BEST WAY TO CLEAN UP BAD CREDIT??
- Thread starter underground
- Start date
Never settle a debt with a debt collector dollar for dollar. Negotiate that bitch for pennies on the dollar, they bought the debt from the lender for pennies on the dollar. Also, yes, carrying a balance on your cc but making your payments on time may somewhat help your FICO score, but smart and rich people don't do it that way (Why you giving the cc corporations your money like that? For what?), and most people that do, especially the so called middle class lose more than often playing that game- that is why we end up in the economic dips we do- the middle class spending beyond their means. If you can't pay in full what you purchase with a credit card then you are doing it wrong. I have a high credit score and I live 100% debt free, my only residual costs besides kids needing/ wanting something are utilities phone bill gas and food, everything else is paid in full. Keep doin what yaw do tho I ain't mad.
Last edited:
Props:
Rasan and Rasan
Carrying a balance doesn't even help your credit score; that's a common misconception addressed in the info I posted on the previous page.
It does help your credit score to show utilization (as long as it's under 20% or so of your total available credit), but as long as you wait until after you receive your bill before paying it in full, your balance will still get reported to the bureaus and show utilization; there's absolutely no reason to carry a balance from month to month.
The best way to use a credit card is by not buying what you can't afford; using your credit car for things you would be buying anyway, and then paying it in full every month (after receiving the bill, but before it's due). That way you build credit, and never waste a cent on interest. And if you have a rewards card, there's the added bonus of getting cash back or airline miles.
Your Credit and You: Basic Information : personalfinance
Does Carrying a Credit Card Balance Build My Credit Score? | NerdWallet's Money-Saving Tips
It does help your credit score to show utilization (as long as it's under 20% or so of your total available credit), but as long as you wait until after you receive your bill before paying it in full, your balance will still get reported to the bureaus and show utilization; there's absolutely no reason to carry a balance from month to month.
The best way to use a credit card is by not buying what you can't afford; using your credit car for things you would be buying anyway, and then paying it in full every month (after receiving the bill, but before it's due). That way you build credit, and never waste a cent on interest. And if you have a rewards card, there's the added bonus of getting cash back or airline miles.
Your Credit and You: Basic Information : personalfinance
Does Carrying a Credit Card Balance Build My Credit Score? | NerdWallet's Money-Saving Tips
You are misinformed.
Yes; you should utilize your credit. If you have a bunch of credit cards and never use them, they can see that you're not utilizing your credit and that can hurt.
However, as long as you are using your card... once you receive your bill, your balance is already reported to the bureaus; you can (and should should) pay off the full balance that was on your statement.
There is absolutely no benefit to carrying a balance from month to month and throwing away money to pay interest.
I use credit cards for most of my expenses, and I always pay them off in full every month; I have never paid a cent in interest. When I check my credit report, it still shows a monthly utilization of somewhere between $1,000-$2,000, because I use my cards regularly and wait until I receive my bill before paying it off. After receiving my bill I continue to use my card, so it's always being utilized.
Anyway, I already posted plenty of info to back this up; I have excellent credit and no debt (other than student loans) so it works for me.
Yes; you should utilize your credit. If you have a bunch of credit cards and never use them, they can see that you're not utilizing your credit and that can hurt.
However, as long as you are using your card... once you receive your bill, your balance is already reported to the bureaus; you can (and should should) pay off the full balance that was on your statement.
There is absolutely no benefit to carrying a balance from month to month and throwing away money to pay interest.
I use credit cards for most of my expenses, and I always pay them off in full every month; I have never paid a cent in interest. When I check my credit report, it still shows a monthly utilization of somewhere between $1,000-$2,000, because I use my cards regularly and wait until I receive my bill before paying it off. After receiving my bill I continue to use my card, so it's always being utilized.
Anyway, I already posted plenty of info to back this up; I have excellent credit and no debt (other than student loans) so it works for me.
Last edited:
You're doing something different than what I was talking about. Most people don't use their cards 1k-2k per month and pay it off that way. That probably would work but it's also a pain in the butt that most people do not want to deal with either and it's a dangerous way financially to live for a lot of people. This method would only work well for people who budget and keep track of every penny they spend on their cards
...I'm not really sure what you're talking about then.
The best way to use a credit card is to use it for all your normal expenses (groceries, gas, cable/internet bill, etc); wait until your receive your bill, then pay it off in full. That way, you show utilization but never carry a balance or pay any interest. You can also get cash back if you have a rewards card.
It's not a pain at all; it's really very simple/straightforward.
And every adult should budget & keep track of their spending anyway. Even if you're just using a debit card or cash, you should still be keeping track to be sure you can pay all your bills as well as pay for any fun/hobbies/luxuries without running out of money/overdrawing your account.
The best way to use a credit card is to use it for all your normal expenses (groceries, gas, cable/internet bill, etc); wait until your receive your bill, then pay it off in full. That way, you show utilization but never carry a balance or pay any interest. You can also get cash back if you have a rewards card.
It's not a pain at all; it's really very simple/straightforward.
And every adult should budget & keep track of their spending anyway. Even if you're just using a debit card or cash, you should still be keeping track to be sure you can pay all your bills as well as pay for any fun/hobbies/luxuries without running out of money/overdrawing your account.
Also, if you think budgeting is a pain, you should check out YNAB or mint.com. There are many tools to make it easy.
https://www.youneedabudget.com
https://www.mint.com
https://www.youneedabudget.com
https://www.mint.com
This post is on the money. Use your credit card as your means of spending, pay the bill off at the end of the month...simple as that.
Props:
emma and emma