Helpful And Educational Information.......reference Credit.

Discussion in 'Financial Planning' started by Sourdough, Jul 18, 2019.

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  1. Sourdough

    Sourdough "eleutheromaniac"
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    This thread is only for "Educational" information about how credit systems work, how to prudently close credit accounts, etc.. In general this is NOT the thread to RANT about your loathing of anything involving credit.

    The following thread is for all things negative reference debt or credit.....https://mysurvivalforum.com/threads...redit-cards-please-rant-here.6780/#post-51991

    Please.....Please only educational and useful information.........Please.
     
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  2. Sourdough

    Sourdough "eleutheromaniac"
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    Canceling a credit card is easy, but if you do it, do it right.

    • Close just one account at a time, even if you’re closing several. First, cancel cards that charge you fees. Also, it’s better to cancel new cards before old ones. And you may want to keep cards with good rewards programs.
    • Before you close an account, pay off your balance or transfer it elsewhere. If you try to cancel a card while it still has a balance on it, you might end up paying nasty fees and high interest rates.
    • Contact your credit card company. You can cancel some accounts online, which is convenient because often when you try to cancel by phone, the sales rep will do his best to talk you into staying. If this happens, be firm.
    • Send written confirmation. Follow up by writing a letter like this one to the card issuer.
    • Watch your credit report. It may take several weeks for changes to appear on your credit report. It’s your responsibility to be sure the report is accurate, so keep tabs on it. You may also want to watch your credit score to see if canceling the card did any damage.
    • When you’re certain the account is closed, cut up your card.
    Be aware that canceling a credit card may actually hurt your credit score. Part of your score is based on how much of your available credit you actually use; this is your credit utilization ratio. When you close a card, this ratio jumps because you’re using more of your valuable credit. And when this ratio jumps, your credit score goes down. (Also note that the longer you’ve had an account, the more you’ll affect your credit score by closing it.)

    Extracted from: http://business.time.com/2011/10/03/how-to-cancel-a-credit-card-wisely/
     
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  3. Sourdough

    Sourdough "eleutheromaniac"
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    I am hoping we can keep this thread only about educational information reference credit. As some know I am in a large transition in my life. I don't want to do it but, I must. So I was getting ready to deal with things the way I have for nearly 73 years, that being fast get'er done........deal with the ramifications later.

    Some how I was talking with one of my credit card companies, one that I have enjoyed my relationship with for many decades. And I was surprised at how many assumptions about credit I was deeply wrong about.

    So I am hoping to learn positive knowledge about credit from this thread. Please help make this a positive and "EDUCATIONAL" thread, and with hold all negative rants, or if you can't with hold them please post them in the following thread:https://mysurvivalforum.com/threads...redit-cards-please-rant-here.6780/#post-51991
     
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  4. Sourdough

    Sourdough "eleutheromaniac"
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    Managing your "SURVIVAL CREDIT"........What exactly is a credit score composed of.....??? I found this, but please post any additional information.

    https://www.bankrate.com/credit-cards/what-is-a-credit-score/

    Excerpt:

    What you need to know about your credit score

    How your credit score is measured
    Your FICO score is based on the following five categories as they appear on your credit report:

    • Payment history: 35 percent of your credit score is measured by whether you make regular on-time payments on your debt. This includes credit card debt as well as mortgage debt, car loans, student loans and so on. Late payments and delinquencies lower your credit score.
    • Credit utilization: 30 percent of your credit score is measured by how much of your available credit is currently being used. If you have a credit card with a $10,000 credit limit, having a $9,000 balance is worse for your credit score than having a $1,000 balance. Improving your credit utilization by paying off your balance is one of the quickest ways to boost your credit score.
    • Length of credit history: 15 percent of your credit score is measured by how long your credit accounts have been open, and how long it’s been since you’ve been active on those accounts. This is why you should think twice before closing an old credit card. Keeping those old cards active can increase your length of credit history and raise your credit score.
    • Types of credit used: 10 percent of your credit score is measured by the mix of accounts you have, such as revolving (like credit cards) and installment (like a mortgage or loan). Having multiple types of credit accounts shows that you can be responsible with multiple types of credit. However, you shouldn’t worry too much if you only have one type of credit account. You don’t need both a mortgage and a credit card to have an excellent credit score.
    • New credit: The last 10 percent of your credit score is measured by whether you’ve recently requested or received new credit. If you request new credit too often—or if you apply for new credit and are turned down—your score can drop.
    Personal or demographic information such as age, race, address, marital status, income and employment don’t affect your credit score.
     
