Tilted Forum Project Discussion Community - View Single Post

passthru · 08-20-2006, 02:36 AM

First, NoSoup, you've done a really good job providing timely responses to everybody's questions. This thread is a really good read for somebody like me who's relatively new to finances and credit.

I have two items on my credit report that are in collections. One I will be paying in full within a week. The other is over a year old and is something I was unaware of. It isn't really my responsibility, but at this point I don't think I can prove that, so I'm thinking I'll just pay it as quickly as possible.

I also have two revolving lines of credit. One is a payday advance with a low limit (something like $120) through my credit union. I haven't used it in a long time and don't forsee needing it. Should I close it? You've said a revolving line of credit isn't a very good way to build credit.
The other is a credit card through the same credit union, with a $2000 limit. I'm currently well over 50% of the limit, about $1750. It seems it would be beneficial to get a second credit card with a limit of $1000 to $2000 and transfer part of my current card's balance to the new card. Then I can pay them off individually while keeping both under 50% of the limit.

I should also note that the interest on my current card isn't very bad. It's 11% BUT if I make the minimum payment each month (which is no problem) I am not charged interest for that month. Anyone else reading this, I highly recommend talking to a credit union in your area to see if their credit card policies are as nice as this, it could help a lot.

Am I overlooking or forgetting anything?

08-20-2006, 02:36 AM	#328 (permalink)
passthru Addict Location: Portland, OR	First, NoSoup, you've done a really good job providing timely responses to everybody's questions. This thread is a really good read for somebody like me who's relatively new to finances and credit. I have two items on my credit report that are in collections. One I will be paying in full within a week. The other is over a year old and is something I was unaware of. It isn't really my responsibility, but at this point I don't think I can prove that, so I'm thinking I'll just pay it as quickly as possible. I also have two revolving lines of credit. One is a payday advance with a low limit (something like $120) through my credit union. I haven't used it in a long time and don't forsee needing it. Should I close it? You've said a revolving line of credit isn't a very good way to build credit. The other is a credit card through the same credit union, with a $2000 limit. I'm currently well over 50% of the limit, about $1750. It seems it would be beneficial to get a second credit card with a limit of $1000 to $2000 and transfer part of my current card's balance to the new card. Then I can pay them off individually while keeping both under 50% of the limit. I should also note that the interest on my current card isn't very bad. It's 11% BUT if I make the minimum payment each month (which is no problem) I am not charged interest for that month. Anyone else reading this, I highly recommend talking to a credit union in your area to see if their credit card policies are as nice as this, it could help a lot. Am I overlooking or forgetting anything?