credit cards/credit score!
Fat2Fit_imready
Posts: 363 Member
in Chit-Chat
Not fitness related Obviously lol....
So I'm paying off the balances of 2 credit cards. They just upped my limit on one of them. Should i use that to pay off the other one so i just have 1 card to pay each month! I'm trying to build credit and have no one to ask in my real life! Any other tips would be helpful too ;-)
So I'm paying off the balances of 2 credit cards. They just upped my limit on one of them. Should i use that to pay off the other one so i just have 1 card to pay each month! I'm trying to build credit and have no one to ask in my real life! Any other tips would be helpful too ;-)
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Replies
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Using Credit to pay for Credit is never a good idea.0
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Using Credit to pay for Credit is never a good idea.
This.0 -
Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.0
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Look up the "Snowball" method0
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Does one card have a significantly lower interest rate? If so, what's the APR on balance transfers for that card?
Credit card debt happens so if there is a way to pay it down with paying less interest it could be a smart move. If you are asking how it will affect your score that is dependent on many different factors and it's hard to say exactly.0 -
Its better to have two cards with lower percentages of the balance in use than to have one charged up and one with nothing. Pay extra on the one with the balance, and use the other sparingly, paying it off every month. Your credit score will be better becasue of it.0
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Look up the "Snowball" method
Make sure you don't use "snowballing" though.0 -
Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.
Very good advice.0 -
Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.
there 2 completely different cards (companies), the one i want to pay off has a high interest!! still a no go!0 -
Does one card have a significantly lower interest rate? If so, what's the APR on balance transfers for that card?
Credit card debt happens so if there is a way to pay it down with paying less interest it could be a smart move. If you are asking how it will affect your score that is dependent on many different factors and it's hard to say exactly.
yes, one has a very high one, and thats the one i want to pay off!. I want to pay it and then put it up!0 -
Focus on paying the minimum on the one with the lower balance and pay double on the one that is higher. Once you get to the point where one is paid off, hide it from yourself and don't use it. Use it as your emergency card. Then you can pay double on the second card and get it paid off, then only put as much on there as you can pay off every month. Credit card money isn't free.0
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Consolidating your debt is wise if you are consolidating to a lower APR (interest rate). My rule of thumb is to not spend money that you don't have, but if you must (sudden unplanned expense - like a dr bill or car repair), pay it off as fast as you can. To build your credit, you'll not want to carry more than 10% on your cards and really try to pay in full each month. The more available credit you have with the least amount of revolving debt, the better. Hope that helps. :-) Most credit cards now have a credit score tracker on their website and will give you a grade and tips on what you can do to improve your overall credit score. I know CapitalOne for sure offers that. Check into it. Good luck!
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Its better to have two cards with lower percentages of the balance in use than to have one charged up and one with nothing. Pay extra on the one with the balance, and use the other sparingly, paying it off every month. Your credit score will be better becasue of it.
i want to pay them off and then put up and use them rarely! Just needed them to help build my credit!0 -
Only if you can transfer a balance to a lower interest with a minimal balance transfer fee.
This will calculate if the transfer will actually save you money or not.
http://www.bankrate.com/calculators/credit-cards/credit-card-balance-transfer-calculator.aspx0 -
Should i use that to pay off the other one so i just have 1 card to pay each month! I'm trying to build credit and have no one to ask in my real life! Any other tips would be helpful too ;-)
Let me say, I am NOT judging you or anyone. I've been there myself.
First question is, how is your financial responsibility? if you have maxed out two credit cards There may be an issue, and if that is the case if you do a balance transfer you should immediately close the one account that is paid off so you are not tempted to just use that credit again. While some credit cards to charge more for balance Xfers, many offer a lower time dependent rate for balance Xfers as well. That can be good and bad. You CAN save some interest charges, but read the fine print and see what happnes after the time period for the lower rate is up. I know some cards will back charge you for the interest on the TOTAL balance at the normal rate instead of just on the remaining Xfer balance.
As for how Xfers will help your credit, that is debatable, but my experience is that credit score is function of available credit, how maxed you are with it, as well as how well you pay it off. Xfering a balance might actually be detrimental by maxing out that other card. That is just purely speculation, but I really just don't think it would be worth it credit score wise.
If you can benefit with a lower xfer interest rate and there are no hidden costs or charges, it CAN be a good idea. But again, moving credit around gets to be tricky.
So what I did when I was younger and got wrapped up in credit cards is, make the minimum payments on the lowest interest rate cards and Pay as much as possible from your monthly budget on the highest rate card. Once that gets paid off you move that larger payment to the next card until it is paid off.
