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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35345  
Subject: OT: Credit Cards rant Date: 4/4/2007 12:33 PM
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Well, I'm finally getting around to going through the hassle of getting rid of some old credit cards that somehow morphed from original purposes (like a Sears card I got, because I got $100 off some purchase several years ago, that became a master card and a Discover card that I have no idea how I got and a credit card we had from before our credit union started issuing them that's never been activated but still is on the books).

Anyway, a couple of these, including Sears, are now from Citi and Bank of America (I got a nuisance call from BOA yesterday, hence my motivation). In both cases, it took me 5 minutes, after being put on hold to talk to some anti-cancellation huckster, to persuade them that all the wonderful benefits they thought made them wonderful were of no interest. They wanted to know what made my current cards better: well, I don't get automatic bump ups I don't want, I don't get nuisance calls, I don't get please go into debt with "checks" in the mail, the money goes to my nice not-for profit credit union instead of some New York slime bucket bank that cheats everyone it can, I can arrange an easy full auto-payment plan internally from my account, and I don't fricken need more cards or credit than I am every going to use. Anyway, shredding plastic is fun!!!
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Author: Bobcatkitty Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20278 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/4/2007 1:21 PM
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We felt somewhat the same today only ours was in regards to checking out a couple of banks & CDs.

Bank # 1 just offered 5.38 for a term of 3 months to 7 years. When questioning as to how we can fund these, etc. (we're trying to get out of Florida in early May) they indicated that most ideas other than walking in & sitting down were just a little too complicated and they'd prefer not to have to do it. She kept stating " IF you have $10K" yada yada...never once asked exactly how much we were talking about...and it's well into the 6 figures....we said thanks and walked out.

Bank # 2 is SunTrust, where we currently have the CDs. She was even less willing to do anything, or she couldn't do anything....or even attempt to do anything.

So, it appears for now that since we put quite a large amount into Pen Fed already, and World Savings too, we'll split the money between PenFed & World.

Sheesh! Open them online, do ACH transfers or simply write a check. The old time familiar banking institutions just don't "get it".

Oh yes, that means they're really aren't getting it, as the money is going elsewhere. They still operate under the assumption that they're the only game in town.

TaTa SunTrust.

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20282 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/4/2007 2:01 PM
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Okay, advice time.

We want to have 3 credit cards for travel purposes. One we actually use. Then my wife has a spare, I don't carry. And, I have a spare my wife doesn't carry. The idea is to cancel the two stolen ones and have one in reserve.

We have two, including the main use one, at our regular credit union. Since we pay off each month, rates don't matter and I'm not shopping around for who, today, has a better cash back option.

We can get a third card at our CU (because of multiple accounts for NCUA reasons). Before I burn my bridges with what used to be our main card, is there any reason to worry about 3 cards from one institution, three Visa and no MCs? I'm thinking nightmare scenarios, where they have to close all accounts for security or something like that.

Another option is to open with Pen Fed, but it's so easy to set things up, here, I'd prefer that.

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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20285 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/4/2007 2:35 PM
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We want to have 3 credit cards for travel purposes. One we actually use. Then my wife has a spare, I don't carry. And, I have a spare my wife doesn't carry. The idea is to cancel the two stolen ones and have one in reserve.
_________________________________________
That's a good point. We also had a setback (almost)last summer in Ireland last summer. We were assured that our regular bank Visa debit card would be good in ATMs over there. Well, guess what. The ATMs over there told us "insufficint balance", which was even worse, in our minds than not reading the card. So we used credit cards at the machines for cash advances, which didn't work out too badly, but more expensive due to the cash-advance charges. When we got back we found out that our bank routinely blocks incoming debits from overseas, unless specifically authorized. This made my wife really mad, because she had asked about the card, at the same time she bought some pounds and euros there.

Bill

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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20286 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/4/2007 10:24 PM
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Another option is to open with Pen Fed, but it's so easy to set things up, here, I'd prefer that.