    Last edited: Jul 18, 2019
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  5. Sourdough

    Sourdough "eleutheromaniac"
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    I recently learned that cards that charge interest, that balance can be moved to cards that charge ZERO interest.

    So last week I was talking to one of the banks I do business with about the changes coming in my life. And they thanked me for being a loyal credit card customer for thirty some years. And they are very sorry, they don't have any flexibility with that card, because it is tied to an Airlines Mileage program. But they had some helpful solutions.

    Three business days later I get a new credit card from that same bank. Now here is what is interesting. I called them, to activate the card, and ask if the new card credit limit can be raised.........no.....bla, bla, bla, bla. So I asked if I could just cancel the new card, because my existing card with them had a massive credit limit, that I only use a few hundred dollars a month and pay off every month.

    They said.......wait.....what if we move an amount of the credit limit from your other card to your new card...??? Me....."You can do that"....??

    So I have a new card with no interest for 18 months, and a high credit limit, should I need that. I'll keep the old card active for monthly utility bills, because that card ups my credit score, because it has a thirty some year history.
     
    Last edited: Jul 18, 2019
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  6. TMT Tactical

    TMT Tactical The Great Lizard ! Staff Member
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    Good info IBME. Thanks for posting. I am sure there are folks here that could use this info.
     
  7. Sourdough

    Sourdough "eleutheromaniac"
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    If anyone thinks you don't need "Survival Credit".......ask forum member "Buggy'out" about the knock on the door, and being told, "You have 15 minutes to evacuate". Then everything went up in flames.......everything.
     
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  8. TMT Tactical

    TMT Tactical The Great Lizard ! Staff Member
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    AND that is the main reason we have one credit card. There is only so much cash I wish to keep on hand. Plus I like the idea of using their money for a month, free of charge and the added feature of the perks. BUT you must be disciplined enough to only use it for purchases your ALREADY have the cash to buy. If I can buy it with cash, I sure as heck won't charge it, unless it is an super emergency, as posted by IBME.
     
  9. Sonofliberty

    Sonofliberty Master Survivalist
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    I don't do credit anymore. If I have to evac, I usually have thousands in cash on me or physically accessible. I don't mean in the bank or ATM. I do have a basic checking account now, but that is just temporary until I have bought some stuff on my list that is just not available locally.
    Credit is easy to get, if you really want it. Even if you have damaged your credit it is fairly easy to get credit again. The one myth I would like to dispel is that credit is "necessary". Credit is really just a measurement of your ability to accumulate debt. Do you really want to accumulate debt? My answer is no.
     
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  10. Sourdough

    Sourdough "eleutheromaniac"
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    It is more a measure of your integrity, your creditability as an individual with-in society.
    Many things which we use are priced based on our credit score. Vehicle insurance and several other types of insurance are priced to you based on your credit score. Even rent, and the deposit amount required is based one your credit score.
     
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  11. Pragmatist

    Pragmatist Master Survivalist
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    Good afternoon IBME,

    Ref: "vehicle insurance ... priced ... based on your credit score";

    I don't keep up with this but the prior Administration had us witness some changes not exclusively priced on credit scores.

    New York state has the largest market and state regulatory apparatus over insurance. Bias is now illegal in pricing especially against racial minorities and other protected groups.

    In some states it is unlawful to use credit scores for insurance pricing. This year, California (How can New York be mentioned without mentioning California ?!) excludes the use of a driver's sex in setting premiums. Apparently it is known to the State of California that high school parking lots show boys and girls with cars having the same driving skills and habits.
     
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