Latest bank fee is for paying off credit card on time every month

[Joe]

Read what you just wrote...


If you have say 2-3 major CC's, and your maximum credit available from all of them is $50,000. Your optimal FICO score is reached by utilizing 1-3% of your MAXIMUM available credit. (2% of $50,000 = $1,000). In a perfect world having ridiculous credit limits with zero balance would be ideal if creditors didn't look at payment history. Say with those three cars you don't put more than $1,000 on all three put together every month, and pay it off every month. You will have good payment history with very low utilization. Again this is for absolute optimal scoring. Its not going to make a huge difference. A more realistic "goal" for your average CC user is 30% utilization as it will take time to build limits that high. If you stay under 30%, every 6 months you should be calling your credit card company and asking for a credit increase. Most will raise it, and you will have more available credit VS Debt. After a few years of using 30% utlization you can drop down to 20%, then 10%. Lower is better, but a good payment history of actually USING the card is good too.

For anyone interested www.myfico.com has great forums. I've joined this year and learned stuff you wouldn't ever know about. :thumbsup:

I did and I saw what you said. That isn't only about credit cards, it is about all credit available. You can do that without having a single credit card to your name.

There are ways of keeping your score up and not giving those companies any more money than we already have

 

[99slverZ]

I did and I saw what you said. That isn't only about credit cards, it is about all credit available. You can do that without having a single credit card to your name.

There are ways of keeping your score up and not giving those companies any more money than we already have

Very true, there are a million ways to build credit. I personally am a fan of 2-3 major CC's, 1 store card (macys, target, etc). Low balance paid every month and asking for a credit limit increase every month.

There are lots of cards out there that have no annual fees, and you don't pay interest if you don't carry a balance (which you shouldn't anyways). A line of credit (some overdraft protection) accounts will also show up on reports as available credit which is a good thing and absolutely no fees.

CC companys prey off people that don't read fine print. I gaurentee everyone here has recieved letters in the mail "YOUR PRE APPROVED". Sure you are, with a $249 "activation" fee. A $102 "Annual service" fee with a low rate of 26.9% :jester:. I've only been reading on MyFico for a few months, and realized since the day I turned 18 I was an idiot and should of been doing a lot of things different. Now I know, and if everyone in this world was educated we would have millions in CC debt. :spank:

 

[wikdsvt]

pay cash, period

 

[99slverZ]

pay cash, period

To an extent. However mortgage companys and AMEX doesn't care how much cash you have. They care about timely, positive payment history.

Cash is a good thing, but what is better is to buy what your going to pay cash for on a CC and then pay it off with that cash. Therefore building you credit, and you still paid "cash".

What is NOT smart is buying something with a CC that you don't have cash in pocket for to pay for. I learned that the hard way as many do. :spank:

 

[Joe]

If you haven't already, rent 'Maxed Out' and watch it. It shows quite a few things I'm sure very little people know about how the operate.

 

[nuttsgt]

Yep, I got a letter from B of A last week, they're going to charge me $99 annual fee, just for the honor of being one of their card holders.

 

[4Gas$]

pay cash, period

Man, you sound like 4Gas$...................oh wait

 

[99slverZ]

Yep, I got a letter from B of A last week, they're going to charge me $99 annual fee, just for the honor of being one of their card holders.

Is it a sub prime card? Usually sub prime cards will have an annual fee. $99 is high but not extreme. Secured or? Whats the credit limit? If it's under say $3500 or so and you have good FICO scores I would dump it for another card.

 

[Detroit Style Dragger]

How long until you are required to have one by the government?

 

[mdhmi]

How long until you are required to have one by the government?

Let's not Harvestor up this thread. :thumbsup:

 

[69C20]

U have one credit card through my bank, everytime I use it, I go online and pay what however much I spent