Go Back  Bike Forums > The Lounge > Foo
Reload this Page >

Using Credit Wisely

Foo Off-Topic chit chat with no general subject.

Using Credit Wisely

Old 10-27-08, 03:47 PM
  #1  
peiffer83
Senior Member
Thread Starter
 
peiffer83's Avatar
 
Join Date: Mar 2008
Posts: 177

Bikes: 2007 Giant TCR A1

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Using Credit Wisely

Had a question.

Lets say I have 7 credit cards with a total limit of $22,250. I only have a balance on one card of $2100 that is 0% right now and will be paid off soon, pry have to spend one month at the 9.99% APR. Then I am switching to another Credit card with 0% for 15 months and 8.99% fixed

Is it better to close the cards I'm not using or have credit cards open and just use my credit wisely. I thought it was to keep them open, because it shows credit agencies that you don't eat up all your limits.

I'm pretty sure I have awesome credit because of the rates i get on cards. I rent and do not have a house, but do have a car that i have a 0% loan from GMAC. I have never paid any interest my whole life. Also never had a late fee.

Last edited by peiffer83; 10-27-08 at 03:53 PM.
peiffer83 is offline  
Old 10-27-08, 03:58 PM
  #2  
ehidle
T-Shirt Guy
 
ehidle's Avatar
 
Join Date: Jul 2008
Location: Lansdale, PA
Posts: 464

Bikes: 2005 Fuji Team Issue, 2007 Fuji SL-1

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
It is not good to close credit cards you're not using if you carry balances.

A major part of your credit score is the proportion of your total balances to available credit. You do best not to use more than 10% of your total available credit, which is about where you are now.

You should use your "dormant" cards once per month to maintain activity with the creditor. Outside of that, just keep doing what you're doing (using less than 10% of your available credit) and you'll do just fine.

Also, it's probably better not to open new accounts unless you need them, which you don't. Credit-seeking behavior will ding your score pretty hard.
__________________
Yellow + Blue Jerseys!

Get your Cranky T-Shirt!
Men's
and Women's designs available
ehidle is offline  
Old 10-27-08, 04:13 PM
  #3  
jeff^d
enginerd
 
jeff^d's Avatar
 
Join Date: Oct 2004
Location: Camas, WA
Posts: 263

Bikes: Black Cat SS, Salsa Spearfish, Trek 520

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by ehidle View Post
You should use your "dormant" cards once per month to maintain activity with the creditor.
Is this really necessary? I have a card with almost a year of no usage and am wondering if I should get it out of the safe. It's the same company as my checking account, so maybe that's why it hasn't been a problem. Or it's a problem and I don't know it.
jeff^d is offline  
Old 10-27-08, 04:16 PM
  #4  
Hobartlemagne 
Spelling Snob
 
Hobartlemagne's Avatar
 
Join Date: Dec 2005
Location: Plano, Texas
Posts: 2,862

Bikes: Panasonic DX4000, Bianchi Pista

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Make an excel spreadsheet charting your payments down to zero. Incorporate all cards in this.
Over the life of that debt the same "best rate" card may not remain the best. You can schedule
when good rates are due to run out so you can transfer balances on time. It will allow you to
easily see the big picture.
__________________

The first rule of flats is You don't talk about flats!
Hobartlemagne is offline  
Old 10-27-08, 04:23 PM
  #5  
Jerseysbest
J E R S E Y S B E S T
 
Jerseysbest's Avatar
 
Join Date: Apr 2005
Location: DC
Posts: 1,849
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
If you really want to make out, max out the cards with the 0% rate and put the money into a savings account, and when the period is up, transfer it to a another card with a 0% rate (assuming the interest earned on the amount is great enough to offset any possible balance transfer fees).
Jerseysbest is offline  
Old 10-27-08, 04:26 PM
  #6  
mlts22 
Senior Member
 
Join Date: Aug 2006
Posts: 998
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Hmm... maybe buy some type of securities with the 0% rate cards, so when its time to pay back everything, if you have any return at all, you pretty much have gotten free cash back. However, the 0% is usually only for a relatively short time, and there are usually some fees somewhere, so it may not be profitable.
mlts22 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.