Re: Re: utilization In my opinion, you want to show a balance. Don't revolve one (pay interest after carrying for more than the one month) if you don't need to, but show a small balance on the credit report. This is what I do. I charge between $500-$1000 each month and pay it off, but it shows small usage, which shows discipline with your credit. And no, the John Deere card will not affect anything. Don't worry about it. Plus, is that a credit card or an installment loan? I don't know a thing about business cards. They *almost* never show on personal credit reports. Sorry. CA
Re: utilization CA you mentioned a lot of good comments and helps me to understand the cc companies point of view on utilization and I appreciate you taking your time to do so. The part about carrying a bt at 0% while making small payments and the cc co not raising your rates makes sense....but won't carrying over 50% (even as a bt) still hurt your fico? The question remains....I want to understand that if we applied for a wachovia card TODAY we would be getting an MBNA card is that correct?
Re: Re: utilization https://www.applyonlinenow.com/USapp/Ctl/redirect?CV_sourceCode=NS2K&CV_MC=A0000006EA THE CARD SAYS~~WACHOVIA...ISSUED AND SERVICED BY MBNA... Wachovia is a registered trademark of the Wachovia Corporation. MBNA America, MBNA, MBNA.com, MBNA Net Access and Platinum Plus are service marks of MBNA America Bank, N.A. Visa is a federally registered service mark of Visa U.S.A. Inc., and is used by MBNA pursuant to license. MBNA America Bank, N.A., is the issuer and administrator of this credit card program. ©2003 MBNA America Bank, N.A., Member FDIC
Re: Re: Re: Re: Re: Re: Re: Bank1/1st USA & Wachovia/MBNA They do? I have my Providian card agreement here and I don't see it.
Re: Re: Re: Re: Re: Re: Re: Re: Bank1/1st USA & Wachovia/MBNA Maybe Bill Pager took it. Low blow wasn't it?
Re: Re: Re: Re: Re: Re: Re: Re: Bank1/1st USA & Wachovia/MBNA http://www.virtuetv.com/clients/emi/robbie/swingwhenwinning/meandmyshadow_wa_20.wax
Re: Re: utilization Carrying over 50% will hurt your FICO potentially (no one really knows the *specifics* of what completely affects FICO, just generals), but in the long run it will help to have these accounts, as long as they get paid off. Getting back to the John Deere example, if you take out a $3k loan, whether it's a credit card or installment loan, as you pay it down, your FICO will go up and if everything else remains the same as it was before the loan, your FICO *should* end up higher than it was before the loan. Butch, thanks for your nice comments. I don't have a whole lot of time to read through everything, so don't expect a whole lot out of me. CA
Re: Re: utilization I'd still like to know where the information about "minimum payment activity" is in the Providian terms.
Re: Re: Re: utilization I'd still like to know where the information about "minimum payment activity" is in the Providian terms. DaveLV ================ Are you looking at the original agreement from when you first opened the account. ? ?
Re: Re: Re: utilization 1*Issuers will only increase your APR due to utilization if it is a problem on their card as well. CrdtAnlyst ============== 2*Not true MBNA just jacked my rate another 6.51% only because of to high a utilization on other issuers cards. The END ************************* LB 59
Re: Re: Re: utilization How old are your terms? All of their accounts won't have the same terms. Most companies have different terms, depending on the level of card. It was about 6 months ago that I had seen this offer and it was on the internet.
Re: Re: Re: utilization My account is from 1998 and the latest copy of the account terms I have is from January 2002 when my card renewed.
Re: Re: Re: utilization 1*Issuers will only increase your APR due to utilization 2*if it is a problem on their card as well. CrdtAnlyst ============== 2*And it becomes a problem when ever thay say it is.
1*If you continue to carry it once the promo expires and you're still making just minimum payments for a while, then that shows financial stress CrdtAnlyst =============== 1*It doesn't show any such thing. It may however be one of many possibilities, Herein lies one of the many many fantasies of scoring and reporting. False assumptions usually lead to such fantasies. The END ************************* LB 59
1*If you continue to carry it once the promo expires and you're still making just minimum payments for a while, then that shows financial stress It shows that the person is paying off HIGHER RATE CARDS FIRST...they will get around to paying your card OFF eventually...AND THEN IT WILL GO IN THE SOCK DRAWER!!! ...UNLESS YOUR THE LOWEST INTEREST RATE!!!
