Credits and mortgage page 3

I sent the dispute inquiry letter to the credit company what is next?

Mortgage processor credit inquiry letter and unauthorized credit inquiry?

how many of you think this letter looks like a scam on Craig's list?

Trying to improve FICO score. Does it discriminate against credit card debt?

Credit Cards use on your credit score?

Is it common to get a higher interest rate on an FHA home loan vs. a conventional loan?

Why did my credit card company take my 5000 credit limit to 0?

Are those $10000+ limit credit cards any good? If I plan to buy a car for only $5000, will this suit me?

TRYING TO CLEAR COLLECTION OFF CREDIT REPORT?

I'm in my 20s in college and getting some information about credit cards. I only have 1 credit card with Visa and 1 debit card. 90% of my purchases are from my debit card. I have this saying "If I don't have the money to buy something, don't but it, I don't care what it is". I'm really nervous, because I don't want to go into credit card debt like everyone else. I already have student loan debt and that should be the only debt I would have once I graduate. Car loan would probably be next to it. If I just use my debit card all the time, what's going to happen regarding credit scores? Do credit bureaus can do a normal check with debit card? Or do I need to use credit cards in order to obtain a credit score/report? I want to make sure, that I have a good credit score to get a car loan, mortgage loan in the future. What should I do? Thanks!

I would use your credit card. If you treat it like a debit card, that is only buy stuff for which you have the cash in your bank account, then you will be fine. Remember, approximately 50% of credit card holders pay zero in interest because they pay the bill in full every month. One other thing. If you do use your credit card more, make sure that the maximum usage is no more than 30%. That is, if the limit is $500, only spend $150 per month on it.

I re-iterate that half of us carry no balance from month to month. PAY OFF THE BILL IN FULL EVERY MONTH and you will not get into trouble. A debit card is a no-brainer, but when you use a credit card, you must remember that the amount you spend each time you use it - while it still appears in your bank account - does NOT belong to you. It belongs to the cc company. {a debit card does nothing for your credit score, because it is like paying cash.} If you have a reliable source of income, credit cards are very handy because they allow you to buy something you NEED when it is on sale, and pay for it later, at which time the money will be in your bank. { However, if you DO NOT have a known income, or the money already in the bank, follow your advice and do not buy.} If you are disciplined, there is not difference in spending $98 on your debit card ( a la cash ) and charging $98 on your credit card, and paying that bill with cash from your bank account. You know you, and your discipline level. Good luck.

There's absolutely no difference if you pay with your credit card and pay it in full when you get your statement. In fact, it may be to your advantage to use your credit card because it builds credit and you probably have perks from using it such as 1% cash back. I'm a huge advocate of using credit cards over debit cards because if your debit card becomes compromised, you could lose your entire checking account in a matter of minutes and the bank probably won't do much to help you get it back. If you have a VISA then odds are you have 0% liability.

By using debit card your credit score will not affected. You are using debit card, you are using it against your available balance, instead of debit card if you use credit card, you can earn interest and also some points on purchasing. Care should be taken to meet it promptly.

Crash course in credit 101: There are 6 major factors that effect your credit score. They are utilization (35%), payment history (30%), number of accounts, average age of accounts, inquiries and negative factors. Utilization and payment history are the largest things that effect your credit. They make over 65% of your score. They are also the easiest to influence. Keep utilization positive by keeping your balance to credit limit ratio below 30%. Keep payment history positive by making a history payment every month, on time. Number of accounts is also a diversity factor. 6 credit cards won't make it perfect. They want to see a loan, a credit card a credit line, a retail account and maybe a student loan. This can be done easily and cheaply, but takes time. Such things include bank credit lines and personal loans which can be obtained at interest rates of less than 9%. Average age of accounts is only effected by time. Never close your longest open account and be careful about opening more than one account at a time. At 8 years average history, credit score is optimal and does not increase much based on this. Inquiries will drop you 2-5 points per hard inquiry. The points are only taken off for 6 months but the Inquiries stay for 2 years. Keep this optimal by having less than 3 inquiries per 6 months. Also, if you get a car loan and they check your credit with 6 or so companies, don't worry, credit bureaus look at this as one inquiry. Negative factors are the single biggest limiting factor to your score. Not only will judgements, charge offs, BKs and missed payments drop your score over 100 points, but they will also limit how high your credit score can go until they drop off your credit report in 7 years. This means if you have a BK, you're not really on a credit score between 300-850, you're really limited to 300-720. This makes a score between 680-720 as difficult to obtain as a score between 800-850. 850 is almost impossible as it would indicate a risk free account. To answer your specific questions: Using a credit card does not hurt you. It should be used for small purchases you want to pay off at the end of the month, or be used to finance a non consumable purchase that you want to finance over a few months (remember, keep below a 30 % utilization ratio and you're fine) and pay interest. Currently, you're using your cards well. Debit/cash should be used whenever possible and if you can't afford something, you should wait. Using a debit card will not increase or decrease your score. To find out how well you're doing, check out the following websites. They will help you build your score for free.