Credit cards/Building Credit! - Forums at Modded Mustangs
Reply
 
LinkBack Thread Tools
post #1 of 24 Old May 8th, 2016, 11:28 PM Thread Starter
.
 
Mach1dmb!'s Avatar
 
Join Date: Jun 2011
Location: New York
Posts: 7,918
             
iTrader: 0 reviews
Credit cards/Building Credit!

What kind of credit cards is everyone using and what are the pros/cons?
What are some ways you guys maintain/boost your credit score?

I've always had "good" credit until recently- upon buying a lot of things/new vehicle loans and most recent, a payment issue, my score has dropped a little to "average". But I guess you have to go down to go up in the long run? The payment issue seems to be going away quick, my score has gone up about 10 points in the last week since its been resolved. I'm trying to bring it up a lot now, I'm looking to get a 2nd credit card to help. Right now I use 1 card for everything. I'm looking to have 1 just for gas/dinning, then use the other for everything else. I also am going to look into opening some cards at retail stores...I already have a Kohls account that I use maybe twice a year, but it helps my score by having it.

For credit cards I use a CapitalOne Quicksilver, its pretty awesome. I get 1.5% cash back, and I got $150 bonus in the beginning. They have pretty good service, but the only con so far is that although you can set up an autopay from a checking account, they will not let you autopay in full, so you have to manually pay the full balance.

Quote:
Originally Posted by TheUNZippee! View Post
fuck a willing possum
Quote:
Originally Posted by xkape View Post
lol seriously.. who the fuck bowls sober and pays for it?
Mach1dmb! is offline  
Sponsored Links
Advertisement
 
post #2 of 24 Old May 8th, 2016, 11:47 PM
missippi roolz
 
socialist's Avatar
 
Join Date: Feb 2012
Posts: 9,231
         
iTrader: 3 reviews
I've always had Capital One and I personally believe their customer service is top fucking notch. I have the Venture card so you get two "miles" per dollar spent which essentially equates to one "mile" equaling one cent in travel expenses. We use the credit card for everything so its not hard to save up enough miles in a year to cover a plane ticket or vacation or whatever. But if you're not big into vacations, then its not really a good card to have. But if you are, its one of the best (however it requires having "excellent" credit to get approved).

Just pay all your shit on time and your credit will go up. Loans will help it go up as long as you never miss a payment. I've never missed any payments whether its a bill, loan, credit card statement, etc except for maybe a couple times paying a day late which generally doesn't affect your score.

Don't go opening up like five credit cards. I wouldn't have more than like two depending on what you're trying to use them for.
socialist is online now  
post #3 of 24 Old May 8th, 2016, 11:47 PM
Administrator
 
BWAL's Avatar
 
Join Date: Nov 2006
Location: Clothes Hamper
Posts: 33,188
Blog Entries: 2
                     
iTrader: 4 reviews
i use an app called credit karma that i like a lot. it tells you your transunion and equifax scores and updates every week. it tells you what factors affect your credit, so you know what you need to work on. looking at the app right now, it shows...

high impact factors:

credit card utilization (ratio of spending to your credit limit, excellent range is 0-9%)
payment history (self explanatory, pay on time. excellent is 100% on time payments)
derogatory marks (even if you haven't done anything wrong, keep an eye on this. you would be surprised how often companies make mistakes and accidentally give people derogatory marks. dispute if needed. excellent is 0 marks)

other factors:

age of credit history (longer time period = better score. excellent is 9+years)
total accounts (more accounts in good standing = better score. be careful with companies that will cancel your card due to non usage. that will hurt your credit. excellent is 21+)
hard inquiries (applying for loans. try to only get hard inquiries if you're planning on following through with getting the loan. it will ding you at first but that loan will help build it back up. excellent is 0)

all of my factors are sitting on excellent except age of credit history is poor and total accounts is very poor. that gives me a score of 778, and usually goes up a point every week or so. i always pay off my balances every month except for a 0% interest loan i have for 36 months. stretching that one out to full term to build up credit

'65 Fastback
'89 LX 5.0
'90 LX 5.0
'92 LX 5.0
'92 LX 5.0
'97 Cobra

BWAL is offline  
Sponsored Links
Advertisement
 
post #4 of 24 Old May 8th, 2016, 11:57 PM Thread Starter
.
 