Since you are already a member of PenFed, why would you not get their card? The 1.25% cash back (credited to your monthly bill) is about as good as any card you will find. In fact, it is one of the very few cards around where you actually get more in cash back than you pay in foreign transaction fees.

Acme

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20287 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 9:03 AM
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Since you are already a member of PenFed, why would you not get their card? The 1.25% cash back (credited to your monthly bill) is about as good as any card you will find. In fact, it is one of the very few cards around where you actually get more in cash back than you pay in foreign transaction fees.

Turns out, to get the new card at our regular CU, they have to lower the limit on our main card. This is interesting, because the total limits on the two cards we have now is about half what the other credit cards I've been getting rid of keep raising our limits to, which makes me feel good about my credit union's solvency. (I'm sure we could get the limits raised, but it's not worth the bother.)

I didn't know Pen Fed was that high a cash back. I only get 1% currently, but I'm thinking the switchover, with all the autopayments I have on current card, plus getting the card paid off automatically isn't worth the quarter point. Not to mention going through filling out an application. Definitely worth looking at down the road, but I think I'll just stick to the last remaining bank card for not using purposes and ask them to lower the limit.

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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20289 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 11:18 AM
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I didn't know Pen Fed was that high a cash back. I only get 1% currently, but I'm thinking the switchover, with all the autopayments I have on current card, plus getting the card paid off automatically isn't worth the quarter point.

I thought you were looking at adding one card and keeping your current 2 accounts. If this is the case, why not keep the existing autopayments on the existing account(s) and get the PenFed card for other transactions? This keeps your existing accounts active and it gets you the increased rewards for many of your transactions.

That extra 0.25% is a big benefit to my wife and I. We use our credit cards for pretty much everything possible. As a result, we get hundreds of dollars each year in credit card benefits. The other benefit this card has that most do not is that the cash back is given monthly as a credit against your account. No hassles or minimum balances required; just a nice credit.

Acme

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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20290 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 12:05 PM
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The 1.25% cash back (credited to your monthly bill) is about as good as any card you will find.

Some cards have higher rebates, but I would pick it even over a 1.75% back card because:

- no limits (you start earning ward from the first dollar and it never caps; you don't have to earn a certain amount first)
- no waiting (the reward is credited 1 month after the spend)
- no hoop-jumping (don't have to call them; they do it automatically)


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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20291 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 12:23 PM
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The 1.25% cash back (credited to your monthly bill) is about as good as any card you will find.

I'm getting 1% now, with the same conditions jrr outlines. So, a switchover would save somewhere around $50 per year.

Do you know if Pen Fed lets you set it up to have the complete bill due that month paid automatically from an account elsewhere. That's really key, for me. I now have it set up to come right out of my money market, where paycheck lands, so I have no worries about late fees or not paying full amount because I wrote the check wrong, etc.

I think for the moment, I'll just go ahead and activate the last remaining bank card, for not use, and call to ask for a lower limit when I get around to it. Then at some point soon apply for a Pen Fed card and see if I can do the auto payment thing (or better yet, figure out the auto payment thing first).

Having shredded several cards, yesterday, I'm feeling better, but if the remaining card elicits a single phone call, shredder here I come.

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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20293 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 12:57 PM
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Some cards have higher rebates, but I would pick it even over a 1.75% back card because:

Is there really a card at 1.75%? The highest card I am aware of pays 1.4% into an HSBC account (I think the rate and bank are correct, but it could be one of the other directs and some people locked into the card a while back at 1.5%). But you have to maintain a $10K balance in the account or the rebate drops significantly.

I also heard recently that Visa plans to unveil a new "premium" level of card later this year that will come with higher rebate levels. There is some controversy about this since Visa is planning to increase their merchant fees at the same time as this goes into effect. Regardless, I will be curious to see what the increased rebates might be.

