andreasj64

4 Contributions 3 People Helped

Member Since: April 2012

Most Helpful Contribution

How Many Credit Accounts Should I Have?

Oct 01, 2015
Helpful to 2 out of 2 people

I just wanted to give my 3 cents on the subject.  If you don't care about your credit scores, why did any of you open an account on Credit Karma and why are you posting comments?

I've got a lot of credit cards.  I didn't set out to get a lot, but I couldn't resist the deals.  For example, I was buying some parts for a bike on amazon which amounted to about $70.  An offer popped up from Amazon about a $50 credit if I signed up for, and used their card on the purchase.  Why not?  Sign me up!

 Another purchase decision I made was at a furniture store, which offered a 3 year no interest deal on a store credit card.  Why not use their money instead of my savings?  I collect interest while I pay them back cash over three years.  Why not?  Sign me up!

And another recent purchase was a surface pro from Best Buy.  One year, no interst.  Done!

The point is, there are a heck of a lot of deals out there.  I pay no interest on any of my purchase, get money from credit card companies, and use their money over the short term while keeping mine in my account as long as possible.  It just makes smart financial sense if you manage your money properly.  On the surface pro for example, what difference does it make how or when I pay it, as I'm not being charged more than what it's worth?   I just set the autopay on my bestbuy card calculated to pay it off before the deal expires.  Why not?

And what about all those cash back reward cards?  3% back on groceries, 2% back on gas, 2% back on dining out, etc, etc.  If you truly manage your money well, take advantage of the deals.  The way we can manage money online makes saving it easier and easier.  15 years ago when I was writing checks, no way.  I wouldn't even consider any of this, but now I can automate the process and maximize my return. 

Yes, I get dinged every time I open a new account.  So what?  I truly don't care about my credit score to the umpth degree, but I do care.  I want the best deal I can get which measn having a high good to mid excellent rating.  It's all about getting the most for the least.

That said, the credit ratings system is idiotic.  Why do I get dinged for being smart with my money, and caring what rate I pay? Shopping rates and moving debt to save money is just smart financially.  If I can save a point or two on a car loan or mortgage, I opening another loan pronto.  Same goes with no interest deals and cash back on credit cards.

The credit rating system is designed to invoke fear in the consumer.  It's designed to keep you parked with one lender, regardless of how bad they're ripping you off.  Find a better rate and move your debt, and you're penalized by the rating system for making a smart decision to move your debt.

I don't worry about it, ever.  If it saves me a nickel, I'm dumping the creditor. 

Activity (4 Total Contributions)

How Many Credit Accounts Should I Have?

Oct 01, 2015
Helpful to 2 out of 2 people

I just wanted to give my 3 cents on the subject.  If you don't care about your credit scores, why did any of you open an account on Credit Karma and why are you posting comments?

I've got a lot of credit cards.  I didn't set out to get a lot, but I couldn't resist the deals.  For example, I was buying some parts for a bike on amazon which amounted to about $70.  An offer popped up from Amazon about a $50 credit if I signed up for, and used their card on the purchase.  Why not?  Sign me up!

 Another purchase decision I made was at a furniture store, which offered a 3 year no interest deal on a store credit card.  Why not use their money instead of my savings?  I collect interest while I pay them back cash over three years.  Why not?  Sign me up!

And another recent purchase was a surface pro from Best Buy.  One year, no interst.  Done!

The point is, there are a heck of a lot of deals out there.  I pay no interest on any of my purchase, get money from credit card companies, and use their money over the short term while keeping mine in my account as long as possible.  It just makes smart financial sense if you manage your money properly.  On the surface pro for example, what difference does it make how or when I pay it, as I'm not being charged more than what it's worth?   I just set the autopay on my bestbuy card calculated to pay it off before the deal expires.  Why not?

And what about all those cash back reward cards?  3% back on groceries, 2% back on gas, 2% back on dining out, etc, etc.  If you truly manage your money well, take advantage of the deals.  The way we can manage money online makes saving it easier and easier.  15 years ago when I was writing checks, no way.  I wouldn't even consider any of this, but now I can automate the process and maximize my return. 

Yes, I get dinged every time I open a new account.  So what?  I truly don't care about my credit score to the umpth degree, but I do care.  I want the best deal I can get which measn having a high good to mid excellent rating.  It's all about getting the most for the least.

That said, the credit ratings system is idiotic.  Why do I get dinged for being smart with my money, and caring what rate I pay? Shopping rates and moving debt to save money is just smart financially.  If I can save a point or two on a car loan or mortgage, I opening another loan pronto.  Same goes with no interest deals and cash back on credit cards.

The credit rating system is designed to invoke fear in the consumer.  It's designed to keep you parked with one lender, regardless of how bad they're ripping you off.  Find a better rate and move your debt, and you're penalized by the rating system for making a smart decision to move your debt.

I don't worry about it, ever.  If it saves me a nickel, I'm dumping the creditor. 