Mach1dmb!'s Avatar
 
Join Date: Jun 2011
Location: New York
Posts: 7,918
             
iTrader: 0 reviews
Quote:
Originally Posted by brtnstrns View Post
I've always had Capital One and I personally believe their customer service is top fucking notch. I have the Venture card so you get two "miles" per dollar spent which essentially equates to one "mile" equaling one cent in travel expenses. We use the credit card for everything so its not hard to save up enough miles in a year to cover a plane ticket or vacation or whatever. But if you're not big into vacations, then its not really a good card to have. But if you are, its one of the best (however it requires having "excellent" credit to get approved).
I do travel a few times a year. I guess thats .5% more reward than the cash back that I get now, but its applied specifically to travel. I'd have to see if thats worth it.

Quote:
Originally Posted by BWAL View Post
i use an app called credit karma that i like a lot. it tells you your transunion and equifax score and updates every week. it tells you what factors affect your credit, so you know what you need to work on. looking at the app right now, it shows...

high impact factors:

credit card utilization (ratio of spending to your credit limit, try to keep this under 10%)
payment history (self explanatory, pay on time)
derogatory marks (even if you haven't done anything wrong, keep an eye on this. you would be surprised how often companies make mistakes and accidentally give people derogatory marks. dispute if needed.)

other factors:

age of credit history (longer time period = better score)
total accounts (more accounts in good standing = better score. be careful with companies that will cancel your card due to non usage. that will hurt your credit)
hard inquiries (applying for loans. try to only get hard inquiries if you're planning on following through with getting the loan. it will ding you at first but that loan will help build it back up)

all of my factors are sitting on excellent except age of credit history is poor and total accounts is very poor. that gives me a score of 778, and usually goes up a point every week or so
CapitalOne has an identical app. I too don't have a good credit history yet...I think it has to be over 10 years. Also recently my "utilization" score went down when I had to buy a bunch of stuff for work. So I just requested to increase my card limit, I believe that should help my score overall.

I also have been paying a vehicle loan for almost a year, it hasn't really helped my score, not sure why...maybe its balancing out with the loan inquiries? I heard that making payments past a year wont help that much, so I was planning on paying it off in full soon. I also just took out a loan for my new truck, so I still have payments on that every month.

Quote:
Originally Posted by TheUNZippee! View Post
fuck a willing possum
Quote:
Originally Posted by xkape View Post
lol seriously.. who the fuck bowls sober and pays for it?
Mach1dmb! is offline  
post #5 of 24 Old May 9th, 2016, 12:06 AM
Administrator
 
BWAL's Avatar
 
Join Date: Nov 2006
Location: Clothes Hamper
Posts: 33,188
Blog Entries: 2
                     
iTrader: 4 reviews
Quote:
Originally Posted by Mach1dmb! View Post
I do travel a few times a year. I guess thats .5% more reward than the cash back that I get now, but its applied specifically to travel. I'd have to see if thats worth it.



CapitalOne has an identical app. I too don't have a good credit history yet...I think it has to be over 10 years. Also recently my "utilization" score went down when I had to buy a bunch of stuff for work. So I just requested to increase my card limit, I believe that should help my score overall.

