Credit Score 664 & Need new Credit Card for balance transfer

[Maulik]

My credit score is as mentioned above. However, it says I have 80% of my

Revolving Accounts Balance $1968.00

Installment Accts : $1494.00 (school loans)

Percentage of credit currently available 80.56%

With this information, is it a good idea to apply for the Citi 0% for one year balance transfer? I have the cash to pay off my other credit card, but I'm kind of electing toward doing a balance transfer for two reasons. I'd like to continue being amply bankrolled for what I'm playing & secondly, it is my understanding that balance transfers are a good way of building credit if paid in full by the time?

Is this correct?


also, how do I get my free credit report in the state of Maryland?

[Shajen]

So you have about $3500 in debt and you can put it all on a single credit card with 0 interest for a year?

What does it spike to if you don't pay it all off in the year? Also, does the interest spike on the total amount you moved to the new card or is it just on the remaining balance? What's the interest rate on purchases on the new card?

I don't have the link, but something along the lines of a google search for free credit report should get you where you need to be.

If you can pay off the $3500 in a year, this is a no-brainer.

If you can't, then you need to look at the interest rate and whether or not it is retroactive to the original transfer amount.

(I've done this, its a great way to get rid of debt)

[Maulik]

[ QUOTE ]
So you have about $3500 in debt and you can put it all on a single credit card with 0 interest for a year?

If you can pay off the $3500 in a year, this is a no-brainer.

I've done this, its a great way to get rid of debt)

[/ QUOTE ]

Awesome. Is this also a good way to build credit? Also, given my credit score will this be a problem?

[Shajen]

Not really a good way to build credit unless you leave the other credit card account open. Your credit isn't bad actually, so it shouldn't be too much of an issue to get it bumped a little higher.

Paying on time and having a decent amount of credit is a good way to build your score. It just takes time.

[Maulik]

Not really a good way to build credit unless you leave the other credit card account open.

I don't plan on closing the account after paying it off, I'll use it from time to time. So am I accumulating credit by having another credit card (more access to credit) or by using the transfer balance?

[BreakfastBurrito]

this is a good idea. My little brother has a scheme going where he just transfers balances from one 0% card to the next while maxing out IRA contributions and other investments. He's built up the balance to something like $15,000 at this point, so he may be nearing the limit of how much he can get away with, but up to this point the plan has worked perfectly.

[Shajen]

I am not sure of the inner workings of the big three credit bureaus, but having multiple lines of credit in which you have no late payments and not a huge amount charged to them will certainly increase your score.

Also, check your credit report for stuff you didn't do. If you have a common last name, chances are they screwed up somewhere along the line.

[RacersEdge]

I made this post yesterday about a segment I heard on NPR over the weekend. The guy had some unintuitive advice on building your credit score - pretty interesting.

NPR Post (http://forumserver.twoplustwo.com/showthreaded.php?Cat=&Board=exchange&Number=302539 1&Forum=,All_Forums,&Words=&Searchpage=0&Limit=25& Main=3025391&Search=true&where=&Name=7516&daterang e=&newerval=&newertype=&olderval=&oldertype=&bodyp rev=#Post3025391)

[RunDownHouse]

If he's putting money he will need to pay the cards off into an IRA, he's going to be pretty sorry very soon.

[Maulik]

the NPR post leaves me clueless as to whether having another credit will to use a balance transfer will hurt/benefit my credit score/history.

[xadrez]

Maulik,
Transfer the balance to a 0% card, but don't cancel the old card. Hopefully, its one with no annual fee.

Ive heard this advice before and have been transfering my balance from card to card to pay it off quickly with little interest. As a result I have about 4 or 5 cards with zero balances, and now I am hesitant to cancel them as Ive heard it hurts your credit.

[RacersEdge]

[ QUOTE ]
the NPR post leaves me clueless as to whether having another credit will to use a balance transfer will hurt/benefit my credit score/history.

[/ QUOTE ]

As someone said, leaving the old one open if you have a good history with it helps. Maybe you can get more info at the NPR website or another one. Probably a popular topic.

[MelK]

Trust me, financing your poker career on credit cards is an excellent idea! You da man.

[Maulik]

[ QUOTE ]
Trust me, financing your poker career on credit cards is an excellent idea! You da man.

[/ QUOTE ]

I'm not financing it.

[eastbay]

[ QUOTE ]
My credit score is as mentioned above. However, it says I have 80% of my

Revolving Accounts Balance $1968.00

Installment Accts : $1494.00 (school loans)

Percentage of credit currently available 80.56%

With this information, is it a good idea to apply for the Citi 0% for one year balance transfer? I have the cash to pay off my other credit card, but I'm kind of electing toward doing a balance transfer for two reasons. I'd like to continue being amply bankrolled for what I'm playing & secondly, it is my understanding that balance transfers are a good way of building credit if paid in full by the time?

Is this correct?


also, how do I get my free credit report in the state of Maryland?

[/ QUOTE ]

No.

Applying for the card will be a credit check, which will be a small hit. Moving debt around is going to improve your score less than paying it off.

eastbay

[RacersEdge]

But the new application hit will be temporary and by itself won't mean much. Constantly applying for cards would probably be bad.

[Killer Man's Son]

I recently went through a lot of this as I am looking to buy a house. To say that how they compute a credit score is esoteric is an understatement. A few things to keep in mind:

1. Cards held a long time score you a lot higher than switching cards every 6 months or so for a low teaser rate. Find a bank you like with a good steady rate (not the teaser rate), and stick with them.

2. Minimize store credit cards (Macy's, etc.). No more than one or two should be necessary.

3. Here's a big one: DON'T PAY OFF THE BALANCE IN FULL EVERY MONTH. You guys are going to call BS on this one but listen to this. I have one bank card with a decent limit on it. I paid it off a year or two ago because tha bank pissed me off with a late payment fee (2 days late because I missed the mail). Ever since, I always paid in full every month and rarely used my card. I checked my credit score about 6 months ago and it averaged about 710 or so across all bureaus. I couldn't figure out why it was so low since I have never been late by 30 days on anything (but I did refuse to pay MCI about 7 years ago because they are cheats. I later paid a collection agency because it destroyed my credit....over a $65....bastards) and I have held lots of credit cards in my life. Anyway, on a whim I decided to run a balance on my card every month. I put about $500/month on it and only pay off half. I try to keep the balance at about $200-300. MY SCORE JUMPED ABOUT 90 POINTS IN A FEW MONTHS. I had a mortgage agency run my report last month and my score averaged about 800.

4. Don't EVER not pay a bill. That $65 phone bill I refused to pay cost me 90 points for a few years afterwards. (MCI lost a class action lawsuit for the reason I refused to pay BTW, so there is some justice in the world).

[Al P]

To whoever was asking: http://www.annualcreditreport.com is the free site for all 3 bureaus.

Looks like Maryland has to wait.

[Maulik]

Okay w/ a 664 credit score, will I be able to get an

American Express Cashback credit card?

Like I said I'm only utilising 80% of my credit.