Re: Re: What is the purpose of gas cards? Wow, you may be right. From the Choicepoint narrative: A vehicle related account is considered open if it has been reported in the last 12 months and has no closed narrative indicators. Installment type accounts must have a balance greater than $0 to be considered open. So it looks like only vehicle-related INSTALLMENT accounts are considered closed when the balance is greater than $0. Other accounts (credit cards?) are considered open, as it says, "if it has been reported in the last 12 months and has no closed narrative indicators." I think I'll benefit from a credit mix this way: bank card, department store card, installment loan, mortgage, and my paid off auto loans. I'm dumping the gas cards. Doc
Re: Re: What is the purpose of gas cards? Back in my driving days I had a Shell Gas card but didn't use it much. Paid balances monthly. Last use was well over ten years ago so this is not even on my credit reports anymore. I think I'll pass on adding a gas card to my "credit mix" - I can't drive but my teenagers can. I was "flirting" with adding a gas card for them to use when driving on errands on my behalf but now, no way. I have enough credit problems without adding to them however innocently.Many thanks for pointing the downside out - bet many people don't know that.
Re: Re: What is the purpose of gas cards? There could be several reasons. As someone pointed out previously, they are good for emergency repairs. It depends on your situation, obviously. I don't feel that I need gas cards as much now, but I still use them. When I was deep in debt, I tried to keep my gas cards paid every month. If I had used a Visa or MC, since I was carrying balances, I'd probably have ended up not paying all of the gas plus the amount I needed to pay on the Visa or MC. So I'd be increasing my interest expense. Even if you only paid minimum, the minimums are often higher on gas cards. Also, there were times when I didn't have enough credit on my Visa or MC to pay for gas or repairs. One time when I needed an emergency repair, I went to a Texaco station. The bill was more than my available credit on my Texaco card. The mechanic called in and I was instantly given a CL increase to cover the cost. At that time, some of my Visa and MC accounts were cutting my CL. So I guess it was another avenue to get credit. Another point, if you're getting ready to buy a house or car and need some extensive repairs, you can use a card that doesn't report, thereby "hiding" the balance from your ratios. Mostly now I use them because it spreads the billing dates throughout the month. But I only use a gas card now if that brand is cheaper, because now that I have better credit I could easily put it on a bank card.
Re: Re: What is the purpose of gas cards? Hedwig-good point. That why I used my Shell Card for some gas purchases and Shell convenience store items. My ex was a not merely a big spender - he was a huge spender. If I had charged gas or sundry items (ex worked at car dealerships so he took care of my car's repair bills) on one of joint cards I would never have been able to pay the debt off because it would just be absorbed into the huge finance charges we paid.
Re: Re: What is the purpose of gas cards? This sucks. ~~Doc ========== ~ ~ Doc.Hain't I been telling folks this all along. CORRELATION : Did you know that there is a direct Correlation between insurance claims and owners of houses and cars? Did you know that there is a direct Correlation between insurance claims and owners of insurance policies? The END ************************* LB 59
Re: Re: What is the purpose of gas cards? To me there are some very good reasons to open at least one gas card. I haven't found that gas cards improve your fico score-although I just recently found evidence that both credit cards and installment loans improve your score. When I first pulled my clue report I had a decent score, but still not spectacular. The number one or two reason I didn't get a higher score was because I didn't have a gas card(which surprised me). So I applied for a gas card and when it finally reported my insurance score increased dramatically-and insurance companies do use choicepoints score-its not a generic FAKO score. Now I wish I had written down the exact amount my score went up, but the reports have already disappeared from my credit watch probably because I pull my other reports so much). I think it was something like 50 or 60 points though. Anyways thats not quite the end of the story. Chevron was taking forever to report my account. When I finally called and asked why they said it was beause they don't report until you have a balance on the card. This turned out to be true. So basically you can get the card and then wait for it to age long enough that it doesn't lower your fico and then carry a balance on it so it reports and helps your insurance score. On a side note, I just got 3 speeding tickets within the last two years and USAA just dropped me like a hot potato--so much for an eight year relationship with them, having no accidents and a really high insurance score......winning the battle and losing the war......