I also have been paying a vehicle loan for almost a year, it hasn't really helped my score, not sure why...maybe its balancing out with the loan inquiries? I heard that making payments past a year wont help that much, so I was planning on paying it off in full soon. I also just took out a loan for my new truck, so I still have payments on that every month.
i added more info to my post

how old are you? my equifax went up 22 points around my 25th birthday lol

did the limit increase request count as a hard inquiry?

if the vehicle loan isn't helping your score, you might have made a late payment at some point, in which case just continuing to pay on time will eventually lower your percentage of late payments

'65 Fastback
'89 LX 5.0
'90 LX 5.0
'92 LX 5.0
'92 LX 5.0
'97 Cobra

BWAL is offline  
post #6 of 24 Old May 9th, 2016, 01:04 AM
Not a Rational Car Guy
 
Lefty's Avatar
 
Join Date: Jun 2007
Location: Mechanicsburg, PA
Posts: 38,186
                     
iTrader: 17 reviews
To put everything into simple terms. They want to see revolving credit. I.E. credit line or credit cards. And numerous accounts at the same time. They want you to prove to them that you can "balance" multiple accounts.

Which is retarded. Who would WANT debt. That's half the problem with the "credit" rating.

2012 McLaren MP4-12C - Elite Pearl White
2006 Lamborghini Gallardo Coupe - Verde Ithaca
2009 Infiniti G37S Coupe (the daily)

Quote:
Originally Posted by HighDensity View Post
At this point I don't think the Viper is exotic. It is more like a refined American redneck John Deere tractor made by Boeing with turbos.
Lefty is offline  
post #7 of 24 Old May 9th, 2016, 01:23 AM
impecunious
 
Royal96's Avatar
 
Join Date: Apr 2013
Location: Cincinnati, Ohio
Posts: 7,412
           
iTrader: 0 reviews
Quote:
Originally Posted by BWAL View Post
i use an app called credit karma that i like a lot. it tells you your transunion and equifax scores and updates every week. it tells you what factors affect your credit, so you know what you need to work on. looking at the app right now, it shows...

high impact factors:

credit card utilization (ratio of spending to your credit limit, excellent range is 0-9%)
payment history (self explanatory, pay on time. excellent is 100% on time payments)
derogatory marks (even if you haven't done anything wrong, keep an eye on this. you would be surprised how often companies make mistakes and accidentally give people derogatory marks. dispute if needed. excellent is 0 marks)

other factors:

age of credit history (longer time period = better score. excellent is 9+years)
total accounts (more accounts in good standing = better score. be careful with companies that will cancel your card due to non usage. that will hurt your credit. excellent is 21+)
hard inquiries (applying for loans. try to only get hard inquiries if you're planning on following through with getting the loan. it will ding you at first but that loan will help build it back up. excellent is 0)

all of my factors are sitting on excellent except age of credit history is poor and total accounts is very poor. that gives me a score of 778, and usually goes up a point every week or so. i always pay off my balances every month except for a 0% interest loan i have for 36 months. stretching that one out to full term to build up credit
I don't 100% understand the utilization thing. So basically if I have a 500 dollar credit line, but I only use $0-$45, that's considered excellent?

---------- Post added at 12:23 AM ---------- Previous post was at 12:21 AM ----------

Also, just to throw another question into the ring, how soon is too soon to get an additional credit card? I know they want multiple lines of credit (21 is fucking ridiculous imo) but I've also heard that opening new accounts hurts your credit? It all seems so conflicting.

Quote:
Originally Posted by xkape View Post
I wish I was Royal96
Modular Parts For Sale
No, I'm not doing an sbf swap.
Royal96 is offline  
post #8 of 24 Old May 9th, 2016, 01:29 AM
missippi roolz
 
socialist's Avatar
 
Join Date: Feb 2012
Posts: 9,231
         
iTrader: 3 reviews
Quote:
Originally Posted by Royal96 View Post
I don't 100% understand the utilization thing. So basically if I have a 500 dollar credit line, but I only use $0-$45, that's considered excellent?

