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I'd like to be able to consult with someone on managing my credit cards, not just "getting out of debt", but when and if to apply for other cards, transfer balances, manage existing debt, etc. There is a lot of conflicting information on the web about what steps are best to take. Is a credit counselor a reliable source of information about all of this, or do they just help you budget to get out of debt? Are the free credit counseling services good enough or should I be paying for this? Thank you.
I'd like to be able to consult with someone on managing my credit cards, not just "getting out of debt", but when and if to apply for other cards, transfer balances, manage existing debt, etc. There is a lot of conflicting information on the web about what steps are best to take. Is a credit counselor a reliable source of information about all of this, or do they just help you budget to get out of debt? Are the free credit counseling services good enough or should I be paying for this? Thank you.
Don't pay for this. There is nothing about credit management that you can't learn from understanding how credit works. Maybe buy a book or two (although I have no recommendations, I always just used common sense), but don't pay a professional to "manage your credit".
It's usually as simple as "spend less than you earn" and "pay credit cards on time".
It's usually as simple as "spend less than you earn" and "pay credit cards on time".
It's a little more complicated than that. If I get an offer for a new card in the mail, should I accept it? How much of my credit line should I keep open? Should I consolidate debt? What about savings vs. credit? How can I boost my score? What kind of things should I buy with credit rather than savings? etc.
Girl you should get rid of all your credit cards and pay cash! You are heading for a liftime of misery! Listen to clark howard if you want to manage credit cards. Myself id rather learn how to get rich.......................hahahahaha(not that hard). Just takes awhile.
No, it actually isn't. Money management is simple. Hard to do, but simple (like dieting).
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If I get an offer for a new card in the mail, should I accept it?
Only if you actually need a new credit card, and can manage it responsibly (which means paying it off in full every month and NEVER running up a balance on it). Most people only need 1 or 2 cards (unless they travel a lot, in which case another card or two for backup is a good idea). So if you already have 1 or 2 cards, just shred the offer.
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How much of my credit line should I keep open?
Keep credit card utilization under 20% of the card limit for the best effects on your credit score.
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Should I consolidate debt?
If doing so will get you a lower interest rate, it's a good idea. But remember, the goal is to get OUT of debt, not simply to carry it around indefinitely! After the debt is consolidated, get focused on paying it off ASAP.
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What about savings vs. credit?
Savings trumps credit. Save at least 10% of your income every month (more is obviously better).
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How can I boost my score?
Pay your credit card bills, mortgage, car loans, student loans, etc. on time. Keep your credit line utilization low.
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What kind of things should I buy with credit rather than savings? etc.
It's always preferable to pay for things upfront in full. (Which doesn't preclude using a credit card - just pay the resulting balance off in full every month.)
Well, I guess it actually is, because you just contradicted yourself by adding all of those answers to my question. Thanks anyway for the info that you claimed I didn't need.
Well, I guess it actually is, because you just contradicted yourself by adding all of those answers to my question. Thanks anyway for the info that you claimed I didn't need.
You needed the info (most of which is pretty obvious when you stop to think about it for a moment or two; as I said earlier, managing money isn't rocket science). You DIDN'T need to pay someone mega-bucks to provide it to you, so what would hiring a credit counselor add? Save your money and get out of debt yourself. They can't provide you with anything more than you can get from an internet search or a library book. A copy of Personal Finance for Dummies will be cheaper than a credit counseling service, and a lot more useful!
Don't pay for this. There is nothing about credit management that you can't learn from understanding how credit works. Maybe buy a book or two (although I have no recommendations, I always just used common sense), but don't pay a professional to "manage your credit".
It's usually as simple as "spend less than you earn" and "pay credit cards on time".
How about credit restoration as opposed to credit management or money management?
I have no credit and no credit score but I want to build both because those things are important to anyone who wants to have a life today. Specifically, I'm going to need a good credit score if I'm going to get out of the CL room-renting rut. (e.g. like if I hope to ever rent an apartment from a real landlord).
I have $1,000 cash plus two old judgments plus a student loan with income-based repayment and $0 required monthly payment. (I just consolidated student loans and making nominal monthly payments which are not required, so these should be reporting to CRA by now and I should soon have a credit score.)
What I hope to do is pay off at least one (and preferably both) of the judgments with lump sum settlements while never falling delinquent on the student loan and also staying liquid. But I don't have enough information:
How much will I need to pay off either or both judgments? (I know $1,000 won't be enough for either one.) Should I (for now) forget about the judgments and concentrate on paying off the student loan ($5K) as fast as I can? Should I just pile up as much cash as I can without making any payments not currently required?
It's a little more complicated than that. If I get an offer for a new card in the mail, should I accept it? How much of my credit line should I keep open? Should I consolidate debt? What about savings vs. credit? How can I boost my score? What kind of things should I buy with credit rather than savings? etc.
Misty,
The only reason to boost your credit score is to take on more debt. This will keep you in financial bondage for a long time. You don't need credit cards and you don't need a credit score, as the only one getting rich is the bank. Please go to the library and pick up Dave Ramsey's book on The Total Money Makeover. Keep your money instead of giving it to someone else.
The only reason to boost your credit score is to take on more debt.
This is false. Landlords and employers are often concerned about credit scores. There's simply no downside to having a high credit score, and it does not require taking on debt to get one!
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