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How does this affect my credit..?

How does this affect my credit..?

Old Feb 13th 2012, 8:43 am
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Default How does this affect my credit..?

So, I'm looking to reurn to the USA after a couple of years out (which followed my first couple of years in).

Whilst away, I have maintained a credit card with a balance ($10k limit, $8-9k balance).

So - I know it's a negative that the cc has been highly leveraged, but would imagine it'd be a positive that I have a bit of a history with on-time payments...

Does anyone have a view, overall, about how my cc might look?

No other activity re: US credit for a couple of years, but whilst out there I had a car loan with one late payment v early on and a Diners CC (also $10k limit) which was paid off every month to the tune of 2 - 3k.
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Old Feb 13th 2012, 11:36 am
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Default Re: How does this affect my credit..?

Originally Posted by lj2 View Post
So, I'm looking to reurn to the USA after a couple of years out (which followed my first couple of years in).
Why not just get yourself a credit report?

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Old Feb 13th 2012, 12:24 pm
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Default Re: How does this affect my credit..?

Originally Posted by ian-mstm View Post
Why not just get yourself a credit report?

Ian
Ian - thank you for your response.

Because my understanding is that to get one with a score costs money, and to get one without will just tell me what I already know...

Are you suggesting that one with a score will be worth the money? I have seen contradicting opinion on this board about the value of such a score. If you believe that is the best wy forward, do you have a suggestion as to which site/source would be a good one to use?
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Old Feb 13th 2012, 12:39 pm
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Default Re: How does this affect my credit..?

What does it matter? Are you wondering if you'll be able to get loans etc?
If you're looking to improve it, pay off the credit card balance. The late payment as it was so long ago won't have a really bad effect on the score if you haven't missed any payments since then.

I moniter my credit with experian. It's allowed me to keep an eye on it and make changes to my payments to improve it. This was important to me as I was trying to build up a credit history but I'm getting close to the point now where my credit is stable and I may stop subscribing to experian.
It seems to me that on-time payments count for a lot, but that your credit to debt ratio accounts for a large proportion of your day-to-day score. Increase your credit to debt ratio and you'll see your score improve.

I was amazed at how much effect the credit to debt ratio in any given month affects the score.
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Old Feb 13th 2012, 1:06 pm
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Default Re: How does this affect my credit..?

Originally Posted by lj2 View Post
Because my understanding is that to get one with a score costs money, and to get one without will just tell me what I already know...
Ah, so you're not actually looking for a credit report, but a FICO score. Yes... it'll cost you less than $10. That doesn't seem like an exhorbitant cost for some peace of mind!


Are you suggesting that one with a score will be worth the money?
Yes. Sheila and I get one each year from Experian along with our free credit reports.

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Old Feb 13th 2012, 1:39 pm
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Default Re: How does this affect my credit..?

Originally Posted by Bink View Post
What does it matter? Are you wondering if you'll be able to get loans etc?
In a way. Particularly, whether or not it would be easy to lease a car whilst out there (or get an HP type arrangement) or become a swappee in a lease swap arrangement.

If I had the capital to repay the cc, I would. I don't!
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Old Feb 13th 2012, 2:13 pm
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Default Re: How does this affect my credit..?

Originally Posted by lj2 View Post
In a way. Particularly, whether or not it would be easy to lease a car whilst out there (or get an HP type arrangement) or become a swappee in a lease swap arrangement.

If I had the capital to repay the cc, I would. I don't!
As you do have a credit history, you probably will, but the rate will probably not be very good.
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Old Feb 13th 2012, 6:36 pm
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Default Re: How does this affect my credit..?

Try getting a free report...can get 3 a year.

Score won't make any difference to ability to get a lease, it's the history. You've got history, so you shouldn't have a problem.
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Old Feb 15th 2012, 9:57 am
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Default Re: How does this affect my credit..?

Originally Posted by Bob View Post
Try getting a free report...can get 3 a year.

Score won't make any difference to ability to get a lease, it's the history. You've got history, so you shouldn't have a problem.
Thanks guys. Very helpful.
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Old Feb 15th 2012, 12:46 pm
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Default Re: How does this affect my credit..?

The general rule is that you want to keep your CC balance owed at less that 29% of your total limit. Above 29% and this will adversely affect your Credit Score.

