Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Starting a new thread about credit cards...
This is why you should close the credit cards you do not use:
Let's assume you have a combined income of $50k and you have five credit cards with the following available balances (meaning, you can charge up to these amounts):
VISA $10k
Express $3k
Master Card $5k
Lowe's $5k
Second VISA $10k
Total credit available to you - $33k.
So, when calculating your credit score, the logrithm sees that you have $50k of income and can immediately get into $33k of debt - not good, this results in your credit score being negatively impacted.
Now, clearly, this changes if you have $100k of income and the same available credit lines.
As far as the charging and making minimum payments - as Tavia mentioned, its the system. Your credit score is determined by a logrithm, its not an actual person calculating it. The logrithm takes into consideration if you are making the minimum and it likes that you are only making the minimum. If you can stand to carry the balance, I suggest you try it - it will p!ss you off because generally, people that carry balances and only pay the minimum have higher credit scores than those that have no debt whatsoever.
Credit scores kind of remind me of the BCS - it makes no sense and needs to be altered but no one can really figure out how to do it.
Re: Starting a new thread about credit cards...
Wow...I never thought of it that way...
I think I'll be closing out some cards now...
I don't think this is a stupid question at all. Keep in mind, when you apply for credit you have to give your income - the credit bureau keeps this on file and just rolls it over.
I always wonder why after receiving a bonus I receive 500 credit card applications in the mail. Probably just a coincidence but...an eery one.
Ok- next question if you don't mind answering
At what point do you stop trying to up your score. For example, the "pay the minimum" method instead of pay in full method would up our score. But, our 6 scores range from 793-814. Is there an advantage to trying to up them at this point?
No, I don't think there is. You're in such a high percentile as it is, that you already qualify for the premium incentive/super low interest programs for most things.
I graduated college with a good job and income and no one would give me a CC (tried general card, card through bank, card for people with no credit scores). Meanwhile, my friend was still in college, didn't work, and could get them like candy on Halloween. Even utility companies used the score. I remember moving back to OK and the Cox guy telling me that no credit is bad credit.
Not having a credit score was so annoying and was surprisingly hard to get, considering I pretty much had it together financially.
Its a racket. We need welfare reform (refering to post below) AND credit score reform!
My issue with carrying a balance would be getting charge interest. Why would I want to pay an extra $100 a month on a $1000 balance...that's a freaking $100! (I've never carried a non interest rate balance so am I wrong?)
Well, I probably should have been more specific but don't charge that much!!!
Cool- if we go to apply for something else in the future (car loan, mortgage, etc.) I'll check again and then use your method if we have any scores in the high 700s.