Why Your Credit Score Matters

Oct 01, 2015
Helpful to 1 out of 1 people

The point Gary is making is that you shouldn't be penalized for making smart financial decisions.  If we were able to shop rates, dump useless cards, move debt, open new accounts, etc, without being penalized, we'd force competition and lower rates.  The rating system does not benefit consumers.  It's designed by the lending companies to invoke fear and complacency in consumers.  They don't want you to move your debt for a better rate.  They want you to fear credit ratings to keep you complacent, regardless of how much you could save getting a better deal elswhere after the fact.  It makes sense for Gary to use the best card, because he's getting the best return on his spending habits. 

I think Birdman330 makes my point perfectly clear.  " stop using so much on one card, Stop "shopping"  This is common credit score sense."

Stop shopping?  Really?  That is exactly what the creditors want you to think Birdman330. 

Credit scores aren't a game where high score wins.  Your objective is to be somewhere between 720 and 800.  I have 35 accounts and a 761 transunion credit score and a 725 equifax.  I am satisfied with where I'm at.  I'd like the equifax a bit higher, but they hit me with 15 inquiries.  I regulary open cards when there's a deal in it for me.  I move loans as well.  For example, I bought some bike parts on Amazon for $70.  They had an offer of $50 if I opened an Amazon card.  I took it.  Another example was some furniture I bought.  3 years no interest.  I took it.  Why not keep my money in my account as long as possible?   Although I don't get a lot of interest in my savings, it still beats no interest.  Either way I was going to spend the same amount on my furniture, so why not spend it slowly?  I also moved a car loan recently to save 1.5%.  Why not?  It didn't cost me anything but time, and it dropped my payment a little.  Over time it's a few hundred bucks. 

It's all about managing your money properly.  I manage mine well.  My credit card utilization is 4%-6%, and I pay 0 interest.  I try to make money off my cards whenever possible, and pay them off before interest hits.  If there's some introductory offer when I go to spend a chunk of money, I take advantage of it.  I pay bills with my credit cards, like my cell phone and cable bill, and then pay them off automatically when the statement comes out.  It's easier to manage your money with all the automated tools.  I wouldn't ever do that when I was writing checks.   

I don't worry about my credit score all the time.  I watch it and pay attention, but I'm not trying to move it above 800.  There's no real benefit to me.  I get the same great deals where I'm at. 

How Many Credit Accounts Should I Have?

Oct 01, 2015

@Crabjoe...  As long as you're saving money Joe, don't worry about it.  I have 35 accounts on my report, with a credit score of 761.  I have 15 credit inquires, and a 3.6 year history (I'm fricken 50, are you kidding me!!).  4% utlization.  0 late payments.  0 derogatory marks.  Trying to achieve the highest possible credit rating is a complete waste of effort, and will cost you money.  Just try to hold it somewhere in the high good to low excellent range.  If you're going for a long term loan, hold tight on borrowing prior and get your rating in the excellent territory for the best rate.  Maximize your return from the lendors.  But never ever worry about how high your rating gets.  >800 is just bragging rights, nothing more.  725-800 and you're wisely using your rating to your advantage.

Really think about it for a moment.  The rating system is designed to keep you parked with one lendor, regardless of the current rates or deals.  They penalize you for shopping rates.  They penalize you for opening new accounts.  They penalize you for closing accounts you no longer want or need.  It's all designed to make you fear change and stick with your original deal.  They don;t want you to leave them.  What they would really like is you to pay your bill every 35 days, while maintaining a solid 30% plus balance at whatever insane rate they're charging.  They also happen to penalize you for carrying too much debt, regardless of what you're paying on it.  that's to their advantage, because then they can raise the rate on what you're borrowing due to a poor credit rating making even more money.      

If you see a better rate on your car loan, take it.  If there's a better offer on a credit card then the one you're using, open it. If there's an introductory offer on a card that puts money in your pocket, take the money.  Cash back on gas, groceries, etc, use your card.  Think about it.  I spend a solid $70k a year on all sorts of things, including groceries and gas.  If I can save 2% to 3% on those daily expenses, why not?  That's $1400 - $2100 in my pocket, and credit score be ****ed.

You better know how to manage your money if you play the game though, but if you do truly know the secret to managing your own finanances, you'll save a lot.  It's definitely worth it.     

How Many Credit Accounts Should I Have?

Oct 01, 2015

@Crabjoe...  As long as you're saving money Joe, don't worry about it.  I have 35 accounts on my report, with a credit score of 761.  I have 15 credit inquires, and a 3.6 year history (I'm fricken 50, are you kidding me!!).  4% utlization.  0 late payments.  0 derogatory marks.  Trying to achieve the highest possible credit rating is a complete waste of effort, and will cost you money.  Just try to hold it somewhere in the high good to low excellent range.  If you're going for a long term loan, hold tight on borrowing prior and get your rating in the excellent territory for the best rate.  Maximize your return from the lendors.  But never ever worry about how high your rating gets.  >800 is just bragging rights, nothing more.  725-800 and you're wisely using your rating to your advantage.