Wednesday, January 04, 2017

信用卡, credit card

  • 莫使用商店的認同卡, 因其利率很高, 若你因首次購物9折優惠而辦卡, 你付完第一次帳單後, 將卡片剪掉
  • 只留下一張信用卡 (供緊急時使用), 將其他所有信用卡都剪了, 打電話去信用卡公司, 並寄出書面通知, 取消所有的卡片, 這樣你的信用報告裡會記載, 你使用的信用額度有所降低, 如此你的信用分數才會上升
  • use checking account to pay credit card
  • make sure u have a credit card for urself and urself only
  • don't open more than one card a year
  • do not use a credit card to get a cash advance, there is no grace period for cash advances, interest rate is 22% or more
  • u should always have 2 credit cards, one for regular use, the other one as backup
  • 若你有4張信用卡, 每張信用額度為2000元, 則總信用額度為8000元; 你想: 我只用其中一張卡, 其他3張未使用, 應將這3張註銷; 請留意, 註銷你未使用的帳號, 可能對你的FICO信用分數有不良影響, 你最好是保留其他信用卡, 但不要使用
  • 若你有4張信用卡, 持有10年以上, 則你已經有使用這些信用卡10年以上的信用歷史, 若你決定要申請一張利率較優惠的新信用卡, 而把其他信用卡註銷, 你的信用歷史也會被註銷; 針對那麼不需要付年費的舊卡, 你宜留著它們, 但不要使用, 若你將其註銷, 將會縮減你的信用歷史, 反而不利你的分數
  • 當稽查信用單位看到你的欠款下降時, 你的FICO信用分數會增加; 故在你要申請一項貸款的那個月或前一, 二個月, 莫使用信用卡, 宜使用現金付款
  • 你希望得到好的FICO信用分數的主要原因, 是當你有某項大筆支出, 例如買車或購屋時, 辦理貸款可得到較低的利率
  • when u find a card that offers u a better interest rate, don't automatically apply for the card. Before u apply, u are to call ur exisitng creditor and tell them that u want them to lower ur interest rate. If they turn down ur request, apply for the new card and transfer ur balance from the old credit card to the new credit card. Then u call the old credit card company again to tell them that u are transfering balance to the new card to ask if the old credit card company can lower ur interest rate in order to keep the rest of ur business. If the old credit card company doesn't offer u the lower rate, be partient for 6 months, then apply for anohter new credit card that offers u a better deal adn do another transfer. Wait 6 months to apply/get another credit card to avoid hurting ur FICO score. Many new accounts in a short period can hurt ur score.
  • cash advance -- cash advance typically has a much higher interest rate (can be more than 20 %) than the rate for ur regular charges
Two basic methods credit card company use to compute ur bill
  1. average daily balance
  2. two-cycle average daily balance--- bad, stop using this and transfer ur balance to a card that uses the average daily balance 

to pay off credit card debt
  • transfer ur credit card balance to a new card with a low interest rate (pay attention to transfer fees); do not exceed more than on transfer a year so u don't mess up ur FICO credit score by opening more than one new card a year
  • send in more than the minimum due on the one card that charges you the highest APR
extra credit cards
  • do not have department store cards, get rid of them (they have high interest rate, 20% or more)
  • cancel one card a year in order to avoid negative impact on ur FICO credit score
  • first cancel the card with the lowest credit limit, a year later, cancel the card with the next-lowest credit limit
FICO credit score, Fair Isaac Corporation (FICO)
  • when u apply for a credit card or any type of loan, ur FICO credit score is a quick take on how responsible you are with ur debt
  • use credit card as least once a month and pay the entire bill on time every month to build credit score
  • get ur FICO score--- www.myfico.com, u have 3 separate FICO scores, based on each of ur financial files at the 3 credit bureau (equifax, experian, transunion)
  • no need to pay for all 3 scores unless you are about to take out a new mortgage
  • it is fine to get one score, cost 15.95 per score
  • FICO credit scores range from 300 to 850, the higher, the better
  • if ur score is at least 760, u are in great shape
  • do not cancel unused credit card if you have unpaid balances
  • to get free credit report-- www.annualcreditreport.com, by law, each of the 3 credit bureaus must give u a free credit report once a year

  • shop for good credit card deals at www.bankrate.com   www.cardweb.com
  • don't pay an annual fee
  • make sure there is a least a 3 month grace period---grace period is the time between the end of ur monthly billing cycle and when ur payment is due, not every card has grace period; with grace period, if u pay ur bill in full on time, u will owe no interest. if u don't have a grace period, card company can start charing u interest from the day u make a purchase, even if u don't have a prior month's balance
  • aim for a low interest rate
  • payment due date--- due date is when ur credit card issuer must receive ur payment, it is not the date u must put the payment in the mail or authorize the online payment. it is the date ur payment arrives at the card company; if u use online payment, give urself at least 2 business days before the due date. if u are a day late, u can be labeled as being in the "universal default", which give every card company the right to increase the interest rate on ur cards
  • universal default --- if you are late making a payment an any other credit card, you can lose the great rate on a card you have paid on time
  • the minimum payment due on ur bill--if u don't pay the bill in full, if u pay just the minimum amount that is due for the month, the card company gets to start charging ur interest on the balance left unpaid; the minimum payment due typically represents just 3% or so of ur total bill
  • annual percentage rate (APR) listed on ur statement is the base interest rate for ur unpaid balance, average APR is around 15 %, with many cards charge 22 % or even more
  • never use home equity to get rid of credit card debt --- the interest rate on ur home equity line of credit (HELOC) will typically be a lot lower than the interest you pay on your credit card, and lenders are quick to point out that interest payments on HELOC can be tax-deductible-- do not use a HELOC to pay off ur credit card debt
  • Don't use HELOC to pay off credit card debt, get a lower interest rate card is a better solution
  • don't use HELOC or a loan from ur 401 (k) to pay off credit card debt
  • if u want to start ur own business, but can't get a bank loan; if u plan to use credit card to finance--- only if ur have low-rate cards, and keep ur spending below 15000 USD; u need to get ur credit card rate below 10 %
  • statute of limitations --- each state has a limit on how long a credit card company or collection agency can legally come after you to try to make u pay off the balance; the last time u paid ur bill is the start date for figuring out whether u are under or over the statute of limitations
  • debt counselor recommended by National Foundation for Credit Counseling  https://www.nfcc.org/ ; try to hep u out of ur debt within 5 years, sign up for a repayment plan, u will pay a monthly fee for the repayment plan service, but no more than 25 dollars a month

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