Just got a new Chase card recently and right after the inquiry, but just before the approval, my FAKO was at 718. I didn't look everyday, so I don't know how much of the hit was due to a new TL and how much is attributable to being over 50% util on one card. I got a 4K limit and immediately transferred all of my $3800 from BofA to Chase to take advantage of 0% BT. Well, the TL and balance reported just a couple days ago and my scored dropped all the way to 694 with no other changes. I bet most of it's from being 95% maxed out on the Chase card. The good news is that I called up BofA tonight and they offered me the 0% + prime for BT that everyone else has been getting. Woo Hoo! So I transferred just enough back to BofA to keep me at under 30% for them and under 30% for Chase as well. After all my reading here on CN, I feel kinda like a pro for knowing how to work the system. Knowledge is power!
Oh, I know - I just closed on my house a month ago, so I don't have to worry about point fluctuations for a while. I'm sure the difference is probably similar though. The scores in my sig are true ones from myfico.com. I just wanted to give an idea of what 2 processes had happened and how many pts were gained lost in the process. I'm also excited that when I did the BT from BofA a month ago, my rate was 8.99 on BT...transfer away, then transfer back and got 4.00. Woo hoo!
The results are in. After this BT activity reflected on my credit report, my score that had gone from 718 down to 694 is now back at 718 again. So going from 95% maxed out on one card and a zero bal on the other to less than 30% on both has regained my 24 lost points. This should help a little to understand the effect of maxing out utilization on one card.
I feel kinda like a pro for knowing how to work the system. faztcobra ================== ABOUT THE TIME YOU THINK YOU KNOW HOW TO WORK IT, IT WORKS YOU OVER. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
*Wonders how money is a poor mans credit card? Credit is for those who cannot buy in cash. Cash is for those who are clever enough to have made it. Just some thoughts, from a person who owes noone.
Good point! However ... 1. Sometimes there are circumstances out of your control, which take all you've made and make you borrow. 2. How the hell do you buy a house? In cash? Just some thoughts, from a person who two years ago didn't owe a cent.
Re: Re: 24 pt hit! Well honestly that is a question that can be answered by millions of Americans who dont need credit, which I believe was my original point. Those who use cash as their form of finance, and you can check with your Realtor as to the commonality of this, do not need credit. In all honesty credit is more important to the poor than it is to the rich. Why borrow if you have more than the lender? I will be very blunt in saying that the best credit risk is a person incapable of paying quickly or timely, but who has been employed by the same company for a decade. Nothing like the allowable fees under contract to up a companies bottom line, assuming all that is needed for garnishment is a judgement.
Re: Re: 24 pt hit! Well, that was more like a rhetoric question, but anyway ... are you saying that millions of Americans are rich enough to not need credit and to buy whatever they want? Geez, I might've slept through some kind of an economical miracle ...
Re: Re: 24 pt hit! VGHost, Do a quick internet search on google or through Forbes on how many U.S. citizens out of the approximately 300 million, are millionaires. I think you may be surprised. In 2000 it was about 6.8 million. Todays numbers are similar. Yes the economy is distressed but who do you think has been burdened by that. Honestly, it does affect both the rich and the poor. For the poor it lowers the price for labor, allowing the wealthy to hold more of their money. Since labor is generally the largest tax on the holdings of the wealthy, those with great holdings become richer, so yes it affected them too, as more of their money stays with them. This one is going to be very interesting to some, but consumer spending in many instances goes up during a decline, as comfort items become more desirable and consumers have lost much hope of saving which often lifts their prior inhibitions toward spending. This also makes the producers in the economy wealthier. Lets face it the richest 10% have not felt much of the pain that the average American may likely have felt with the economy that has been in jeopardy since 2001. Thankfully the economy has been on a small uprise and these things are all cyclic.
Re: Re: Re: 24 pt hit! Agreed, but your original statement was about something else: "[color=0066FF]Credit is for those who cannot buy in cash. Cash is for those who are clever enough to have made it.[/color]" This is something I cannot agree on ... as I said before, sometimes there are circumstances out of your control, and no matter how clever you are, you can only depend on the credit you have. I've been doing this for the last two years. It doesn't matter how much money you have. You never know when you are going to need a good credit because you've lost your money. I know a man who had $1.5 million. His wife got cancer. In two years he owed $350K, money he was able to borrow because of his good credit. BTW, if you take this 10% and if you extract the number of people who were born rich, you will see how little are the ones "[color=0066FF]clever enough to have made it[/color]" ...
I completely agree with you. My original comment was based on the anecdote below. I stand by what I wrote and contest the idea that cash is more expensive to use than credit or that cash is a poor man's credit. If you have the cash to buy a home why would you pay 6% for a homeloan? If you have cash why would you, in good conscience carry a revolving balance and pay for something you already have. Does the bank pay you a similar rate for keeping your money with them (aka on loan) These were my only points. Yes credit is a necessary evil. And we do pay quite dearly for the privelege of those funds, should we ever utilize them.
I hear ya ... Of course, using your credit is not very clever when you can use your cash, no matter how good your credit is ...
In my experience, those that can afford to pay cash are more likely to use credit instead! Wealthy individuals are more likely to want to save their cash assets, in order to leverage their buying power. Often times they feel they can earn more investing the money they have, then by using it for purchases that can be made with credit ie: take out a loan at 7% for a major purchase; invest their cash in their business or other investments seeking a 12-15% return.
credit is expensive to start to get but if you know how to play the game, then you get prime which means benefits and points. then you dont leave revolving balances which charge interest or fees. of course buying a house means you leave a balance that is accruing interest and you dont save money financing. prime credit cards however can save you money. also if you finance a car at 0% for 4 years, you can put that money in a cd and make money on interest gained.
Re: Re: 24 pt hit! Or the average mans method. Borrow $5000 6 mo at 0% place into 6 month CD or interest bearing checking mine is 1.99% at the end of 6 months you have $45 pay off the credit card and you have created $45 in wealth
Re: Re: 24 pt hit! I believe there are two schools of thought on this, I know many wealthy individuals, some leverage, and some dont, both very wealthy, the question becomes which one will stay wealthy, or has true wealth. Also I feel it important to mention purchasing property is an investment. The last 3 homes I have sold, sold for 200% of their original cost. So if you would finance a home which could just as easily lose value as gain it. Would you also finance your stock purchases? This was very common in the 20's and in the 30's poverty was very common. Im not saying you're wrong but I am saying if you finance something you stand a chance of losing it.. whereas if you own it, it is yours. http://profiles.yahoo.com/blkcarded
