Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
Question by shooter 1: Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
I have zero debt. I also have several credit cards. I am wondering how it will affect my credit to request the highest limit for each card, or if I should cancel all but 2 and have those with high spending limits. Along the same lines, how does “available” credit affect one’s credit score negatively or positively? If I get a $ 50,000 limit on a card (with 0 balance) but say, go to buy a car, will I be denied because I have too much credit out there?
Best answer:
Answer by talr
It’s better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you’ll have more limited history).
Obviously that assume all of them are in good standing – if they’re not, the picture changes dramatically.
As to the total credit, what they look at is which percenage of your total credit are you using, and for that it’s irrelevant how it’s distributed between the credit lines.
Know better? Leave your own answer in the comments!
What credit cards can I apply for with no credit?
Question by naomishonta: What credit cards can I apply for with no credit?
I am a college student and I want a credit card or two to help start building my credit. What credit cards can I apply for with no credit history?
Best answer:
Answer by Huntsman
New federal regulations are making it extremely hard for anyone under 21 to get a credit card.
You must have employment for 1 full year (full time)
And, have sufficient salary to support a card.
A checking account and a savings
IF you get a card, make sure you pay in full each month.
Never dare carry balances which can only destroy credit.
Get your parents to co-sign on a card with you. Discover allows this.
But… only do this if they have amazing credit.
^ if they carry balances or have debt, do not co-mingle your finances with theirs
Also consider a secured card from your bank.
Again. No games of carrying balances that can easily destroy credit
Note: Plenty of people buy their first car without any credit.
They have proof of their income, employment, and savings accounts.
Along with a nice down payment.
Don’t struggle if you don’t have credit.
A bank will look at your overall financial health and your ability to pay back
Know better? Leave your own answer in the comments!
Categories: Loan Questions Tags: Apply, Cards, Credit
What will happen to my credit cards if my home is foreclosed?
Question by triguyinla: What will happen to my credit cards if my home is foreclosed?
I have over $ 100,000 in credit on my 7 or 8 credit cards, all with a 0 balance. I am facing foreclosure in a few months. Will the banks cancel my credit cards once I get a foreclosure on my credit? Should I just max out all my credit cards with no intention to pay them?
Best answer:
Answer by Teresa H
Unless you are earning a very large income, you don’t need to have $ 100,000 in available credit. You should close all but 2 or 3 of the credit card accounts. Pick the ones with the most favorable terms, such as the longest grace period, the lowest interest rate, no annual fee, and with the maximum limit at about 15% of your income. I am assuming that since you have a 0 balance, you pay them off each month, which is a very sensible practice that you should continue. Showing poor judgement along with poor luck doesn’t help you in the long run. These actions will result in a credit score that won’t go as low as it could otherwise.
What do you think? Answer below!
Categories: Loan Questions Tags: Cards, Credit, foreclosed, happen, home
Financing Your Small Business: From SBA Loans and Credit Cards to Common Stock and Partnership Interests (Quick Start Your Business)
Financing Your Small Business: From SBA Loans and Credit Cards to Common Stock and Partnership Interests (Quick Start Your Business)
Secure your business’s future using the right SBA loan, bank loan or equity financing for you. When it comes to your chances of receiving financing and doing it right, Financing Your Small Business provides you with all the answers you need. It helps you find ways to combine various types of financing and shows you how to get the money you need. Learn:
How to get a bank loan
How to make a better presentation How to get attention with your business plan
How to choose professionals
How to value your business
How to determine your investors’ status
How to avoid securities law problems
How to find investors
From SBA loans to venture capital sources, Financing Your Small Business shows you all the ways to get the money you need.
Raising Money Just Got Easier.
List Price: $ 19.99
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How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line
How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line
“This book is a must-read for credit card holders of all ages. Curtis Arnold offers insights into how consumers can not only profit financially from credit cards, but importantly, how to avoid falling into debt.”
—Thomas R. Evans, President and CEO of BankRate.com, Inc.
“Finally, someone has written a guide for savvy consumers who want to make the most of the plastic in their wallets. Curtis Arnold explains exactly how to maximize your rewards so you’re quite literally getting free money and also outlines winning strategies for negotiating the lowest interest rate and using balance transfers to your advantage. Anyone who wants to build credit, improve their credit, or profit from their credit cards should read this book.”
—Liz Pulliam Weston, MSN Money Personal Finance Columnist and Bestselling Author of Your Credit Score and Easy Money
“Curtis Arnold is America’s premier credit card expert. Whether you’re trying to get your first card, compare credit offers, or figure out how to beat the credit card companies at their own game, Arnold’s wisdom and insider tips will prove invaluable.”
—Lynnette Khalfani-Cox, The “Money Coach” and Author of The New York Times Bestseller Zero Debt: The Ultimate Guide to Financial Freedom
“If you have had enough of credit card tricks and traps, this book will show you how to turn the tables. Curtis Arnold knows the credit card business inside and out and offers proven ways to put plastic to work for you, rather than against you.”
—Gerri Detweiler, Consumer Advocate and Author of four books on personal finance including the forthcoming book Stop Debt Collectors
“For most Americans, credit cards are seen as a necessary evil. Curtis Arnold transforms that perception. Using his advice, people can get rebates, perks, better interest rates, and all kinds of benefits from their cards that they never knew were possible. This book helps you become the master of your credit cards instead of a victim.”
—Jordan E. Goodman, “America’s Money Answers Man” and Bestselling Author of Everyone’s Money Book on Credit
“Curtis Arnold provides you with tips for protecting yourself from costly credit card traps, how to use credit to your advantage, and much more. This is a must-read book!”
