What's new
Fantasy Football - Footballguys Forums

Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.

Credit Card inquiry. (1 Viewer)

E

Eminence

Footballguy
Ok, so I stopped being a jagoff and went ahead and paid off my $750 credit card in full. I didn't realize how badly I was being dragged around by this company. They were charging me:

1.) $14.00 monthly fee.

2.) 36% APR (yes, I had it maxed out regularly)

My question is, will closing this card hurt my credit? I don't want to pay $14.00 a month for a card that I don't use. I've got a few other cards open:

$1,700 / $2,000 (20.99% APR)

$300 / $300 (0% APR until December, 22% after)

$0 / $400 (36% APR, emergencies only)

Pretty much, I am trying to get my credit score as high as possible so I can float a loan for a new car once I graduate with an Associates in Accounting this March. I probably won't be able to afford to pay any of my current cards of much more because I owe my College $3,600 (my financial aid ran out) on September 26th. But after that, my financial aid should renew and it's only going to cost me $1,800 every three months thereafter.

Any advice on my situation in general? I should be able to pay all my credit debt off fairly easily once I finish up with school in March.

 
Don't do stupid things just in the hopes of maybe increasing your credit score. You need to look at the credit card terms before signing.

 
Mr. Burns: Simpson, eh? How can I help you?

Homer: Mr. Burns, you do this personally?

Mr. Burns: Oh, it's a hobby. I'm not in this for any personal gain, heavens no! By the way, are you acquainted with our state's stringent usury laws?

Homer: Us-ury?

Mr. Burns: Oh, silly me! I must have just made up a word that doesn't exist.

 
36%? That is nothing. I would think that a good percentage is 40%. That is HOF numbers for a hitter and really solid 3 point shooting.

Spend. It is the American dream. Why pay off on the debt when you can wring up more and just declare bankruptcy?

 
Eminence said:
Politician Spock said:
Eminence said:
My question is, will closing this card hurt my credit?
Click to expand...
Yes.

And keeping it open will hurt your wallet.
Click to expand...
Assuming that this card has typically been maxed out, will keeping it open an additional 3 - 4 months with a '0' balance before closing it help my credit? Or am I better of closing it off right now?
Click to expand...
I think any time you close down an account it effects your credit. Can you put a Phone/TV bill on autopay?

 
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.

 
Bucky86 said:
Eminence said:
Politician Spock said:
Eminence said:
My question is, will closing this card hurt my credit?
Click to expand...
Yes.

And keeping it open will hurt your wallet.
Click to expand...
Assuming that this card has typically been maxed out, will keeping it open an additional 3 - 4 months with a '0' balance before closing it help my credit? Or am I better of closing it off right now?
Click to expand...
I think any time you close down an account it effects your credit. Can you put a Phone/TV bill on autopay?
Click to expand...
I've got a few other things on autopay but on other cards / my debit card. I'm just trying to avoid that $14.00 monthly fee, the interest should be a non-issue assuming I keep the principal amount low and pay it off in full. In a perfect world, the card goes bye-bye.

 
Depends on what your goal is. If you want to live the American way, be concerned about your credit I guess. If you want to live debt free, save money until you can buy a car with cash.

 
Ok, so a few of your last comments made sense. I'm not applying for any big loans anytime soon, so it doesn't really matter what I do.

 
Eminence said:
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.
Click to expand...
It costs you $14K per year to attend Community College????

 
jon_mx said:
Eminence said:
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.
Click to expand...
It costs you $14K per year to attend Community College????
Click to expand...
Well, we do sessions instead of semesters. 16 credit hours every 3 months. Normally it only costs me about $600 a month for school but my financial aid ran out. I get to reup on Financial Aid next session (late September).

...and by "financial aid", I mean government loans. -.-

 
Eminence said:
jon_mx said:
Eminence said:
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.
Click to expand...
It costs you $14K per year to attend Community College????
Click to expand...
Well, we do sessions instead of semesters. 16 credit hours every 3 months. Normally it only costs me about $600 a month for school but my financial aid ran out. I get to reup on Financial Aid next session (late September).

...and by "financial aid", I mean government loans. -.-
Click to expand...
... and I think we have found the root of the problem.

Loans are things you are supposed to pay back. You are merely deferring payments and getting hit with higher costs.

 
Close the account. I don't see how a $750 uncsecured LOC is going to matter one way or the other to an auto lender.

When you do buy a car, the rate is going to be brutal. Go through a somewhat reputable dealer that uses a finance company that reports to the bureaus. Keep the loan 12-18 months, pay well, and have a couple grand down on the car. If you don't jack that up, financing will get better in the future. Borrow at least $7K.

Do not go to a buy here/pay here lot.

 
Eminence said:
Politician Spock said:
Eminence said:
My question is, will closing this card hurt my credit?
Click to expand...
Yes.

And keeping it open will hurt your wallet.
Click to expand...
Assuming that this card has typically been maxed out, will keeping it open an additional 3 - 4 months with a '0' balance before closing it help my credit? Or am I better of closing it off right now?
Click to expand...
Closing it hurts your credit. Banks don't like to open accounts with people who show a history of closing them. They want to open an account with you and milk you until you die.

Don't ever open a line of credit with terms so bad that you should get rid of it ASAP. The only people who tell you that you should open something like that are the people who want you to open the line of credit.

 
For someone getting an accounting degree graduating 'with honors', you have some very funny way of figuring out costs and assets.

 
Try this:

Get a debit card that is tied to your primary checking account, when it no longer works that means you're out of money. Rinse/repeat, worry about your credit when you're done with college and have more income.

 
Eminence said:
jon_mx said:
Eminence said:
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.
Click to expand...
It costs you $14K per year to attend Community College????
Click to expand...
Well, we do sessions instead of semesters. 16 credit hours every 3 months. Normally it only costs me about $600 a month for school but my financial aid ran out. I get to reup on Financial Aid next session (late September).

...and by "financial aid", I mean government loans. -.-
Click to expand...
I'm shocked the projections for your financial position were so far off-base. Who could have seen that coming?

 
Eminence said:
jon_mx said:
How does one work a full time job, mooch off of his parents and not have any money?
Click to expand...
I do have money, old sport. I pay $1,200 a month for school; $600 a month when my financial aid isn't dried up. I have less than $3,000 in credit card debt that will quickly be absolved once I finish my degree.
Click to expand...
$14 dollar an hour jobs just don't grow on trees you know. The credit card debt won't be absolved cause you're done with school. You'll just have more money to gamble with.

 
Close any accounts that have a monthly fee. Keep a zero balance on the rest. Periodically put something like groceries or gas on a card and then pay it off immediately. This keeps them from closing the accounts due to inactivity and establishes a payment history. Every so often, request credit limit increases even though you will still usually carry $0 balances. This is good for your debt to available credit ratio. All of these steps will gradually build your credit score. You'll know it's working when you start getting offered better cards than those you have with the ridiculously high rates. Once that happens, look for one that gives you hotel points or frequent flyer miles. Use it for all purchases and pay it off every month.

 
You must log in or register to reply here.

Similar threads

NewlyRetired
Credit Card Question
Replies
3
Views
202
belljr
belljr
belljr
Credit Card for under 18?
Replies
23
Views
348
coopersdad
C
Terminalxylem
Gift cards
Replies
17
Views
509
Dan Lambskin
Dan Lambskin

Users who are viewing this thread

Total: 2 (members: 0, guests: 2)
Top