All Posts Tagged With: "credit cards"
The factors that combine to create your FICO score
Jennifer McClelland | RSS | Thu, Sep 24 2009 | 1 Comment
So you’re trying to take out a loan, get a credit card with a reasonable APR or trying to buy something, anything on credit, but your credit score is too low for your liking? Well, the first place to start when trying to rebuild that score is to find out what exactly makes up your credit score.
35% of your credit score is from paying your bills on time. To help improve this part of your score, start marking due dates on your calendar. This is the single largest section of your credit score. Setting up automatic bill payment is also another way to ensure that your bills are paid on time. This also keeps you from getting interest rate hikes on credit cards and loans. Someone who pays their bills on time, every time, has an average credit score of 706. Someone who pays 99% of the time on time’s average score is 658.
30% of your credit score is how much you owe. You need to make sure that you keep your balances from equaling up to 30% of your total credit line. Your credit score is partly based on the credit utilization ratio. If a credit card company ends up reducing your limit, what you owe actually becomes a larger percentage of your credit line. So, if this happens try to get in touch with your creditor and get the limit reversed to avoid a negative mark on your credit score.
15% of your credit score is the length of your credit history. In this case, someone who has had a credit history for 20 years is going to obviously be doing better than one who just graduated college. A trick to utilizing this 15% is to keep the first credit card you ever open, open. Use it a couple of times a year and pay it off.
10% of your credit score is credit expansion. Here’s a problem, when you apply for too much credit your credit score can be harmed, however having new credit accounts can also help your credit score. Open new accounts over time rather than trying all at once. This will help your credit score in the long run as long as you’re paying your bills on time.
The last 10% of your credit score is credit diversity. If you have all your credit in cards then you’re credit isn’t diverse. However, if you have a variety of credit cards, mortgage, car loans and pay the bills on time while keeping the accounts active, then you’re diversified in this aspect of your credit. The key is to keep the accounts active because not using the accounts won’t help your credit at all.
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Tags: credit expansion, credit accounts, credit history
The Pitch – What would you give up to have a customized credit card?
Jennifer McClelland | RSS | Tue, Sep 15 2009 | 3 Comments
What would you give up to have a highly customized credit card?
Question:
Perhaps the real question is what kind of concessions would you be willing to make on things like APR and benefits to have a card that is uniquely you?
Answer:
I would rather have an ugly card than to have to worry about my 30% APR or not having any kind of benefits from the card. I have seen where people have to pay higher APR’s on the cards that have a cute picture of their cat or dog or kid just because the credit card company went through the “trouble” of putting a customized picture on the card. This isn’t always the case, but, like I said, I would rather have an ugly card.
So the truth is, I would not make any concessions when it comes to my credit cards and how they look. I never see my credit cards anyway because they’re always stuck in my wallet. If I’m at the gas station, I use the blue one. If I’m at the grocery store, I’ll use the red one. This is how I know my cards.
Have an idea or want us to use your pitch in the next issue? Then, make a submission on The Pitch Page.
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Tags: credit cards, grocery store, credit card
Today’s Ebook – SHOP: The Credit Card You Pick Can Save You Money
Chris McClelland | RSS | Fri, Aug 14 2009 | 0 CommentsToday’s featured e-book download is SHOP: The Credit Card You Pick Can Save You Money (1.15 MB, 13 pg) – This consumer awareness brochure provides tips on picking the right credit card that meets your spending and repayment habits. It focuses on key costs and terms to consider such as the annual percentage rate (APR), the cash advances, the annual fee, and the grace period, to name a few.
What you can learn from this booklet
As always it pays to shop around, whether you are a first time credit card user or have many. It is always a good idea to keep up to date with the best methods to use and save with credit cards for any purchase that you make.
To download this e-book, or any of our current e-books, please visit the ebook page where you may choose the e-book(s) you wish to download. *Download an e-book by clicking on it’s title.*
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Tags: annual percentage rate, book download, credit cards
What determines your credit score?
Jennifer McClelland | RSS | Tue, Jun 30 2009 | 2 Comments
So you’re trying to take out a loan, get a credit card with a reasonable APR or trying to buy something, anything on credit, but your credit score is too low for your liking? Well, the first place to start when trying to rebuild that score is to find out what exactly makes up your credit score.
35% of your credit score is from paying your bills on time. To help improve this part of your score, start marking due dates on your calendar. This is the single largest section of your credit score. Setting up automatic bill payment is also another way to ensure that your bills are paid on time. This also keeps you from getting interest rate hikes on credit cards and loans. Someone who pays their bills on time, every time, has an average credit score of 706. Someone who pays 99% of the time on time’s average score is 658.
30% of your credit score is how much you owe. You need to make sure that you keep your balances from equaling up to 30% of your total credit line. Your credit score is partly based on the credit utilization ratio. If a credit card company ends up reducing your limit, what you owe actually becomes a larger percentage of your credit line. So, if this happens try to get in touch with your creditor and get the limit reversed to avoid a negative mark on your credit score.
15% of your credit score is the length of your credit history. In this case, someone who has had a credit history for 20 years is going to obviously be doing better than one who just graduated college. A trick to utilizing this 15% is to keep the first credit card you ever open, open. Use it a couple of times a year and pay it off.
10% of your credit score is credit expansion. Here’s a problem, when you apply for too much credit your credit score can be harmed, however having new credit accounts can also help your credit score. Open new accounts over time rather than trying all at once. This will help your credit score in the long run as long as you’re paying your bills on time.
The last 10% of your credit score is credit diversity. If you have all your credit in cards then you’re credit isn’t diverse. However, if you have a variety of credit cards, mortgage, car loans and pay the bills on time while keeping the accounts active, then you’re diversified in this aspect of your credit. The key is to keep the accounts active because not using the accounts won’t help your credit at all.
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Tags: credit card, credit cards, rate hike
The Pitch – Do you think credit card rewards are worth the effort?
Jennifer McClelland | RSS | Fri, May 29 2009 | 2 Comments
Are reward credit cards worth the effort?
Question:
I have recently tried to book a flight though my credit card reward system, and I didn’t know that it couldn’t be partially be paid for with reward points. I really didn’t know that you couldn’t do that. I have had this Citi card open for more than 4 years and have yet to see any “real” rewards from having it and spending thousands of dollars on the card. So, are reward cards really worth the effort?
Answer:
Yes and no. If you were going to spend that money anyway, then the card is worth it, but if you were going to carry a balance on the card then no.
After looking into Citicard practices, I noticed that they charge $25 for 1,000 “Thank You” points. It takes 22,000 (minimum) to book a flight anywhere. So, they expect you to spend a whole lot of money to take a flight that would cost you $200 on Orbitz or Priceline?
Again, if you were going to be using this card for purchases anyway, then go ahead, but if you’re using this card simply for the rewards and carrying a balance then…well check your APR.
Have an idea or want us to use your pitch in the next issue? Then, make a submission on The Pitch Page.
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Tags: credit card rewards, real rewards, reward system