Re: Re: What is the purpose of gas cards? vehicle related retailers have more insurance losses wajaba ================ *1*If it works for credit reports why not for auto parts accessories maintenance and repairs? Don't suppose the fact that these people have cars has anything to so with claims does it? The END ****** ********* LB 59
Re: Re: What is the purpose of gas cards? This seems like another incredible way the insurance companies use to quietly rip us off "scientifically" through silly statistics. PsychDoc ================== It is Doc just like they and the bankers are doing with FICO and Credit reporting. The END ************************* LB 59
Re: Re: What is the purpose of gas cards? Originally posted by marci And I didn't even own a freakin' car... -------------------------------------------------------------------------------- HA HA HA HA HA now this is probably the funniest post I have ever read on here, LMAO FunkSoulBr ================= But Did you know statistics show that people who don't own cars or homes file fewer home and auto insurance claims. The END ************************* LB 59
Re: Re: What is the purpose of gas cards? . On one hand there is the pressure for keeping a "credit mix" for FICO purposes and now it seems that you may be penalized for your noncobranded gas cards. MandyB ==============Now you'r starting to get it. The END ************************* LB 59
and now it seems that you may be penalized for your noncobranded gas cards. MandyB ==============Now you're starting to get it. The END ************************* LB 59
Re: Re: Re: What is the purpose of gas cards? I have to say that you're right. You always say that the whole FICO/credit scoring system is scandalous and this does prove your point. In this case the insurance industry may be using your use of a simple gas card to charge you higher rates. This is not highly publicized information and like FICO scoring it is very confusing. One poster here has said that a score went UP when a gas card was opened but then the site says you'll be penalized for having an active gas card. So ChoicePoint, which is it?
Re: Re: Re: What is the purpose of gas cards? Mandy, a regular credit score may well go up, although the special "ChoicePoint" insurance score (different from the standard FICO credit score) may well go down. No matter which way you turn, somebody penalizes you in favor of their pocketbook. My solution: I'll get my credit mix from something other than gas cards, thanks. Doc
And DOC, thank you for opening up this discussion here. It has led to a whole new facet of credit/ insurance scoring that needs to be examined and considered.
Re: Re: Re: Re: What is the purpose of gas cards? You can't win for losing. Now I have to debate whether or not I should close my one remaining gas card which was opened in 1993. Ten year history, not my oldest acct but must be helping my FICO averages. Don't use the card much except once a year or so ironically to keep it open.
1*if the acct. is OPEN, then you're considered a risk MandyB =========== 1*Better get rid of all these type cards before going on vacation. If you want to return home alive that is. Firs it was bad credit that made it dangerous to drive. Now we find out it's even worse if we have that type of cards too. Seems that we must get a thrill out of living dangerously don't we? The END ************************* LB 59
Re: Re: Re: Re: What is the purpose of gas cards? 1*if the acct. is OPEN, then you're considered a risk MandyB =========== 1*Better get rid of all these type cards before going on vacation. If you want to return home alive that is. Firs it was bad credit that made it dangerous to drive. Now we find out it's even worse if we have that type of cards too. Seems that we must get a thrill out of living dangerously don't we? The END ************************* LB 59
Re: Re: Re: Re: What is the purpose of gas cards? Mandy, the reason code somebody quoted was only an example. It wasn't even an actual person choicepoint score. I added one gas card and now my only choice point reason codes for why I don't get a higher score is that my accounts aren't older and that I have too many recently opened accounts. Spend the thirteen or fourteen bucks to check your choicepoint score before you close such an old account.
Re: Re: Re: Re: What is the purpose of gas cards? Where do you think gas cards fit in to the chart? Under revolving trades? cre8ivegrl ===================== I don't know where they fit but they trash your insurance rates and will get your insurance jacked out of site. Doc. Started a thread about this the other day. Did you read it? What is the purpose of gas cards? PsychDoc http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=332667#post332667 The END ************************* LB 59
Bottom line......do we need a gas card, and if so which one? (That will or won't report, or will report after it ages?) and does BP VIsa count? IF so, who has one and is it worth anything and who issues it?
