BigSoccer Personal Finance and Credit Repair: New low 2% APR

[Ian Lozada]

Read through the original (http://www.bigsoccer.com/forum/showthread.php?t=128286&page=1&pp=15) first, many of your questions probably already have been asked...

[fiddlestick]

They hate your freedoms. And lemurs.
Ha. Stumped you.

[peledre]

Why do the Capital One douchebags keep mailing me a "pre-approved" card solicitation every week?
I put in for it once and they ended up not approving me.

There's a phone number to call to opt out of all "pre-approved" solicitations from credit cards. I can't remember it for sure right now but I'll look it up at work tomorrow.

It's something like 866-4OptOut or something like that. More tomorrow...

[fiddlestick]

There's a phone number to call to opt out of all "pre-approved" solicitations from credit cards. I can't remember it for sure right now but I'll look it up at work tomorrow.

It's something like 866-4OptOut or something like that. More tomorrow...
I don't care if they send them to me, but if they say I'm "pre-approved," there's an assumption that, you know, I'm actually pre-approved.

[peledre]

I don't care if they send them to me, but if they say I'm "pre-approved," there's an assumption that, you know, I'm actually pre-approved.

"Pre-Approved












to apply for"

is what's in fine print at the bottom.

[bsucio9]

I've got a question....



I didn't see it in the other thread, but I'm sorry if it's already been asked. I am applying for some student loans since I am going back to school this fall. Is there any advantage (or disadvantage) of going through my own bank for the loan, as opposed to any other lender, assuming the rates are approx. equal?

Any info would be greatly appreciated.

[Ian Lozada]

I've got a question....



I didn't see it in the other thread, but I'm sorry if it's already been asked. I am applying for some student loans since I am going back to school this fall. Is there any advantage (or disadvantage) of going through my own bank for the loan, as opposed to any other lender, assuming the rates are approx. equal?

Any info would be greatly appreciated.

No difference between lenders. All rates/terms are federally set.

[Own Goal Hat-Trick]

Ian... ive got a question... how come the finacial world, and everything that involves, lenders, money, clients, mortages, loans, credit, rates, feds, escrow, interest, payments, options, points, ect ect ect ad nauseum... well... how come it all really generally sucks and is confusing as all hell?

[peledre]

Ian... ive got a question... how come the finacial world, and everything that involves, lenders, money, clients, mortages, loans, credit, rates, feds, escrow, interest, payments, options, points, ect ect ect ad nauseum... well... how come it all really generally sucks and is confusing as all hell?
Here's your answer:

http://www.arrakeen.ch/usaaug98/131%20%20The%20U.S.%20Capitol.jpg

[GoldFinger]

Ian... ive got a question... how come the finacial world, and everything that involves, lenders, money, clients, mortages, loans, credit, rates, feds, escrow, interest, payments, options, points, ect ect ect ad nauseum... well... how come it all really generally sucks and is confusing as all hell?

Because our education system fails to teach personal finance.

[carolinab]

Just posting so I'll get email updates when people post here. Carry on!

[Ian Lozada]

Because our education system fails to teach personal finance.

Ding ding ding!

Personal finance is just as important as health classes and civics courses. No one should be allowed to graduate high school without passing a personal finance course.

If you're still in high school, then God bless you for even checking out this thread now. Get a copy of Peter Lynch's Learn to Earn if you haven't already, and start educating yourself now-- nearly everyone I know who's run into credit trouble had it start in college.

Forewarned is forearmed.

[peledre]

This is the first year I've volunteered w/ junior achievement and I'll be teaching a personal finance class at my old high school this fall that is one day a week. It's for the kids who are in an econ class, so it's not required, I definitely feel it should be though, it's a big thing kids need to learn before they go off to college.

[P-45]

OK, guys, here's my situation: I still have some utility bills left over from before I moved back home. I know I should get those paid off ASAP, and I'm working on it, but what should I do to minimize any problems when I get back into my own place again?

After that I've got one closed credit card that I think I'm going to pay off before I zero out my still-active credit cards. I've got the closed one at a lower interest rate temporarily, and my Capital One accounts just have obnoxious interest rates, but I'm thinking I should take care of the closed account first. Or am i wrong?

Thanks for your help.

[peledre]

OK, guys, here's my situation: I still have some utility bills left over from before I moved back home. I know I should get those paid off ASAP, and I'm working on it, but what should I do to minimize any problems when I get back into my own place again?

After that I've got one closed credit card that I think I'm going to pay off before I zero out my still-active credit cards. I've got the closed one at a lower interest rate temporarily, and my Capital One accounts just have obnoxious interest rates, but I'm thinking I should take care of the closed account first. Or am i wrong?

Thanks for your help.
If you're looking to max your credit score, in general, it's best to pay off open accounts (while keeping current on closed ones), before you pay off closed accounts. Companies look at how much of your open, available credit you are using, and once an accounts been closed (even if there is still a balance on that account), it's not included in the calculation.

[Glenwood Lane United]

I saw this on MSN, and thought it might be helpful.

http://moneycentral.msn.com/content/Banking/creditcardsmarts/P123470.asp?GT1=6705

[roadkit]

OK, guys, here's my situation: I still have some utility bills left over from before I moved back home. I know I should get those paid off ASAP, and I'm working on it, but what should I do to minimize any problems when I get back into my own place again?

After that I've got one closed credit card that I think I'm going to pay off before I zero out my still-active credit cards. I've got the closed one at a lower interest rate temporarily, and my Capital One accounts just have obnoxious interest rates, but I'm thinking I should take care of the closed account first. Or am i wrong?

Thanks for your help.

FWIW, I'd pay off the higher-interest rate cards first (while remaining current on the closed one). Paying off the higher rate card means more money in your pocket, or better yet, more money to pay off other debt since you are paying down a balance with a higher finance charge.

Same concept as not paying off a 2% car loan with a windfall (say a tax refund) when you can invest and get a 7% return on your money. In the long run, it's more money for you.

BTW, "Go Runners!" (CSB '83) ;)

[FK Partizani]

Thanks for the great job Ian.

I have a question about CC's? Does the closure of a CC acount affect your credit score? I read somewhere that it does. Also, does it pay off to keep your oldest CC acount open since that's the beginning of your credit history?

Thanks

[Sachin]

Thanks for the great job Ian.

I have a question about CC's? Does the closure of a CC acount affect your credit score? I read somewhere that it does. Also, does it pay off to keep your oldest CC acount open since that's the beginning of your credit history?

Thanks
Yes and yes.

Credit scoring has three components that apply in this case:

1. Your payment history. The longer your history of making payments, the better.
2. Your overall debt to credit ratio. The more credit you have, the more you can get, assuming you don't use too much of it.
3. Length of credit. The longer you have credit, the better risk you become.

That said, if you don't use the credit card and can replace it with another, and most importantly don't plan on applying for a mortgage or anything like that sometime soon, you can safely close the account without tanking your score.

As soon as I got my mortgage, I cut my credit cards down from 3 to 1, knowing I wouldn't need to worry about the effect on my score.

Sachin

[FK Partizani]

That said, if you don't use the credit card and can replace it with another, and most importantly don't plan on applying for a mortgage or anything like that sometime soon, you can safely close the account without tanking your score.

Thanks Sachin.

I plan on taking out a mortgage in two years time so I assume the best time to close some accounts is now. The accounts I'm planning on closing are dept. store CC's so the limit is not that high ($750 I think) to affect my debt to credit ratio.

How long before my score goes back up to what it was before closing the accounts?