Improving your credit score

[al77]

Originally posted by STR8UP
You will probably get hit with huge fees that way.

If you want to build your credit you are better off using the card for daily expenses and paying it back at a decent pace.

But he asked a very valid question. Does it help his credit?
I am sure it does. The problem is I don't know to what extent it will help. It sure will help you to increase your credit limit (cash limit for sure), but how it will affect your credit overall I have no idea since it is a secret how they actually compute your FICO score.

About fees: just look it up in your credit card manual or if you find it too long and unclear go to teh bank and ask.
What I read about my card is I have to pay $10 to get any cash from my credit line of cash as a fee. Plus interest (about 22% per year). Thats not a huge fee, but the question will it do any good to the credit score?

 

[STR8UP]

Originally posted by al77
But he asked a very valid question. Does it help his credit?
I am sure it does.

As far as I am aware there is no distinction between a cash advance and purchases. I could be wrong, but I have done a lot of research on this and I have never heard anything different.

Probably 80% of what I use my credit cards for is cash advance related. I write convenience checks (usually less fees and they have interest rate specials you can take advantage of) to temporarily cover business and investment related expenses. Most of the time I pay them off in a reasonable period of time. My credit score hovers in the mid 700's when my credit card debt is eliminated. It drops to just below 700 when I am heavy with revolving debt.

So what I am saying is that any time you borrow money on your cards and repay it responsibly you are building your credit.

 

[al77]

Originally posted by STR8UP
As far as I am aware there is no distinction between a cash advance and purchases. I could be wrong, but I have done a lot of research on this and I have never heard anything different.

Probably 80% of what I use my credit cards for is cash advance related. I write convenience checks (usually less fees and they have interest rate specials you can take advantage of)

It could be. But there is a huge distinction on my credit card: fees and double interest (of that for purchases) on cash advances.
So it all depends on a credit card you have.

 

[Nocturnal]

I just found the terms and conditions for cash advances... you're right STR8UP, they do hit you hard:

1. All transactions are subject to a 3% or $5.00 fee, whichever is greater, with no maximum. In addition, there is a 1% fee charged for Travelers Cheque transactions. Funds are drawn against cash advance limits, subject to a limit of $1,000-$3,500 (depending on which American Express Card is used) every seven days, and any other limits that banks may impose.

 

[ethnomethodologist]

Originally posted by Nocturnal
1. All transactions are subject to a 3% or $5.00 fee, whichever is greater, with no maximum.

Ho hum, if you have a basic business licence, I know a way you could get that lowered. I have a licence, and am a registered sole proprieter, with all required documentation good through 2012, took me 3 hours to get all of it. "Odd Jobs Consulting" is the name Sole Proprietorship, it is going to be the savior of consumerism, and Capitalism some day in the future.

I picked that becuase I knew I could avoid all unnecessary requirements immediately. Any further fees would be included in a clause statement I have them sign, they are under no obligation, I love that term. So evil, yet so legal.

You guys pay 3% on transactions, I used to pay 4% for my current employer, they were using corporate visas to pay for every minor transaction. I feel sorry for them not requesting direct wire transfer, instead of authorizing credit card usage. I am not keen on the subject though, kind of fresh to the CC area, got my first one 6 weeks ago, I haven't even received my first statement, and I've already run it over the limit twice.

When conducting transactions with customers we are only charged a transaction fee of 2%. Last card I ran through was for over $30,000, we had to postpone recieving payment for our visa machine to come in the mail.

Wow, I completely held back there, I am proud of myself. I hope you guys can give me some good feedback on what I was just saying, and tell me where I am wrong in my statements, I have been led to believe that I am telling the truth in previous accounts. I am guessing they may have lied to me on the basis of protecting me from the truth though.

 

[STR8UP]

Originally posted by Nocturnal
I just found the terms and conditions for cash advances... you're right STR8UP, they do hit you hard:

1. All transactions are subject to a 3% or $5.00 fee, whichever is greater, with no maximum. In addition, there is a 1% fee charged for Travelers Cheque transactions. Funds are drawn against cash advance limits, subject to a limit of $1,000-$3,500 (depending on which American Express Card is used) every seven days, and any other limits that banks may impose.

On most of my cards they send me convenience checks that I can use that have lower fees than a cash advance and most of the time they also have a reduced interest rate. Sometimes it is for a few months or a year, but I have one card (I think it is Chase, formerly Bank One) that I have a $28k limit on and they send me offers all the time that allow me to borrow against my limit with small transaction fees and a low interest rate that lasts for the life of the loan.

