Comments on: $300 Richer…Or Not…It Depends On How You Look At It http://www.howisavemoney.net/save-money/300-richeror-notit-depends/ Tips and tricks to save money, manage credit and reduce debt Wed, 28 Jul 2010 22:20:54 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Weekly Links: Carnivals & Articles – October 3, 2008 | Dividends Value http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-16485 Weekly Links: Carnivals & Articles – October 3, 2008 | Dividends Value Fri, 28 Aug 2009 12:19:23 +0000 http://www.howisavemoney.net/?p=1694#comment-16485 [...] How I Save Money presented $300 Richer…Or Not…It Depends On How You Look At It [...] [...] How I Save Money presented $300 Richer…Or Not…It Depends On How You Look At It [...]

]]> By: LuLuGal http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14817 LuLuGal Sat, 11 Oct 2008 14:34:34 +0000 http://www.howisavemoney.net/?p=1694#comment-14817 @ Striker LOL! @ Striker
LOL!

]]> By: Striker777 http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14813 Striker777 Sat, 11 Oct 2008 03:41:34 +0000 http://www.howisavemoney.net/?p=1694#comment-14813 ALL HAIL THE ALMIGHTY FICO SCORE!!! "To your knees peasants!" - FICO ALL HAIL THE ALMIGHTY FICO SCORE!!!

“To your knees peasants!” – FICO

]]> By: Link Round-Up: October 10, 2008 | Debt Reduction Formula http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14810 Link Round-Up: October 10, 2008 | Debt Reduction Formula Fri, 10 Oct 2008 17:21:07 +0000 http://www.howisavemoney.net/?p=1694#comment-14810 [...] Am I $300 Richer? - LuluGal explains how she recently got a $300 credit limit increase to reduce here utilization rate. This is an important concept if you’re trying to maximize your credit score. Of course, my conclusion is that LuluGal is NOT $300 richer… although she has the potential to become $300 poorer if she’s not careful. [...] [...] Am I $300 Richer? – LuluGal explains how she recently got a $300 credit limit increase to reduce here utilization rate. This is an important concept if you’re trying to maximize your credit score. Of course, my conclusion is that LuluGal is NOT $300 richer… although she has the potential to become $300 poorer if she’s not careful. [...]

]]> By: Debt Reduction Formula http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14809 Debt Reduction Formula Fri, 10 Oct 2008 17:07:15 +0000 http://www.howisavemoney.net/?p=1694#comment-14809 You're definitely not $300 richer. But you do have the potential to become $300+ poorer than you already are. At least that's how I see it. You’re definitely not $300 richer. But you do have the potential to become $300+ poorer than you already are. At least that’s how I see it.

]]> By: Shawn Knight http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14801 Shawn Knight Wed, 08 Oct 2008 19:50:48 +0000 http://www.howisavemoney.net/?p=1694#comment-14801 Hrm, so its for the credit bureaus to trick themselves into thinking you have less debt accumulated? LOL I get your point but it just seems silly. A person still owes the same amount, regardless of the upper end credit limit. I don't see how it helps anything other than that silly credit score hehe :) Hrm, so its for the credit bureaus to trick themselves into thinking you have less debt accumulated? LOL

I get your point but it just seems silly. A person still owes the same amount, regardless of the upper end credit limit. I don’t see how it helps anything other than that silly credit score hehe :)

]]> By: LuLuGal http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14797 LuLuGal Wed, 08 Oct 2008 11:53:55 +0000 http://www.howisavemoney.net/?p=1694#comment-14797 @ Shawn Utilization is simply the ratio of the level of debt you have to the amount of available credit. If you have one card with $100 credit limit but you carry a balance of $50 then your utilization is 50%. This is high! If you have a card with a $500 limit and carry a balance of $100 then your utilization is 20%. This is good. The credit bureaus use this to help determine your credit score so that is why a lot of pf bloggers talk about it. It is not a way for me to trick myself into thinking I have less debt....I am not THAT crazy. It is simply based on a formula that the credit bureaus use. This is why your credit score drops when you take a balance transfer. Even though it might be at 0% and be great deal, all the bureau sees is that the amount used to the available balance is high. I took the credit limit increase to help my utilization because I have a 0% balance transfer that I did on that card which made my utilization high. @ Shawn
Utilization is simply the ratio of the level of debt you have to the amount of available credit.

