Wednesday, November 29, 2006

Credit Card Update

After a little bit of searching personal finance blogs, I came upon a couple of articles that noted that most companies' automatic card increase links don't trigger a hard credit pull, so I tried that. I requested a $200 increase, and by 8 this morning had been notified that I got a $100 increase, to a total limit of $500. Pretty good, considering I've had the card for two months. I think I'll also be applying for an American Express Blue card. That should get me set for credit--I don't see much of a reason to have more than one Visa (it's a Chase Freedom) and one American Express, and I like both cards. Neither has an annual fee and both have pretty good rewards programs, so that works for me.

On commentors' advice, I'll pay the $5.95 shipping charge just to clear the proverbial deck. My concern was that paying it would reduce my leverage with the company, or my drive to have the charge reversed, or both, but given that I'm already in touch with customer service, I think it'll be okay. I'll schedule a payment today for tomorrow. Thanks for your advice!


credit card debt said...

Don't get too many credit cards and don't strech your credit limit too much. That will hurt your credit score.

credit card adviser said...

This is what I would do/ have done.
Figure out what you owe on your credit cards, plus the rates your being charged. Note the due dates also.
Figure out what your periodic debit is (phone, rent, etc…).
Figure out what your flexible budget items are (food, pleasures, etc…).
Total it up, and now figure out what your income is.
Call each credit card company and ask for two things. *Ask for a lower rate. * Second, ask what their balance transfer options are. If one of your existing cards can offer a great rate with minimal charge, consider consolidating your debit. But do it only if you can pay it off on time.

Each three months ask for a lower rate. It can’t hurt to ask. If your credit card companies increase your credit, call them up and lower it! Keep doing it so you don’t add more credit. But don’t go so low, that your interest puts you over the top.

1. Pay your rent and necessary utilities.

2. Cancel things you don’t need. If you have a cell phone and a home phone, can you do with out one? Do you need cable? Vices? .. Etc.

3. Set aside money for necessary items like food, and a little fun money. Use the fun money as a reward when you don’t spend money. Perhaps a coffee drink or a movie.

4. Take a look at your credit cards. You might do better paying off a smaller debit. It will give you a sense of accomplishment. If not, work out a payment plan where you won’t get dinged by your lien holders. Don’t just pay the minimum if you can. Pay a bit over, perhaps $50 or 33% more. Credit card companies get ancy if people pay off only minimums. Focus on one debit and knock it down.