Most people say dont have tons of credit this is the first

[lookin4info]

Everything Ive ever read tells you to get rid of credit and dont use it . Here I read we should get as many credit cards as possible with as high a limit as possible or I am misunderstanding something.

I thought openign new cards made things worse plus added inquirys which also brought your score down.

Also if you are only an authorized user does it report through to your creidt report or do you need to add spouse completly to the card ? Should we each be on each others cards just for the sake of having more cards?

[stickyfingers]

You should do some reading here...

 

This topic comes up 3498349034890438 times, and generally all such threads, ultimately, end oddly.

 

The search link would be helpful.

 

Cheers. Welcome to CB.

[800SomeDay]

You will qualify for more credit

if you don't add each other as AU.

I'm sure others will answer the reason

for more credit.

Edited July 30, 2006 by 800SomeDay

[lookin4info]

well I have spent 6 hours reading here in the last couple days but I am still confused.

[Credit Matters]

Everything Ive ever read tells you to get rid of credit and dont use it . Here I read we should get as many credit cards as possible with as high a limit as possible or I am misunderstanding something.

 

My biggest problem, when I got to CreditBoards.com, was that my utilization was out of hand. I've never been late or had a collection on my credit report, but my scores always seemed to hover in the mid- to high-600s. I knew that being nearly maxed out on some cards could be hurting my scores a bit, but I NEVER realized that utilization was punishing me to such a large degree. It wasn't unheard of for me to be 65% utilized across the board. After all, I figured that I could afford the debt service, so what was the problem?

 

Turns out it was a big problem -- at least to creditors who peered at my credit report on a monthly basis. My wake-up call really came in early 2006 when Chase rate-jacked me to the tune of 29.99%. This is an account that I have had since early 2000. Never been late, never gone over the limit, and always paid more than the minimum. My reward? Rate jack! Thanks a lot, Chase. I immediately transfered the balance to a 0% card and Google'd my way to CB.

 

It was here -- at CB -- that I discovered the deleterious effect that utilization was having on my scores. It also explained why Chase -- even though I had been a model customer (a very profitable customer, mind you) -- decided to up my interest to a loanshark-like 29.99%.

 

Since then, I have been on a mission. I've added ten new trade lines and added about $160,000 in additional credit. What's more, my utilization has gone from the 64-65% range to 0%.

 

As of today, I have $0 credit card debt. Zero. Nada. None of my cards, in other words, are accruing interest. That's the first time during my adult life that I can make such a claim. I am no longer enriching the card companies. Instead, they are giving me interest-free loans for up to 55 days (30 days during the statement period and 25 days during the grace period).

 

I have finally turned the tables on the card companies. Card companies, it turns out, think that I am now a better risk, which is why I don't get turned down for new credit and now receive the best rates and generous limits.

 

When I first got here, I felt like I wasn't worthy because I only had five credit cards. Granted, they had decent limits, but I only had five -- which is much lower than the average CBer has here. At first, I didn't understand why all of the people here on this forum were trying to amass so many cards. But then it started to make sense: it gives you flexibility. If one of your credit card companies doesn't give you love, you sockdrawer their a$$e$. Then you move on to the next card. Rate is too high on your second card? Card company won't lower it? Sockdrawer their a$$es! That's what having multiple cards affords you. Freedom. Freedom to never be at the mercy of card companies that have you between a rock and a hard place.

 

Remember, these card companies know your credit reports intimately. They know when you have access to other credit sources. If they see that you are limited, they are free to rate jack your butt. And they know you are going to be forced into paying their exorbitant rates. No damn thanks.

 

Quite frankly, even though I lived comfortably and made very good money, I had always been at the mercy of my credit card companies. That's what happens when you carry a balance from month to month. These bloodsuckers own you when you do that. And, even if you make 6 figures a year (which I do not), you still get treated like crap.

 

The bottom line is that these credit card companies don't like you. They are not your friend. They don't care about you (miss a payment or go over your limit and you'll see). And they are not looking out for you. The ONLY thing they care about is making a dollar off you. That's it. That's their business. Their goal is to exact as much coin from you as they possibly can.

 

But I have turned the tables on them. I use their money interest free for up to 55 days. They'll still be able to make money from my card use, except they'll be getting the money from the merchant -- not me.

