Credit card Qs

[Kaitlyn]

Okay so I have a bunch of questions about credit cards - some maybe very stupid :)

1) If you have 2 reward cards, can you pay off the balance of one with the other and therefore "double" your rewards?
2) Is there anything wrong/bad about having... say a $7,000 credit limit and averaging $1,000 each statement?
3) I only know of TD Gold Elite and & Citi Enrich - anyone else offer 1% cashback paid more often than yearly?
4) Is the "extended warranty" offered by lots of credit cards automatic? Any restrictions on what they won't extend warranty on? (Warranty is doubled, is it not?)
5) Tell me something else :) haha

[TrevorK]

Okay so I have a bunch of questions about credit cards - some maybe very stupid :)

1) If you have 2 reward cards, can you pay off the balance of one with the other and therefore "double" your rewards?

Some credit cards have special promotions, whereby they will send you out a couple cheques to use that are able to collect the reward (Points, cashback, etc...).

However, under normal circumstances you can't pay off one credit card with another and receive a reward.

2) Is there anything wrong/bad about having... say a $7,000 credit limit and averaging $1,000 each statement?

I don't see why that would matter. I have a platinum card with $18K, and I average $500/month on it.

4) Is the "extended warranty" offered by lots of credit cards automatic? Any restrictions on what they won't extend warranty on? (Warranty is doubled, is it not?)

Yes there are restrictions, when you sign up for the CC you are given a pamphlet stating it.

Everyone is different, however they will generally limit how long they extend the warranty for, what items it will cover (I believe it states cars aren't covered, etc...).

The only surefire answer you'll get is to talk to your CC company, everyone is different. I'm sure you could also find the info online on the CC website.

[FattyFace]

Having a high credit limit when you don't really need one can cause issues when you are applying for new credit. This is because when you apply for a loan, they calculate it as if you were using it fully (ie: up to the limit), because, in theory, the next day, you could be.

Those balance transfer cheques (if they're good ones), if they have a low interest rate, could be used to pay off other loans at higher interest rates, or deposited into a bank account for interest, but that's really a topic for a thread of its own.

As for 1% credit cards, don't forget to look into the air mile (ie: Aeroplan or Air Miles) cards. Calculate how many miles you get and what they'd be worth to you for where you may want to travel.

[joe444]

Having a high credit limit when you don't really need one can cause issues when you are applying for new credit. This is because when you apply for a loan, they calculate it as if you were using it fully (ie: up to the limit), because, in theory, the next day, you could be.


I have seen this information been passed often here. It is untrue.

The credit limit is not taken into account when applying for new credit (say a mortgage). If you are applying for a mortgage, and your CC limit is 30k, and your balance is zero - your liability will be marked as 0.

[inntents]

The credit limit is not taken into account when applying for new credit (say a mortgage). If you are applying for a mortgage, and your CC limit is 30k, and your balance is zero - your liability will be marked as 0.[/QUOTE]


AMEN!! I don't know how often I read/hear that - you're right though - not true!

[FattyFace]

Based on what I have read, available credit is not used as a factor in your credit score. However, the information is available to potential lenders, whom would be prudent to consider that information when giving a loan.

A lender would probably decide on whether available credit is an important factor on a case by case basis. If you have a low income and high credit limit with a poor payment history, they'll probably take it into account. If you have a high income and a good payment history, they probably couldn't care less.

Even Transunion says that "Having too much available credit can sometimes harm your credit score." here: http://www.creditprofile.transunion.ca/popup/scoreExample.jsp
I'm assuming when they say "score" here, they're talking about whatever scoring method a lender may use, rather than their own scoring method.

The one thing for certain is that you don't want your credit usage to really exceed 35% of your available credit.

[Harkonnen]

Sorry to piggyback on the OP's thread, but I have a question about CC's and didn't want to clutter the forum with another thread, so here goes:

My situation is such that I have my own PCF MC (my personal one) and I've also got a PCF MC from my parents (my name is on the card, but tied to my parents CC). I've only had my own personal MC for a couple of years (most likely less than 3 years), but i've been an authorized user on my parents account for a number of years (8-9 years I think).

I don't really use my CC much, but I want to build my credit so I've applied for another CC (CapitalOne 1% Cash Back MC) and I plan to cut up my parents issued one.

I'm not sure what my credit score/rating is, I have a $5,000 limit on my personal PCF MC, and whenever I do use it I pay my bills in full. Most months I never use it and the 4 or 5 times a year I do use it, I promptly pay it off.

The PCF MC is fine and all, but I haven't accumulated many points so I figured I'd try my luck with a 1% cashback card. It also has extended warranty which is nice :)

Anyways, to cut my rambling short, when I filled out the application form online, I met most of the requirements (18 years of age an older, make more than $35,000, etc, etc) I just don't think I've had a CC for a minimum of 3 years (unless they take into account that I've been on my parents CC for so long).

Some of the questions they asked me were weird - asked if I lived in a specific are (Wynford Dr. was one of the options), and if I've ever lived at any residence which started with 12A, 2121, etc. I haven't lived in any such places, but what's the purpose of asking me those kind of questions?

What happens now? I know that they'll look into my credit history, which in turn might bring it down a little, which is fine...it can only go up! Will they give me a CC on a trial basis or will I get denied a CC from them, in which case how long before I can apply again?

[don242]

Some of the questions they asked me were weird - asked if I lived in a specific are (Wynford Dr. was one of the options), and if I've ever lived at any residence which started with 12A, 2121, etc. I haven't lived in any such places, but what's the purpose of asking me those kind of questions?




They scanned your credit report during the application and asked you questions based upon the information in your report. So for example they scanned the report for a previous address and made up 3 other addresses and asked you which address you have lived at. These questions are for security since you should only know the answers to all the questions and it verifies it is you who is applying for the card.

They will either give you the card or deny you. There is no trial. If you don't meet the requirments for the cashback card they may offer you one of their other cards that have less requirments.

[joe444]

The one thing for certain is that you don't want your credit usage to really exceed 35% of your available credit.


Exactly. It is actually better to have a very high limit on your card and use it lightley. I don't see a problem with having, say, an Aerogold Visa with a limit of 30k and charging less than $1000 on it per month. That would help your score. If your limit was $5000 I would think it would HURT your score as utilization will be up.