Credit 101 Thread

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Re: Credit 101 Thread

Postby columbia on Tue Feb 03, 2015 8:31 am

I was curious as to how this would affect my access to credit, so I went through the 30 second online process with USAA.
$10,000 increase on my credit card with them. Not that I need it, as I think I have $100 on the card right now. But...it's nice to know that these things do have tangible implications.
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Re: Credit 101 Thread

Postby dodint on Tue Feb 03, 2015 9:13 am

Those folks gave me enough money to buy a house. What do they know? ;)
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Re: Credit 101 Thread

Postby tifosi77 on Tue Feb 03, 2015 3:10 pm

columbia wrote:I was curious as to how this would affect my access to credit, so I went through the 30 second online process with USAA.
$10,000 increase on my credit card with them. Not that I need it, as I think I have $100 on the card right now. But...it's nice to know that these things do have tangible implications.

And it means your already low utilization rate will tumble even further, so you might see a bump in your score in a month or two.
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Re: Credit 101 Thread

Postby Idoit40fans on Tue Feb 03, 2015 4:11 pm

I dont think that will bump the score. When you want to up your credit score, you want to carry a balance and bring your utilization up to around 20-30 percent.
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Re: Credit 101 Thread

Postby tifosi77 on Tue Feb 03, 2015 5:21 pm

Idoit40fans wrote:I dont think that will bump the score. When you want to up your credit score, you want to carry a balance and bring your utilization up to around 20-30 percent.

My score shot up 50 points when I got my new card and utilization went from ~80% to under 10%. Score went up another ten points after two months of sub-10% utilization. Since then, utilization has been around 20% and my score has dropped 10 points. Since November, the only thing that has changed is my % utilization.* I was originally planning on keeping my utilization around that 20% mark, but I'm thinking now that under 10% would be better. And poking around Credit Karma, I see that the 1-10% utilization range actually has the highest average credit score.







* I guess there has been one other change: I am almost exclusively using one credit card now (MileagePlus Visa). I have three cards, but one is only carried because it's my oldest open account, and the other is used for monthly re-bills for things like Dropbox, paywalls, etc. So I have one credit account that never gets used at all and one that only gets charged maybe $200 total in six months. I wonder if that is having an impact.....
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Re: Credit 101 Thread

Postby Idoit40fans on Tue Feb 03, 2015 7:25 pm

Not using a card at all definitely has a negative impact. Im not really the person no expain it though ive exhausted my credit card knowledge.
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Re: Credit 101 Thread

Postby tifosi77 on Tue Feb 03, 2015 7:51 pm

My Capital One card just upgraded to a cash rewards status (1.5% annually, I think). How do I manage the cash rewards card and the frequent flier card? Meaning, how do I get maximum benefit from each?
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Re: Credit 101 Thread

Postby Idoit40fans on Tue Feb 03, 2015 8:44 pm

As far as that goes, i just calculated what a mile was worth vs my normal cashvack on discover purchases and determined when its worth it to use which card.
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Re: Credit 101 Thread

Postby ulf on Tue Feb 03, 2015 8:51 pm

How does an Amex factor into credit utilization? I don't have a limit.. Does it even factor in at all?
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Re: Credit 101 Thread

Postby Idoit40fans on Tue Feb 03, 2015 9:03 pm

I'm pretty sure they have flexibility with how they report that so it might not matter or it could be crushing to your score. I am pretty sure they can just report it as an open credit line though, which i'm assuming amex does because they have amazing customer service.
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Re: Credit 101 Thread

Postby Gabe on Tue Feb 03, 2015 9:30 pm

tifosi77 wrote:My Capital One card just upgraded to a cash rewards status (1.5% annually, I think). How do I manage the cash rewards card and the frequent flier card? Meaning, how do I get maximum benefit from each?


Same for me. I got cash rewards on my cap one card and I used the rewards to pay on the balance. Right after I did that, I got a 1K increase on my credit limit.
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Re: Credit 101 Thread

Postby Letang Is The Truth on Wed Feb 04, 2015 11:37 am

tifosi77 wrote:My Capital One card just upgraded to a cash rewards status (1.5% annually, I think). How do I manage the cash rewards card and the frequent flier card? Meaning, how do I get maximum benefit from each?


