Paying off CC balance all at once

[Joffrey]

The worst invention of Amex charge card is "pay over time".

 

[JayJay]

Originally Posted by Piobaire

Pay it off and never carry a balance again.
This.

 

[gam29]

Originally Posted by mm84321

This is all too true. I mentioned a while back, in another CC thread, how after only having my AMEX gold card for a period of around 6 months, my available spending limit had climbed from $2,000 to $25,000 with my maximum monthly expenditure being only around $2,500--I averaged $1-2k. I'd pay my balance off in full every month, and so my limit would increase after each payment, but even for me, that size of an increase was just insane. You really have to be careful.

I've never heard of AMEX or any CC company raising your maximum credit line this much in such a short period of time without someone asking for credit line increases.

 

[Gus]

Pay it off and enjoy the feeling of going to your mailbox free of getting a bill.

 

[SirGrotius]

Use your CC but don't carry a balance month to month. You want your CC limit to expand over time, as having the ability to take loans is a good sign. Just don't max it out and NEVER EVER forget to pay.

 

[ter1413]

such a no brainer....pay off and enjoy life!

 

[thekunk07]

you will probably be audited with a jump in income from $8 to $28k. pay it off a hole

 

[mm84321]

Originally Posted by gam29

I've never heard of AMEX or any CC company raising your maximum credit line this much in such a short period of time without someone asking for credit line increases.
Technically, I don't think it was considered an increase in my credit line, but my "spending ability", as this particular AMEX card doesn't have any predetermined limit. Regardless, an outrageous increase at any rate.

 

[Gibonius]

Originally Posted by imatlas

Not if you have more credit than your annual income - part of the algorithm is to compare this ratio, I think the ideal is considered something like 30% of annual income in available credit. Of course, shutting down credit lines also dings your credit...so you might want to ask your existing cards to lower their limits.

My understanding is that income is not a factor in credit score. Sources (here and here here) seem to agree. My credit score didn't change in the slightest when my income doubled, so that appears to hold true in real life.


Obviously debt/income matters a lot for getting a real loan, but "available credit" is basically meaningless as long as you demonstrate that you're responsible enough to not hang yourself.

 

[cross22]

Originally Posted by Connemara

What about closing out a credit card? I have A+ credit, would it hurt a great deal? Should I bother with the credit utilization number?
If it is the oldest line in your report it will hurt your credit big time if you close it. In general you should keep your credit utilization low and try not to carry a credit card debt.

 

[Slopho]

Originally Posted by mm84321

Technically, I don't think it was considered an increase in my credit line, but my "spending ability", as this particular AMEX card doesn't have any predetermined limit. Regardless, an outrageous increase at any rate.

It was my understanding that AMEX considers its self a "charge plate" while Visa & MasterCard are "credit cards" the difference being that you can put whatever you want on your plate, but at the end of the month your plate.
I was paying for gas once and this woman was trying to use a "stolen" AMEX gold card. She presented the card like it was hers, but she wanted to do a "credit check" before she used it. She purchased a soda and chips and told the guy "I don't know the limit, but if I can use this to charge this soda and stuff then I want to fill up." I tried telling the guy the card was probably stolen but he didn't speak English.

 

[Connemara]

Originally Posted by thekunk07

you will probably be audited with a jump in income from $8 to $28k. pay it off a hole
Lol. I hate you. Just made the payment. Debt is gone ladies and gents.

 

[imatlas]

Originally Posted by Connemara

Lol. I hate you.

Just made the payment. Debt is gone ladies and gents.

Mazel tov! You should commemorate the occasion by running up $10K on B&S!

 

[Piobaire]

Originally Posted by Connemara

Lol. I hate you.

Just made the payment. Debt is gone ladies and gents.

Now stick to these two rules:

1) Pay it all off at the end of the month.
2) In the event you can't/don't pay it all off at the end of the month, the card goes away until it's paid off.

Strive for #1 but #2 will save you from damaging yourself again.

 

[ter1413]

Originally Posted by Piobaire

Now stick to these two rules:

1) Pay it all off at the end of the month.
2) In the event you can't/don't pay it all off at the end of the month, the card goes away until it's paid off.

Strive for #1 but #2 will save you from damaging yourself again.

preach on!!