This is a phenominal tool for making money. Borrow $28k for a $75 transaction fee and 4% onterest for the life of the loan. When I put money into an investment I do so with the intention of making a large return return. If I can't see big potential I won't even touch it. So if I borrow at 4% and earn 20% I pocket 16%. Not bad for money that isn't even technically mine.

 

[ethnomethodologist]

Holy crap man, why didn't I realize you are being smart. I just have to learn some eh? I keep trying to play your emotions to make it easier on me. Thanks for respecting me more than that. I've got a few questions... Hope you can critique them, and not necessarily answer.

Originally posted by STR8UPthey send me convenience checks that I can use that have lower fees than a cash advance I pay zero for my cash advances if I take it from the teller, or from a bank machine, it may be because my account is set at $1000 withdrawal limit. How do I request convenience checks, and what kind of fees are involved?

Originally posted by STR8UPand most of the time they also have a reduced interest rate. I am paying 11.5%, $4 service charge per month, is there a way for me to argue for a lower interest rate, or is that only by choosing to not use a credit card?

Originally posted by STR8UPSometimes it is for a few months or a year, they send me offers all the time that allow me to borrow against my limit with small transaction fees and a low interest rate that lasts for the life of the loan. I could use that for personal reasons at the moment. How do I get offers for a higher credit limit? I want it high enough, to recieve those types of offers.

Originally posted by STR8UPThis is a phenominal tool for making money. Borrow $28k for a $75 transaction fee and 4% onterest for the life of the loan. When I put money into an investment I do so with the intention of making a large return return. If I can't see big potential I won't even touch it. So if I borrow at 4% and earn 20% I pocket 16%. Not bad for money that isn't even technically mine. I don't understand how the money is not "technically yours." I'm sure the other guys in this thread would be happy to know, you are doing better than "RICO mortage rates", with this technique, by borrowing 7.7% of the 216k they mentioned. I still don't know what this means.

Personal notes to make appointment with financial services rep, business card claims Mutual funds rep.
-first meeting on dec 5@10am, regular hours 10am-4pm, 5pm on fridays. Have not read agreement that I signed.
-"thank you for calling<bank name, city name branch>
-personal and "expletive deleted" voicemail
-voicemail dated working day not updated after closure
-am currently on another call or with client
-my call is important, will be returned as quickly as possible
-for immediate assitance call <5700> for available rep. (no answer when dialed)
-thanks again for calling <bank name, financial group>"

Do you have any recommendations? I want to follow in your footsteps.

I'm going to make an appointment for monday, and I want to tell her what I'm want. I want to schedule enough time to make the deal. I also want to be sure I ask for enough.

I know a few properties I could put a bid on at the moment that could pull in some BIG cash. I don't want the business mogul of town to squeeze the life out of the industry and funnel it to the south anymore. I don't know how long it would take to understand the industry, but I WANT to become a serious investor. I know how long it takes to put in a bid, I know how valuable the property will be if it is empty, while housing is all around, infrastructure is in place, and there is a sense of cummunity established.

Don't be afraid of me, I am really a good person. I don't want to become corrupted. I also want to stop others from being corrupted, and stealing from "our land".

 

[al77]

Originally posted by STR8UP
I have one card (I think it is Chase, formerly Bank One) that I have a $28k limit on and they send me offers all the time that allow me to borrow against my limit with small transaction fees and a low interest rate that lasts for the life of the loan.

This is a phenominal tool for making money. Borrow $28k for a $75 transaction fee and 4% onterest for the life of the loan. When I put money into an investment I do so with the intention of making a large return return. If I can't see big potential I won't even touch it. So if I borrow at 4% and earn 20% I pocket 16%. Not bad for money that isn't even technically mine.

I have exactly the type of the CC: Chase, formerly Bank One.
They say it is transaction fee $10 and 21% interest on cash advance. This is their standard approach. But if you got some sort of offer - it sure can be much better (you can borrow cash just for 4% per year?? unbelievable! I mean thats really cool).

 

[al77]

Originally posted by ethnomethodologist

I pay zero for my cash advances if I take it from the teller, or from a bank machine, it may be because my account is set at $1000 withdrawal limit. How do I request convenience checks, and what kind of fees are involved?

I am paying 11.5%, $4 service charge per month, is there a way for me to argue for a lower interest rate, or is that only by choosing to not use a credit card?

I could use that for personal reasons at the moment. How do I get offers for a higher credit limit? I want it high enough, to recieve those types of offers.

I don't understand how the money is not "technically yours." I'm sure the other guys in this thread would be happy to know, you are doing better than "RICO mortage rates", with this technique, by borrowing 7.7% of the 216k they mentioned. I still don't know what this means.
[/B]

1. That could not be possible: they would not loan you money for free. I am assuming you are talking about your checking card, not a credit card here.