Read thepointsguy.com. Most of his stuff is rehashed weekly but there are good tips to maximize your points
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Re: Credit 101 Thread

Postby Letang Is The Truth on Wed Feb 04, 2015 11:41 am

Also my credit score is currently 760+. The biggest mark on mine is the number of accounts (currently 7). Due to the USair American Airlines consolidation, you can essentially double your sign up rewards points as they are merging the accounts in the next few months if you get both. I got an AA card about 3 months ago. I am contemplating the USair but worry it'll look bad as I would have opened 3 new credit cards in the last 16 months if I apply. Plus we are looking to get a mortgage in the next six months and wouldn't want to impact.
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Re: Credit 101 Thread

Postby mac5155 on Wed Feb 04, 2015 5:23 pm

Put ourselves on a debt reduction plan using unbury.us (a website). Which if no one has ever used this, it's very useful for folks like us who have about 8 different student loans and a few credit cards. Our plan really isn't super aggressive ($1,000 more per month than minimum payments across the board) and we should be debt free in 5 years.
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Re: Credit 101 Thread

Postby MalkinIsMyHomeboy on Wed Feb 04, 2015 5:37 pm

my credit score is 717, which I guess is good.

Considering credit everything is disturbingly confusing, it's like I guessed on a multiple choice and got lucky. Other than "I owe people money and I should pay them back on time" I know nothing about credit, credit scores, credit cards, whatever.
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Re: Credit 101 Thread

Postby 44windmill on Wed Feb 04, 2015 5:57 pm

Humblebrag here, but my credit came in 2 points below the max from Equifax (814 I think). Funny thing is they list the marks against my credit, and they listed 3 things. So each is worth 2/3rds of a point?
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Re: Credit 101 Thread

Postby Idoit40fans on Wed Feb 04, 2015 6:13 pm

The only derogatory mark i have is high utilization. Its pretty high though. I only have one card paid way down the other two are way up there. Not bueno.
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Re: Credit 101 Thread

Postby Idoit40fans on Wed Feb 04, 2015 6:14 pm

MalkinIsMyHomeboy wrote:my credit score is 717, which I guess is good.

Considering credit everything is disturbingly confusing, it's like I guessed on a multiple choice and got lucky. Other than "I owe people money and I should pay them back on time" I know nothing about credit, credit scores, credit cards, whatever.

Keep doing what youre doing and when you need to use it, youll probably have picked up stuff. I assume you have credit cards, just use them a bit every month even if you immediately then pay them down.
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Re: Credit 101 Thread

Postby mac5155 on Wed Feb 04, 2015 7:24 pm

Idoit40fans wrote:The only derogatory mark i have is high utilization. Its pretty high though. I only have one card paid way down the other two are way up there. Not bueno.


Same. It's revolving credit as well as student loans. When my cc was at like 10 percent utilization my score was through the roof. I just used a balance transfer so it's technically still high but it's saving me interest a ton. Short term score loss for long term gain
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Re: Credit 101 Thread

Postby Idoit40fans on Wed Feb 04, 2015 9:22 pm

mac5155 wrote:
Idoit40fans wrote:The only derogatory mark i have is high utilization. Its pretty high though. I only have one card paid way down the other two are way up there. Not bueno.


Same. It's revolving credit as well as student loans. When my cc was at like 10 percent utilization my score was through the roof. I just used a balance transfer so it's technically still high but it's saving me interest a ton. Short term score loss for long term gain


I'm looking into doing the same thing right now. I am considering switching my airline card over to something with Delta from the southwest visa i have now then getting an amazon visa card. I have no recent pulls affecting my credit right now so I feel that I can afford to do that and even if I need get a house in a year or two, be fine. I'm pretty sure 2 hard pulls isn't that bad for your report.
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Re: Credit 101 Thread

Postby tifosi77 on Thu Feb 05, 2015 2:48 pm

Hard inquiries don't impact your score much at all, but just remember that they stay on your report for two years. So what impact they do have (negligible) carries for a while.
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Re: Credit 101 Thread

Postby Idoit40fans on Thu Feb 05, 2015 4:07 pm

Im not worried about the actual number as much as i am about when i try to get a mortgage.
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