 

It's very liberating to be in this position. It's very nice to finally be in control of my financial life when it comes to my credit.

 

And that Chase card? It's been at $0 since February. I figure they "rewarded" me for being a model customer, so I'll reward them right back. Sockdrawer, meet Chase card. Chase card, meet sockdrawer. The two have become fast friends, indeed.

 

keyword: whymorecards

Edited July 30, 2006 by marcustx

[BBQ123]

You have a lot to learn.

 

Credit cards can earn you money through rewards, 0% introductory offers, and balance transfers. I, and others here, have earned cash-back or free airline tickets via rewards programs. Also many here have used balance transfers to pay high-rate cards at 0% or lower rates, or even used a balance transfer to invest and gain money.

 

Opening new cards does create an inquiry and can lower your FICO scores temporarily. But often the long-term benefits of opening a new card outweigh the initial 'hit'.

 

As for higher limits. Higher limits are better for utilization. Low utilization is good. Utilization is basically how much of your credit line you use. If you have a card with a $5000 limit and only used $500, that is 10% utilization. But if you use $2500, that's 50% utilization and is not as good. Also total utilization matters. If you spend only $3000 a month and have a total limit of $20,000 then you have 15% utilization. But with $200,000 in total limits, that's just 1.5% utilization.

 

Also, more cards give you more choice. If one company ratejacks you, you can balance transfer to another card.

[stickyfingers]

well I have spent 6 hours reading here in the last couple days but I am still confused.

...many folks spend 6 weeks reading before it starts to click.

 

Don't feel bad.

[rel]

#1 Dont listen to any TV show , magazine , or article about credit repair

 

UNLESS ITS CREDITBOARDS CERTIFIED

 

 

#2 Get all the credit you can(handle) and never go over 15% Utilization also PIF everymonth.

[stickyfingers]

My biggest problem, when I got to CreditBoards.com...

Just keeping that in a handy txt file..?

[lookin4info]

Thanks that was very helpful!

 

 

Everything Ive ever read tells you to get rid of credit and dont use it . Here I read we should get as many credit cards as possible with as high a limit as possible or I am misunderstanding something.

 

My biggest problem, when I got to CreditBoards.com, was that my utilization was out of hand. I've never been late or had a collection on my credit report, but my scores always seemed to hover in the mid- to high-600s. I knew that being nearly maxed out on some cards could be hurting my scores a bit, but I NEVER realized that utilization was punishing me to such a large degree. It wasn't unheard of for me to be 65% utilized across the board. After all, I figured that I could afford the debt service, so what was the problem?

 

Turns out it was a big problem -- at least to creditors who peered at my credit report on a monthly basis. My wake-up call really came in early 2006 when Chase rate-jacked me to the tune of 29.99%. This is an account that I have had since early 2000. Never been late, never gone over the limit, and always paid more than the minimum. My reward? Rate jack! Thanks a lot, Chase. I immediately transfered the balance to a 0% card and Google'd my way to CB.

 

It was here -- at CB -- that I discovered the deleterious effect that utilization was having on my scores. It also explained why Chase -- even though I had been a model customer (a very profitable customer, mind you) -- decided to up my interest to a loanshark-like 29.99%.

 

Since then, I have been on a mission. I've added ten new trade lines and added about $160,000 in additional credit. What's more, my utilization has gone from the 64-65% range to 0%.

 

As of today, I have $0 credit card debt. Zero. Nada. None of my cards, in other words, are accruing interest. That's the first time during my adult life that I can make such a claim. I am no longer enriching the card companies. Instead, they are giving me interest-free loans for up to 55 days (30 days during the statement period and 25 days during the grace period).

 

I have finally turned the tables on the card companies. Card companies, it turns out, think that I am now a better risk, which is why I don't get turned down for new credit and now receive the best rates and generous limits.

 

When I first got here, I felt like I wasn't worthy because I only had five credit cards. Granted, they had decent limits, but I only had five -- which is much lower than the average CBer has here. At first, I didn't understand why all of the people here on this forum were trying to amass so many cards. But then it started to make sense: it gives you flexibility. If one of your credit card companies doesn't give you love, you sockdrawer their a$$e$. Then you move on to the next card. Rate is too high on your second card? Card company won't lower it? Sockdrawer their a$$es! That's what having multiple cards affords you. Freedom. Freedom to never be at the mercy of card companies that have you between a rock and a hard place.

