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

Discussion in 'Finance, Investing & Economy' started by Ian Lozada, Jun 29, 2005.

  1. Ian Lozada

    Ian Lozada New Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Read through the original first, many of your questions probably already have been asked...
     
  2. fiddlestick

    fiddlestick New Member

    Jul 17, 2001
    The 4 8 0
    Ha. Stumped you.
     
  3. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    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...
     
  4. fiddlestick

    fiddlestick New Member

    Jul 17, 2001
    The 4 8 0
    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.
     
  5. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    "Pre-Approved












    to apply for"

    is what's in fine print at the bottom.
     
  6. bsucio9

    bsucio9 Member

    Jul 24, 2003
    Twin Falls
    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.
     
  7. Ian Lozada

    Ian Lozada New Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    No difference between lenders. All rates/terms are federally set.
     
  8. Own Goal Hat-Trick

    Jul 28, 1999
    ColoRADo
    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?
     
  9. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Here's your answer:

    [​IMG]
     
  10. GoldFinger

    GoldFinger New Member

    Jun 19, 2004
    Because our education system fails to teach personal finance.
     
  11. carolinab

    carolinab Member+

    Aug 21, 2000
    D.C.
    Club:
    DC United
    Nat'l Team:
    Bermuda
    Just posting so I'll get email updates when people post here. Carry on!
     
  12. Ian Lozada

    Ian Lozada New Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    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.
     
  13. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    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.
     
  14. P-45

    P-45 New Member

    Jul 20, 2005
    Bakersfield, CA
    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.
     
  15. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    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.
     
  16. Glenwood Lane United

    Apr 28, 2001
    Hanover Park, IL
    Club:
    Chicago Fire
    Nat'l Team:
    United States
  17. roadkit

    roadkit Greetings from the Fringe of Obscurity

    Jul 2, 2003
    Fornax Cluster
    Nat'l Team:
    United States
    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) ;)
     
  18. FK Partizani

    FK Partizani New Member

    Jan 26, 2004
    10305
    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
     
  19. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    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
     
  20. FK Partizani

    FK Partizani New Member

    Jan 26, 2004
    10305
    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?
     
  21. Ian Lozada

    Ian Lozada New Member

    May 29, 2001
    The Pick Four Pool
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Questions like this are near unanswerable because there are too many variables involved-- what your score was previously, what your account history was, what other factors are impacting your score, etc.

    That said, if your ratio of revolving debt to credit available is below 33%, this is a relatively minor factor.
     
  22. FK Partizani

    FK Partizani New Member

    Jan 26, 2004
    10305
    Thanks Ian.

    One last question. Does the size of the credit available on all CC's combined have a bearing on one's credit score? Say does a $20,000 avaiable credit mean a higher score than a $2,000 available credit everything else being equal?
     
  23. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    Percentages matter. If your total credit lines on your CC's for example are 4,000 and you're using 2,000 (2k available), it's much better if say you have 22,000 in total credit line and you're using 2,000 of it (20k available). Your score is based on dozens of variables, so it's hard to draw out 1 thing and say how much of an effect it's going to have, but all things being even, using less of your available credit (percentage wise), is better. I worked some analyzing software that I have available from my employer, and it all depends on your situation, but I worked it based on my numbers, and having 20k available vs 2k available was a difference of about 15 points.
     
  24. phats_away

    phats_away Member

    Jul 28, 2001
    Atlanta, Ga
    my friend is thinking about using a debt solutions non profit to pay down their debt. i was wondering what are the consequences for doing so, and what you'd recommend. i heard some shady things going on with those kinds of angencies, but i can't seem to find any pertinant information on specifics. the agency they are looking at is called Financial Debt Solutions

    thanks
     
  25. peledre

    peledre Member

    Mar 25, 2001
    Sioux Falls, SD
    Club:
    Chicago Fire
    Nat'l Team:
    United States
    It depends on what the company does, and what types of arrangements they negotiate with the creditors. The goal of those places is usually to get you out of debt, not improve your credit scores. A lot of times they will negotiate payoff balances/settlement payoffs for less than what the balance actually is, if they do things like that, it will have a negative effect on your score because the creditors will report back to the bureau that the bill settled for less than the balance.
     

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