Acme

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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20303 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/5/2007 3:24 PM
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I know that you can autopay a CC from another Penfed acount, and you can autopay a loan from a non-Penfed account, but I don't know if you can autopay a CC from a non-Penfed account.

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Author: DorothyM Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20337 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/7/2007 4:20 PM
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That's a good point. We also had a setback (almost)last summer in Ireland last summer. We were assured that our regular bank Visa debit card would be good in ATMs over there. Well, guess what. The ATMs over there told us "insufficint balance", which was even worse, in our minds than not reading the card. So we used credit cards at the machines for cash advances, which didn't work out too badly, but more expensive due to the cash-advance charges. When we got back we found out that our bank routinely blocks incoming debits from overseas, unless specifically authorized. This made my wife really mad, because she had asked about the card, at the same time she bought some pounds and euros there.

Blocking a card if there's no advance notice of a trip is pretty typical. Also, in some countries you can have trouble if your PIN is more than 4 digits. I always notify credit cards (I carry 2 when travelling) and Citibank (for my ATM card) when I leave the country.

If I'm gone for 3-4 weeks I enter $100 payments into PC Banking (to be paid mid-trip) for the 2 cards I'm taking, even though both cards have a zero balance when I leave. A statement can come in for charges made on the trip and if you're not back in time you can get a late charge. This happened to me last year and although the CC company cancelled the fee it was a nuisance.

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Author: blearynet Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20338 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/7/2007 4:28 PM
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This happened to us also. However, we DID call the credit card companies in advance, and we DID have a 4 digit password. Nevertheless, not a single ATM we could find in Buenos Aires would work with our Wash Mutual card or our Citibank card, which left us in rather dire straits! We also could not get the local Buenos Aires Citibank to give us a cash advance. When we returned home, customer service told us that it was up to the local banks to set their own policies. Not very confidence-inspiring! All of our friends who had cards from Bank of America had no problem in any country, so we switched our account.

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20339 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/7/2007 6:14 PM
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Does anybody still use Traveler's Checks? It's been a while since we've been out of the country (Canada doesn't count) and still used Traveler's Checks. I did finally learn to cash them in as soon as we got home, and we've long been able to get them for free.

Nowadays, with almost everything going on the credit card, we just take cash.

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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20341 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/7/2007 6:24 PM
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Does anybody still use Traveler's Checks? It's been a while since we've been out of the country (Canada doesn't count) and still used Traveler's Checks. I did finally learn to cash them in as soon as we got home, and we've long been able to get them for free.

Nowadays, with almost everything going on the credit card, we just take cash.

_________________________________________
We've heard from friends that they are not widely accepted, as they used to be, and fees are exorbitant.

AAA advised us that a decent alternative would be a prepaid Visa debit card (which they sell)which can be replaced if lost or stolen. There are fees with those, too, depending on where you are.

I think the best approach is: Take a spare card or two, but dont' take all your cards.

Bill



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Author: PolymerMom Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20342 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/7/2007 8:18 PM
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Does anybody still use Traveler's Checks?

Not for the last five years or more. When traveling on business, I have to use the company AmEx. For personal USA travel, I carry my personal credit card and a hundred (or two) in cash.

I haven't been to Canada or further afield for a decade or two. My younger son went to Austria a couple of weeks ago with his German class. We gave him enough cash to cover expenses. His teacher made sure they promptly converted the money to Euros. He brought home over 100 Euros. When asked, he stated that Euros were worth more! (Maybe a future currency trader?)

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Author: DorothyM Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20343 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 7:00 AM
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However, we DID call the credit card companies in advance, and we DID have a 4 digit password. Nevertheless, not a single ATM we could find in Buenos Aires would work with our Wash Mutual card or our Citibank card, which left us in rather dire straits!

My Citibank ATM card worked without a problem in Buenos Aires last year. I was declined at one machine in Thailand but went to an ATM owned by a different Thai bank and got money without a problem and the same thing happened in Ecuador.

