Credit Card Discussion Thread

[ViShawn]

There are over 50 different flavors of FICO scores (which are not what you see on any of the free sites - Credit Karma, Credit Sesame, Quizzle, etc.). FICO scores are what over 90% of creditors use when determining someone's credit worthiness.

There are Auto Enhanced FICOs, Bankcard, Mortgage, etc. You name it, there's probably a FICO for it. Depending on which version the creditor is using, your scores can fluctuate dramatically. A 750 on a FICO Score 8 could be a 675 on a FICO Score 5, which could be a 700 on a FICO Bankcard Score 4.

I use credit cards in the manner that I would use debit cards to get the reward points/cash back. I pay off almost everything immediately after the charges hit, and have no more than 10% utilization reporting every month.

I heard FICO is the only important score, but it seems like Chase used a TransUnion based score (with a range of 250 - 900 apparently..weird) to determine my credit worthiness.

Do you pay for your score or anything? I may request a free credit report but I don't have any intention or pulling out a huge loan or a house right now but it's nice to know.

 

[brother walt]

I HAVE KHOLS,CAPITAL ONE,OLD NAVY,CREDIT ONE

 

[Rusty Kuntz]

I heard FICO is the only important score, but it seems like Chase used a TransUnion based score (with a range of 250 - 900 apparently..weird) to determine my credit worthiness.

Do you pay for your score or anything? I may request a free credit report but I don't have any intention or pulling out a huge loan or a house right now but it's nice to know.

Some creditors use alternate methods to determine credit worthiness, but FICO is the main one that most use.

I pay for my reports every quarter through MyFICO, which is the only place (other than some credit card companies that provide this info for free), where you can get real FICO scores. The FICO Ultimate 3B plan is their most popular plan; it gives you 28 different FICO scores, including those used in mortgage, auto enhanced, and bankcard (credit card) decisions.

I think it's bullshyt that we have to pay to get our FICO scores; we should be able to get them for free.

 

[brother walt]

Sign up to Credit Karma / Credit Sesame / Quizzle and monitor your sh*t.

I DID IM COMING ALL THE WAY FROM A 426 CREDIT SCORE MY shyt 630 NOW I HAVE 4 CARDS NOW HAVENT GOT EM YET

 

[Blackout]

Just got this today. I looked at some of the details of what factored into my credit limit and APR.

I was gonna get that one but I dont care much for an annual fee.

 

[ViShawn]

I was gonna get that one but I dont care much for an annual fee.

It's waived first year and you can convert it to a Chase Sapphire if you want. But the perks make it pay for itself

 

[Blackout]

It's waived first year and you can convert it to a Chase Sapphire if you want. But the perks make it pay for itself

Im aware yet Im gonna hold out till I have credit access to all cards with annual fees and not just Chase Sapphire Preferred and weigh my options.

 

[Typical Knicks Fan]

I've been listening to Dave Ramsey for a while and reading up on Warren Buffett. They both say stay away from credit cards. Nothing but trouble with very few advantages. The only good one I can think of is renting a car when you're in a jam, but some places would rent you one if you make the full payment ahead of time.

10 Best Money Tips From Warren Buffett of All Time -- The Motley Fool

4. Avoid debt, especially credit card debt
Warren Buffett built his wealth by getting interest to work for him instead of working to pay interest, the way many Americans in debt do. "I've seen more people fail because of liquor and leverage -- leverage being borrowed money," Buffett said in a 1991 speech at Notre Dame. "You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."

Buffett is especially wary of credit cards. His advice is to avoid them altogether. "Interest rates are very high on credit cards," Buffett once said in a news release. "Sometimes they are 18%. Sometimes they are 20%. If I borrowed money at 18% or 20%, I'd be broke."

I cancelled both of my credit cards and I don't have to worry about missing a payment.

 

[ViShawn]

The strategy with credit cards is to spend money you have to pay them off, get the perks, acquire more spending power.

Say you needed money for a small business and you needed to pull out a loan. you need some established credit in order to do that. Credit cards are a double edged sword though I agree.

 

[Mordith]

I've been listening to Dave Ramsey for a while and reading up on Warren Buffett. They both say stay away from credit cards. Nothing but trouble with very few advantages. The only good one I can think of is renting a car when you're in a jam, but some places would rent you one if you make the full payment ahead of time.

10 Best Money Tips From Warren Buffett of All Time -- The Motley Fool

4. Avoid debt, especially credit card debt
Warren Buffett built his wealth by getting interest to work for him instead of working to pay interest, the way many Americans in debt do. "I've seen more people fail because of liquor and leverage -- leverage being borrowed money," Buffett said in a 1991 speech at Notre Dame. "You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."

Buffett is especially wary of credit cards. His advice is to avoid them altogether. "Interest rates are very high on credit cards," Buffett once said in a news release. "Sometimes they are 18%. Sometimes they are 20%. If I borrowed money at 18% or 20%, I'd be broke."

I cancelled both of my credit cards and I don't have to worry about missing a payment.

This is all dumb smart nikka talk.

I use my credit cards for all of my purchases and pay my balances in full every month because I earn rewards on all of my spending. Cash and debit cards dont earn rewards so I would actually be "losing money" with either of those.

 

[Atsym Sknyfs]

I haven't had a credit card since 2012... I did at one have over $100,000 in credit... In 2007 I put 30k down payment on my house with a CC.. but not anymore...
I'm trying to avoid credit cards as much as possible...

The fastest way I built up my credit score was getting business cards and transferring the balances... although its a personal guarantee and hit .. business debts don't show up on personal credit reports .. so that right there changed my utilization down to (keep) 2-5% active.. As my credit score got better I applied for more cards.....

 

[ViShawn]

This is all dumb smart nikka talk.

I use my credit cards for all of my purchases and pay my balances in full every month because I earn rewards on all of my spending. Cash and debit cards dont earn rewards so I would actually be "losing money" with either of those.

Some people with credit cards spend money they don't have. There lies the problem.

 

[Atsym Sknyfs]

Some people with credit cards spend money they don't have. There lies the problem.

But that's not how they're advertised ... its buy this for ^^^$$$ and pay only this little bit per month.. then the fine print with the 90 days, interest counts back to day one, etc kicks in..

 

[Mordith]

I haven't had a credit card since 2012... I did at one have over $100,000 in credit... In 2007 I put 30k down payment on my house with a CC.. but not anymore...
I'm trying to avoid credit cards as much as possible...

Take out a $30k cash advance brehs....

It's stories like this that prove my point that credit cards aren't the problem it's the people who aren't educated enough to use them.

 

[Typical Knicks Fan]

This is all dumb smart nikka talk.

I use my credit cards for all of my purchases and pay my balances in full every month because I earn rewards on all of my spending. Cash and debit cards dont earn rewards so I would actually be "losing money" with either of those.

Using Credit Card Rewards to Justify Debt? You're Getting a Bad Deal! - NerdWallet

I'll take advice from people who actually make money instead of companies wanting your money. Reward points are good for some, but most people fall into a cycle of paying the monthly minimum and end up giving back what they earned in interest.