Your credit score is based on many things. The Fed changed the way banks and lenders look at your debit to income ratio. They no longer look at the amount of money you owe but rather the amount of revolving debit you have access to. So if you have 5 credit cards with 3000.00 limits each, lenders will see that as you having 15000.00 in revolving debit. They then take that and figure you score on a 10-15% basis so even if all 5 cards have no balance they will still figure you owe between 2250.00 and 5000.00Originally Posted by reediculous
If your not using it close it
If your trying to build credit or rebuild your credit pay off the owed balance every billing cycle. The credit reporting agencies like Equefax look at your use of the credit as much as the misuse. Responsible use of credit is as helpfull and misuse is hurtful2. Whats the best way to pay a card? For example, if i buy gas with my visa card and i spend 30$, when the bill comes should i pay it all off, or just half, or what?
Idealy 0. In a perfect world you should have a cash emergency fund. But not everyone can swing that so I'd say one card that if maxed out could be paid off in 3-6 months would work just fine3. I really just use cards for emergencies now. how many cards should one really have?
Yes despite what the people that call during dinner will tell you, you can build credit with out a credit card that you pay an ass load of interest on! Cell phones, car loans, small personal loans with a cosigner, apartments, utility's all these can build credit. Credit can build quickly and crash just as quickly4. Is there anyway to build credit without using credit cards, or will you always need to use them?
Before you go down the credit road know the difference between a need and a want.5. Any other tips?
Thanks in advance guys!
Tyree
Reply With Quote