Overall, credit is so detrimental to financial health, it isn't even funny. Learn to live within your income and use it sparingly if at all.
My other word of advice is, pay yourself first! Make sure you are putting SOMETHING away for a rainy day or retirement. Even if you can only put away $20 a week, put it into a a ROTH IRA, mutual fund, or something you don't touch. Over time, that will make more sense and you will be VERY glad you did.
All the best!0 -
Look up the "Snowball" method
As a Dave Ramsey fan, I would encourage this.0 -
Pay down the one with the highest interest rate, while making minimum payments on the other. In my experience, balance transfers almost always cost money. It's usually not worth it, so I wouldn't worry about it.
Carrying credit card debt simply to "build your credit" is not wise. I use credit cards for all of my transactions for cash back rewards, but I never carry a balance from month to month.0 -
Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.
Depending on your credit, there are cards out there that come with a 1-1.5 year introductory rate of 0% and will allow a balance transfer (usually with a fee, but we're talking a few percent). Make sure you get all the information before transferring but they can potentially be a decent option. Either way, work on paying those off as soon as possible.0 -
Should i use that to pay off the other one so i just have 1 card to pay each month! I'm trying to build credit and have no one to ask in my real life! Any other tips would be helpful too ;-)
Let me say, I am NOT judging you or anyone. I've been there myself.
First question is, how is your financial responsibility? if you have maxed out two credit cards There may be an issue, and if that is the case if you do a balance transfer you should immediately close the one account that is paid off so you are not tempted to just use that credit again. While some credit cards to charge more for balance Xfers, many offer a lower time dependent rate for balance Xfers as well. That can be good and bad. You CAN save some interest charges, but read the fine print and see what happnes after the time period for the lower rate is up. I know some cards will back charge you for the interest on the TOTAL balance at the normal rate instead of just on the remaining Xfer balance.
As for how Xfers will help your credit, that is debatable, but my experience is that credit score is function of available credit, how maxed you are with it, as well as how well you pay it off. Xfering a balance might actually be detrimental by maxing out that other card. That is just purely speculation, but I really just don't think it would be worth it credit score wise.
If you can benefit with a lower xfer interest rate and there are no hidden costs or charges, it CAN be a good idea. But again, moving credit around gets to be tricky.
So what I did when I was younger and got wrapped up in credit cards is, make the minimum payments on the lowest interest rate cards and Pay as much as possible from your monthly budget on the highest rate card. Once that gets paid off you move that larger payment to the next card until it is paid off.
Overall, credit is so detrimental to financial health, it isn't even funny. Learn to live within your income and use it sparingly if at all.
My other word of advice is, pay yourself first! Make sure you are putting SOMETHING away for a rainy day or retirement. Even if you can only put away $20 a week, put it into a a ROTH IRA, mutual fund, or something you don't touch. Over time, that will make more sense and you will be VERY glad you did.
All the best!
AMAZING ADVICE THANK YOU!0 -
Pay down the one with the highest interest rate, while making minimum payments on the other. In my experience, balance transfers almost always cost money. It's usually not worth it, so I wouldn't worry about it.
Carrying credit card debt simply to "build your credit" is not wise. I use credit cards for all of my transactions for cash back rewards, but I never carry a balance from month to month.
THANKS FOR THE INFO, I DIDN'T KNOW THAT ABOUT (oops sorry caps)0 -
Thanks everyone, you all help me!! You guys are WAY better then google lol!!1
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Only if you can transfer a balance to a lower interest with a minimal balance transfer fee.
This will calculate if the transfer will actually save you money or not.
http://www.bankrate.com/calculators/credit-cards/credit-card-balance-transfer-calculator.aspx
WOW PERFECT, thank You!!0 -
This. I have 3 credit card with very high credit availability, but may only put on $100 on each (to keep them active) and pay them off at the end of each month. With the exception of our mortgage and car (2 years) left, living pretty much debt free makes life SO MUCH easier.Pay down the one with the highest interest rate, while making minimum payments on the other. In my experience, balance transfers almost always cost money. It's usually not worth it, so I wouldn't worry about it.
Carrying credit card debt simply to "build your credit" is not wise. I use credit cards for all of my transactions for cash back rewards, but I never carry a balance from month to month.
A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition0 -
This. I have 3 credit card with very high credit availability, but may only put on $100 on each (to keep them active) and pay them off at the end of each month. With the exception of our mortgage and car (2 years) left, living pretty much debt free makes life SO MUCH easier.Pay down the one with the highest interest rate, while making minimum payments on the other. In my experience, balance transfers almost always cost money. It's usually not worth it, so I wouldn't worry about it.
