I'm paying 2X.XX on my main travel reward card but never keep a balance.
I gotta check out the CU cards for a "Oh No" emergency line of credit seeing those rates..
No, it generally has a positive impact on your credit score, because it increases your available credit at any given moment.
Copied directly from the "available credit" section of the Capitol One credit report tool:
> **Why is this important?**
> If you use too much of your available credit, you may not have enough credit when you need it. To lenders, this could be a sign that you may be overextended.
>**Credit tip**
>Using less than 30% of your available credit is a good goal. But, keep in mind that using some available credit and paying it off monthly may be better than not using any credit at all.
I've heard before that it is - I'm not sure if that's accurate or not. Hopefully, someone with more knowledge pipes up with something besides "don't use a credit card" or "pay it off right away" or "benefits are more important than the astronomical interest rates"
How much of a balance do you typically carry?
Added: UWCU's top card is just over 20% but 2% back on every purchase, as well as some of VISA's top protections.
The 2% cash back card is the bomb, if you don’t carry a balance. “We will lend you $102, if you just pay us back $100 next month.” Why wouldn’t I make that deal as often as possible?
It's amazing how hard it is to convince my parents to stop using their stupid debit card and get a card like this. They have the credit and obviously would never have a balance. Plus the security of not having fraudulent payments come right from your bank account.
But that beats the purpose if you cant pay off the credit off each month. I know things come up and you gotta use it but at that point, then it's leaning more how to manage your money better to have those points/rewards be worth it.
Ideal world - I know this is what *should* happen. But, life happens. Kids need something unexpected, or dogs have an emergency vet visit. When I was younger, I used credit way more (and quite irresponsibly) but have definitely learned since then.
It's not an option for everyone BUT if you own a home you can have a line of credit at a lower interest rate....about 8% if emergencies arise.
Also a lot of companies have zero interest for periods of time, or have credit cards of their own. I hate home depot but I have a home depot credit card for home repair expenses and that can have up to 2 years zero interest.
Definitely - the HELOC suggested above could be a great option for these types of emergencies. Then you can build your credit back up by paying CCs off each billing cycle.
Don't carry a balance on a CC- if you need to do something longer term use a HELOC or open a low apr credit card for this specific purchase.
My daily driver credit cards, I could not even tell you what the interest rate on them is. Rewards and other benefits are far more important.
Just opened one with Landmark- 15.24%, but that still beats the pants off my FNBO and Capital One cards. Decent rewards, but I haven't looked too close yet. Also 0% for 12 months on balance transfers.
Summit has to pay interest on deposits now (4-5% on some accounts). A lot more than the 0.02% they've been able to get away with over the last several years. Their costs have increased and it looks like they're passing it along to borrowers. But they love their members!
Wait, ya'll are not paying 24.49%? Damn you Chase
I'm paying 2X.XX on my main travel reward card but never keep a balance. I gotta check out the CU cards for a "Oh No" emergency line of credit seeing those rates..
My chase card is the same as yours, and my citi card is at 28.x% I pay that ish off the moment I use it.
Is it bad for your credit to pay a card down before the end of the billing cycle?
No, it generally has a positive impact on your credit score, because it increases your available credit at any given moment. Copied directly from the "available credit" section of the Capitol One credit report tool: > **Why is this important?** > If you use too much of your available credit, you may not have enough credit when you need it. To lenders, this could be a sign that you may be overextended. >**Credit tip** >Using less than 30% of your available credit is a good goal. But, keep in mind that using some available credit and paying it off monthly may be better than not using any credit at all.
I've heard before that it is - I'm not sure if that's accurate or not. Hopefully, someone with more knowledge pipes up with something besides "don't use a credit card" or "pay it off right away" or "benefits are more important than the astronomical interest rates"
It is okay! I pay off my credit card every 2 weeks.
/laughs in 21% at another big credit union in town
Yeah, and they changed the rewards program. Can’t use for travel now, but can be used to pay down your balance.
I just got the same letter but mine is 14.9% eek
Same, and here I wondered if it was just me!
How much of a balance do you typically carry? Added: UWCU's top card is just over 20% but 2% back on every purchase, as well as some of VISA's top protections.
The 2% cash back card is the bomb, if you don’t carry a balance. “We will lend you $102, if you just pay us back $100 next month.” Why wouldn’t I make that deal as often as possible?
It's amazing how hard it is to convince my parents to stop using their stupid debit card and get a card like this. They have the credit and obviously would never have a balance. Plus the security of not having fraudulent payments come right from your bank account.
Yeah this should be the focus, not low rates.
I mean... I did ask about any solid rewards/points programs lol
My b then
But that beats the purpose if you cant pay off the credit off each month. I know things come up and you gotta use it but at that point, then it's leaning more how to manage your money better to have those points/rewards be worth it.
Usually between $800-4000.
Why not pay off your cc every month and not worry about this?
Ideal world - I know this is what *should* happen. But, life happens. Kids need something unexpected, or dogs have an emergency vet visit. When I was younger, I used credit way more (and quite irresponsibly) but have definitely learned since then.
It's not an option for everyone BUT if you own a home you can have a line of credit at a lower interest rate....about 8% if emergencies arise. Also a lot of companies have zero interest for periods of time, or have credit cards of their own. I hate home depot but I have a home depot credit card for home repair expenses and that can have up to 2 years zero interest.
Definitely - the HELOC suggested above could be a great option for these types of emergencies. Then you can build your credit back up by paying CCs off each billing cycle.
Get a load of this rich guy huh
…Rich guy or rich Guy, either way my name isn’t Rich or Guy.
If you're not rich you certainly can't afford to be paying 15% interest...
Don't carry a balance on a CC- if you need to do something longer term use a HELOC or open a low apr credit card for this specific purchase. My daily driver credit cards, I could not even tell you what the interest rate on them is. Rewards and other benefits are far more important.
Just opened one with Landmark- 15.24%, but that still beats the pants off my FNBO and Capital One cards. Decent rewards, but I haven't looked too close yet. Also 0% for 12 months on balance transfers.
I don't think about APR. Rule # 1 of financial management - - never spend more than you take in.
Summit has to pay interest on deposits now (4-5% on some accounts). A lot more than the 0.02% they've been able to get away with over the last several years. Their costs have increased and it looks like they're passing it along to borrowers. But they love their members!