---------- Post added at 12:23 AM ---------- Previous post was at 12:21 AM ----------

Also, just to throw another question into the ring, how soon is too soon to get an additional credit card? I know they want multiple lines of credit (21 is fucking ridiculous imo) but I've also heard that opening new accounts hurts your credit? It all seems so conflicting.
I've never heard of less than 10%. I think I usually hear 30%-50% of your credit limit. That aspect has much less of an impact on your credit score than the other factors (paying on time, paying in full, etc). I go over 50% of my credit limit pretty much every month since there is a weird time period in which your monthly statement is finished but your balance is still raising even though you plan to pay the balance in full in 18 days or whatever. My credit rating typically gives me a "B" for that but otherwise my score is still in the "excellent" zone.
socialist is online now  
post #9 of 24 Old May 9th, 2016, 01:41 AM
Administrator
 
BWAL's Avatar
 
Join Date: Nov 2006
Location: Clothes Hamper
Posts: 33,188
Blog Entries: 2
                     
iTrader: 4 reviews
Quote:
Originally Posted by Royal96 View Post
I don't 100% understand the utilization thing. So basically if I have a 500 dollar credit line, but I only use $0-$45, that's considered excellent?
correct. spending $0 makes no sense to me though, so i'd say $1+ lol

Quote:
Originally Posted by Royal96
Also, just to throw another question into the ring, how soon is too soon to get an additional credit card?
going by their bullshit standards, i'd say it's never too soon to get another, as long as your score is high enough that you know you'll get approved after the hard inquiry, and you're not getting raped by interest

Quote:
Originally Posted by Royal96
I know they want multiple lines of credit (21 is fucking ridiculous imo)
agreed

Quote:
Originally Posted by Royal96
but I've also heard that opening new accounts hurts your credit?
it only hurts it a little bit because it counts as a hard inquiry. if you're capable of paying it off on time the hard inquiry shouldn't be that big of a deal

Quote:
Originally Posted by Royal96
It all seems so conflicting.
yes, yes it does

---------- Post added at 12:41 AM ---------- Previous post was at 12:37 AM ----------

Quote:
Originally Posted by brtnstrns View Post
I've never heard of less than 10%. I think I usually hear 30%-50% of your credit limit. That aspect has much less of an impact on your credit score than the other factors (paying on time, paying in full, etc).
where did you get that info? credit karma says utilization is a high impact factor

0-9% - excellent
10-29% - good
30-49% - fair
50-74% - poor
75%+ - very poor

'65 Fastback
'89 LX 5.0
'90 LX 5.0
'92 LX 5.0
'92 LX 5.0
'97 Cobra

BWAL is offline  
post #10 of 24 Old May 9th, 2016, 02:51 AM
missippi roolz
 
socialist's Avatar
 
Join Date: Feb 2012
Posts: 9,231
         
iTrader: 3 reviews
Quote:
Originally Posted by BWAL View Post
where did you get that info? credit karma says utilization is a high impact factor

0-9% - excellent
10-29% - good
30-49% - fair
50-74% - poor
75%+ - very poor
you may be right though. That's really the only "bad" thing I do. But in order to not do that I'd need like a $100,000 credit limit some months. I've always received the lowest interest rates and never denied anything so it seems to be fine for me.
socialist is online now  
post #11 of 24 Old May 9th, 2016, 03:06 AM
Pawsitively sexy
 
Sixpointslow's Avatar
 
Join Date: Aug 2013
Location: Lower Sussex, DE
Posts: 10,564
                   
iTrader: 0 reviews
Every time you apply for a loan or credit card, or even sometimes a credit increase, you get a hard inquiry on your credit. Too many of these is bad, and they usually remain on your credit report for at least a year. Plus, every time you open a new account, it drags down your average age of an account. You want your average to be north of 72 months, and that's literally impossible for most of us younger guys.

Everything I've ever read about credit utilization is spot on with what BWAL has posted. My credit utilization is around 5% right now and my cards that offer a free credit report every month (Discover, American Express, and Chase Slate) say that my utilization is excellent.

2012 CTS-V

Not stock


Sixpointslow is offline  
post #12 of 24 Old May 9th, 2016, 09:58 AM
\_(ツ)_/
 
Levi's Avatar
 
Join Date: Apr 2013
Location: Here
Posts: 3,679
     
iTrader: 0 reviews
I use Credit Karma, my biggest problem is I have no credit cards, and I have never had a loan for the full duration. I have always paid everything off early. This credit stuff is confusing.

