Credit Tips: How To Get Out of Dumb Credit Card Financial Mistakes

Posted On: March 5, 2007

Author: profiteer
Posted: Mon Mar 05, 2007 9:07 am
Post subject: Hello, new guy here.

Hi all,
I’ve been reading quite a bit on this forum and thought I’d try to participate. A little about myself:
Quality Engineer in Ohio, married almost 15 years, 11 yo boy who thinks he’s Bruce Lee (or Luke Skywalker depending on his mood). I commute 120 miles a day to work for 5 years.
Most of my life I’ve been…financially challenged. Self-inflicted I guess. I’ve made every dumb financial mistake there is. Second mortgage to pay off cc only to reload again. After 9/11, laid-off from my job of 12 years and cashed out 50k profit sharing, by far the dumbest thing I’ve ever done. Being ignorant of the penalties, been paying IRS 80/mo and tax refunds (this year was the last)
Financial stats:
Never paid late on CR’s.
WaMu Bankcard Industry Option Fico (Trans) 760.
Income: 45k
Cars: 1984 Buick, 1995 Buick, both paid for.

Mortgage: 940
2nd Mortgage: 278
Discover1:CL 14k; 11,000 @11.25%
Discover2:CL 14k; 11,000; 6,000@14.25%, 5,000@0%, soon to expire to 14.25%
WaMu Visa Plat: CL 7,500; 0@19%
Sears: CL 4k; don’t use but opened in 1989, oldest reported credit.

My plan is to replace the WaMu Visa with a lower APR card to use when Discover is not accepted. Also long term BT of Discover accounts to lower APR.
Applied for Simmons First Platinum Visa @ 7.25% fixed. Approved for $2,500 CL. That took care of the first issue.
Applied for Blue BT @4.99/life (22k). BT denied, card approved for 2k?
This one has me stumped. Either I am: a) considered overextended or b) my last AmEx card, paid-off but “closed by credit grantor” 13 years ago is a problem. It shows paid, never late, CBCG.
Anyways, hello again.
Todd

Author: fenster
Posted: Mon Mar 05, 2007 9:35 am
Post subject: Re: Hello, new guy here.

profiteer wrote:

b) my last AmEx card, paid-off but “closed by credit grantor” 13 years ago is a problem. It shows paid, never late, CBCG.

Todd

Welcome Todd, this last bit wouldn’t have any bearing whatsoever on approval or denial, nor on the level of the credit line you’re granted.

If I understand you correctly, and I’m not sure I do, if you’re saying that while applying for Amex Blue you filled out the App’s BT form and entered a BT amount of $22K hoping you’d get this exact limit, this wouldn’t be considered a “denial of BT”. Because rarely do CCCs grant the applicant the limit he specifies or wishes for.

What’s essential is you were approved for the card, and with Amex Blue’s relaxed CLI stance, you could be @ a $22K limit in a year or so.

Many people fill out the card’s App BT form with wishful figures thinking they can impose a “fate accomplis” on the bank and twist its arm into honoring them, they forget that it’s a computer spewing out numbers based on numbers.

Author: profiteer
Posted: Mon Mar 05, 2007 10:06 am
Post subject:

Hi Fenster,
Yes I filled out the BT part of the app.
BT#1-11k
BT#2-11k
Checking the online app, both were listed as denied. So if neither were approved or a portion of either weren’t approved…
I really don’t have a use for the card except for the good BT terms.
Todd
Is there a possibility they will offer a similar BT in the future?

Author: profiteer
Posted: Mon Mar 05, 2007 12:51 pm
Post subject:

Let me expand on the reasoning of my original post. I want to get out of debt. Maybe I posted in the wrong forum, but it’s largely related to cc’s.
It started with some frivolous spending and became a crutch to supplement the income.
I would like to stop paying for the privelege of using someone elses money. I owe it to my family to provide a better life for them and stop giving money away. What’s that saying? Pay yourself first?
I’ve never responded to a BT offer; always afraid of getting stuck with an unreasonable rate after offer expires or some other funky tricks. Tried Blue cold and didn’t seem to get anywhere.
Seems like a lot of you live well on interest free credit, while others seem to just collect credit cards for no apparent reason (my observation).
I’m sure I’m missing the point, although I’m trying to figure it out.
4 months ago, Engineer #2 quit. The President/owner made me a deal. A 13% increase in my hourly wage plus 10 hours time-and-a-half to do both jobs. Can you say overwhelmed? Honestly, I wasn’t given a choice. I’d like to pay the extra money on my debt, so I can pay myself first.
Just so you know where I’m coming from.
Todd

Author: needshave
Posted: Mon Mar 05, 2007 1:58 pm
Post subject:

I managed to dig myself out of 40K worth of debt by doing these things. I used cash and cards with no balance to pay monthly expenses. Pay in full when the no balance bill comes in. Stop paying interest on new purchases. I’d pay as much else as I could to the card with the highest interest rate. I’d also balance transfer out of the high interest rate cards. Citibank and AT&T Universal gave me some of the best for life terms. Currently 2.99% for life. These terms I got with accounts I’ve had for a decade. I think you may of scared AMEX trying to move so much on your application compared to your income.
Like you I worked for a company that offered lots of overtime. I did the time and fattened the paychecks. That was the key to digging out of the hole.

Best of Luck,

Labels: Bad Credit Card Decisions, Credit Card Mishaps, Credit Card Mistakes