How Much Money Do You Owe?
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3,222 Posts
just a tad over 5k with my bike loan and credit cards combined. I've just had my credit cards for a few weeks and allready put 1500$ on them :laughing
(nah im not getting myself in a mess I just wanted a projector and put it on the CC to build my credit as I've never had loans or credit cards before. The loan for my bike is under my fathers name since I was only 17 wehn I got it. but the bike is under my name.
(nah im not getting myself in a mess I just wanted a projector and put it on the CC to build my credit as I've never had loans or credit cards before. The loan for my bike is under my fathers name since I was only 17 wehn I got it. but the bike is under my name.
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17,309 Posts
I owe a monthly mortgage........... and that is all. Boring, huh?!!? :shrug
From what I've been told.... and this makes no sense to me.... when they look at your credit score... if you have lots of open accounts with money owed on them (to a certian amount), your score is higher. They enjoy customers with revolving debt. They hate customers who charge and pay off completely every month.
We have credit cards but we haven't charged on them in over 3 years. When we went to buy our home, if we would've had to go the traditional route, our credit score would've been low 'cuz we don't owe any body any money. Thankfully, we had the cash in the bank for the down payment and the company my husband is retired from backed the loan.
I, personally, think, if you have credit cards and you pay them off all the time, you should have great credit. But I guess the credit card companies don't make as much profit off of customers like that. :shrug My Grandma was called by a credit card company once who told her if she kept paying her bill off in full each month they were going to cancel her card. She saved them the time and canceled it right there.
From what I've been told.... and this makes no sense to me.... when they look at your credit score... if you have lots of open accounts with money owed on them (to a certian amount), your score is higher. They enjoy customers with revolving debt. They hate customers who charge and pay off completely every month.
We have credit cards but we haven't charged on them in over 3 years. When we went to buy our home, if we would've had to go the traditional route, our credit score would've been low 'cuz we don't owe any body any money. Thankfully, we had the cash in the bank for the down payment and the company my husband is retired from backed the loan.
I, personally, think, if you have credit cards and you pay them off all the time, you should have great credit. But I guess the credit card companies don't make as much profit off of customers like that. :shrug My Grandma was called by a credit card company once who told her if she kept paying her bill off in full each month they were going to cancel her card. She saved them the time and canceled it right there.
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21,790 Posts
That doesn't make sense. Must have been a shady outfit trying to trick her. There is no reason for a credit card company to get mad at someone for paying off their bill every month. True, they're not making interest off you, but they still get the 2-3% merchant fees off everything you buy with it.
And your credit score isn't helped by having tons of open accounts that are sitting there unused. Lenders see that as a liability.
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17,309 Posts
Sorry........... but I was even advised by a lending company to open more accounts when I got the invites in the mail and to charge a little something on the cards I do have.
Made no sense to me either and I didn't do it. Needless to say, we didn't need the services of that lending company either.
I don't like oweing people money. :nono
(btw.... the card company that contacted my Grandma was Robinsons~May. I don't like that department store anyway.)
Made no sense to me either and I didn't do it. Needless to say, we didn't need the services of that lending company either.
I don't like oweing people money. :nono
(btw.... the card company that contacted my Grandma was Robinsons~May. I don't like that department store anyway.)
A liability alot of them like....Homeslice said:
A few revolving credit accounts (not a ton per say) does help your credit score.....It lets them get a hold of you as a customer and see your spending habits...if you don't use them they can't really see if you are a liability or not....Some would say it's better to have somewhat questionable average credit then...no credit at all but, that is either here nor there...
The fact is credit card company's like to have tracking of your spending habits...and have a paper trail to there customers. So yes some revolving credit is good...
But, tons :shake
and I do agree with you homeslice whatever company made that call was doing some shady business. Matter of a fact in my state it's illegal to try to deter or penalize customers for paying off debt to fast or on time and it comes with very strict penalities I would suggest to everyone to check there state or local government to see if a law such as this is in force in there area as well
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21,790 Posts
Well I have 2 visa/mastercards but only use one of them, and I typically charge about a grand worth of stuff on it every month but then pay it off........I see no need to split that grand amongst 3-4 cards........I was always told that having a huge available credit line was a liability, because home lenders would be afraid that you would start abusing those cards after getting approved for the loan. In fact I was even told that if you have a card with a huge credit line like $30K, you might be better off calling them and asking them to lower it. Who knows what the true story is. In any case I don't see the need for such a high credit line. The funny thing is they act like they're doing you a favor when in reality it seems like they're just trying to boost your ego by giving you that.
I think people would be better off having only 1-2 major credit cards, but several different department store and gasoline cards......that way you don't have a huge available credit line, but you can still demonstrate good credit history across several different cards.
As for debt, the only debt I have is $12K on my final student loan..........Just paying the minimum on it, since it's only 2.25% interest, LOL
I think people would be better off having only 1-2 major credit cards, but several different department store and gasoline cards......that way you don't have a huge available credit line, but you can still demonstrate good credit history across several different cards.
As for debt, the only debt I have is $12K on my final student loan..........Just paying the minimum on it, since it's only 2.25% interest, LOL
What your displaying is history of your habits as a shopper...you really don't need to spread the love as they say :laughing to a bunch of credit cards to display that but, if you ever choose too it's up to you...remember acceptance of loans and mortgages and such go mainly by the economy....also some companys are more loosie goosie then others....that's why you see some many questionable characters with Capital One and Providian cards etc,etc.... instead of American Express and Dinners Club cards
I usually stay away from gas cards because there interest rates usually suck and there customer service is usually shitty and the whole "go from one area and they may shut it off" on you really sucks and I never have that problem with my regular cards and there interest are....well I have 0 interest rates on most of my cards
I usually stay away from gas cards because there interest rates usually suck and there customer service is usually shitty and the whole "go from one area and they may shut it off" on you really sucks and I never have that problem with my regular cards and there interest are....well I have 0 interest rates on most of my cards
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16,960 Posts
Credit cards build your credit history if you show that you pay them on time.
Other bills show good credit when you pay them on time and pay them off. Pay them off early and it looks real good.
Other bills show good credit when you pay them on time and pay them off. Pay them off early and it looks real good.
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2,613 Posts
I owe about $10,000 on my truck; about $5,000 on my wife's car; and $125,000 on my house. However, the truck's blue book value is over $18,000; and the blue book value on my wife's car is over $10,000; and the assessed value of my house is $172,000. Which gives me a positive property cash-out value of $60,000 at this moment. I owe nothing in school loans (paid); nothing in credit cards (paid); nothing in personal loans. If the value of your property is more than what you owe on it, then you owe money, but you can get out from under whenever you need to. It's only a problem when the value of your property is less than what you owe.
I don't have too much that I owe (maybe $10-15k) in misc. bills like personal loans and CC, but my mortgage and truck loan together are about $140k which is the majority of my debt. The good thing is, like mffjm2, is if I were to sell them I would come out ahead of what I owe.
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