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Author: LuckyDog2002 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20344 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 8:42 AM
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Loki, which cards do you have that don't send those annoying checks?

I have Capital One, a Bank of America that used to be MBNA and now an American Express through Costco. I got the Cap.One and Amer.Express for when I travelled to Europe...taking only the Cap. One card...they don't charge two fees when you get money in another country.

Anyway, Cap. One and Bank of America annoy me to no end with the checks each month. Haven't gotten that with Am. Express but then again alot of stores don't take Am. Express so I don't use it unless I go to Costco.

LD

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20345 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 9:11 AM
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Loki, which cards do you have that don't send those annoying checks?

I have two cards with my local CU (my main bank account) that don't send checks or bother me.

We had a couple of cards with MBNA that did send checks, but never annoyed with phone calls. I believe this is probably the BoA that called me the other day and started my shredding party. I cancelled one, the other is the one I'm still debating what to do with.

I had one with Chase, also a raise limits for not using, send many checks, type of place—now shredded.

Somehow we had 2 Discover cards (I think because of Sears deals if you open a card that morphed). Now shredded.

(Shredding after cancelling accounts.)

Since we don't use cards for credit, just as delayed and discount debit cards, we really don't need a bunch of cards to get higher limits. So, having more than one card is just for back-up, although I am wondering if having one name brand card makes sense for foreign ATMS, should we ever need to do that. Monthly check shredding may be worth that, but one more phone call form BoA and a-shredding we do go.

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Author: LuckyDog2002 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20346 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 9:25 AM
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I thought I read that cancelling credit cards can affect one's credit...is that true?

One thing I just did is to change the remaining auto debit from the BOA card so I'm not charging anything more to that one....just charging most everything on the Cap One card, I have a BOA LLBean card where I get free shipping on stuff and then I have the Am.Exp. card for Costco purchases.

I don't like having all of these cards, for yrs. although I had others that I kept in my files, I only used one card and that was the BOA/formerly MBNA...I did this for decades and it made my life alot simpler. I pay my bill up monthly as well. One thing that burned me up about BOA is that starting last yr. they charged for a yr. end summary and I told them to forget it. Cap. One sends one free. BOA is tight as a tick and I really don't want to do any business with them.

LD

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20347 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 10:22 AM
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BOA is tight as a tick and I really don't want to do any business with them.

Me, either. I wouldn't actually use their card. I'm just trying to decide if the benefits of holding onto to one I don't use for emergency and possibly travel cash purposes outweighs the annoyance.

I thought I read that cancelling credit cards can affect one's credit...is that true?

No idea. I think it is generally true that people get good credit ratings from borrowing a lot and keeping up the payments, whereas if you keep money in the bank and pay your bills on time and by cash or check, you are considered a credit risk.

(The cynic in me thinks that someone with a $500,000 ARM mortgage, $30,000 in car loans, $30,000 in credit card debt, and no savings, who makes minimum monthly payments is considered less of a credit risk than someone who paid off their 15-year mortgage 15 years ago, pays cash for cars, uses credit cards sparingly and pays them off each month, and has $500,000 in the bank. I actually thought it was funny the other day when my CU said they couldn't let me have a 3rd card without reducing the limit on the card I use, given how much savings we have there, while the 2 MBNA cards we had, now BoA and one cancelled, each had credit limits higher than the total at our CU would have been with a 3rd card. It was also funny filling out the application, because there was nothing that asked about savings/net worth.)

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Author: vickifool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20348 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 10:42 AM
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Anyway, Cap. One and Bank of America annoy me to no end with the checks each month. Haven't gotten that with Am. Express but then again alot of stores don't take Am. Express so I don't use it unless I go to Costco.

LD


Have you talked to them about that?

Some years ago, I was able to get my credit card to quit putting pages and pages of ads and coupons in by asking. I wasn't able to get the ads off the bill, though.

