Help please! Tons of question, new to the cc scene

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Help please! Tons of question, new to the cc scene

Postby Recent » Sun Sep 08, 2013 8:07 pm

I am 21 turning 22. I never needed to use a credit card and decided to do so just recently.

My bank, Wells Fargo, got me into getting a credit card from them in 2012 but I have never used it or activated it online ( in fact I lost the card ).

Just recently I requested a new CC telling them I lost mine which is I want to say "platinum" card (online it says this card doesn't offer 1% cash back but my paper says it does) so I'm not sure if its actually the platinum card. I know it's not a secured or any of the home rebate cards.

1. I plan on making my payments every night. Does that mean my utilization will be at 0% on my statement? I read here that it was bad to have 0%, but you want it as low as possible.

2. Should I or should I not continue making my payments ever night? I don't know when my statement is emailed to me but I'll be paying attention now.

3. Since I didn't use my credit card for the year, does my credit scoring not change or has it decrease since it was inactive?

4. Is there a way I can check my credit score without it dropping my credit score? I read the 3 main website you can use each once a year but I'm one to look probably quarterly.

5. I want to get a new credit card since WF doesn't seem to have good rewards. What would you recommend? I am a college student.

6. What is the beltway to improve my credit score?


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otter
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Postby otter » Mon Sep 09, 2013 9:38 pm

[color="red"][/color]Welcome to the forum! I was going to answer your first question, but there really wasn't enough information to give a good answer. You gave enough details and I'll answer your questions in the order you asked them:

1. I plan on making my payments every night. Does that mean my utilization will be at 0% on my statement? I read here that it was bad to have 0%, but you want it as low as possible. [color="navy"]You don't really have to pay every night. Utilization is all about timing which I'll answer in another question below. Contrary to common opinion... making multiple payments a month doesn't really help your score and the bank doesn't look favorably or unfavorably upon doing so. No one at the bank is going to say, "Wow! That guy is really on the ball![/color]

2. Should I or should I not continue making my payments ever night? I don't know when my statement is emailed to me but I'll be paying attention now. [color="blue"]As I said above, you don't have to do that. I'll give you a real life example from my Wells Fargo CC: My due date is the first of the month(WF let's you change it) and my statement day has been on the 7th. On August 1st, my balance was $55. That's what got reported to the big three. I think the minimum payment due was $15. I continued using the card a bit throughout the month and had a $200 balance until I paid all but $18 on the 25th. I didn't use it the rest of the month and the statement which hit yesterday was for $18. I will pay no interest(since I paid the entire $55 on the previous statement). The amount of my balance reported to the credit bureaus will be $18 which was my statement balance. So even though I used most of my available credit during the month, only $18 will be reported (I think around 7%). So I made sure a low balance was reported on my statement and paid down before the due date. If I wanted to, I could have paid the $200 and then used it more and then paid it again.[/color]

3. Since I didn't use my credit card for the year, does my credit scoring not change or has it decrease since it was inactive? [color="blue"]I think because you didn't activate it, the card never even showed on your report. Some issuers are different- my BoA card showed on my report before I even received the card. Wells Fargo didn't show for me until the card was activated. The only thing which showed on your repoort was the hard pull WF did when you applied for your card.[/color]

4. Is there a way I can check my credit score without it dropping my credit score? I read the 3 main website you can use each once a year but I'm one to look probably quarterly. [color="blue"]There are two kinds of inquiries on your credit report "hard" and "soft" pulls. A hard pull is whenever you apply for credit (or sometimes when you open a new bank account. If you check your file, it is ALWAYS a soft pull. So you can check your credit file whenever you want and it won't affect your score because only you can see how many soft pulls you have. There are many websites which will let you see your credit report. The tricky thing is seeing your FICO score which is the score most credit issuers look at. Credit Karma and other sites will give you a score, but they are not FICO scores, but might be useful to look at. If you have a WalMart card, you can get a free FICO score every month. [/color]

5. I want to get a new credit card since WF doesn't seem to have good rewards. What would you recommend? I am a college student.[color="blue"] The Discover IT card for students might be a good card for you. It has rotating categories every quarter where you get 5% back. Almost every major bank has some sort of rewards card for students. A good start for you might be this (1) The Discover Card for the 5% rotating. (2) Something like the Bank of America Cash Rewards Visa for students which will give you 3% back on gas, 2%back on groceries and 1% back on everything else.[/color]

6. What is the beltway to improve my credit score? [color="blue"]There are many factors but the big two are credit history and utilization. Credit history is 35% of your score and includes making payments on time and any derogatory info (late payments, collections, etc. It's important to make payments on time every time. (ie. if you have 98 on time payments but 2 late payments... the 98% isn't good if the late payments are fairly recent. Utilization is 30% of your score. You want to make sure what is reported on your statements is as little as possible. If your available credit is $1000, you want to make sure it is less than $100 or 10%. At the very least, below 30%. [/color]
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450



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