Sunday, November 21, 2010

Credit Card - Credit Question?

OK. Here 's my story. My income last year was 106,500. The year bore that was 85,000 and before that, 58,000. I never went to college, so I have no student loans. I have 3 credit cards with 400.00 limits, (taken out before my current income) My total credit card debt is 1,000. My fiance' and I own a home with a mortgage payment of 1,800 a month. She makes 42,000 a year. I applied for a credit card the other day, and was only given a 300.00 limit. She applied for a credit card around the same time, and got a limit of 10,000. And has 2 other cards with 10K and 15K balances. My credit score is 655, her is 745. I know her score is better, but she also has 25K worth of debt. I had some late payments about 5 years ago (60 days) but thats it. No other debt. How could she get such better rates and limits on credit cards? Does your credit score count THAT much?Credit Card - Credit Question?
Probably because the vulture credit card companies figure she's more than likely going to make money for them by carrying balances.

Whereas you show you haven't charged a lot and you have a very good income, meaning they're less likely to earn money from you.

Wish I had your income ... our housepayment is nearly $1900/mo and I lost my job a few months ago due to outsourcing. I made more than my spouse, so we're on a very tight budget.

Thankfully we refinanced our house, paid off our credit cards and consolodated several other bills. Otherwise we wouldn't be able to make it.

Avoid credit cards like the plague ... they are the cause of so many people being in serious debt and often being very poor!Credit Card - Credit Question?
build your credit card limit, like this go to a credit union. get a CD for the low amount, with the CD 6 month as secured get a loan deposit back in to savings. make all payments,

on time.

get a credit card with the credit union.never use more than 50% of your limit, pay it off every month. the credit union will give you more.

a long time ago i only used my credit cards to make money every month they raise the limit because i pay it off every month. in 1 year my 400.00 a month limit was 10,000.00 per card.
There could be many factors as to why you were only approved for $300.

With 3 cards with a $400 credit limit each and having a total balance of $1000 is one of the negative factors.

Your past late payments are another negative factor.

Your overutilization on those cards along with late payments sends a red flag to the creditors you apply with.

It sounds like you haven't had the cards for a very long length of time (a year or two?) If that is the case, the negative factors that I mentioned will make the short history have more of a negative impact than it would if your utilization was at 20% or less and you had no late pays.

If your fiance has one or more cards that have at least 3-4+ years of history on them, have no negatives attached to them (lates, overbalance, etc) and are at a low utilization (at least under 30-40%) and expected to stay at that utilization, you might ask if she will add you as an authorized user.

Being an AU on ';positive'; accounts will help your credit scores - at this time. In the next year or so it will no longer help.

Contact the creditors that you currently have cards with an ask for a credit limit increase. Request that it is done without a hard inquiry. If your cards are subprime, you may not have much luck but it never hurts to ask.

Once her cards start reporting on your credit reports you might start slowly building up your credit file.

Get one or two store cards from stores you shop at.

If you go with Walmart, they often start people out with small limits (even those with excellent credit) But after 4 months of making, and paying, purchases you can hit the credit limit increase (CLI) button on the website. You can hit it every 4 months and request a CLI..

Many, but not all, store cards have a CLI button. Most will allow you to request a CLI with no hard inquiry. A few will pull a hard inquiry

If you have a Home Depot card and go online to request a CLI and it gives you the form to fill out, it will be a hard inquiry - so don't do it. With them it's best to go instore and request the CLI.

Most store creditors will consider a person for a CLI every 4 months. (but you should use the card during the 4 months)

You do not have to make major purchases to show usage. Buying what you need anyway, such as a pair of socks, undies, etc. will help as long as you pay as soon as the statement cuts. With Walmart Supercenters, you can generally use the card at the gas pump and it will give you cash back on your statement.

Then you might concentrate on major cards.

Some of the easier (non subprime) cards that you might ';look'; at are Chase Freedom, Amex Delta Gold Skymiles, Barclays Bank (Juniper) Carnival Sea Miles.

If you don't like the terms on the Chase or Amex cards, you can convert the cards to cards that you prefer, within reason.

You may qualify for one type of card to convert to, but not for another (for example, you might qualify to convert to the Blue but not to the Clear, etc)

If you want to convert the Amex card call them and tell them that particular card you have does not fit your needs at this time and you would like to convert it. Then ask them what cards you might qualify for. If you want a fee free card, tell them that. You might also ask them if you would qualify for the Blue, Blue Cash or Clear. (always look over their card selection to know the cards you want and do not want)

If the CSR says conversion is not possible, politely say thanks, hang up and call again. Eventually you will find a CSR that does know conversion is possible.

The MOST important part:

Keep your utilization low and pay in full. In other words, take care of your cards and they will take care of you.

You might also click on my profile and click on the last link I have listed to the credit discussion board. It is a totally free site to use. Do some reading and you will learn far more than what I've posted in here.

That site will not require that you apply for cards ';from'; that site. In fact you should ';never'; apply for a credit card from ';any'; site that is not the actual creditors site !!
Credit scores are all companies lending money can look at. Income can change as yours did. The #1 factor of default on any loan is your past history in managing credit hence the scoring system. Get your score up and you will see your limits go up. Start by requesting limit increasing with current companies instead of applying for new cards.

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