Complaining helps. Letters probably work best.

Vickifool

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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20349 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 12:48 PM
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I thought I read that cancelling credit cards can affect one's credit...is that true?

No idea. I think it is generally true that people get good credit ratings from borrowing a lot and keeping up the payments, whereas if you keep money in the bank and pay your bills on time and by cash or check, you are considered a credit risk.


Wow, Loki, you're brilliant on here yet by the Credit Card board standard, you'd be a newbie. Interesting :).

Yes, closing cards can hurt your credit, but first let me do a quick tutorial.

The main factors that effect your credit score are: length of history, positive or negative payment history, utilization ratio, and inquiries.

Length of history involves both your oldest accounts, youngest accounts, average age, and more. The longer your credit history, the better your score...

... assuming of course its positive history - on time payments. Late payments, defaults, things in collection, etc, are a major negative.

Also very important is utilization ratio. That is, for revolving credit accounts (credit cards, HELOC during the draw period, etc), the amount you owe over the amount you have total. The lower the utilization ratio, the better. For instance, if you have a card with a $10K limit you charge $1K to it, your utilization ratio is 10%. That's pretty good. Below 5% is ever better. It will start to hurt you once you exceed 30% or especially 50% or higher. Utilization ratio is computed both per card and overall, and both count.

Finally, inquiries are of couse people looking to loan you credit and pulling your report. Well, those are 'hard' inquiries. 'Soft' inquiries are things like employers, you checking your own report, etc, and those do not effect your score. The impact of a single inquiry won't matter much, but if you have several in a short period of time, it can begin to add up, as that is the behavior of someone who may be looking to make a run on the credit system. The effect of inquiries fades quickly (within 6 months the impact is minimal) and is completely erased from your report after 2 years.

One more important note: CLOSED cards do not count for: history length, utilization ratio, or positive history. This isn't some great conspiracy theory. Fair Isaac (the company that developed and maintains the algorithms) has studied tons of data and determined that closed accounts do not predict future behavior. That is how closing account can hurt you. Especially if you close your oldest accounts. Or ones with very high credit limits such that your utilization ratio jumps significantly.

Another note: INACTIVE accounts, one that have not been used for 6 months or more, are believed also to not count for the same reason - the data shows they just don't predict your future behavior. So at least, if the accounts you closed were already inactive, you didn't hurt yourself in addition. Its also the reason people recommend making sure you use each card once every 6 months or so.


(The cynic in me thinks that someone with a $500,000 ARM mortgage, $30,000 in car loans, $30,000 in credit card debt, and no savings, who makes minimum monthly payments is considered less of a credit risk than someone who paid off their 15-year mortgage 15 years ago, pays cash for cars, uses credit cards sparingly and pays them off each month, and has $500,000 in the bank.

Well, well it comes to credit score, the $500K ARM and $30K car loan won't hurt, as for those 'installment' loans and what is being looked at is the positive payment history (assuming you haven't missed payments, etc). Why? Well one piece of information that is NOT on your credit report is your income. So perhaps you make $10M per year and a $500K ARM and $30K car loan are exceedingly modest impacts on your cash flow. Point is, the credit report/score doesn't know. *That* will come down to individual bank's underwriting standards.

Neither does savings appear on your credit report in any way. That is up to the bank to care about (or not) as well, at their own discretion.

If they make minimum monthly payments, that is on time, so it will build up a good history. *HOWEVER*, as you can see now, the $30K in credit card debt in going to be a hindrance. In cases where someone is over-extended, as you are implying, they will have a high utilization ratio, which will hurt them substantial.

Personal anecdote: I have very good credit, and, due to a company screwing up and losing some information, I got a free year of credit monitoring. During that time, I also had a 0% intro APR offer on a credit card. So I decided 'borrow' the money from them and keep it nice and safe in a savings account for a while, while I earned the interest. I saw, that when I paid down this one card from a ~95% utilization to a 0% utilization (well, may 10% when the next month's bill came), my credit score jumped by, I believe, 30-50 points. That's with my total utilization going from maybe 20% to 5% or less, since it was just one card. So yes, it really does matter.


