credit cards/credit score!

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Fat2Fit_imready
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 ;-)
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  • TheRoadDog
    TheRoadDog Posts: 11,788 Member
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    Using Credit to pay for Credit is never a good idea.
  • jnichel
    jnichel Posts: 4,553 Member
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    Using Credit to pay for Credit is never a good idea.

    This.
  • wheird
    wheird Posts: 7,963 Member
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    Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.
  • linsdog
    linsdog Posts: 94 Member
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    Look up the "Snowball" method
  • baba_helly
    baba_helly Posts: 810 Member
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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.
  • DBoone85
    DBoone85 Posts: 916 Member
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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.
  • spade117
    spade117 Posts: 2,466 Member
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    Look up the "Snowball" method

    Make sure you don't use "snowballing" though.
  • TheRoadDog
    TheRoadDog Posts: 11,788 Member
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    Balance transfers sometimes come with a higher rate. Just pay minimum on one and focus on paying down the other.

    Very good advice.
  • Fat2Fit_imready
    Fat2Fit_imready Posts: 363 Member
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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!
  • Fat2Fit_imready
    Fat2Fit_imready Posts: 363 Member
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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.

    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!
  • Curleycue0314
    Curleycue0314 Posts: 245 Member
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    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.
  • vixen0babs
    vixen0babs Posts: 25 Member
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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! :)
  • Fat2Fit_imready
    Fat2Fit_imready Posts: 363 Member
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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!
  • BusyRaeNOTBusty
    BusyRaeNOTBusty Posts: 7,166 Member
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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
  • Timshel_
    Timshel_ Posts: 22,834 Member
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    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!
  • wheird
    wheird Posts: 7,963 Member
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    Look up the "Snowball" method

    As a Dave Ramsey fan, I would encourage this.
  • tquill
    tquill Posts: 300 Member
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    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.
  • parkscs
    parkscs Posts: 1,639 Member
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    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.
  • Fat2Fit_imready
    Fat2Fit_imready Posts: 363 Member
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    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!
  • Fat2Fit_imready
    Fat2Fit_imready Posts: 363 Member
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    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)

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