 

Remember, these card companies know your credit reports intimately. They know when you have access to other credit sources. If they see that you are limited, they are free to rate jack your butt. And they know you are going to be forced into paying their exorbitant rates. No damn thanks.

 

Quite frankly, even though I lived comfortably and made very good money, I had always been at the mercy of my credit card companies. That's what happens when you carry a balance from month to month. These bloodsuckers own you when you do that. And, even if you make 6 figures a year (which I do not), you still get treated like crap.

 

The bottom line is that these credit card companies don't like you. They are not your friend. They don't care about you (miss a payment or go over your limit and you'll see). And they are not looking out for you. The ONLY thing they care about is making a dollar off you. That's it. That's their business. Their goal is to exact as much coin from you as they possibly can.

 

But I have turned the tables on them. I use their money interest free for up to 55 days. They'll still be able to make money from my card use, except they'll be getting the money from the merchant -- not me.

 

It's very liberating to be in this position. It's very nice to finally be in control of my financial life when it comes to my credit.

 

And that Chase card? It's been at $0 since February. I figure they "rewarded" me for being a model customer, so I'll reward them right back. Sockdrawer, meet Chase card. Chase card, meet sockdrawer. The two have become fast friends, indeed.

 

keyword: whymorecards

[lookin4info]

The thing is I just paid off all the credit cards and have zero balances and my fico score dropped !!

dramatically.

 

 

 

You have a lot to learn.

 

Credit cards can earn you money through rewards, 0% introductory offers, and balance transfers. I, and others here, have earned cash-back or free airline tickets via rewards programs. Also many here have used balance transfers to pay high-rate cards at 0% or lower rates, or even used a balance transfer to invest and gain money.

 

Opening new cards does create an inquiry and can lower your FICO scores temporarily. But often the long-term benefits of opening a new card outweigh the initial 'hit'.

 

As for higher limits. Higher limits are better for utilization. Low utilization is good. Utilization is basically how much of your credit line you use. If you have a card with a $5000 limit and only used $500, that is 10% utilization. But if you use $2500, that's 50% utilization and is not as good. Also total utilization matters. If you spend only $3000 a month and have a total limit of $20,000 then you have 15% utilization. But with $200,000 in total limits, that's just 1.5% utilization.

 

Also, more cards give you more choice. If one company ratejacks you, you can balance transfer to another card.

[meredeer]

well I have spent 6 hours reading here in the last couple days but I am still confused.

...many folks spend 6 weeks reading before it starts to click.

 

Don't feel bad.

 

 

I've been here SIX MONTHS and I still feel totally clueless!

[lookin4info]

Ok now I get it !! ( utilization )

 

 

You have a lot to learn.

 

Credit cards can earn you money through rewards, 0% introductory offers, and balance transfers. I, and others here, have earned cash-back or free airline tickets via rewards programs. Also many here have used balance transfers to pay high-rate cards at 0% or lower rates, or even used a balance transfer to invest and gain money.

 

Opening new cards does create an inquiry and can lower your FICO scores temporarily. But often the long-term benefits of opening a new card outweigh the initial 'hit'.

 

As for higher limits. Higher limits are better for utilization. Low utilization is good. Utilization is basically how much of your credit line you use. If you have a card with a $5000 limit and only used $500, that is 10% utilization. But if you use $2500, that's 50% utilization and is not as good. Also total utilization matters. If you spend only $3000 a month and have a total limit of $20,000 then you have 15% utilization. But with $200,000 in total limits, that's just 1.5% utilization.

 

Also, more cards give you more choice. If one company ratejacks you, you can balance transfer to another card.

[Credit Matters]

My biggest problem, when I got to CreditBoards.com...

Just keeping that in a handy txt file..?

 

See the keyword at the end of it? I can find it any time it is needed.

[stickyfingers]

The thing is I just paid off all the credit cards and have zero balances and my fico score dropped !!

dramatically....

Something else happened.

 

Anyhow. I still recommend you just hang out for a week or so and read, read, read.

 

Cheers.

[rel]

The thing is I just paid off all the credit cards and have zero balances and my fico score dropped !!

dramatically.

 

 

You might be looking at fako scores.