Go to freecreditreport.com and you will find offers to get your score for free.

Hope this helps
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Old Feb 15th 2012, 7:13 pm
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Default Re: How does this affect my credit..?

Originally Posted by mikechristina View Post
The general rule is that you want to keep your CC balance owed at less that 29% of your total limit. Above 29% and this will adversely affect your Credit Score.

Go to freecreditreport.com and you will find offers to get your score for free.

Hope this helps
This whole 29% (or 25% is the other number I've heard bandied around) sucks. It's very difficult when you start out over here and you can only get $1000 or $1500 limit to stay at that kind of ratio. Any reasonable sized purchase affects your score. I know mine fluctuates depending on the time of the month they look at my balances and what I've bought that month. It seems crazy to me that it's not based on the average amount that you roll over each month rather than a spot check on your balances which may or may not be cleared.
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Old Feb 15th 2012, 7:47 pm
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Default Re: How does this affect my credit..?

Originally Posted by mikechristina View Post
The general rule is that you want to keep your CC balance owed at less that 29% of your total limit. Above 29% and this will adversely affect your Credit Score.

Go to freecreditreport.com and you will find offers to get your score for free.

Hope this helps
Don't go to that site ^ only go to annualcreditreport.com

Your score is meaningless until you apply for a loan or mortgage at which point the bank or lender has to give it to you.

For credit cards whatever proportion of your limit you spend make sure you pay it off in full every month.
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Old Feb 15th 2012, 8:46 pm
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Default Re: How does this affect my credit..?

Originally Posted by Bink View Post
This whole 29% (or 25% is the other number I've heard bandied around) sucks. It's very difficult when you start out over here and you can only get $1000 or $1500 limit to stay at that kind of ratio. Any reasonable sized purchase affects your score. I know mine fluctuates depending on the time of the month they look at my balances and what I've bought that month. It seems crazy to me that it's not based on the average amount that you roll over each month rather than a spot check on your balances which may or may not be cleared.
You alternatively could just use your debit card, you don't need to use the credit card to build up history.

If you do use the card, you don't have to pay it off when they send you the bill, you could just pay the balance the next day....so it's really not a issue.
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Old Feb 15th 2012, 9:16 pm
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Default Re: How does this affect my credit..?

Originally Posted by Bob View Post
You alternatively could just use your debit card, you don't need to use the credit card to build up history.

If you do use the card, you don't have to pay it off when they send you the bill, you could just pay the balance the next day....so it's really not a issue.
I don't wait until I get the bill, I normally pay it off within a day or two (the next time I go online to my account). My point is that if that happens to be the time in which they report the credit card balance it lowers the score for that month, despite the fact that it appears on the card and then gets paid off within only a few days. It's a flawed system as it doesn't reward those that use the system responsibly, it only looks at a snapshot that doesn't actually provide meaningful information to lenders.

And you're right, I could use my debit card, but sometimes it is nice to make a purchase on a cc and then pay it off a week later rather than have it come straight out of the account.
I thought that you did have to use the card for it to remain active though I don't know what the period that encompasses is (it may well be a year).

Last edited by Bink; Feb 15th 2012 at 9:17 pm. Reason: Idiotic grammar that even I couldn't leave in
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Old Feb 15th 2012, 10:26 pm
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Default Re: How does this affect my credit..?

Originally Posted by Bink View Post
I don't wait until I get the bill, I normally pay it off within a day or two (the next time I go online to my account). My point is that if that happens to be the time in which they report the credit card balance it lowers the score for that month, despite the fact that it appears on the card and then gets paid off within only a few days. It's a flawed system as it doesn't reward those that use the system responsibly, it only looks at a snapshot that doesn't actually provide meaningful information to lenders.

And you're right, I could use my debit card, but sometimes it is nice to make a purchase on a cc and then pay it off a week later rather than have it come straight out of the account.
I thought that you did have to use the card for it to remain active though I don't know what the period that encompasses is (it may well be a year).
It doesn't matter, it still means shit all.

They only report late payments after 30 days past due for the most part and if you are over extending your credit on a regular basis. The once or twice kind of deal makes absolutely no noticeable difference to your score and doesn't affect your history.
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