Good Credit Card Habits With Jainie Fitness
Credit cards are ideal tools in managing your finances and if you want to boost your credit score. Additionally, they are practically an essential these days if you ever want to travel, as most airlines, car rental companies and hotels need a credit card to use their services.
However, if you aren’t careful with how you use yours, it’s not going to do you credit score any good. Watch this video to learn good credit card habits.
If you pay the full balance on your credit card each month do you still…?
Question by dk: If you pay the full balance on your credit card each month do you still…?
If you pay the full balance on your credit card each month, does this help to build up good credit history or score?
Best answer:
Answer by message_board_ceo
You can’t pay off debt if you don’t have debt. According to FICO, the most effective way to raise your score is to pay debt. Chase, Discover, and MBNA (now BofFA) all confirmed this by advising me to charge a small amount and paying it ALMOST entirely (leaving a small $ 3-5 balance). This would show I was an extremely low credit risk, thereby boosting my FICO score.
So I tried this method using 3 sock drawer cards, each with a credit line in excess of $ 10k. I would buy a tank or two of gas, small grocery purchases, etc. under $ 100 on each per month, then pay off 95% of the balance. My score shot up from the low 700’s to 755 in a matter of 3-4 months. Mind you I had very little outstanding debt on any of my other cards. Don’t believe me? Try it, because it most definitely will improve your score.
One more thing, keeping a card with $ 0 balance, not using it for extensive periods of time used to be a good thing but is a big NO NO these days. Why? Because creditors are very freaked out by unconsumed lines of credit that are potential sitting ducks for turning into delinquent accounts. Furthermore, unused cards are having their credit lines slashed substantially, thereby reducing your available credit, which is a major factor in FICO’s score. Expect your score to take a nosedive when Chase or Amex decides to cut your unused 10k credit line in half because you didn’t even need $ 5k, so why should they give you $ 10k?
What do you think? Answer below!
What happens when credit is used for a debit card?
Question by CGYN3: What happens when credit is used for a debit card?
Meaning, if I’m at a store and I’m using my debit card, and the cashier says “Debit or Credit?”
And I say/push credit even though I’m using my debit card what will happen?
Best answer:
Answer by HumptyMomma
Other than the obvious…you will sign the receipt instead of entering your pin number…
Specifying ‘credit’ is always more secure. I’m not 100% on the reason why that is, but I know that it is most often the truth.
Also…many banks offer extra ‘rewards’ when you swipe it as credit versus debit. You are encouraged to do so.
…yet, it is habit for me to always say ‘debit’. Unless I’m usin my husbands card…which I always forget the pin number to…so I say ‘credit’ and sign.
Add your own answer in the comments!
If I choose “credit” w/ my Visa check card, is it reported to Transunion, etc, like a credit card transaction?
Question by stuart m: If I choose “credit” w/ my Visa check card, is it reported to Transunion, etc, like a credit card transaction?
When you choose “credit” with your visa check card instead of “debit” and you have sufficient funds in your checking account to cover the charge, is the charge nonetheless reported to the three credit agencies as a credit transaction? I want to know because my credit report said my FICO score will increase if I reduce my debt to income ratio.
Best answer:
Answer by stephenweinstein
Neither check card transactions nor credit card transactions are reported to the three credit reporting agencies. Credit card BALANCES are reported (monthly or less often) to the credit reporting agencies, but individual transactions are not and neither are check card balances.
What do you think? Answer below!
Categories: Credit Score Questions Tags: Card, Check, choose, Credit, credit card, like, reported, transaction, TransUnion, Visa
How can I get a credit card?
Question by antoniodab: How can I get a credit card?
I am 18 and a college student. I applied for a Chase student credit card but was denied becauseof my lack of credit history. My Chase bank told me I should get a gas card or a department store credit card. I applied for a Walmart credit card but was denied that also.
How can I build my credit history if they wont let me have a credit card?
Best answer:
Answer by StephenWeinstein
First, stop applying, immediately. Now, you have a history of applying, which is worse than having no history at all.