Quote:
Originally Posted by boattlebot View Post
How did this gorilla stuff even get started in a thread about me taking it hard in the ass?
Levi is offline  
post #13 of 24 Old May 9th, 2016, 10:30 AM
The Aviator
 
solidhadriel's Avatar
 
Join Date: Dec 2010
Location: Southern Cali
Posts: 6,305
       
iTrader: 0 reviews
If you travel a lot (or plan to) and have a great credit score (and spend quite a bit monthly), get the Chase Sapphire.

Citi Bank has some great no interest for 18-21 month cards for a cheap mini loan (balance transfer cards).

My first cash back card was a Capital One then I went to Chase Freedom for points. You get more bang for your buck when upgrading those points to Chase Sapphire Preferred points when used for traveling. For example, I was looking to book a flight to Cabo. To pay cash would have cost me at least $400-$500 in cash. With my points, it was only 12,000 points and $76 in fees. That's like making the price of tickets $120 + $76 fees = $196 vs $400. A lot more bang for your buck!

Quote:
Originally Posted by xocolleenox View Post
You're going to get on a giant boat full of girls in bikinis without a girl of your own to keep you from doing whatever you want and people are telling you no?
solidhadriel is offline  
post #14 of 24 Old May 9th, 2016, 11:53 AM
I Post Entirely Way Too Much
 
Join Date: Nov 2008
Location: Las Vegas
Posts: 13,624
                     
iTrader: 4 reviews
I use one cc for all of my daily stuff and pay it every two weeks. Any rewards are put into my mortgage principle so any dollars thrown this way are rewarded with huge interest savings over time. I have my other credit card that I use for any large unusual or large purchases and also pay on this every two weeks.

Just pay your bills on time and try and pay more than minimum payments. I hate paying interest but it kinda is the only way to do things. Don't get a bunch of store cards. Many have annual fees and higher interest without any kinds of rewards or return for using them.


Whipple, 3.125" pulley-Comp NSR's-Meziere-Pacesetter L/T's+Outlaws-Level 10 trans-PI 3400-PH driveshaft-Auburn Pro LSD-Richmond 4.10's-CobraJet springs-Viking shocks-BMR control arms, panhard, rear sway bar-and a bunch of other really cool shit
07 Boss is offline  
post #15 of 24 Old May 9th, 2016, 01:12 PM
Made in U.S.A.
 
Nasty's Avatar
 
Join Date: Jan 2009
Location: Florida
Posts: 22,435
                     
iTrader: 12 reviews
File bankruptcy, it's an instant credit score increase!

Quote:
Originally Posted by Lefty View Post
To put everything into simple terms. They want to see revolving credit. I.E. credit line or credit cards. And numerous accounts at the same time. They want you to prove to them that you can "balance" multiple accounts.

Which is retarded. Who would WANT debt. That's half the problem with the "credit" rating.
I know how you feel. I seriously hate leaving a few dollars on my credit cards simply so they don't cancel me at this point. My credit score is nearly 800 so I'd like to keep it there.
Nasty is offline  
post #16 of 24 Old May 9th, 2016, 02:13 PM
RAT FINK
 
ghunt's Avatar
 
Join Date: Feb 2014
Location: Clarksburg WV
Posts: 939
 
iTrader: 0 reviews
I have a Discover card that I applied for in the mid 2000's and still have, which I've had a large balance on and paid off more than once. So I've had it for probably 10+ years at this point and I figure it must be helping, although I don't use it all that often.

I just looked at my Discover statements because they put your FICO score on there...so on my last statement where I still had some money on the card I had an 813, then the statement after I paid it off I had an 808. Ah whatever.

I currently have no loans aside from my home loan, and I do have some stuff on my paypal credit account (went a little too crazy with their 6 mo/0% financing). So, accumulate debt, make payments on time, build credit. Have any shiny new parts you want?