 

Ive never heard of Fico's dropping(even dramatically) because you decreased Utilization.

 

www.myfico.com FICO scores the only scores you should worry about.

Purchase around 4-6 times a year.

[stickyfingers]

My biggest problem, when I got to CreditBoards.com...

Just keeping that in a handy txt file..?

 

See the keyword at the end of it? I can find it any time it is needed.

Yeah...I caught that.

 

Great idea to go with a great post. Folks should do that (keyword great posts) more often...

[Credit Matters]

The thing is I just paid off all the credit cards and have zero balances and my fico score dropped !!

dramatically.

 

 

You might be looking at fako scores.

 

Ive never heard of Fico's dropping(even dramatically) because you decreased Utilization.

 

www.myfico.com FICO scores the only scores you should worry about.

Purchase around 4-6 times a year.

 

I lost 9 points on my EQ FICO (to 754 from 763) when all of my cards reported $0 balances (giving me 0% utilization across all of my credit cards). FICO, as others have said, wants to see "some" use. My USAA AMEX is now reporting a balance; maybe I gained those 9 points back (no idea, since I no longer feed the monster).

[lookin4info]

the only other this was we paid off a equity line of credit of 55,000 and refinnaced with a house worth 300000 with a mortage of 150,000 I had them keep the loc open but lower it to 25000 stupid me I havent read here first but maybe that did it ? i thought paying off the loc and just having a mortage instead of both would be a good thing.

[stickyfingers]

I lost 9 points on my EQ FICO (to 754 from 763) when all of my cards reported $0 balances (giving me 0% utilization across all of my credit cards). FICO, as others have said, wants to see "some" use. My USAA AMEX is now reporting a balance; maybe I gained those 9 points back (no idea, since I no longer feed the monster).

...with my creditors updating willy-nilly (and AMEX always a month or two behind) I'd have to pay everything to 0 and keep it there for awhile for everyone to get on the same page...

[Credit Matters]

I lost 9 points on my EQ FICO (to 754 from 763) when all of my cards reported $0 balances (giving me 0% utilization across all of my credit cards). FICO, as others have said, wants to see "some" use. My USAA AMEX is now reporting a balance; maybe I gained those 9 points back (no idea, since I no longer feed the monster).

...with my creditors updating willy-nilly (and AMEX always a month or two behind) I'd have to pay everything to 0 and keep it there for awhile for everyone to get on the same page...

 

Mine was fairly easy. I only had one balance on one card. Paid that off. It updated and, voila, $0s for everyone.

[MarvBear]

Everything Ive ever read tells you to get rid of credit and dont use it . Here I read we should get as many credit cards as possible with as high a limit as possible or I am misunderstanding something.

I thought openign new cards made things worse plus added inquirys which also brought your score down.

Also if you are only an authorized user does it report through to your creidt report or do you need to add spouse completly to the card ? Should we each be on each others cards just for the sake of having more cards?

 

 

You kinda been reading the wrong stuff, or at least reading from misinformed writers.

 

I have direct access to multiple credit files across all 3 bureaus.

 

If I were to cut n paste portions of those files with the highest scores (say in excess of 800+) you will easily see there are significant number of revolving accounts on each of the files I accessed. Search some of my prior posts regarding scores.

[MarvBear]

go Highest Credit Score

[stickyfingers]

...You kinda been reading the wrong stuff, or at least reading from misinformed writers.

Well, in fairness, not necessarily.

 

The OP makes no claim in his first post about what his goal is. To maximize credit scores, we all know what to do, but that's not *necessarily* the same goal "all the other" folks he reads/listens to have in mind.

 

To each his own.

[MarvBear]

plus added inquirys which also brought your score down.

 

This is an overwhelming plague that people persist in believing has a detrimental affect on your credit file. Inquiries especially multiple inquiries in a short period of time will temporarily depress your score, some say 2 to as many as 7 points and indeed I myself have experienced that.

 

Not terribly important in the overall scheme, as inquires matter little past the six month time frame, and even less at the 12 month mark.

 

Inquiries only temporarily make for a score abberation.

 

As a creditor myself, I choose how my reports are formatted, I can choose just to see the inquiries up to the 6 month level so forth and so on.

 

Personally I'd not be terribly concerned about inquiries.