Second, get a “secured” credit card, which is the one type that you might be able to get when you are 18 and have no history, except for a history of applying.
After you have had the “secured” credit card long enough to have a credit history, and you have gone more than a year without applying for any cards, then you might be able to qualify for a credit card. (As long as you continue to apply as often as you are applying now, you will never qualify. You may also never qualify if you do not get a secured credit card first.)
Give your answer to this question below!
Categories: Credit Score Questions Tags: answer, Best, Card, Credit, credit card, question
How can you get an actual free credit report off the internet if you dont own a credit card?
Question by Robert S: How can you get an actual free credit report off the internet if you dont own a credit card?
Best answer:
Answer by Steve P
Go to the Federal Trade Commission website. By law, you are entitled to one free report each 12 months. You’ll set up a user ID and a password. The report won’t give you “scores”, but it will show accounts, histories, inquires, etc. Just look for errors, and seek to correct incorrect information. You can’t remove factual history, just work to let it age-off.
Give your answer to this question below!
Q&A: How might one decrease the disadvantages you listed such as higher insurance premiums from using a credit card?
Question by Kamisha C: How might one decrease the disadvantages you listed such as higher insurance premiums from using a credit card?
Best answer:
Answer by Nicole
Using a credit card in itself won’t increase your insurance premiums. In personal home and auto insurance, the company runs an “insurance score” aka your credit score. The better your credit, the better your rate. I’ts a way for the insurance company to find a preferred market, just like them running your MVR. The fewer violations, the better your rate, etc.
Add your own answer in the comments!
How to improve credit score with first credit card?
Question by RainDog: How to improve credit score with first credit card?
Hi there. I have just received my first credit card. I struggled to improve my credit enough to finally qualify for a card. I had to start with a bottom of the barrell card, however, as my score currently averages 600. This card has a high APR, high penalties and a yearly fee. I am looking for advice on how to use this card as a tool to improve my credit. I’ve received a lot of conflicting information.
Best answer:
Answer by CHES
I used to work for a credit card company..
Most people think that if you pay your credit card purchases in full, you’ll have a higher score.. but actually, credit card companies prefer to give higher scores to those who leave out a few amounts that would earn interest.
For example, your credit card bill is $ 50 and you pay that in full, it means that there’s no interest.. But if you only pay, say around $ 30.. the $ 20 that was left would incur interest, and card companies like that.
What do you think? Answer below!
What does it mean if I was turned down by a credit card due to “sufficient open lines of credit?”?
Question by LC: What does it mean if I was turned down by a credit card due to “sufficient open lines of credit?”?
I applied for a credit card and was turned down due to “sufficient open lines of credit.” Isn’t that a good thing? My credit score is around 809.
I applied for a credit card and was turned down due to “sufficient open lines of credit.” Isn’t that a good thing? My credit score is around 809.
Additional questions: where are you answerers copying these answers from? And what’s your incentive to post duplicate answers?
Best answer:
Answer by dis_orient_ed
You scored low because you have been applying everywhere and your credit has been check to many times in a short period. (It makes your score go down.)
You already have two or three lines of credit from that source. Even though the issuer has different names, it is the same bank.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: Card, Credit, down, lines, mean, Open, sufficient, turned
Q&A: What happens to your credit score if you pay off all your debt and never get another credit card?
Question by nickolasname: What happens to your credit score if you pay off all your debt and never get another credit card?
I have a tremendous amount of bad debt. Almost 2000 dollars. If I were to pay it all off to 0 would it raise my score or just keep it from getting lower? I have no intention to EVER EVER EVER have another credit card. my credit score is in the low 500s what will happen if I pay off all debt and do nothing to raise my score?
Best answer:
Answer by Kathy P
It would raise your credit score to pay off your accounts. But don’t close the accounts. Just cut up the cards if you don’t want to use them. Or use them once in a while, and pay it off right away. One of the things they use to figure your score is how long you have had your accounts. So keep the accounts open, as that will help increase your score.
Add your own answer in the comments!