All of our credit cards are completely paid off except a new one with a great transfer rate--it's currently at 9800 out of 11500. Total CL is....Hmmmm..... about 27k. How bad is this? Any idea?
am, I think that you are in a good position. Very exciting. Aren't you going to be buying a house soon? Erica
am, I think that you are in a good position. Very exciting. Aren't you going to be buying a house soon? But then again Erica already said that! -Dave She keeps saying what I am thinking !!!
Horrible! Yechhhh! It shows that you simply do not know how to manage credit cards. Credit cards should only be used for one week out of each and every month and then paid off in full. Having great limits is good, but not if you abuse them this way. Bill Bauer
Re: Horrible! Yechhhh! woah where did that come from? I'm asking a ratio question. IN other words, the total ratio seems to be good and isn't that what they look at? Perfection eludes me.... But not for long! lol.
Re: Horrible! Yechhhh! Bill, If borrowing at 1.9% for nine months is "not knowing how to manage credit", I don't know what to tell you. am, I borrowed around the same time you did. Wasn't it exciting to find the check in the mail?
Re: Ratio am, I have been under the impression that a ratio of under 20% yields optimum FICO. If that is correct, you can increase your FICO by bringing your debt down to $5400.
Re: Horrible! Yechhhh! Frankly, I don't know what they look for. What I do know is that having a balance on a credit card that is so close to the limits can kill you in a heartbeat if anything should happen to your income. It's an extremely dangerous position to be in indeed. One should never have a balance on any credit card that he cannot pay in full at the end of the month on or very near the due date. One should never spend money with a credit card that he does not have the cash already in a savings account drawing interest for him. One should never use a credit card for more than 1 week per month before switching to another credit card. I switch to the next card every Sunday having just paid it off from savings account money the Thursday or Friday before I am going to start using the card again. I keep them in rotational order according to the card that has the due date which will be the furtherest into the future possible. One should almost never spend cash for much of anything. Bill Bauer
Re: Horrible! Yechhhh! Bill, I concur with you. I'll however advocate taking advantage of teasers like 1.9%. If you just kept the borrowed money in CDs at 5%, you can make a 3% spread.
Borrowing vs credit card Borrowing is something I never do except for large ticket items such as a car or a home or that sort of thing. What credit card lets you borrow at 1.9% for whatever period of time?
Re: Horrible! Yechhhh! Bill, We obviously have vastly different views of credit cards. You want to use them for short-term financial gain by playing the float game. I want to use them to make long-term investments in my education, career, etc. In your view, the APR would be totally irrelevant, since you would pay the bill in full anyway. In my view, the APR is the cost of credit, and I want to use credit if the return on investment is greater than the cost.
Re: A Cada Quen Su Ranchito Author:Bill Bauer Every body got his own little ranch.Yes but some of EM look like they have been hit by a storm!
Re: A Cada Quen Su Ranchito Another factor to consider is that lenders review your credit limits. In other words, if you were to max out your cards post purchase of your home on your salary...how would doing so affect your ability to pay off the mortgage. High credit limits can impair your ability to obtain a good loan for this reason.
Thanks Everyone, thanks for taking the time to respond to my question. It was very exciting getting that check, it took my breath away, knowing I could then pay off credit card debt from my father's death--which was at almost 25% for 1.9% for a year. We have already started serious reducing our balance and will have it dented quite nicely very soon. It's always great to see the vastly different takes on credit.....maybe someday we'll know the truth regarding FICOs but.....well, you know how that story goes! Thanks again AnnMarie
