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what credit card should i get?

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what credit card should i get?

Old 03-01-08, 03:46 PM
  #51  
fujibike
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Originally Posted by bikeslikes View Post
so to raise my credit rating, is it best to pay it off or leave a little balance to collect interest?
sorry for the dumb question.
A large part of your credit score is based on your debt to credit ratio, the percent of debt compared to available credit. To minimize your ratio (which is desirable), check your balance towards the end of the billing cylce and pay it off entirely before the billing cycle ends. After the billing period ends, the credit card company reports your balance (and hopefully your credit available) to the credit bureaus. If your balance has been paid completely you'll have a 0% debt to credit ratio. Some card companies may not report your credit available but report the maximum historical balance. Also, if you have cards that you don't use, don't close them out. That's available credit that goes into calculating your ratio.
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Old 03-01-08, 05:53 PM
  #52  
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Originally Posted by fujibike View Post
Also, if you have cards that you don't use, don't close them out. That's available credit that goes into calculating your ratio.
Not sure this is universal good advice. When you apply for a loan, particularly a home or car loan, they look at your total available credit vs. your income and downgrade you if you have a lot of unused credit as it represents a risk to them that you can get yourself quickly in a hole and not be able to meet the loan obligation. And, of course, each credit card you have is a potential identify theft risk.

- Mark
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Old 03-02-08, 04:41 AM
  #53  
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Originally Posted by markjenn View Post
Not sure this is universal good advice. When you apply for a loan, particularly a home or car loan, they look at your total available credit vs. your income and downgrade you if you have a lot of unused credit as it represents a risk to them that you can get yourself quickly in a hole and not be able to meet the loan obligation. And, of course, each credit card you have is a potential identify theft risk.

- Mark
You're right, some creditors, particularly mortgage underwriters, will look at that in a topical way. Some will look deeper into history. Alot depends on what debt you will be carrying against the value of the asset you're buying. But, as far as credit scoring is concerned, the debt to credit ratio has made up as much as 30% of the score weight. So if you have $5000 in debt and $30000 in available credit you have a d:c of 17%. Close down an unused 10k limit card and your d:c goes to 25% and negatively affects your score. Now, Fair Isaacs (the FICO company), is changing their formula and the d:c ratio may not carry as much weight.

Establishing a good credit history means meeting your obilgations on time, carrying very little or no revolving debt (credit card balances), managing different types of credit (revolving & installment) and establishing your history which takes time.

You should also consider getting a free credit report each year from each credit agency, buying your FICO score once a year, and opting out of credit card solicitations (you can always call and apply if you so desire).
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Old 03-02-08, 12:09 PM
  #54  
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American Express is the one I use regularly. I got my first one when I was 18. Just charge something simple like gas, then pay it off every month. I was able to buy a condo when I was 20yrs old.
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Old 03-02-08, 06:48 PM
  #55  
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If you are a member of Costco, the American Express card is their in-house brand. Costco sells gasoline and the prices vary depending on location. However, the Costco prices for gasoline are very competitive.

On that American Express card, you get store credit at Costco. That is, you get like points when you use that card.
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Old 03-02-08, 06:57 PM
  #56  
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Originally Posted by markjenn View Post
I don't do auto-pay either, but the risk of your someone breaking into you Visa account with Chase or Capital, or any of the big credit card companies is probably minimal. Like identify theft, your biggest risks of credit card info theft is with small merchants, your unlocked post office mailbox, and the waiter you hand your card to. Big institutions have lots of controls in their system that are missing when you get down to the small players.

As an example, I'd be nervous as hell doing auto-bill pay for something like a local health club membership. But Capital One? Wouldn't be a concern to me.

- Mark
BZZZZZT! And what do we have in parting gifts for mark, tonight?

I just had to cancel a Chase account because someone had started using the number. Found two relatively small charges on the account, typically a test to see if the account is working. Reported them, closed the account and had new numbers issued. This on a card that was relatively new and hadn't even been used much.

I think the big issuers are probably at a bigger risk.
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Old 03-03-08, 05:56 PM
  #57  
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Originally Posted by skiahh View Post
BZZZZZT! And what do we have in parting gifts for mark, tonight?

I just had to cancel a Chase account because someone had started using the number. Found two relatively small charges on the account, typically a test to see if the account is working. Reported them, closed the account and had new numbers issued. This on a card that was relatively new and hadn't even been used much.

I think the big issuers are probably at a bigger risk.
Lose the attitude please.

The context of the discussion was the risk associated with authorizing auto-pay from a checking account to a credit card issuer, NOT with stolen credit card numbers. Chase probably wasn't at fault for someone getting your number - somebody probably skimmed it when you handed your card to somebody for a purchase. I doubt the size of your credit card issuer matters at all with respect to the risk of someone stealing your credit card number. Almost all credit card number theft occurs at the local level, not within the credit card companies.

- Mark
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Old 03-03-08, 07:23 PM
  #58  
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My credit card issuers (Chase and BofA), have both called me about charges they thought were suspicious, and asked for verification. Just once, it really was an attempt at theft (someone had charged $1500 worth of flowers to my account). The credit card people promptly canceled my account and issued me a new card with a new number.
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