Other than the $30K of credit card debt thing, on which you are incorrect, the person who paid off their mortgage long ago and pays cash for cars, will not have as much of a recent (or positive) credit history. However, if they have been using and paying off the cards they do use, they will still have a good amount of it. But if they only have one or two accounts, with low limits, they may actually have a high utilization. It may be worth their while to consider asking the banks to raise their limits (and then not *use* any of that increase, of course).


I actually thought it was funny the other day when my CU said they couldn't let me have a 3rd card without reducing the limit on the card I use, given how much savings we have there, while the 2 MBNA cards we had, now BoA and one cancelled, each had credit limits higher than the total at our CU would have been with a 3rd card. It was also funny filling out the application, because there was nothing that asked about savings/net worth.)

You may have also run up against simply a CU policy. That they won't issue a third card for additional credit, or something like that. There could be goods reasons for that - one, it is looked at as abusive by the industry to issue more and more cards. Some companies do that so that people who are struggling can then wrack up 2 or 3 or 4 late fees and overlimit fees per month (Capital One is notorious for issuing consumers several $250-$500 limit cards, rather than upping their limit).

Second, I could see a CU being nervous about people having too many cards. The more cards you have, the more likely you are to screw up and forget to pay one. Or have one stolen, etc.


Lastly, here's a good site that is a top level view of much of what I just discussed:
http://www.myfico.com/CreditEducation/


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Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20350 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 2:04 PM
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Delta:

I don't dispute anything you said, but we know of a person who was offered a credit card (and took it) shortly after exiting bandruptcy. I think there is a wild game being played.

brucedoe

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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20351 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 2:31 PM
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Delta,

Impressive. Sound like my cynicism is a little over the top, but not completely out of place.

It also sounds like my credit rating would be higher if I occasionally used the old card with a $40,000 limit (which even when we were using it and took a long trip never got over $5,000) than our $15,000 limit card that probably averages over $3000 a month, though it is really only $2000 due each month (not including dead cars and big trips). Frankly, my dear.... I seriously doubt we will ever need to apply for credit again, other than switching credit cards because we don't like BoA or whomever. And, if we do decide to take out a mortgage to build our cottage (my intent, if we do it, is to pay cash), someone, looking at the reality of our financial situation, will be willing to offer a better rate than someone who thinks our credit score isn't as high as it should be, because we don't give a....

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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20352 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/8/2007 4:20 PM
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Delta:

I don't dispute anything you said, but we know of a person who was offered a credit card (and took it) shortly after exiting bandruptcy. I think there is a wild game being played.

brucedoe
_____________________________________
Heck, once upon a time, Maufacturers Hanover (later to be Chemical Bank, later to be Chase), gave my wife a credit card in her own name when she didn't even have a job.

Bill


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Author: vickifool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20355 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/9/2007 9:13 AM
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we know of a person who was offered a credit card (and took it) shortly after exiting bandruptcy.

You can only declare bankruptcy every seven years. People who have recently declared are very good risks for one reason--they can't get out of it.

Vickifool

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Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20356 of 35345
Subject: Re: OT: Credit Cards rant Date: 4/9/2007 10:57 AM
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Loki:

You may be interested in taking out an interest-only construction loan if you build your cottage. If you pay off each "draw," it won['t cost you much, and you get some benefits, e.g. the loaner will inspect the construction to make sure it has occurred and other such things, including if all codes have been complied with. You only pay interest on what you have borrowed. Actually what we did was pay off the builder ourselves and save the interest, but we still got the loan company inspections (BB&T) so after we caught on, we didn't pay any interest at all. Yet, it was there if we needed it for some unexpected reason.

brucedoe

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