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Well, I'm in $99.83 USD in debt, but my payment date is July 21st and I know that I will get it pay off at the end of this week and either way, the balance didn't show up online yet since I transfer money from my checking account to pay my bank credit card balance! I think that in order to be a well-rounded person is to learn things early on so you would have experience whether it is girls, hobbies, and personal finance!
Wow, I just checked my past credit card statements online and I went over 30% of the 4 times, but one of them was kind of emergency because I needed to get my car wheels align! I guess that I have good credit because I need get pre-approved credit card offers!
1.I was wondering when does your credit history start, is it when you open a line of credit or when you start using your credit card?
2.I have been using my credit card for at least 3 months and I always paid in full whenever my balance appear on my online banking so I pay my credit card within a week after my purchases, but since I have to use more than 30% of my credit card limit, how much does it hurt my FICO score?
3.I wonder do I even have a FICO score already establish, it is because I don't want to call a credit bureau and have them say that I don't have one yet?!
4.Is there any other line of credit should I consider right now when it comes to establishing a good credit history and a good credit score?
5.For my credit card, the APR for my purchases is between 11.24% to 20.24% variable, so does it mean if I miss a payment for one purchase then the APR is the interest that I have to pay on the purchase itself?
6.What is a balance transfer, cash advance, and delinquency rate?
I'll answer to the best of my ability...
1. Your credit history starts the first time you open a line of credit or a loan through a financial institution. It may also start a bit earlier if you have your name assigned to a utility bill (perhaps you rent a place) - most utility companies will report delinquent payments to the credit bureau.
2. Your FICO score is not hurt by your purchase/payment habits (at least the ones mentioned above). Keep paying off your balances each month before or on the due date, and make sure if you ever have a utility bill to pay under your name (be it energy, gas, or communications/phone or broadband) that you pay it in a timely manner.
3. You have a FICO score already established, but it likely isn't impressive. A big part of your score is length of time you've held credit. This is why you should keep your first credit card forever (or for at least 10 years)... if you cancel that account, you'll find your FICO score will take a dive unless you have another card which was started about the same time. Another big part of your FICO score is number of accounts and amount of balance you have vs available credit. If indeed you're a high school or college student, trust me, your score likely stinks, but there's no need to worry about it as everyone's score takes a while to work its way up.
4. In your situation, I'd just try to get 2 credit cards without annual fees started. Perhaps a Master or Visa along with a Discover. Amex cards are tough to get until you have good income and credit history already. I'd use the cards for all my purchases and then pay them off completely each month. Your credit record will be great.
5. The APR isn't for missed payments, it's for balances which carry over beyond the 1st payment cycle. Don't carry balances month to month or you'll find the APR on your purchases will soon dwarf your original charges. If you miss a payment the situation is even worse... you will have a late charge of some sort plus the APR plus a negative mark on your credit history, plus you will likely see a new and higher APR for your credit card going forward. Don't miss a single payment. If you think you're going to miss a payment, then don't use your card. Missed payments go on your credit record and will hurt your score significantly FOR YEARS.
6. A balance transfer is when you transfer a credit card balance to another credit card. Credit Card companies love to try to get people to move balances to their own card (the higher your balance the higher the likelihood they will make money off of you carrying month to month balances). A cash advance is when you use your credit card like an ATM card. You give yourself cash directly from the card. This is typically a bad idea because there are always charges associated for doing this. A delinquency rate... I don't know what that is... I suspect if you make a late payment it is the new APR or penalty APR your card will take on. Just don't make any late payments.
Cool! So, the minimum payment is for people who can pay a little, but it does help people to avoid late payment fee, am I right? While the credit card company is happy to know that they can charge interest on your remaining balance!
Cool! So, the minimum payment is for people who can pay a little, but it does help people to avoid late payment fee, am I right? While the credit card company is happy to know that they can charge interest on your remaining balance!
Borgusx... 1) You aren't required to renew cards, they continue until you or the provider cancels the account. If you do get a credit limit increase, generally it is because a particular length of time has passed, or your income has jumped, or both. In any case the increase usually happens when your credit score has risen. If you request an increase, and get it, your score will not mysteriously drop.
2) Intro APR is the temporarily low % rate your card will charge for anything carrying beyond one month. It's a way finance companies convince people to open an account with them.
3) The prime rate is the rate at which banks lend money to each other. It's an official number... search on "WSJ Prime rate" on Google, you'll get the current number and more detailed explanation. It goes up and down periodically and generally speaking it is lower than what you and I will ever see for a loan at a given snapshot in time (since many common loans % are based upon the prime + whatever cut the financial institution adds on top).
I have good new! My credit limit has increased, but I think it is $600 USD now and why I think that is that I am in $12.75 USD in debt, but it haven't process yet for my online banking account in order for me to pay it off online, but my available credit is above $500.00, but it isn't a even number! In conclusion, I believe when I pay off my debt, then my available credit will be $600 USD! I don't know if it increase because of my credit score, but I did e-mail questions regarding credit card expiration and increasing credit limit, but I never direct ask them to increase my credit limit!
By the way, a friend of mine who is 18 just got a credit card with a $2,000 USD credit limit! I just hope that he will be responsible!
i have 2 master cards, a discover, a visa and an amex. total credit line is $15000. all have no annual fees. i pay them in full EVERY time. on time. are you saying credit card is not good? my question is how can you request to lower your current APR?
off topic. i also transferred from allstate to statefarm car insurance. all state gave me an outstanding bill of $29.20. i called them and told them i dont understand it. they told me their manager will call me to explain further. no calls. and now.. i received a collection notice from them for the same amount. will this affect my good credit history coz i dont plan to pay $29.20. i believe i dont owe them anything. i was in autopay payment with allstate.
i have 2 master cards, a discover, a visa and an amex. total credit line is $15000. all have no annual fees. i pay them in full EVERY time. on time. are you saying credit card is not good? my question is how can you request to lower your current APR?
off topic. i also transferred from allstate to statefarm car insurance. all state gave me an outstanding bill of $29.20. i called them and told them i dont understand it. they told me their manager will call me to explain further. no calls. and now.. i received a collection notice from them for the same amount. will this affect my good credit history coz i dont plan to pay $29.20. i believe i dont owe them anything. i was in autopay payment with allstate.
#1 - You can call the card company to put in a request for a lower APR at any time. If you threaten to close your account and to transfer your balance to another card with a lower APR that usually works (reportedly - I've not ever done this myself).
#2 - With a collection agency engaged - indeed you have probably received a ding on your record. This is not a good situation. You'll have that mark on your record for up to 7 years and it will destroy your credit score. Resolve the issue immediately is my advice so that your credit history reflects that the issue was resolved quickly. Pay the measly charge, and pursue discussions with Allstate.
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