOT a cretidworthiness score. It's a 'how desirable is lending you money' score.
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: Got approved for a credit card! [Re: Srirachi]
#22495350 - 11/08/15 11:51 AM (8 years, 2 months ago) |
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Srirachi said: It'll be hard to prove anything because the people who generate your FICO score won't tell you how it is calculated - but here's what they look at and how much each factor affects your score.
Yeah, I'm pretty sure the algorithms for calculating scores are proprietary. I have perfect credit and have never paid a cent of interest on my cards. Based on this, I think paying the card off in full each month is fine.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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Srirachi
Mold Hand



Registered: 10/18/05
Posts: 11,411
Loc: Fare Thee Well.
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Re: Got approved for a credit card! [Re: badchad]
#22495384 - 11/08/15 12:02 PM (8 years, 2 months ago) |
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Ironically, having perfect credit does not necessarily mean having a perfect credit score. My credit score has been falling because I don't use credit. It's actually impossible to have a score above around 780 without using credit rather heavily.
Another thing that makes it all subjective is that missed payments only count if they are reported. Not all credit sources report stuff that is <90 days. If you've been 90+ days late on a payment, might as well file bankruptcy, because it's that damaging.
It is actually better to be 30 days late on a million dollar payment than 90 days late on $10.
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Got approved for a credit card! [Re: Sun King]
#22495418 - 11/08/15 12:12 PM (8 years, 2 months ago) |
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Quote:
Sun King said:
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Prisoner#1 said: paying off monthly aids you in your finances because you arent paying the interest, it's certainly in the interest of the bank to have you pay off each month
So the banks don't want you to pay them %20 APR.
the banks dont want you to default on unsecured credit
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my3rdeye



Registered: 08/10/12
Posts: 4,354
Loc: Canada
Last seen: 2 years, 8 months
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Re: Got approved for a credit card! [Re: Prisoner#1]
#22495482 - 11/08/15 12:29 PM (8 years, 2 months ago) |
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Every time this comes up half the people say to pay it off monthly in full the other half say don't. I am finally at zero after two years of having a balance of 500 to 1000 every month which wasn't good for the score. No more carrying debt past a month for me. I am going to use card for everything now though. If only i could buy drugs with it
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Got approved for a credit card! [Re: my3rdeye]
#22497281 - 11/08/15 06:36 PM (8 years, 2 months ago) |
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I believe a credit score is a measure of credit risk, not profitability. I say pay it off every month.
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