BTW- when I was fresh out of college all of the credit card companies had seriously killer incentives on their cards. My aforementioned Discover card gave 5% cash back on the first so many dollars worth of gas you bought every month, and I had a Capitol One card with a fixed 5.99% APR. That all went away after they passed that credit loophole act in 2008, it sucked.

2005 Mustang GT
CMS Stage 1 cams, Lito Tune, C&L Racer, CMDP, SR UDP, JBA LT's & catted H, FRPP Touring AB, Koni STR.T, BMR springs, J&M upper/mount, BMR lowers & brackets, J&M pb, Steeda Tri-Ax, Brembos
2009 Ranger XL SCab-4.0, auto, 4WD
ghunt is offline  
post #17 of 24 Old May 9th, 2016, 02:23 PM
impecunious
 
Royal96's Avatar
 
Join Date: Apr 2013
Location: Cincinnati, Ohio
Posts: 7,412
           
iTrader: 0 reviews
Quote:
Originally Posted by Sixpointslow View Post
Every time you apply for a loan or credit card, or even sometimes a credit increase, you get a hard inquiry on your credit. Too many of these is bad, and they usually remain on your credit report for at least a year. Plus, every time you open a new account, it drags down your average age of an account. You want your average to be north of 72 months, and that's literally impossible for most of us younger guys.

Everything I've ever read about credit utilization is spot on with what BWAL has posted. My credit utilization is around 5% right now and my cards that offer a free credit report every month (Discover, American Express, and Chase Slate) say that my utilization is excellent.
So in the case of average credit line age, would it he a better idea to open another card sooner rather than later?

Also one thing that has always confused me, is carrying a balance better for your credit score than paying in full every month? Logic would dictate not but credit scores are clearly not based around logic.

Quote:
Originally Posted by xkape View Post
I wish I was Royal96
Modular Parts For Sale
No, I'm not doing an sbf swap.
Royal96 is offline  
post #18 of 24 Old May 9th, 2016, 04:48 PM
RAT FINK
 
ghunt's Avatar
 
Join Date: Feb 2014
Location: Clarksburg WV
Posts: 939
 
iTrader: 0 reviews
Carrying a balance and making payments on it is always better. See my post above, I paid the last little bit I had on my Discover card and it dropped my score by 5 points.

I never really understood it either. Apparently they want to see that you can have long-term debt and make timely payments rather than having short term debt and paying it off.

2005 Mustang GT
CMS Stage 1 cams, Lito Tune, C&L Racer, CMDP, SR UDP, JBA LT's & catted H, FRPP Touring AB, Koni STR.T, BMR springs, J&M upper/mount, BMR lowers & brackets, J&M pb, Steeda Tri-Ax, Brembos
2009 Ranger XL SCab-4.0, auto, 4WD
ghunt is offline  
post #19 of 24 Old May 9th, 2016, 08:30 PM
impecunious
 
Royal96's Avatar
 
Join Date: Apr 2013
Location: Cincinnati, Ohio
Posts: 7,412
           
iTrader: 0 reviews
Interesting. (No pun intended)

Quote:
Originally Posted by xkape View Post
I wish I was Royal96
Modular Parts For Sale
No, I'm not doing an sbf swap.
Royal96 is offline  
post #20 of 24 Old May 9th, 2016, 09:33 PM
I Post Entirely Way Too Much
 
HighDensity's Avatar
 
Join Date: Nov 2010
Location: USA
Posts: 5,842
                 
iTrader: 0 reviews
800's score. I use Discover for anything and everything. Pay it off each month, sometimes sooner for large purchases just to keep ratio lower.

I cash in rewards for food gift cards lol. We basically don't "pay" to go out to eat. Here's last months $225 haul:







Pretty much a lot of useful info buried in here OP. Check out "whats helping my score" and also note the pie chart at bottom right.


Mustang and a snake, but not a Cobra

Quote:
Originally Posted by Royal96 View Post
Holy shit. I just assumed it was the porsche, not a fire breathing piece of American badassery.



MM+ Cleavage Club #28
HighDensity is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Forums at Modded Mustangs forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may post new threads
You may 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
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome