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Posted by: ChrisHI

What are some easy ways or good ways to start establishing good credit?


Posted by: tuffdog

pay ALL your bills on time or early... Try and get some small loans co-signed, maybe get some no risk Visa where you leave some money in a acount.. Took me 4 years and I went from a r6 to a r2.... good luck


Posted by: AlleyCat

Pay each month in full...not just the minimum


Posted by: joestedman

Have few credit cards...and pay the balance off when you can or adleast the min....BUT PAY ON TIME!


Posted by: joestedman

Oh! It is not the amount of credit cards you have, it is the spending habbits of a few. If you have a few cards you'll have more over-all credit available.

I have a friend who has tons of credit cards and pays on time. Makes alot of money. I have few credit cards pay on time. And my credit rating is alot higher than his...We were told I had more credit available because I had less cards.


Posted by: roopi

Quote:
Originally posted by tuffdog
pay ALL your bills on time or early... Try and get some small loans co-signed, maybe get some no risk Visa where you leave some money in a acount.. Took me 4 years and I went from a r6 to a r2.... good luck


how do you check your credit rating?


Posted by: eddie3390(",)

Quote:
Originally posted by ChrisHI
What are some easy ways or good ways to start establishing good credit?


i'm assuming that you don't have a credit card... what sux is that you usually need a good credit rating to get a credit card... if you're a student try to get one or two of those CIBC/MBNA/GM(TD)/etc cards... you don't have to stick to those cards for long since you'll have established a credit rating (as long as it's good!) after 6months... then you can apply for the cards you really want, or take out a loan or whatever...


Posted by: ChrisHI

How about like a joint account with one of your parents? Will that start you off as long as you have your name on the card?


Posted by: eddie3390(",)

Quote:
Originally posted by ChrisHI
How about like a joint account with one of your parents? Will that start you off as long as you have your name on the card?


i think that should help... that's what the teller at scotiabank told me to do... apply for a card, have one of your parents co-sign then after a half a year to a year, you can put the card wholly under your name just make sure you pay ontime otherwise you'll wreck your parent's credit rating


Posted by: joestedman

Quote:
Originally posted by roopi
how do you check your credit rating?
Equifax has an online site. For $8.95 they will run your full credit report. Also check your beacon score. The beacon score is a quick reference that banks and merchants use. Mine was 780. The higher the better.


Posted by: eddie3390(",)

Quote:
Originally posted by joestedman
Equifax has an online site. For $8.95 they will run your full credit report. Also check your beacon score. The beacon score is a quick reference that banks and merchants use. Mine was 780. The higher the better.


can i check my rating for free?

holy crap 10k+ posts! yo hofo freak!


Posted by: roopi

is that site good for Canada too?


Posted by: blucific

i prefer to pay the full balance every month, but it seems like that won't be happening this month.

will paying off the full balance OR paying the minimum requirement have the same effect on my credit rating?


Posted by: phredog

In the US, if you are denied credit, you are entitled to a free copy of your credit report. Well, in thoery you are. Sadly, the systerm works about as well as those stupid rebates. You get a lot of promise, but no check in the mail.


Posted by: zerokarma

If you have no credit at all and just starting out, most banks will still give you a credit card starting you off with $500 of credit.

Depending on your spending habits and payments in about a years time you can get that up to $1000 or higher.

That may not be much but its a start.


Posted by: eddie3390(",)

Quote:
Originally posted by tuffdog
pay ALL your bills on time or early... Try and get some small loans co-signed, maybe get some no risk Visa where you leave some money in a acount.. Took me 4 years and I went from a r6 to a r2.... good luck


what do r2 and r6 mean?


Posted by: joestedman

Also try some department stores. They have student credit cards. Has $500.00 limit and it is a good way to start your credit history.

Checkout some banks. Some banks will issue you a credit card if you open up a checking account with a $500.00 to $1200.00 balance. I would decline a debit card and request a regular credit card.


Posted by: SuperCM

Quote:
Originally posted by roopi
is that site good for Canada too?


For us Canadians, you can either turn to Equifax Canada or TransUnion Canada. Consumers are allowed one free credit report request each year. All you do is visit one of the above sites and print off a request form, fill it out and mail it in and you'll get a report in a few weeks.

I've been ordering one each year for the past few yaers and it's kind of neat. You get to see what each institution rates you as, plus see who's been peeking at your file via credit checks. But yeah, you should check it every once in a while, make sure things are in order.


Posted by: eddie3390(",)

Quote:
Originally posted by SuperCM
For us Canadians, you can either turn to Equifax Canada or TransUnion Canada. Consumers are allowed one free credit report request each year. All you do is visit one of the above sites and print off a request form, fill it out and mail it in and you'll get a report in a few weeks.

I've been ordering one each year for the past few yaers and it's kind of neat. You get to see what each institution rates you as, plus see who's been peeking at your file via credit checks. But yeah, you should check it every once in a while, make sure things are in order.


is it true that having a student card and using it ocassionally (ie buying gas once a week), paying off the whole balance on time and keeping this up for 6months give me a good enough credit rating to apply for those non-student cards with higher credit limits?


Posted by: eddie3390(",)

Do's:

Open a bank account and use it responsibly. This is the first step in establishing a financial history.
If you have services in your name (telephone, gas or electric), make sure you pay them in full and on time.
Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use (spending within your budget and paying your bill on time) will help you build a good credit history. If you have been denied a credit card in the past, you may want to consider a "secured" credit card. A secured card is often considered a "first step" for those with little or no credit history. A deposit is required and the spending limit on the card is usually equal to the amount of the deposit. The secured card can be used in the same way as a credit card with the same convenience and payment flexibility.
Consider applying for and using a credit card offered by gasoline companies and retail stores. These typically have low credit limits and if you are spending responsibly, you can pay them off each month.
Always pay any loans and credit accounts on time each month. Be sure to always pay at least the minimum amount due.
Review your credit report carefully, at least annually, to make sure it's accurate.
If debt gets out of control, seek help from a financial counselor.

Don'ts:

Don't overdraw your bank account. You will be charged fees, and you can damage your credit record.
Don't miss payments on bills or loans. Even late payments count against you.
Don't let other people use your bank account, credit card, debit card or ATM card. You are responsible for what they do with it.
Don't leave utilities (gas, water, phone, electric) in your name if you move. Always close out or transfer all accounts before you move. If accounts are in your name, they're still your responsibility.
Don't forget to account for recurring bills on your credit card, such as subscriptions or club dues.

found this on credittalk.com


Posted by: tuffdog

Quote:
Originally posted by eddie3390(",)
what do r2 and r6 mean?


I don't remember the excact term but I believe R1 is the best and it goes down to R9? Someone correct me if I'm wrong. Anyway I'm up to R2 now and get credit, loans etc with no problems at all...


Posted by: eddie3390(",)

Quote:
Originally posted by tuffdog
I don't remember the excact term but I believe R1 is the best and it goes down to R9? Someone correct me if I'm wrong. Anyway I'm up to R2 now and get credit, loans etc with no problems at all...


so if i just started out (just got my cards 4months ago, always been using debit and cash )... i'm considered an r9?


Posted by: Aurora

Yeah I just got my first credit card the other day. Not really all that tempting to use, I don't know why people go into debt. Then again I normally buy things at stores like Best Buy and then return them after playing with them a while

Paying early and in full is a great idea...been doing it and it's easy! Since my card comes from my bank, I simply click a button, type in the amount I want to pay the bank for the money they're loaning me, hit enter, and bam...2 days later, my credit balance goes back up to zero. Then again I never buy things I can't afford. I guess that's key.


Posted by: Aurora

Oh another thing I forgot to mention is that I asked my bank to give me only a little bit of credit...nothing huge. I mean, it's definately not bad, I can go out and buy stuff I need every day. I guess the reason I got a credit card in the first place was so that I could make online purchases with ease and know that I would not be liable if something happened with the number. Asking for a low credit limit definately keeps spending under control, in my opinion. Then again I know people who have cards without spending restrictions at all!

<sigh> lol...I can see how that would get people in trouble.


Posted by: eddie3390(",)

Quote:
Originally posted by Aurora
Yeah I just got my first credit card the other day. Not really all that tempting to use, I don't know why people go into debt. Then again I normally buy things at stores like Best Buy and then return them after playing with them a while

Paying early and in full is a great idea...been doing it and it's easy! Since my card comes from my bank, I simply click a button, type in the amount I want to pay the bank for the money they're loaning me, hit enter, and bam...2 days later, my credit balance goes back up to zero. Then again I never buy things I can't afford. I guess that's key.


i do the same! sometimes i don't even bother putting the stuff i buy on my credit card since i have my debit card anyway... basically i just use my credit cards to buy gas... i charge stuff on my card just for the heck of building up my credit rating... and cash is so much more convenient when buying stuff that i intend on returning or exchanging since they can't put you on the "frequent returner/exchanger list" they have somewhere lol! and if you pay by debit or cash in canadian tire, you get canadian tire money! wee!

just wondering... does the frequency i use the card or amount i charge on it every month affect my credit rating? is a higher frequency and bigger amount charged better? btw, i always pay off the full balance on time


Posted by: Aurora

Quote:
Originally posted by eddie3390(&quot;,)
<snip>
... and cash is so much more convenient when buying stuff that i intend on returning or exchanging since they can't put you on the "frequent returner/exchanger list" they have somewhere lol!

<snip>


lol! I must be on everybody's frequent returner list.

Hahaha


Posted by: eddie3390(",)

Quote:
Originally posted by Aurora
lol! I must be on everybody's frequent returner list.

Hahaha


make sure you pay cash next time otherwise it might be bad for your credit rating... what have you returned so far? me, a MZ-R900 MD recorder (returned it since i changed my mind and decided to save up for a nice car deck+amp+sub)... an hp digital camera (returned it because the slightest movement of my hands produced blurred photos)... those were my 2 most recent returns


Posted by: SuperCM

Quote:
Originally posted by eddie3390(",)
is it true that having a student card and using it ocassionally (ie buying gas once a week), paying off the whole balance on time and keeping this up for 6months give me a good enough credit rating to apply for those non-student cards with higher credit limits?


[shrug] Possibly, I'm not too sure. What I can tell you though is my first card was a Bank of Montreal Mastercard. And maybe a couple months after I got that I got a TD Green Visa. Then I got a Royal Bank Classic II, since they had points. For fun I applied to HBC and Sears and got their cards too. Then I got an American Express, so I'd have one of each credit card. Then I saw a form for PC Financial Mastercard, filled it out and got one of those. Royal Bank changed their terms, so I got a CIBC Dividend Visa.

It's the only card I use now, since cash-back is better than any point collecting. But yeah, I have never had a problem getting anything... I just apply and it comes in the mail, even though I tell them I'm an unemployed student. My guess is they look at my credit rating and use that to decide, because not only do I get accepted by the credit limits keep getting higher when they're issued to me.

Personally, I don't like the MBNA credit card since they're not a real bank (or at least to me they don't seem to be). If possible, get the CIBC Dividend, only drawback is household income needs to be $30,000 as a requirement. I just lied and said it was.

If you like being honest and stuff, Bank of Montreal Mastercard has like done some revamping and they now offer a cash-back option, but it's a lower percentage. But it's free I think and you don't need the high income requirement.

...but yeah, best advice I can give is probably pay off the balance in full. None of this minimum payment bullpoop. Why pay more than you have to? Internet is no good. I'll do whatever it takes to get out of interest.


Posted by: Hartom

Quote:
Originally posted by SuperCM
For us Canadians, you can either turn to Equifax Canada or TransUnion Canada. Consumers are allowed one free credit report request each year. All you do is visit one of the above sites and print off a request form, fill it out and mail it in and you'll get a report in a few weeks.

I've been ordering one each year for the past few yaers and it's kind of neat. You get to see what each institution rates you as, plus see who's been peeking at your file via credit checks. But yeah, you should check it every once in a while, make sure things are in order.


Is it true that doing this is like any other credit check and it will lower your beacon score?


Posted by: eddie3390(",)

Quote:
Originally posted by SuperCM
[shrug] Possibly, I'm not too sure. What I can tell you though is my first card was a Bank of Montreal Mastercard. And maybe a couple months after I got that I got a TD Green Visa. Then I got a Royal Bank Classic II, since they had points. For fun I applied to HBC and Sears and got their cards too. Then I got an American Express, so I'd have one of each credit card. Then I saw a form for PC Financial Mastercard, filled it out and got one of those. Royal Bank changed their terms, so I got a CIBC Dividend Visa.

It's the only card I use now, since cash-back is better than any point collecting. But yeah, I have never had a problem getting anything... I just apply and it comes in the mail, even though I tell them I'm an unemployed student. My guess is they look at my credit rating and use that to decide, because not only do I get accepted by the credit limits keep getting higher when they're issued to me.

Personally, I don't like the MBNA credit card since they're not a real bank (or at least to me they don't seem to be). If possible, get the CIBC Dividend, only drawback is household income needs to be $30,000 as a requirement. I just lied and said it was.

If you like being honest and stuff, Bank of Montreal Mastercard has like done some revamping and they now offer a cash-back option, but it's a lower percentage. But it's free I think and you don't need the high income requirement.

...but yeah, best advice I can give is probably pay off the balance in full. None of this minimum payment bullpoop. Why pay more than you have to? Internet is no good. I'll do whatever it takes to get out of interest.


how long did it take to get credit limit increases? and did you have to request for them or are they automatic? i requested for a $500 credit limit since i didn't want to have i high limit since i'm only an unemployed starving student... but they gave me $1000 (on my york university MBNA card)... what credit limits did they give you? i also got 1000 on my GM card...

so as for the BMO mastercards with the cashback, i get 0.5% cashback... so if i spend 1000, they'll credit my account 5bux?


Posted by: SuperCM

Quote:
Originally posted by eddie3390(",)
how long did it take to get credit limit increases? and did you have to request for them or are they automatic? i requested for a $500 credit limit since i didn't want to have i high limit since i'm only an unemployed starving student... but they gave me $1000 (on my york university MBNA card)... what credit limits did they give you? i also got 1000 on my GM card...

so as for the BMO mastercards with the cashback, i get 0.5% cashback... so if i spend 1000, they'll credit my account 5bux?


Uhm... It depends on the bank you get it from. I know that with TD Canada Trust, you won't be considered for an increase (at least on their student card) until the 1 year anniversary. My newly acquired CIBC Dividend gave me allowed me to increase after like 3 or 4 months. Some banks are automatic, some aren't.

As for cash-back, I'm sure it works the same way mine does. You just spend normally and each bill it'll tell you how much you've earned. Then, at the end of the year they credit you what you've earned.


Posted by: SuperCM

Quote:
Originally posted by Tabernac
Is it true that doing this is like any other credit check and it will lower your beacon score?


What's a beacon score?


Posted by: ChrisHI

Looks like Im not the only one who was looking for info on credit.


Posted by: Remus

Sorry to bring up an old topic.

But I was wondering what happens when you "accidentaly" miss or be late for a credit card payment for one month, does it hurt your credit rating much?


Posted by: Frosty Vibe

Quote:
Originally posted by Remus
Sorry to bring up an old topic.

But I was wondering what happens when you "accidentaly" miss or be late for a credit card payment for one month, does it hurt your credit rating much?


It really depends on the big picture, if you have been a credit card holder for one year only, then one payment is a big deal.

On the other hand, if you have been a holder for 10 years and this is the first accident, it's not gonna have a big impact.





Posted by: SuperCM

Quote:
Originally posted by Remus
Sorry to bring up an old topic.

But I was wondering what happens when you "accidentaly" miss or be late for a credit card payment for one month, does it hurt your credit rating much?


Nothing too big. I made a late payment once to American Express, since I post-dated my online banking to pay them on the due date. However, they have some different status with the Canadian Banks or something and it was like a day or two late reaching them.

So not only did I get charged interest the next billing, but yeah, I wondered how it might affect my credit rating. I called them up and told them they're stupid (what's the point of a due date when you have to pay before it?) and they gave me a credit on the interest charges. I was told missing one month is no biggie, since yeah, it's usually some little thing and is easily corrected. It's 2 or 3 months of non-payment that they notice and may do something about.


Posted by: eddie3390(",)

what about usually having a credit balance on your credit card? i usually put a credit of $150 on my gas card so i wouldn't have to worry about paying it off at the end of the month (treating it like a debit card)... would this be a good thing when it comes to credit ratings? or just neutral?


Posted by: eddie3390(",)

btw, what kind of credit cards do you all have? which cards have a good cashback rate (while being no-fee)? i don't care about the interest rate since i always pay on time


Posted by: SuperCM

Right now I use the CIBC Dividend Visa. It offers 1% cash-back, but in their weird tiered fashion. According to the information I got with my card...

Tier 1: 0.25% rebate on your first $1500 in annual Net Purchases
Tier 2: 0.50% rebate on your next $1500 in annual Net Purchases
Tier 3: 1.00% rebate on any next annual purchases exceeding $3000

...another card I know of that offers free cash-back is BMO's new Mosaik Mastercard. It offers 0.5% cash-back.

Now, if you're willing to pay an annual fee, it's $79 to CIBC for 2% cash-back and $49 to BMO for 1% cash-back. Again with the CIBC though, it's tiered.

Tier 1: 0.5% rebate on your first $2,500 in annual net purchases
Tier 2: 1.0% rebate on your next $2,500 in annual net purchases
Tier 3: 2.0% rebate on your next $45,000 in annual net purchases


Posted by: rip

then a credit card....when you get your card use it once for a small amount $10...pay it off in full

take that card and cut it up ...toss it in the GARBAGE, then pay for everything by cash after that. By the time you finish school have a good job ...you'll have "amazing credit rating"...and by that time you will be ready to max out your card too

I've seen and been one of those students that got into credit problems starting day 1...if you want a good credit rating do it that way and by the time your done school and become a FT working citizen...you should be very "credit responsible".

I'm not saying you're not right now...but "temptation" will get the better of you

good luck.


Posted by: Frosty Vibe

I use Pres. Choices Mastercard the most.

It offers 1 % "cash back" on every penny you put on the card.

However, the cash back is given to you in the form of SuperStore/Loblaw ( sp ? ) points, much like Canadian Tire money.

Every dollar you spent is worth 10 points, 1000 points are worth $1.

So, if you spent $100 this month, you can get $1 back when you shop at SuperStore/Loblaw.

Of course,if you do get your grocery there, then it's a great card to get.

1. Their cash back scheme is NOT tiered, unlike BMO or CIBC.

2. The cash back is yours right after you pay each bill, as opposed to year-end distributions

I used to work for PC bank... but that's not why I recommend their card

Here's a credit card thread

http://www.howardforums.com/showthr...ght=credit+card
------------

I think one should start building credit as soon as possible.

I got my first credit in first year of university and I have a fairly good credit history by now.

But rip's right, if you lack self-control... do yourself a favour, don't get a credit card.


Posted by: eddie3390(",)

Quote:
Originally posted by rip
then a credit card....when you get your card use it once for a small amount $10...pay it off in full

take that card and cut it up ...toss it in the GARBAGE, then pay for everything by cash after that. By the time you finish school have a good job ...you'll have "amazing credit rating"...and by that time you will be ready to max out your card too

*snip*


I think the frequency of use on a credit card affects your rating too though... so one $10 transaction won't do much to the credit rating... otherwise a whole load of people would be doing this and easily be approved since they have a perfect record... not really sure, so i may be wrong... any credit experts confirm or correct this?


Posted by: sanjay

Quote:
Originally posted by eddie3390(",)
I think the frequency of use on a credit card affects your rating too though... so one $10 transaction won't do much to the credit rating... otherwise a whole load of people would be doing this and easily be approved since they have a perfect record... not really sure, so i may be wrong... any credit experts confirm or correct this?


