Money and Finance

[sleepy]

If credit counseling is right for you, be careful -- I've heard horror stories about shady ones. Also, you will take a hit on your credit if you go that route (but at least you'll get the sucker paid off). Good luck!

[Deleted]

Yep, I took a hit on mine, it showed delinquent for the time it took me to pay it off but I was also able to indicate on my reports that I did complete repayment with credit counseling.

Poorfrances, that's exactly what that additional $200 is for.

[memememe76]

I need some advice. I got a new credit card a 2-3 months ago. I never received a statement for the month of July. I was slightly worried, but I just thought they were giving me one extra month and I'd have one big bill in August. So, I get my statement for August and it indicates that I "missed" July's payment and I have to pay interest. What should I do:

1) call the phoneline and tell them my story. I don't know if they'll believe me. They'll probably think I'm just trying to avoid interest; or

2) pay the whole bill (which is not a problem) and then call up the company and file my complaint? But since I paid the bill, can they do anything about it?

[garnet927]

Thanks for the advice, bossyboots et al. I think I'm going to try negotiating with the credit card company first (I don't know whether or not I should try doing it over the phone or by mail.) . I've heard credit counselling can be helpful, but that one has to be really careful (I've heard about shady credit counsellors too, Sleepy) --if anyone here has done this, how did you choose a service, & did it work out?

[chonies]

memememe76 said:

I need some advice. I got a new credit card a 2-3 months ago. I never received a statement for the month of July. I was slightly worried, but I just thought they were giving me one extra month and I'd have one big bill in August. So, I get my statement for August and it indicates that I "missed" July's payment and I have to pay interest. What should I do:

1) call the phoneline and tell them my story. I don't know if they'll believe me. They'll probably think I'm just trying to avoid interest; or

2) pay the whole bill (which is not a problem) and then call up the company and file my complaint? But since I paid the bill, can they do anything about it?

I would call them and explain what happened. In my experience, you have a good chance of them believing you about what happened; it sounds like you opened the account at the wrong time in the billing cycle, which caused the overlap and the missed bill. But definitely call them and try to get the card to take the interest off, as well as the late-payment ding.

[Deleted]

I only have two cards, Capitol One and Discover. When my money comes in later this month my goal is to pay off the smaller one (Capitol, $400), cancel it, and then work each month to reduce the Discover card little by little. In my experience, Capitol One couldn't give a shit. If I was late on a payment they just charged me. But Discover is actually pretty clingy - I made one payment late and a woman from Discover actually called me.

I hate credit cards. I only opened the Discover account because I was broke earlier this summer and literally needed something with which to buy food.

[sleepy]

If you just really don't want to have credit cards at all, Poorfrances, then ignore what I'm about to say. I was just reading that you do NOT want to cancel your card once you pay it off (unless you have a bajillion cards). You'll have better credit if it looks like you're not using all the credit that is available to you. So, imagine two scenarios:

• You owe $500 on one card, $100 on another. Both are open.
  
  OR
  
  
• You owe $500 on one card, and have paid off and closed the other.
  

From what I read, it seemed that the first scenario is better for your credit rating (assuming you pay on time and don't go over your limit). I'm not explaining it well, but the point is that you have more credit available to you that you aren't using. I don't know if that makes any sense.

[chonies]

Everything I've read about credit corroborates Sleepy's scenario. Also, since credit extends to things beyond cards, such buying houses and large appliances, and to some extent background checks, the better scenario is to have two open accounts even if there are low balances because closing an account hits you on your credit report.

Of course, if you don't want the credit cards at all, just pay off and close them.

I was thinking that since meme76 has a brand new account, she might have some luck with what seems to be a weird situation. It's worth a shot, although credit card companies aren't always known for spreading teddy bears and chocolates.

[Deleted]

Hmm, interesting advice guys. Maybe I will leave it open after I pay it off. I think it expires next year though, anyway, so maybe I'll just let that one expire.

[bossyboots]

Sleepy's right. It's called your "utilization" -- the ratio of available credit to actual outstanding balances. The higher the ratio, the more negative its effect on your credit score. I think it's because the assumption is that high balances = maxed out which isn't always the case: you could use your full limit but pay the card off monthly. It seems the credit bureau can't tell the difference.

poorfrances do you have a safe deposit box or somewhere not easily accessible in which to store the credit card? I'd keep it open and go that route. Besides, as evil as credit cards may be for some, it is sometimes nice to have access to credit when in an emergency.