Money and Finance

[cruising]

Thanks, it's a good idea.

[Babycakes]

I've dished it, now I need to take it.

I got into major debt in my 20s with over 10 credits cards. Some I payed off, others I let get charged off. I haven't used a credit card in 9 years. Everything I pay for is in cash. If I can't afford to buy it with my debit card, I don't get it. Period. I've learned to live lean in the past decade. I rarely splurge, and I don't even travel anymore. I've been trying to rebuild my credit and have been slowly increasing my credit rating. At last check of my credit report, I was in the low 700s.

I got a credit card offer in the mail the other day, and I am wondering should I accept. I don't really need it, but I think it would boost my credit even higher if I got it, maintained a low balance, and paid it regularly each month. I now have the knowledge and discipline not to make the same mistake again, but I'm still wary.

It has a 0% APR for 12 months, and then goes to 13.99% . It has no annual fee, but would charge $25 if I don't make at least one purchase.

Should I go for it Greecies? Is that a decent offer?

[lpatrice]

I would take it Babycakes, just buy something once or twice a year and pay the balance right away. It will do wonders for your credit score. One thing I learned from a roommate of mine, who had credit cards but did actually pay the entire balance every month, was to go ahead and deduct the amount from checking account as soon as you charged it to the card -- and then it was gone and could not be used for something else. Then just take that money to pay the card every month. Actually my friend would pay the balance every two weeks, which is possible now with online bill pay and stuff.

[Witchie]

I would take it too. I was in the same situation that you were in. I accepted 2 credit card offers, low interest rates & low balances. My credit score has improved, which helped me to get a lower interest rate on my car loan.

[Babycakes]

Thanks for the advise guys! That's ultimately what I wanted to do as well, Witchie. But with the price of gas in the Chi right now I might as well put off getting a new car for a while.

[chonies]

Babycakes, how long is the period for purchases? If it's a year, I'd say go for it. Also, double check the name of the bank underwriting it. If it's a major name, you're probably fine.

[Babycakes]

Mar 21, 2011 10:18:36 GMT -4 chonies said:

Babycakes, how long is the period for purchases? If it's a year, I'd say go for it. Also, double check the name of the bank underwriting it. If it's a major name, you're probably fine.

It's from a major bank (US Bank), and the 0% APR is for purchases and balance transfers for 12 billing cycles. Then it goes to 13.99% with no annual fee.

I'm 95% sure I'm going to take it, I've read ALL the fine print twice, but I was hoping to find something a little lower, maybe an 11 or 12%. But you'd probably need a credit score of a least 800 for something lower than that. My mother has a CS in the high 800s and she has a card with a 9% APR.

[cruising]

I have damn near perfect credit, and I don't have that interest rate. I could fight for a lower rate, but I don't care. The main reason for that is because I pay off my balance every month.

13.99% appears to be about right. Eventually, if you are a good girl, they will throw you a bone, and offer a teaser rate for a year, if you use the checks to buy or balance transfer.

[thingee]

Really? I have a below-average credit score (HUGE student loan debt and some missed loan payments 5-6 years ago. Durr.) My two credit cards are 9.15% and 11.9%. The second one was around 18% but I called and asked for a better rate, and they obliged. I have never missed a CC payment and have been with these banks for ~15 years, so I guess that helps. But it certainly doesn't hurt to call and ask for a better rate.

[Xerox]

I need some bank advice.

I have a checking account with Wachovia and I want to close it. I've already opened a new checking account with a credit union. I have about $164 in the Wachovia account. I'd like to close it without being stuck with some kind of penalty. Someone suggested that I withdraw the money or write a check to myself for the amount in the account and cash or deposit it, reducing my balance to 0 and Wachovia will close the account themselves. If I do that, will I be charged a fee or get a ding on my credit record?