2. I don't think you can do much to lower it. and that servise charge is a rip-off. I would switch to something else, but the interest they charge is not that bad. Chase charge me 21% for cash advances. I am assuming they charge str8up's chase with the same 21% when the special offers end.

3. Higher credit limit is easy: a) just wait, they will raise it. But it may take a long time. b) borrow, purchase a lot up to the credit limit and pay it back promptly. They will rais ethe limit. Or just
c) put lots of cash into your account adn then ask them to raise your credit limit.

 

[ethnomethodologist]

Originally posted by al77
1. That could not be possible: they would not loan you money for free. I am assuming you are talking about your checking card, not a credit card here.

2. I don't think you can do much to lower it. and that servise charge is a rip-off. I would switch to something else, but the interest they charge is not that bad. Chase charge me 21% for cash advances. I am assuming they charge str8up's chase with the same 21% when the special offers end.

3. Higher credit limit is easy: a) just wait, they will raise it. But it may take a long time. b) borrow, purchase a lot up to the credit limit and pay it back promptly. They will rais ethe limit. Or just
c) put lots of cash into your account adn then ask them to raise your credit limit.

1. It's taken from my credit account. So I am paying the 11.5% I stated on the loan. Will repay hopefully on Monday, with a seperate loan. A loan that has lower interest rates than my credit card.

2. I take the service charge, to offset the $1.50 surcharge of using bank machines, and tellers. I agreed to the amount for my chequeing account, while I had my debit card. If I use any machine other than authaurized by my bank, I will recieve the terminal fee. Cash advance, I have not yet received a monthly statement, so I still am not sure of the incurred charges against cash advances taken from my account, I assume it is allowed since, I need the cash, to pay for personal transactions.

3.a)I'm just going to set-up an appointment once a month, and ask if I can have it raised. b)will pay back once a month on payday, or I will open an account with another bank, and try to offset the two balances once a week with money from savings account that I will be operating, hopefully heave a negative credit on both accounts by this time next month if I am lucky in going through with my plans. c)That's how I got the account in the first place, no prior credit history, and half my paycheque was my current balance.

 

[al77]

Originally posted by ethnomethodologist
1. It's taken from my credit account. So I am paying the 11.5% I stated on the loan. Will repay hopefully on Monday, with a seperate loan. A loan that has lower interest rates than my credit card.

I will open an account with another bank, and try to offset the two balances once a week with money from savings account that I will be operating, hopefully heave a negative credit on both accounts by this time next month if I am lucky in going through with my plans.

What I am saying is:
"I pay zero for my cash advances if I take it from the teller, or from a bank machine" could not be true.
You only only have to pay interest (I estimate it as about 20%) but also you will have to pay a fee for cash advance from CC.
Same way with a loan: you have to pay the interest and possible some fees.

Anyway, lets take it on step further:
Borrow (alas.. fees here) the maximum you can borrow from your CC (it is going to be cash advance or a loan maybe). Hold it a couple of days (Fees + very small ineterst, like 0.06% per day).
After 3-4 days repay it back. Wait for another week and ask them to increase your CC limit since "I borrowed the max. amount of money and I paid it back". They will have to look very favorably at your request, since it is true - you borrowed, a lot, a paid back in time.

The cost. For me it would be $10 fee + $1-2 in interest. For you it might be a bit different but not much different.

 

[ethnomethodologist]

LOL, I've got a date with my rep on Saturday night, and an app on Monday, I'll give you an FR

 

[al77]

Originally posted by ethnomethodologist
LOL, I've got a date with my rep on Saturday night, and an app on Monday, I'll give you an FR

Great, where is FR?

 

[ethnomethodologist]

Originally posted by al77
Great, where is FR?

Forgot about that

She flaked on the date... talked to her during my appointment yesterday, all she could say was she was sorry "I forgot that I had plans" I said in return "Oh well, you know my number, give me a call when you want to try again." I nexted her right there, doesn't bother me, she'll have to fight for another date.

I recieved an extra $2000 on my credit limit.

Boring FR in my opinion, probably why I 'forgot" to give it to you guys.

*this was my first FR* guess I need to do some resaerch into wrting them.
-didn't use any technique's, stayed natural *wired on coffee*
-learned that going in to request credit every month will look bad for my credit
-3 credit requests in one day results in a credit flag that last for 6 months
-if a girl flakes on you, say "whatever." There is always another day.
-If a girl flakes on you, you can go out as a "single" man, and still party hard
-learned that I've got to try and remember the rest of the night in my FR's

Hope that helps you guys... just reaffirmed what Is already known.