Credit card took a hit !!! :)
nulesm
6 years ago
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Are credit cards ever paid off?
Comments (17)Thanks for all the info! It was a hard step to take out that equity loan because I knew that it is eating up the house. But I really saw no other alternative. I think I will call the CC that are sending me the "interest" bills to make sure I can get them paid off in 1 sweep. [Interest on a $20 balance that is never going to get paid off? That's the problem if I can't get an exact amount on an exact date].I am hoping that by doing this we'll have more $$ to put towards the equity loan and mortgage to pay them down-even if it's only a little bit each time. I do pay all my bills online (i.e. electronically) through their websites. I found out the hard way a few yars ago that to try to set it up from my bank that even though I put in the date I wanted something paid - it wasn't until the company came and "drew" the $$ (that the bank had put a hold on) which made a few bills late-took up to 5 days. So by paying them though the company's site I get a payment date on the date I request. I didn't set up the bi-weekly mortgage though Wells Fargo (even though they were offering it free) becuase I didn't want them "holding" my $$ for 2 wks until the 2nd draw then pay to the mortgage. I now am putting it in a separate bank account and I will electronically pay it each month-with me deciding to add the extra. (And this way if I can't afford extra the $$ is there for my emergencies). [Like the $432 vet bill for one of our dogs this week-unexpected illness yuck!] RA...See MoreMajor Credit Card Question
Comments (12)TT a couple of answers and questions... First, A debit card is not a debt obligation no matter the name stamped on the front so no it does not assist your credit score nor cause a negative effect. Secondly, it's not a major carrier card that is an issue, it's something called "revolving debt" (all credit cards qualify equally as revolving debt). It does not need to be a card with a VISA on it, sears is equally the same in the world of credit, it's revolving debt. So what they're looking at is how you use your revolving debt and how you pay it. You want your total revolving debt to not be a huge number, and you never want to be extended past 50% of your allowable limits (so if you have ten grand in revolving debt available you want to average under 5). So if you have some and it's not over extended and you've paid on time you're ok there. I don't expect you to tell me what the bumps are so I want to give you a few examples of "ok bumps" to see if it helps and a couple of not ok bumps so you can get the lay of the land there as well. So ok bumps are a couple of late pays (30 day maybe 60 but preferably 30 day late). Another would be over limit during that time, but paid down now. Collection accounts that are explainable but are paid now. And not many of those (like two would be tops). OK so it's a business loan...first, I'm having some email problems (someone got my password and has been screwing up my account) so don't email me any answers to these questions or anything (just in case...I don't want anyone's personal info mussed up). So I'm going to ask hypothetical questions as if you were at my desk but I 'm not expecting answers...I just want to make you think before you go in for the loan. OK first pull up your credit info (both of yours) and see what your scores are. If they're in the 700 you're ok...if they're in the 300's you are going to have a great deal of trouble with the business loan. Or as Rickie would say...you got some splain'in to do. How's your equity situation in the house? Would this loan fit in an under 80% scenario (loan to appraised or tax assessed value). A business loan with personal collateral is easier to get than a straight loan especially if you don't borrow much. Please tell me you report all ofyour business income and keep decent financials! I can't tell you how many loans i turned down that probably could have been approved if they actually reported their real earnings. What you say you get verses what you report...well that's between you and the IRS....as a banker I only care about what you report. What's your collateral? If there are assets (aside from personal) that helps, but don't expect a huge LTV on them. Receivables can be taken on a line of credit or loan via UCC if they're formally tracked and under 30 days (unless you do business for a major company who pays slower and you can prove that). What are your receivables? I mean be able to explain who owes you money, who pays you, who's your client, so the banker can make a judgement about your ability to continue working. All business loans are judged to be paid back from cash flow. Does your business cash flow support the repayment on this loan or are you counting on future cash flow from business that will be happening because of this loan. That's an issue...banks own on past history, not so much future history unless it's under contract. Is there a future contract? Bring it with you because it's support for the loan. If you're buying assets, know that the bank wants you in the game too. Many times businesses come in and ask for 100% financing for whatever and the bank's position is that if you're (the business owner) not willing to take a risk on you, why should they? Do you have five years of good financials? Three? IF there are solid profits, consistant earnings, it's easier. If you have huge ups and downs, be sure to be able to explain them. The bank will average the three years or five to determine what your cash flow is really like. And last but not least...know what you do for a living and who your competition is. You'd be amazed how many people used to come and and say "I"m gonna be a XXX" and I'd ask why they were going to be so much better of an XXX than the other 40 XXX's in town. Sell your business to the bank...why is your X so hot? Is it the oldest X, the best client service? What and what keeps you in business in this economy? I hope that helps some? The type of credit you're applying for makes a difference as well. A line of credit is harder to get than a term loan. Collateral counts, and what's the biggest thing....who the heck are you dealing with at the bank? Don't go in and ask a freaking teller for a business loan app. Wait and speak with a business banker (make an appt) don't deal with the 24 year old hottie in new york too hot for her job...oh wait another subject, but actually the same, skip the brainless front desk and ask for a business banker! I approved more loans that had been turned down by branch staff than you can imagine in my career, just because they didn't know what to ask, so when the package when it, they didn't know how to sell it to credit....See MoreFrozen Credit Card in Florida
Comments (20)Oakley: Was it a debit card? I wonder if debit cards have tighter rules. But then again, my ATM won't dispense more than a few hundred at a time. I'm sure the bank would say they don't want big spenders emptying them out and keeping other patrons from getting money. BLFenton: I get your point about building a credit record. But people can -- and do -- overdraft their accounts. Some people are responsible using them; others try to game the system. Banks have built-in mechanisms that allow them to permit the overdraft and then charge the user high fees to cover it. Some users don't even notice the charge part in their card agreement. (How can they not know they don't have enough funds to cover a purchase? One situation: similar to writing a check and thinking the bank has deposited your paycheck already when really it's on hold and hasn't 100% cleared.) Bank of America, not too long ago, settled a case about debit-card overdraft fees for $400million. Card issuers need to make money somehow on these debit cards, which are typically given to you for free with your bank account. Credit-card issuers, at least, can charge an annual fee. That's why Bank of America tried to start that $5 debit card fee....See MoreSuspicious Purchase on Credit Card
Comments (45)It happened to DW with our Debit credit card. We bank on line and pay 95% of our bills using on line banking. She notice a $20.00 purchase that we didn't make and notified the bank. The bank representitave told her that it was a good thing that we don't leave money in our checking account and that our over draft was maxed (Thanks to remodeling) They tried to make large pruchases from on line sites like Target, QVC, JC Penney's and Best Buy. Had we not picked up on this when we did they could have cleaned us out because the next day both our pay checks would have been directly deposited into the checking account. The bank credited our account $20 that day. Since then we now have our pay checks deposited into the saving account and tranfer it to checking as we need it. The odd thing about this is that we never use this account for online shopping. I think you stand bigger chance of fraud when using the credit card in a store rather then on line. DW set up our account so that we are alerted to any purchase made over $15. The alert message goes directly to her Blackberry so no matter where we are we are protected....See Morenulesm
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