Yeah - you're totally right. You need to USE the credit card to get a good credit rating.

What else can I try to answer in this thread...hmmm --

A beacon is your credit score and it's ONE of the factors used in determining your approval and limit. Other factors include your income, what you do for a living, what sector you work in....how long u have lived at the same address.

Missing a payment once will not low your 'real' credit rating...BUT it will lower your credit score in the financial insititution for which u paid late (does that make any sense)


Posted by: sanjay

Quote:
Originally posted by eddie3390(",)
what do r2 and r6 mean?



r2 means u've missed 1 payment

r6 means u've missed 7 payments in a row

r1 means u've missed no payments

and r9 means your loan/credit card was written off (u never paid it)


Posted by: sanjay

Quote:
Originally posted by eddie3390(",)
what about usually having a credit balance on your credit card? i usually put a credit of $150 on my gas card so i wouldn't have to worry about paying it off at the end of the month (treating it like a debit card)... would this be a good thing when it comes to credit ratings? or just neutral?


It makes no difference


Posted by: SuperCM

Quote:
Originally posted by huy397
2. The cash back is yours right after you pay each bill, as opposed to year-end distributions


What's wrong with a year-end payout? I think I might prefer it over having stuff credited back to me monthly, since you'd get this bigger payout and at a time when you really need it - holidays.


Posted by: eddie3390(",)

Quote:
Originally posted by sanjay
Yeah - you're totally right. You need to USE the credit card to get a good credit rating.

What else can I try to answer in this thread...hmmm --

A beacon is your credit score and it's ONE of the factors used in determining your approval and limit. Other factors include your income, what you do for a living, what sector you work in....how long u have lived at the same address.

Missing a payment once will not low your 'real' credit rating...BUT it will lower your credit score in the financial insititution for which u paid late (does that make any sense)


just wondering, your name seems familiar, do you work for scotiabank?


Posted by: sanjay

Quote:
Originally posted by eddie3390(",)
just wondering, your name seems familiar, do you work for scotiabank?


Bank of Montreal


Posted by: Frosty Vibe

Quote:
Originally posted by SuperCM
What's wrong with a year-end payout? I think I might prefer it over having stuff credited back to me monthly, since you'd get this bigger payout and at a time when you really need it - holidays.


The money is yours but you don't have access to it, so there's opportunity cost, interest-loss on the money ( cash back ) that should be in your hands @ your disposal RIGHT NOW.

You don't get any interest from them do ya ?

But, yeah, I think bigger pay-out during holiday season is nice too...considering the opportunity cost/interest-loss is minimal anyway.


Posted by: eddie3390(",)

Quote:
Originally posted by huy397
The money is yours but you don't have access to it, so there's opportunity cost, interest-loss on the money ( cash back ) that should be in your hands @ your disposal RIGHT NOW.

You don't get any interest from them do ya ?

But, yeah, I think bigger pay-out during holiday season is nice too...considering the opportunity cost/interest-loss is minimal anyway.


somebody's applying basic economics here... woohoo! just took 1st yr micro and macro economics last term as electives learned a lot in these two courses i've been confusing my computer science classmates with all this economics jargon


Posted by: eddie3390(",)

just curious, how much cashback do you peepz usually get? i calculated i'd get $6 per year assuming i get %0.5 cashback on my gas-card *sigh*...

what about the sony card? i looked at it and i figured it'd take me an eternity just to accumulate enough points for a tv


Posted by: sanjay

Quote:
Originally posted by eddie3390(",)
just curious, how much cashback do you peepz usually get? i calculated i'd get $6 per year assuming i get %0.5 cashback on my gas-card *sigh*...

what about the sony card? i looked at it and i figured it'd take me an eternity just to accumulate enough points for a tv


I got 160 dollars last year ---

@ 1.5% cash back - it means i spent... a lot on my credit card


Posted by: SuperCM

Quote:
Originally posted by eddie3390(",)
just curious, how much cashback do you peepz usually get? i calculated i'd get $6 per year assuming i get %0.5 cashback on my gas-card *sigh*...

what about the sony card? i looked at it and i figured it'd take me an eternity just to accumulate enough points for a tv


I got my Dividend card in August of 2002. It's credited to the December statement, meaning it accounts for purchases to November, so in 4 months I earned $90 in cash-back.


