Please be careful getting new cards with small credit lines.
Jun 26, 2009, 5:04 am
#3
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
Getting a new card could result in a temporary FICO hit (depending on the thickness of your file). Using a card with a small limit again, may or may not have an impact as the utilization on the card is factored in, but if you have 20+ accounts, it isn't going to have that great of an impact. Again, all depends on the thickness of your file.
Good advice--but who pays an annual fee these days? Except, maybe, for a Starwood Amex.
Jun 28, 2009, 11:15 am
#5
Join Date: Oct 2004
Location: Washington, DC
Programs: AA Gold, AMEX MR, BA, DL, SPG, UA, US, Hyatt Platinum
Posts: 461
Since we are posting the obvious, my advice is "Do not stand in the middle of a busy highway during rush hour".
Seriously, the previous poster was more on point, if you have a credit card with a small credit limit (say $2,000), relatively small balances (say $1,500) will show high credit utilization and this is not good for credit scores.
Jun 28, 2009, 12:19 pm
#6
Join Date: Apr 2008
Posts: 134
You can always pay off the balance before the statement closing date, that way nothing get reported and you will have 0% utilization
Jun 28, 2009, 7:25 pm
#7
Join Date: Oct 2004
Location: Washington, DC
Programs: AA Gold, AMEX MR, BA, DL, SPG, UA, US, Hyatt Platinum
Posts: 461
Remember, Amex no longer allows pre-paying your balance. You must wait til the statement posts before you can pay. However, almost all other major card issuers allow pre-payment and I highly agree with 11981978 that this is a good practice (that I personally follow).
Jun 28, 2009, 8:02 pm
#8
Join Date: Dec 2004
Programs: Most....Four elite air/ Three hotel elites - UA MillionMiler - DL RWT alum
Posts: 1,257
You can still pay between the time a charge posts and the closing date, and end up with a zero statement balance with AmEx and every other one I've seen. Some non-AmEx cards may slightly delay posting your payment by a day or so, but that is it.
Jun 28, 2009, 8:26 pm
#9
Join Date: Oct 2004
Location: Washington, DC
Programs: AA Gold, AMEX MR, BA, DL, SPG, UA, US, Hyatt Platinum
Posts: 461
Pre-paying whenever possible is a good practice.
Jun 28, 2009, 8:34 pm
#10
Join Date: Apr 2008
Posts: 134
Amex does not allow you to pay before the statement posts. In the past, maybe two years ago, Amex allowed you to pre-pay before the statement posts. If you do not believe me, go online and try to prepay your Amex, you can not do so.
Pre-paying whenever possible is a good practice.
Pre-paying whenever possible is a good practice.
Jun 28, 2009, 8:57 pm
#11
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
Amex does not allow you to pay before the statement posts. In the past, maybe two years ago, Amex allowed you to pre-pay before the statement posts. If you do not believe me, go online and try to prepay your Amex, you can not do so.
Pre-paying whenever possible is a good practice.
Pre-paying whenever possible is a good practice.
Jun 28, 2009, 9:58 pm
#12
Join Date: Mar 2004
Location: Central Texas
Programs: Starwood Gold , HH Gold, Hyatt Gold, Aadvantage, Rapid Rewards CP
Posts: 1,586
I recently applied for a Air-Tran Visa only because it had a good 0% balance transfer offer. So many have gone to unlimited balance transfer fees now and this one was limited to no more than $75. Well in applying the process warned me that there was no guarantee of what credit limit you might get, but I never imagined that it would give me so small of one ($500). It is so ridiculous as to be unusable and I had to pay a fee. Supposedly I also get a "free" round trip airfare out of the deal, but that is all I got. I asked what gives and got no explanation. We have great credit and high limits on other cards we have. Maybe it's Barclays Bank.
Would not have applied had I known. I've never flown Air-Tran.
Would not have applied had I known. I've never flown Air-Tran.
Jun 29, 2009, 2:11 pm
#13
Join Date: Jul 2004
Posts: 78
My experience is different. I prepay online every month. You just have to select "pay bill: and then "other amount" instead of the "minimum payment" or "outstanding balance." However, I found that you cannot prepay over the current balance no matter how small the amount. For example, if there is a current balance of $499.50 that has not been posted on a end of the month bill, online payment won't accept a payment of $500.00 but it will accept $499.50. Hope that helps.