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Joined: May 2000
Posts: 2,127
Hard-core CEG'er
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Hard-core CEG'er
Joined: May 2000
Posts: 2,127 |
Originally posted by Russell-3L:
i currently owe almost $700 on my CC (with a limit of $1000) im 20 yrs old and trying to build credit
now i have the cash right now to pay it but heres my dilema.
i can either
1) pay my CC off in full, then use it to buy my suspension (konis, etc)
or
2) pay the minimum payment (currently 0% interest) use my debit to buy the suspension stuff, and pay it off in another month or 2
i was told by some people paying it off at once dont build credit, but others told me it did
what should i do?
thanks,
Russell
Pay off the bill.
Save enough cash until you can pay for the suspension.
Buy suspension on CC and pay it off in full.
Use the card for as much as you can, making sure you pay it of in full each month.
Credit Card interest is bad news.
TB
"Seems like our society is more interested in turning each successive generation into cookie-cutter wankers than anything else." -- Jato 8/24/2004
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Joined: Jul 2003
Posts: 2,571
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Jul 2003
Posts: 2,571 |
i have been in finance for almost 7 years now and yes paying it all off now wont show anything good for credit, anyone can charge something up then get a lump sum of money and pay it off. creditors want to see stability meaning making monthly payments, you need to make payments every month maybe do like 1 1/2 payments each month then the last 2-3 months pay it off. but do not ever be late.
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Joined: Feb 2005
Posts: 1,572
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Feb 2005
Posts: 1,572 |
Originally posted by SVZETEC:
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
Originally posted by RTStabler51:
What builds credit is making monthly payments on time over a period of time.
How the hell did i get all of my credit then ? I've NEVER made monthly payments in my life !
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People shouldn't slam each other when posting, If you cant say something good to say then just hit the back arrow.
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Joined: Mar 2003
Posts: 3,195
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Mar 2003
Posts: 3,195 |
What's your credit score? I think you're confused w/ building credit & accumulating credit.
"Building credit" does not mean accumulation bankcards w/ large spending limits...in fact, the more available you have the lower your score, whether you have them maxed-out or at a zero balance. Banks look at what you currently have & base thier lending on it, large credit lines are considered debt to lending institutions whether you use them or not...lowering your credit limits will increase your score, it's a fact. Also, making on-time monthly payments will increase your score...it shows the ability of repayment & giving the lenders confidence in that ability.
Assuming that the statement you made about never making a monthly payment in your life is true, then you would have no idea what a credit score is...
So what kind of car do you drive anyway?
Russell...make payments until it is no longer 0%, but at least show some payment history. As long as you are well w/in your means, the score will take care of itself.
1999 Sportage 4x4...don't go there, it was free
....______o_o
.../_l l__\____\
..|--l l__----[]\|/[]
.....................oo
=( )_)----( )_)--)_)
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Joined: Oct 2000
Posts: 4,149
Hard-core CEG'er
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Hard-core CEG'er
Joined: Oct 2000
Posts: 4,149 |
Just to follow up on some of the excellent advice in this thread... A good credit score doesn't necessarily equal good financial health and tactics used to raise your score aren't always consistent with prudent financial planning. Don't plan your finances around a credit score.
-- 1999 SVT #220 --
In retrospect, it was all downhill from here. RIP, CEG.
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Joined: Sep 2002
Posts: 2,978
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Sep 2002
Posts: 2,978 |
i'd pay it off. I personally hate carrying over monthly balances. In fact, i've never done it once... on any of my cards. I'm 21 /w 4 credit cards... had 2 of them since i turned 16. I was told by my insurance agent that my credit score was over 800.
I mean i did have car payments, but I would have to think that paying off cards attributes something to a credit score.
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Joined: Aug 2000
Posts: 322
CEG\'er
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CEG\'er
Joined: Aug 2000
Posts: 322 |
Here's everything you need to know about credit scores and how they are calculated:
http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
And here's another good reference site - Clark Howard is the man. Somewhere in there he references to make sure you are not using more than 1/3 of your available credit, as that can cause a big hit on your credit rating.
http://clarkhoward.com/library/tips/credit_scores.html
Jim H
95 Midnight Blue SE (Sold)
98.5 Silver Frost E1 (Sold)
'04 G35 6MT Sedan (Sold)
'01 Aurora 4.0
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Joined: Oct 2002
Posts: 2,578
Hard-core CEG'er
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Hard-core CEG'er
Joined: Oct 2002
Posts: 2,578 |
I would pay it off, then only use it maybe once a month, get a tank of gas, then pay it off. Keep doing that to build your credit. At least it shows you are paying your bills on time while keeping the credit going.
I once had a credit card I was going to pay off, but my dad told me not to because it's better to have a small amount on the card, and just keep paying the payments to build credit, but my stupid ass let it go and got myself messed up and didn't pay on time, ruining my credit. Of course, this was back in 1990. LOL.
2004 Ford Freestar V6
Boogity Boogity Boogity, Let's go racin Boys!
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Joined: Jul 2003
Posts: 2,571
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Jul 2003
Posts: 2,571 |
Originally posted by LancasterSVT:
i'd pay it off. I personally hate carrying over monthly balances. In fact, i've never done it once... on any of my cards. I'm 21 /w 4 credit cards... had 2 of them since i turned 16. I was told by my insurance agent that my credit score was over 800.
I mean i did have car payments, but I would have to think that paying off cards attributes something to a credit score.
with a beacon score of 800 which 920 is perfect you can get about anything you want even if you cant afford it. at 21 you could go and get a $500,000 house and a $80,000 car in the same day. getting a beacon of 800 unfortunatly takes years and years of building credit and unfortunatly you cannot even get a credit card till you are 18 by law unless you are imancipated. i am not meaning to flame you but your insurance agent lied to you dude. i know people with 2 houses and a few cars and has never ever been late on a bill before in thier life that are my age 28 and thier beacon is only like 700-750
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Joined: Oct 2000
Posts: 4,149
Hard-core CEG'er
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Hard-core CEG'er
Joined: Oct 2000
Posts: 4,149 |
Originally posted by ryanblacksvt:
with a beacon score of 800 which 920 is perfect you can get about anything you want even if you cant afford it. at 21 you could go and get a $500,000 house and a $80,000 car in the same day.
BS
Originally posted by ryanblacksvt:
getting a beacon of 800 unfortunatly takes years and years of building credit and unfortunatly you cannot even get a credit card till you are 18 by law unless you are imancipated. i am not meaning to flame you but your insurance agent lied to you dude.
Do you know him, or his insurance agent? So HTF are you saying it's 'impossible' for him to have an 800?
Originally posted by ryanblacksvt:
i know people with 2 houses and a few cars and has never ever been late on a bill before in thier life that are my age 28 and thier beacon is only like 700-750
Big f-ing whoop. I bet most of the vets on this site have a score higher than that. 
-- 1999 SVT #220 --
In retrospect, it was all downhill from here. RIP, CEG.
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