Answers
I've just recently taken on an Auto Loan and a Chase Rewards credit card, as my credit is very lacking (I have no debt, but no credit).
I'm a little confused as to the process of "Paying off" my credit card at the end of each month.
This is where it seems convoluted to me:
I make multiple payments each month (2-3) as I make purchases. I primarily use this Credit Card for purchases which I USED to pay with my Visa Check card (directly from checking, limited credit earned).
Since I use this as my (gas, groceries, small purchases) I'm using it almost every day, or at least 4 times a week.
I received my first statement, and on it my "New Balance" is 115.80. (I just made an electronic payment for this amount over the weekend). This payment, or the minimum, is due 10/20/09.
Since I made the 115.80 payment which was my new balance on the statement, am I technically "Paid in full" for this billing cycle?
My outstanding balance as of this very minute is higher than that statement balance, since I have a few other charges.
I'm assuming that in order to avoid finance charges, I Just have to pay the statement in full, and not the balance?
How can I possibly bring the balance to 0 at the end of every month, if I'm perpetually adding small charges to it? Will I really be charged interest if by 10/20/2009 my balance is not 0?
Your doing it right, you will always have a small balance due to the difference between the billing date and the due date, but as long as you pay the full balance due on time you will never be charged interest.
Keep up the good work and your credit will improve very fast.
EDIT: I have found out that YOU RECIEVE 200 ADDITIONAL POINTS AND A TRADE CREDIT FREE when you complete your first offer by spending those 100 ...
I am working diligently to pay off my debt. I currently have 6 credit cards and one Auto Loan opened in 3/2007
Capital One opened in 5/2004
Chase opened in 4/2005
Capital One opened in 7/2005
Bank of American opened in 7/2005
DMB/ HSBC opened in 7/2006
GAP 4/2008 Opened without permission- have since canceled
The one I need to close is DMB/HSBC. I have two years good history with them, and it is my highest credit limit but it is RIDICULOUS to pay $59 a year to maintain this card with no rewards. Is canceling the card going to hurt my credit score terribly?
All cards are paid before their due date and also atleast a few dollars over the minimum payment.
Please note: I am not able to pay off this card right now. I will be closing to get the Annual Fee credited back to the account. I will be working harder at getting it paid off shortly following.
There comes a time when FICO scores really don't matter. Scores change as we go through life. Scores only matter if you are applying for new credit, auto loan or mortgage. If you're not applying, then worry about a score should not be on your mind!
Definately lose the $59 card. It is not helping you better your life, so you don't need it. Use only cards that benefit you.
Your next oldest card is in 2005. That's only one year difference.
FICO scores go up as you pay off the debt.
Closing that account will not affect you as much as you think. You already have 24 months of credit history.
You're paying them off. This alone is a huge step in raising your score, so keep up the good work.
Alternative Payments Vendors That Embrace Triangle of Value are in the ...
Due to recent decline in credit card usage and consumers adopting real-time banking strategies, alternative payment solutions are becoming exceedingly mainstream and gaining market share. Alternative payments vendors are taking advantage of the “perfect storm” of economic and competitive factors affecting the payments landscape, and are continually gaining momentum within our existing payments system.
PayPal and BillMeLater—now both under the eBay umbrella—are prominent examples of the success of non-traditional payment systems that have emerged to usurp both revenue and market presence from financial institutions and associate network brands. Upstart hybrids such as Google Checkout and an array of products and platforms from the likes of Amazon.com provide a further quandary for financial institutions. While utilizing traditional online payment mechanisms, credit and debit cards, they also take away brand recognition from those traditional brands (the transaction becomes a Google Checkout transaction rather that a Visa or MasterCard checkout transaction), placing it squarely with a frightening and largely unknown competitor in the payments arena.
Bank of America to Impose Annual Fees on Some Credit Cardholders ...
, Allan Sloan writes about how the government has deliberately ripped off responsible people to bail out irresponsible people over the last year, by spending trillions of dollars to force down interest rates. That has resulted in extremely low interest rates on savings accounts and bonds, while also, to a lesser extent, reducing interest rates paid by irresponsible borrowers, despite their rising default rates.
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