—Marcia Brixey, Author of The Money Therapist and Founder and President of Money Wise Women Educational Services
Banks spend billions to entice credit card customers with rebates, freebies, low introductory rate offers, and airline miles. This book shows you how to take maximum advantage of these special deals—without paying for them through brutally high interest rates, fees, and penalties!
Top independent credit card expert Curtis Arnold reveals how to creatively finance major purchases such as cars, weddings, and condos with little or no interest charges…earn huge credit card “perks” every year…and dramatically reduce your cost of credit. He offers specific advice targeted to: young consumers, retirees facing credit discrimination, Americans recovering from debt problems, and even to consumers with spotless credit.
Why should huge banks and credit card companies make all the money? Get this book, and you too can start earning and saving hundreds, and possibly thousands of dollars, like Curtis has!
- Unlock the keys to huge credit card savings
Find the best rates and balance transfer offers—and make the most of them - Fly anywhere, finance anything
Use credit cards to get free airline tickets and cash rebates or low-cost “creative financing” - Don’t get ripped off—by your bank or anyone else
Avoid hidden fees, costly small print, and flat-out fraud - Slash your debt, and cut your cost of credit
Stop throwing away money you could be saving or investing
Acknowledgments xvii
About the Author xxi
Chapter 1: It’s Not Just Plastic–It’s Money! 1
Chapter 2: Show Me the Money! Credit Card Rebates 23
Chapter 3: Unlock the Key to Huge Savings: Master Credit Card Rates and Transfer Offers 51
Chapter 4: Avoid Problems That Hinder Maximum Profits 75
Chapter 5: How to Slash Your Debt and Keep Your Hard-Earned Money for Yourself 89
Chapter 6: Watch Out: Traps and Scams Can Cost You Big Bucks! 119
Chapter 7: Start Out on the Right Foot–Credit Cards for Students and Saving for College 155
Chapter 8: Use Targeted Cards to Your Financial Advantage 179
Chapter 9: Your Credit Report and Score: The Better You Look, the More You Profit 209
Chapter 10: Maximize the Benefits of Your Cards by Taking Advantage of Additional Free Perks 237
Chapter 11: Master Advanced Card Techniques to Save and Make Money 259
Chapter 12: Capitalize on Future Card Trends 283
Glossary 301
Index 315
List Price: $ 19.99
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How many bank accounts and credit cards should I have?
Question by Pepper: How many bank accounts and credit cards should I have?
I am currently a college student with 2 checking accounts (Wamu- 3 years & BOA- 1 year) and 1 credit card (Citi- 1 year). I have always met the requirements for my checking accounts and paid all my credit card bills on time. As for loans, I do have about $ 10,000 of student loans in debt. I was wondering if it is okay for me to get another credit card. Also, many say that having a lot of credit cards are bad for you. What is the reccomendation of how many bank accounts and credit cards should I have so that my credits would not go down? Thanks in advance!
Best answer:
Answer by Smoovy Loco
It’s not uncommon to have multiple bank accounts with different banks, from my past and current experience, I primarily do all my business with one bank if possible. I’m going to list the types of accounts that you should have in order to prepare yourself financially:
1. Checking account- This is the primary tool to not only monitor your finances, but to pay all your bills on time.
2. Savings account- This should be used as a primary reserve that should be used in the event of emergencies and as a backup reserve to your checking account.
3. Traditional/Roth IRA- This should be your primary retirement account. Anytime that you have a 401K,402g, or 403b plan, and plan to switch employers, this would be the account to move or “rollover” your retirement savings to.
Now as for credit cards, You should have 2 major credit cards and 1 department store card. Some people have more credit cards, but actually fewer cards established for a longer time, should be all that’s necessary. The longer you establish credit by making payments on time and managing your available credit responsibly, the credit limit can and usually is increased to where that will be all you need. Some people have multiple credit cards for whatever reason, but the 2 most important things to remember when using them is to pay on time and manage your available credit.
Add your own answer in the comments!
Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards: Turn “Bad Debt” into “Good Debt”
Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards: Turn “Bad Debt” into “Good Debt”
Why cutting up your credit cards won’t make you rich A popular TV personality often says, “Take out your credit cards and cut them into pieces.” While that is sound advice for people who are not financially responsible, it is inadequate advice for anyone who wants to become rich or financially free. In other words, just cutting up your credit cards will not make you rich. What does make you rich is financial education…unfortunately a type of education we do not receive in school. If a person has a solid financial education, they would know that there are two kinds of debt…good debt and bad debt. A person with a sound financial education would know how to use good debt to make them richer faster…much faster than a person who only saves money and has no debt. Rich Dad’s Guide to Becoming Rich * Are you in credit card debt? * Is job security dead? * Is your financial security threatened? * Is a high-paying job the answer? * Is your money working for you? * Do you have good debt or bad debt? We all need more financial education. We need to know how to have our money work hard for us so we don’t have to spend our lives working for money. That is why we need more sophisticated financial education…not oversimplified and childish financial tips such as cut up your credit cards or save more money. If you are ready to increase your financial education and enjoy your credit cards, then this book is for you.
List Price: $ 9.95
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This completely revised and updated edition also includes an appendix of living expenses in twenty selected U.S. cities. Consumers can take financial control away from their creditors and put it back into their own hands–and start living debt-free today!
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Credit Cards & Personal Loans : How Does a Secured Credit Card Build Credit?
Do you want to learn something new regarding your credit card? Do you know how your credit card which is secured can build its own credit?
All credit card holder that can provide cash collateral to the bank can make your secured credit card build credit. A secured credit card will turn into an unsecured credit card after a period of time. The video will show you all the things you have to understand regarding this process.
Also, you will be provided how credit reporting agencies see secured credit cards as a way towards making a better credit from a financial adviser in this detailed video.
So enjoy and learn more on Credit Cards & Personal Loans: How does a secured credit card build credit.