Re: Re: Bank1/1st USA & Wachovia/MBNA 1*If you continue to carry it once the promo expires and you're still making just minimum payments for a while, then that shows financial stress 2*It shows that the person is paying off HIGHER RATE CARDS FIRST... GEORGE~~ ============ 2*Rite another one of the possibilities. How about something like this: You're not taking the balance out of a high yielding return to pay it down..Hardly what you'd call financial stress is it?
Dave...do you or anyone else like their providian and if so, what's the rate? Has ANYONE had any luck getting them to reduce? After carrying over 50% for awhile they jacked my husband and he's never gotten them to reduce. He has had it paid off for a few months but hates to cancel it for fear of score drop.
That scares me about MBNA because this is exactly what we are talking about. I am in an intro period with MBNA and once my John Deere hits (30k charged at over 50%) will they jack me too? (No they wont!!! I'm thinking positive!) Also, in CA's defense, I think he (assuming ca's a he) is speaking statistically. A banker told me that the bank views someone carrying over 50% consistently as someone who is living above their means. Statistically speaking, so I am sure that's why it was written in to the score programming. I, as well as many other posters here, I am sure, can vouch for the fact that in our earlier days of carrying over 50% long term, we were either in financial distress or living above our means. or both. All I'm saying is for a lot of people that leads to bk, not me thank the Lord, but from a "business" stand point (i'm not saying it's right or wrong!) they are going to operate by what they see statistically. A big picture. It's a business and a business is going to profit. If I make a profit in my business, I hope that doesn't make me greedy. What I think is "unfair" and no one ever said life is fair, is that the average consumer doesn't know the "rules" of credit, credit cards, scores and limits so they are going to take a hit without their knowledge. Now, my parents have a large bank one card for say 30+ years and I'm certain they kept it over 50% and I don't think their rate ever got jacked. That could be that they have a history with them. I guess I don't understand the seeming hostility on this thread. CA is trying to help us understand the CC co's procedures to HELP us, he doesn't make the rules. If a particular card does not make us happy, you're right, we always have the option of changing cards. If my landscaper doesn't do a good job for me, I will switch. I personally am thankful that someone with the insight CA has is willing to take some time to post here. It's valuable information that each of us can take and use as we see fit. If you don't necessarily agree (with the way a cc co operates) it doesn't mean he isn't pretty much right from the cc co's points of view (on a whole.) He doesn't work for every company so he can only share what his experience has been and I think that's what he's trying to do. I appreciate it!
Re: Re: Bank1/1st USA & Wachovia/MBNA Thank you. I appreciate that. I've stopped posting on other boards because everyone is attacking me because I've contradicted some of their theories of conspiracy. People want to believe that the credit card companies are out to get them. But it just doesn't make sense. Credit card companies are in the business of lending money. If they do something unethical, they will lose their customers. The fact of the matter is, *most* of the people they reprice understand why it has happened and move on. Some will call in and ask for help, some will pay it off, some will transfer the balance. But they understand they got into financial trouble. Also, the repricing strategies are never perfect. Sometimes it will hit someone with a FICO of 800 who was just buying new appliances for their home. But the overall truth is that it hits risky customers who are demonstrating the charge off/bko trend. And repricing also reduces the level of charge off/bko because it gets some of these people to move their balances. Again, it's smart business. And if you're revolving the balance because you're getting a higher yield than your contract rate, then you need to share that. Let's say minimum contract rate is 7.9%. (I realize there are lower "life of the loan" rates, but forget those.) Who is giving you a better return than 7.9% on your money? No one. Maybe stocks, but companies don't want you investing their money in stocks, and that also makes you a risky customer. If you're paying off other cards before attacking another balance, great. That's something a company wants to hear. Call them and tell them that and they will certainly consider that. As for the John Deere loan, it sounds to me like an installment loan, which is typically not considered. Forget about it. Don't fret about it. Just keep your eyes on your statements with MBNA. The notice will be in there 2 months ahead of time. CA