Posted by: Frosty Vibe

Quote:
Originally posted by eddie3390(",)
somebody's applying basic economics here... woohoo! just took 1st yr micro and macro economics last term as electives learned a lot in these two courses i've been confusing my computer science classmates with all this economics jargon


LOL... beware they might fight back with their computer jargons.

The network guy at my work does that sometimes, I am not exactly network-savvy and he always has some kind of acronyms that I simply don't get.

I don't know how much I got cash-back I got so far, but it's 1% of my total purchase, whatever amount that is.


Posted by: eddie3390(",)

Quote:
Originally posted by huy397
LOL... beware they might fight back with their computer jargons.

The network guy at my work does that sometimes, I am not exactly network-savvy and he always has some kind of acronyms that I simply don't get.

I don't know how much I got cash-back I got so far, but it's 1% of my total purchase, whatever amount that is.


then i'll retaliate with cellphone jargon haha! :P they give me token ring network, tcpip, x-windows crap and i'll bombard them with all the different reasons why gsm is better than tdma and the other way around haha!


Posted by: Remus

There's a sony card? Or is it just for Sony Stores? If there was a credit card that can be used to get Sony stuff I'd sign up right away! I just love cards with incentives :P


Posted by: eddie3390(",)

Quote:
Originally posted by Remus
There's a sony card? Or is it just for Sony Stores? If there was a credit card that can be used to get Sony stuff I'd sign up right away! I just love cards with incentives :P


check it out on the sony site... i think it's either a mastercard or visa so you can use the card anywhere check it out! not good for me though since it'd take me a year or so just to accumulate enough points to get a free cd...


Posted by: eddie3390(",)

will be credit rating be affected if i cancel one of my cards (my GM card)... i think it's useless since i'm not planning to buy GM anyway


Posted by: SuperCM

Hrm... I'm curious, do credit cards charge any sort of dormancy fees? You know how with banks if you don't do anything with your account for 2 or 3 years they charge you a fee, is there anything like that with credit cards?

After getting my CIBC Dividend Visa, I don't use any of my other credit cards. I'm wondering if I should close those accounts or just leave them open? I have about a half-dozen dormant cards.

Does it look better to those who look at my credit report to see a bunch of accounts sitting at $0 and R1 status or just a few accounts sitting at $5000 and R1 status?


Posted by: Frosty Vibe

None that I know of. But I did get a letter from TD after about 1 years of inactivity, nothing big though.

As for credits, I think "stablility" is the key word here, a good spread ( meaning not many aco****s , nor too few ) of accounts with good credit standing is a good signal for most lenders.

A bunch of inactive accounts with low balances imply that you're not serious, might have trouble in the future and probably planning for something bad.


Posted by: eddie3390(",)

but don't lenders rather lend money to someone with lower balances than higher (closer to limit) balances? don't they rather lend to people who "don't need the credit" as much since they're more likely to be paid back by them? i dunno...


Posted by: Frosty Vibe

Well, ability to repay is the point there, lenders don't care if you need the money or not, theye just wanna to lend the money out and make sure their @$$'s are covered.

All else being equal, higher account balance means more collateral, less default risk.

Most credit cards will require a certain level of income, because it's less risky on the part of lender.

I work in the Commercial Mortgage department in RBC and that's how we evaluate clients


Posted by: Aurora

Quote:
Originally posted by huy397
Well, ability to repay is the point there, lenders don't care if you need the money or not, theye just wanna to lend the money out and make sure their @$$'s are covered.

Higher account balance means more collateral, less default risk.

Most credit cards will require a certain level of income, because it's less risky on the part of lender.

I work in the Commercial Mortgage department in RBC and that's how we evaluate clients


That's some really good information. Thanks for sharing becuase I had some questions before (which I didn't post) and you have answered them thus far. Thanks!




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