Discover approved me!?!?

[pris72]

No need to take your anger out on others. We're all grown here, and know what we're doing. None of us can see what the future holds for us, as most people I know who have had to file 7 or 13 had to do so due to unforseen circumstances. I can't say that I have met one person who is happy that they had to file BK. Things in my household have changed quite a bit. Savings accounts(yes more than 1) opened with a CU, credit cards are pretty much paid off each month. I do not want to pay the entire balance off every month, as that could hurt my FICO score more than carrying a little bit of a balance. Just in 4 short months I have managed to boost my FICO score up almost 100 points, and I am proud of that. I only want to see it continue to rise from here, so that the ultimate goal of buying a home can become a reality.

[Logan]

Just use your card then pay it off on the due date and it does the same thing. Please STOP paying these companies interest!!!

Build Credit With A Balance

One of the most popular credit score myths is that you need to carry a balance in order to build credit. Fortunately, that's not true. In reality, 35% of your credit score is based on your payment history and creditors don't care whether you carry a balance or not. In fact, your credit cards will report your statement balance each month with no other information. No one knows, or cares, whether you've carried a balance from month to month or just racked up the charges on the statement in the last month.

You are building credit, based on your payment history and your balance, regardless of whether or not you pay interest to the credit card companies. The effect on your credit remains the same.

Source: http://money.usnews.com/money/blogs/...ore-myths.html

[pris72]

I do not know if that is entirely true, as I get instant alerts to my cell phone anytime there is a change on my credit report or with my FICO score. My score did go up some when carrying a little bit of a balance on my cards, from what it was when I had the full credit limit on them. My FICO score went up another 6 points yesterday. I got the text around 8pm last night. I pay for a monthly service, because I am staying right on top of my credit this go around. I learned my lesson in the past.

[backtoschool]

The only way to rebuild credit scores is to have active tradelines. Fico models on credit usage, not credit avoidance and fear. Those who rebuild their credit and use cards and pay them off will have much higher scores over the same time period than those who avoid opening new, positive trade lines. Much higher scores lead to much better interest rates. As I have posted in the auto finance forum, I just was granted a 24k new auto loan at 4.42% for 60 months with Capital One. I would have never gotten that rate ten months post discharge if I had not rebuilt my credit. That rate it saving me $100-$200 a month over what the typical rate would be for someone ten months post discharge that has not repaired their credit. That is money that can go directly in my savings account and my retirement account. It does pay to repair credit post bk.

[Logan]

I do not know if that is entirely true, as I get instant alerts to my cell phone anytime there is a change on my credit report or with my FICO score. My score did go up some when carrying a little bit of a balance on my cards, from what it was when I had the full credit limit on them. My FICO score went up another 6 points yesterday. I got the text around 8pm last night. I pay for a monthly service, because I am staying right on top of my credit this go around. I learned my lesson in the past.

Pris72, I pay my credit card on the due date so there IS a balance every month. I just pay the statement balance in full so there are NO interest payments. I never have a 0 balance and FICO has no idea whether or not I pay interest. They only know that I have a balance and I pay my credit card on time.

[Logan]

The only way to rebuild credit scores is to have active tradelines. Fico models on credit usage, not credit avoidance and fear. Those who rebuild their credit and use cards and pay them off will have much higher scores over the same time period than those who avoid opening new, positive trade lines. Much higher scores lead to much better interest rates. As I have posted in the auto finance forum, I just was granted a 24k new auto loan at 4.42% for 60 months with Capital One. I would have never gotten that rate ten months post discharge if I had not rebuilt my credit. That rate it saving me $100-$200 a month over what the typical rate would be for someone ten months post discharge that has not repaired their credit. That is money that can go directly in my savings account and my retirement account. It does pay to repair credit post bk.

See above post.

I have never paid interest but there is always a balance on my credit report. My scores are in the 700's and I'm coming up on 3 years post discharge. It's working for me so should work for you.

[Logan]

Just for clarification. If I charge $1000 today I will get a statement on or around the 27th showing a balance of $1000 and a min payment of ??? maybe $20.
On the 28th if I check my credit report it will show that I owe $1000.
I then make a charge for $500 on the 29th.
On the statement due date--usually the 23rd I will make a payment of $1000.
On the 27th when my next statement comes out it will show that I owe $500 and the next day it will show I owe $500 on my credit report.

That is what the above reference states and the way to 'carry' a balance without paying interest.

If you want to pay the bank interest go right ahead but it isn't doing you any good.

Logan

[backtoschool]

I think we are saying the same thing Logan. I pay in full, but am willing to carry a small balance if I miss the statement cut off. I was replying to people who say that credit repair is not necessary. I think you and I agree that it works.

[pris72]

The only way to rebuild credit scores is to have active tradelines. Fico models on credit usage, not credit avoidance and fear. Those who rebuild their credit and use cards and pay them off will have much higher scores over the same time period than those who avoid opening new, positive trade lines. Much higher scores lead to much better interest rates. As I have posted in the auto finance forum, I just was granted a 24k new auto loan at 4.42% for 60 months with Capital One. I would have never gotten that rate ten months post discharge if I had not rebuilt my credit. That rate it saving me $100-$200 a month over what the typical rate would be for someone ten months post discharge that has not repaired their credit. That is money that can go directly in my savings account and my retirement account. It does pay to repair credit post bk.

Yes it does pay to repair credit. I was really in shock when I saw my FICO score last week, because it had jumped up so much from the date of our discharge. I got a few credit cards, and what I do is pay on them weekly. Say I charge something at walmart, I turn around and pay that back the following week. So far I have not even received any bills, because this is how I have been doing it. It always shows up as no payment due, even though I may have a charge on it. I could pay cash, but I want to build up my credit for my final goal of buying a house in 2012. I really only have one card right now that I need to pay off, but I did make a payment on it this past weekend. I used it when I was on vacation for my kids to play putt putt, ride go carts and go to the aquarium in Gatlinburg. Other than that my other cards are almost paid back down to zero. I had a pitiful FICO score this time last yr. Upper 400's to around 505. I am up to 635 now with equifax. I need to get that stinking transunion score up more. I do not understand why that score is still in the 500's when exp and eq are both right around the same? Everything is the same on all 3, because I checked incase I needed to dispute any info on them.

[Logan]

I think we are saying the same thing Logan. I pay in full, but am willing to carry a small balance if I miss the statement cut off. I was replying to people who say that credit repair is not necessary. I think you and I agree that it works.

Some people think you have to pay interest to get more improvement in their credit scores. Oh well--if they want to throw away money they can go right ahead.

Logan