Carrying credit card debt simply to "build your credit" is not wise. I use credit cards for all of my transactions for cash back rewards, but I never carry a balance from month to month.
A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition
So thats what they mean about your "utilizing" you card. Like using a small % of them? So should i pay off one and then use it just for like.... the light bill, which i pay on time every month, so im still using it, but paying it off before the end of the month! Also pay the other off and use it just for gas, which i fill up every week? That will help me?0 -
With the exception of our mortgage and car (2 years) left, living pretty much debt free makes life SO MUCH easier.
We paid off all of our debt over 10 years ago and have had nothing but a mortgage payment since (for the most part). SOOOO much more you can do with you money than, essentially, become a monthly income contirbutor for stockholders in banks.0 -
I'm in the middle of trying to pay down my debt right now. Let me just say that getting laid off sucks. So does taking a year to find a job with comparable pay. I had everything paid off before that happened so I'm working my way back to credit card freedom. One thing to remember is that part of your credit score is based on how much credit you have compared to how much of it you have available. Carrying high balances on all of your cards will definitely hurt you. Having lots of available credit and always paying more than the minimum on time is good.
One other factor is whether or not you actually have any revolving debt. About a decade ago my parents bought a new house. My mom's credit score was 802. She was told the reason it wasn't higher was because she had no revolving debt; in other words, she pays everything off at the end of every month. She actually asked me if she shouldn't carry a small balance to up her score. I laughed.
The other thing to remember is that if you don't have a balance on a card and aren't using it, the credit card company won't report anything for that month, good or bad. With that in mind with the one card I have so far paid off I'm paying my Netflix bill each month. I have an automatic payment from my checking account to that credit card to exactly cover the Netflix charge. This way I don't have to think about it and that card is reporting that I'm making payments on time, as well as my available credit and zero balance each month. So when you pay off the higher interest card, don't close it. You want that available credit to be counted as a part of your score.
I've been getting offers of zero percent interest for 15 - 21 months (depending on the offer) on a new card. I've been debating it to use it to transfer the balance of a higher card so I can pay it off more quickly. I haven't bitten yet, though. Slowly, slowly, my credit score has been improving. It's back up over 710 and I was actually able to get a 2.9% interest rate when I bought a car earlier this year. It does take awhile but you CAN do it.0 -
Having credit available and not using it doesn't "help" your credit score much. Credit score is a culmination of debt ratio and availability along with history of payment. NEVER be late and never max out (unless it's a legit emergency).
This. I have 3 credit card with very high credit availability, but may only put on $100 on each (to keep them active) and pay them off at the end of each month. With the exception of our mortgage and car (2 years) left, living pretty much debt free makes life SO MUCH easier.Pay down the one with the highest interest rate, while making minimum payments on the other. In my experience, balance transfers almost always cost money. It's usually not worth it, so I wouldn't worry about it.
Carrying credit card debt simply to "build your credit" is not wise. I use credit cards for all of my transactions for cash back rewards, but I never carry a balance from month to month.
A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition
So thats what they mean about your "utilizing" you card. Like using a small % of them? So should i pay off one and then use it just for like.... the light bill, which i pay on time every month, so im still using it, but paying it off before the end of the month! Also pay the other off and use it just for gas, which i fill up every week? That will help me?
I have a rewards card right now that I've been using to pay everything including groceries and house bills. Then at the end of the month I pay it off. I get back 2% of the balance in cash to my account each month. It's great getting money back from the bank and not paying any interest, just for putting it on their card.
A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition0 -
THIS should be the number one reason why one should pay down debt as fast as possible. No job (even self employed ones) are secure. Injury, economy, health care, and unforseeables happen and those that usually have little debt are much more prepared to handle them. It's why financial advisors will always tell you to have about 8 months minimum savings to pay your current bills saved up.Let me just say that getting laid off sucks.
A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition0 -
Look up the "Snowball" method
Make sure you don't use "snowballing" though.
but you might want to consider Sno-Balls
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Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.
there 2 completely different cards (companies), the one i want to pay off has a high interest!! still a no go!
Check the details on your card. Using it to pay of other credit cards usually comes with a higher interest rate than regular purchases on it.
I personally got out of debt making minimum payments on the higher balance card and whacking away at the smaller balance one to get rid of it quickly, and then combining both payments to pay off the second card. It takes focus and commitment, but it works. Best of luck!0
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