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View Diary: You have no name in 2014 (68 comments)

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  •  SilverWillow (7+ / 0-)

    I had no idea about keeping a balence on the card, thanks!
    AMEN to your last statement. I can get credit but I think there are no hard fast rules. Just a guess,
    thanks for writing,
    Mike

    Social activist, nutrition and exercise advice,long distance runner, Writer.

    by Vet63 on Wed Jan 22, 2014 at 07:45:19 AM PST

    [ Parent ]

    •  if you pay the whole balance every month (8+ / 0-)

      that works against you.

      keeping a small balance is what credit companies want.

      paradoxically, I have poor credit because I have NO credit cards

      Politics is like driving. To go backward put it in R. To go forward put it in D.
      Drop by The Grieving Room on Monday nights for support in dealing with grief.

      by TrueBlueMajority on Wed Jan 22, 2014 at 10:45:24 AM PST

      [ Parent ]

      •  TrueBlueMajority (2+ / 0-)
        Recommended by:
        SilverWillow, ladybug53

        Do  you want credit?If you do,e-mail me and I have suggestions
        Mike

        Social activist, nutrition and exercise advice,long distance runner, Writer.

        by Vet63 on Wed Jan 22, 2014 at 12:40:05 PM PST

        [ Parent ]

        •  Pretend I just e-mailed you (2+ / 0-)
          Recommended by:
          ladybug53, SilverWillow

          and post suggestions right here.

          •  Urban Space Cowboy (2+ / 0-)

            !. put your money in a Credit Union,
            2. pay all your bills through their bill paying service.
            3. Put some money into a savings account

            4. Secure a credit card through the Credit union you are a member of,Use your money as their guarantee.
            5. get a payday loan through your credit union, Your credit
            can be below 600 in some credit union.
            6. you have all your bills paid by the credit union,within 6
            months you will get a loan. I assume your current with
            every place you deal with,(car loan) for example.
            7. meet the manager of your credit union! tell he or she
            what your problem has been in the past. The manager of my credit union gave me things to do to have good credit.
            I have had 6 loans with her,no she has no idea my sister
            is head of 5 credit unions.
            I can"t use my sisters credit union,(conflict of interest?
            If you think I am full of shit,let me know,I will prove you can get credit. The lower your credit score,the longer it will take
            to get a loan.
            Mike

            Social activist, nutrition and exercise advice,long distance runner, Writer.

            by Vet63 on Thu Jan 23, 2014 at 08:49:15 AM PST

            [ Parent ]

      •  That's completely and utterly untrue. (0+ / 0-)

        Having 0% utilization works against you, but paying the entire balance, in full, by or before the due date works for your credit score.

        798 FICO score.  Pay in full every month.  Have for years and years.

        •  Lasgalen Lothir (0+ / 0-)

          I said to folks pay your bills on time and using billpay is a good way to do that. I have always been taught to show a steady
          stream of months where you were never late. I think every story about credit might be a little unique to the person.
          Mike

          Social activist, nutrition and exercise advice,long distance runner, Writer.

          by Vet63 on Fri Jan 24, 2014 at 12:46:46 PM PST

          [ Parent ]

          •  It's actually fairly mathematical. (1+ / 0-)
            Recommended by:
            Vet63

            I know for many, credit scoring is kind of a mystery, but it really isn't.  While each person's score is unique to them, how that score is arrived at really isn't.

            If you never spend on credit--that is, if you have no credit profile--your score's going to be really low.  No data for the credit issuers to look at.  A tabula rasa, a blank slate.  They don't know if you're going to be good or bad.

            The same goes for someone who has credit cards, but never uses them and has never taken a car loan or a mortgage.  While they might have credit, they have 0% utilization of that credit.

            Worse comes in having 80-100% utilization, though--in other words, nearly maxed out.  Then credit companies get nervous that you're going to default on all of them at once.  That's when they start lowering your available credit to near what you have already and/or canceling your card.

            The "butter zone" is 1-20%, and it really doesn't matter how you get there.  I get there by spending almost everything on my credit cards and paying it all off--100%--when the bills come due.

            I see where TrueBlue is getting his idea, because it is, in fact, bad to have 0% utilization, just as it's bad to never use credit at all (for credit scoring purposes), so people often assume that means that your credit score will take a hit if you pay in full at the end of the month.  It makes a certain kind of sense, but it's false.  Credit companies report how much you currently owe to the reporting agencies, and they report whether they were paid on time.  However, even if you pay in full and at the end of the month, you're going to show you owe something for most of the period before payment lands.  For example, my credit report is going to show I owe about $500 on my Fidelity American Express card, even though that's set to pay in full automatically on Valentine's Day.

            That said, yes, the banks call customers like me "deadbeats" because we pay no interest at all and no late fees--they only get swipe fees from the merchants and nothing else.

            •  Lasgalen Lothir (1+ / 0-)
              Recommended by:
              Lasgalen Lothir

              Thank you for the education. I hang around this paper because
               I learn so much from folks like you.
              Have a great weekend,
              Mike

              Social activist, nutrition and exercise advice,long distance runner, Writer.

              by Vet63 on Fri Jan 24, 2014 at 07:22:42 PM PST

              [ Parent ]

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