4 ms·

Heh, I just bought a ticket from SLC -> CHI for around a $100. AA had a nice little add(?) showing it would cost me $0 (minus tax and other fees) if I got their

Heh, I just bought a ticket from SLC -> CHI for around a $100. AA had a nice little add(?) showing it would cost me $0 (minus tax and other fees) if I got their card. I was just thinking how crazy that was. I've personally never found the use for a credit card from a specific airline to be useful for a casual traveler. I generally like to shop around for the cheapest price between all available carriers. There is no incentive for me to stick with a single carrier to get those miles simply because I can't afford to travel that much. I also don't have those credit cards from walmart, Khols or <insert business name here> though. When I first came to USA, someone told me having multiple cc can lower your credit score and credit score is life. So I am still scared of credit cards.

pbreit 10y ago
The opposite. Lenders like to see that you can obtain credit, use it a little and make payments on time.
derefr 10y ago
> When I first came to USA, someone told me having multiple cc can lower your credit score and credit score is life. That's strictly the opposite of true. Now, carrying a balance on multiple credit cards, or paying multiple cards late, is worse than the equivalent with a single card. And applying for lots of credit cards quickly can hurt you. But just having multiple credit cards, that get paid off every month—or don't carry a balance at all—helps your credit score: the "positive side" of your credit score is computed as (effectively) the amount of money that people are currently contractually obligated to give you if you ask (i.e. the limit of all your credit accounts + loans + equities added together.) If you can get more companies to extend you credit, that has the same positive benefit as getting your limit raised on a card you already have.
- ctchocula 10y ago
  I'm not sure that the "don't carry a balance at all" helps your credit score. I've heard some places say that a utilization of 1%-9% and the balance being paid at end of each billing cycle will help increase one's credit score more than 0%. > On the other hand, using a low percentage of your available credit can have a positive impact. In some cases, a low credit utilization ratio will have a more positive impact on your FICO Scores than not using any of your available credit at all. [1] [1] http://www.myfico.com/CreditEducation/Amounts-Owed.aspx http://www.myfico.com/CreditEducation/Amounts-Owed.aspx
  - MrFoof 10y ago
    FICO score in excess of 820 here. The difference in credit score if I were to have a small balance at a statement is literally < 1% of my score. I've done it as an experiment (having a non-$0 balance on statements to show utilization, not carrying a recurring balance and paying interest), and the difference has been typically 2 or 3 points. In my case, that's a fraction of a percent improvement. That is not a meaningful difference that would affect interest rates I could get from a lender. I would get the same rates at 828 as I would with 825 as I would with 790 as I would with 770. There is no meaningful positive difference that having a non-zero utilization provides to your FICO score.
nommm-nommm 10y ago
People tell you lots of things. People are wrong. If you hear someone say anything about finances there's an 80% chance they are wrong. Don't listen to what people say. I currently have over 20 open credit cards. Score is great and banks keep approving me. I just got my most recent a few weeks ago and I'm planning on getting another one once I'm done getting the introductory bonus on this one. Repeat.
gozur88 10y ago
If you have too many cards the banks worry that you'll charge them all up and then declare bankruptcy. I believe it doesn't hurt you as long as you don't carry a balance on more than one.
- nommm-nommm 10y ago
  FICO makes public what their algorithm takes into account so we done even have to guess! http://www.myfico.com/CreditEducation/ http://www.myfico.com/CreditEducation/ And even has an estimator! https://www.myfico.com/ficocreditscoreestimator/estimator.aspx https://www.myfico.com/ficocreditscoreestimator/estimator.as...

pbreit 10y ago

The opposite. Lenders like to see that you can obtain credit, use it a little and make payments on time.

derefr 10y ago

> When I first came to USA, someone told me having multiple cc can lower your credit score and credit score is life. That's strictly the opposite of true. Now, carrying a balance on multiple credit cards, or paying multiple cards late, is worse than the equivalent with a single card. And applying for lots of credit cards quickly can hurt you. But just having multiple credit cards, that get paid off every month—or don't carry a balance at all—helps your credit score: the "positive side" of your credit score is computed as (effectively) the amount of money that people are currently contractually obligated to give you if you ask (i.e. the limit of all your credit accounts + loans + equities added together.) If you can get more companies to extend you credit, that has the same positive benefit as getting your limit raised on a card you already have.

ctchocula 10y ago
I'm not sure that the "don't carry a balance at all" helps your credit score. I've heard some places say that a utilization of 1%-9% and the balance being paid at end of each billing cycle will help increase one's credit score more than 0%. > On the other hand, using a low percentage of your available credit can have a positive impact. In some cases, a low credit utilization ratio will have a more positive impact on your FICO Scores than not using any of your available credit at all. [1] [1] http://www.myfico.com/CreditEducation/Amounts-Owed.aspx http://www.myfico.com/CreditEducation/Amounts-Owed.aspx
- MrFoof 10y ago
  FICO score in excess of 820 here. The difference in credit score if I were to have a small balance at a statement is literally < 1% of my score. I've done it as an experiment (having a non-$0 balance on statements to show utilization, not carrying a recurring balance and paying interest), and the difference has been typically 2 or 3 points. In my case, that's a fraction of a percent improvement. That is not a meaningful difference that would affect interest rates I could get from a lender. I would get the same rates at 828 as I would with 825 as I would with 790 as I would with 770. There is no meaningful positive difference that having a non-zero utilization provides to your FICO score.

nommm-nommm 10y ago

People tell you lots of things. People are wrong. If you hear someone say anything about finances there's an 80% chance they are wrong. Don't listen to what people say. I currently have over 20 open credit cards. Score is great and banks keep approving me. I just got my most recent a few weeks ago and I'm planning on getting another one once I'm done getting the introductory bonus on this one. Repeat.

gozur88 10y ago

If you have too many cards the banks worry that you'll charge them all up and then declare bankruptcy. I believe it doesn't hurt you as long as you don't carry a balance on more than one.

nommm-nommm 10y ago
FICO makes public what their algorithm takes into account so we done even have to guess! http://www.myfico.com/CreditEducation/ http://www.myfico.com/CreditEducation/ And even has an estimator! https://www.myfico.com/ficocreditscoreestimator/estimator.aspx https://www.myfico.com/ficocreditscoreestimator/estimator.as...