Close all but one credit card account (You need them to rent cars). Pay off the full amount every month. You will not have to pay interest on the money.
Buy a reasonable house and pay it off.
If you can pay cash for your car do it, But pay it off quickly.
Get your IT butt out of debt, and then if you should loose your IT job you could live on a paper route if you had too or turning burgers at you favorite greasy burger place.
Credit for the most part should be used very sparingly.
They used to lynch bankers. I can see why.
Kent Wallace - Business Intelligence Developer
Healthcare Management Administrators Inc
Phone - 425-289-5267
-----Original Message-----
From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On Behalf Of Craig Lalley
Sent: Tuesday, December 09, 2008 11:21 AM
To: [log in to unmask]
Subject: [HP3000-L] OT: Credit tips
This one is way of topic, how to keep your credit rating.
If this doesn't affect you feel free to delete it right now.
However, if you are like me, you probably have at least an inch or two of credit cards stuffed in a drawer somewhere. Cards, that you have no intention of using.
During the immensely profitable period of the last two decades, credit card companies were sending out millions of credit cards. All the credit card companies were competing for market share.
Well, now that times are getting tough, the companies are trying to minimize their exposure.
We (my wife and I) have received several notices from credit companies that are re-evaluating our 'credit'.
They are sending notices that we have not used the credit cards in the past two years, so our account will be closed, if we don't use it in the next month.
Having personally done this, DON'T LET THEM CLOSE YOUR ACCOUNT. Go to Staples and buy a ream of paper. Then pay it off promptly, but don't let them close it.
Why? You credit score is based on the amount of credit you have available vs. how much you are using. When the accounts are closed, you're credit potential goes down.
I know this sounds backwards, but that is the way the FICO scores work.
Now that availability of credit is limited, it is important to keep a good score. By closing three or four accounts, it is possible for your credit score to drop close to 100 points. IF that happens, your active cards my hit you with a increase in interest.
A credit card is probably the only legal contract that can be modified by one party (the card issuer) after signing.
I am not an expert in this field, but it doesn't take a rocket scientist to figure out where this is going.
Merry Christmas Everyone, :-)
-Craig
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