If you have one card with $100 credit limit but you carry a balance of $50 then your utilization is 50%. This is high!

If you have a card with a $500 limit and carry a balance of $100 then your utilization is 20%. This is good.

The credit bureaus use this to help determine your credit score so that is why a lot of pf bloggers talk about it.

It is not a way for me to trick myself into thinking I have less debt….I am not THAT crazy. It is simply based on a formula that the credit bureaus use.

This is why your credit score drops when you take a balance transfer. Even though it might be at 0% and be great deal, all the bureau sees is that the amount used to the available balance is high.

I took the credit limit increase to help my utilization because I have a 0% balance transfer that I did on that card which made my utilization high.

]]> By: Shawn Knight http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14796 Shawn Knight Wed, 08 Oct 2008 08:19:36 +0000 http://www.howisavemoney.net/?p=1694#comment-14796 I agreed with Twiggers comment until the last sentence lol. Can you explain the 'overall utilization'? I don't think I've ever heard that term and don't really understand it. It kind of sounds like a way to trick one's self into thinking you are in less debt, by having more available credit? I agreed with Twiggers comment until the last sentence lol.

Can you explain the ‘overall utilization’? I don’t think I’ve ever heard that term and don’t really understand it.

It kind of sounds like a way to trick one’s self into thinking you are in less debt, by having more available credit?

]]> By: LuLuGal http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14785 LuLuGal Mon, 06 Oct 2008 02:48:20 +0000 http://www.howisavemoney.net/?p=1694#comment-14785 @ Myers Briggs I just got the increase so it is too early to tell the effects..but I am happy with the choice I made. @ Myers Briggs
I just got the increase so it is too early to tell the effects..but I am happy with the choice I made.

]]> By: Myers Briggs http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14780 Myers Briggs Sun, 05 Oct 2008 02:02:58 +0000 http://www.howisavemoney.net/?p=1694#comment-14780 Are you still happy with your decision to go with the card with the $300 limit increase? Are you still happy with your decision to go with the card with the $300 limit increase?

]]> By: LuLuGal http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14773 LuLuGal Fri, 03 Oct 2008 11:46:04 +0000 http://www.howisavemoney.net/?p=1694#comment-14773 @ NoBrainerDeals Yes the 3 points per dollar spent would be nice...but since I already have a card that gives me 3% cash back, with 5% on things like gas..this would not be the best deal for me. Also, I am not interested in getting free tickets and items right now....I prefer the cash back which I can use to pay off other debts. :-) @ NoBrainerDeals
Yes the 3 points per dollar spent would be nice…but since I already have a card that gives me 3% cash back, with 5% on things like gas..this would not be the best deal for me.

Also, I am not interested in getting free tickets and items right now….I prefer the cash back which I can use to pay off other debts. :-)

]]> By: nobrainerdeals http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14772 nobrainerdeals Fri, 03 Oct 2008 04:33:36 +0000 http://www.howisavemoney.net/?p=1694#comment-14772 I really like the 3 points for every dollar. If you spend like 15k a year, you would get 45k in points. Depending on the program it would make it very easy to get free tickets and other gadgets. I really like the 3 points for every dollar. If you spend like 15k a year, you would get 45k in points. Depending on the program it would make it very easy to get free tickets and other gadgets.

]]> By: Sara http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14770 Sara Fri, 03 Oct 2008 03:38:10 +0000 http://www.howisavemoney.net/?p=1694#comment-14770 Definitely $300 deeper in debt. But it is good for your credit score the lower the percent of your balance you carry over. So the extra $300 is good in the event of an emergency, and for your credit. Definitely $300 deeper in debt. But it is good for your credit score the lower the percent of your balance you carry over. So the extra $300 is good in the event of an emergency, and for your credit.

]]> By: SavingDiva http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14769 SavingDiva Fri, 03 Oct 2008 01:56:45 +0000 http://www.howisavemoney.net/?p=1694#comment-14769 I wouldn't say richer or more potential for debt. I would consider it as a lower debt to limit percent! :) I wouldn’t say richer or more potential for debt. I would consider it as a lower debt to limit percent! :)

]]> By: LuLuGal http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14765 LuLuGal Thu, 02 Oct 2008 22:10:42 +0000 http://www.howisavemoney.net/?p=1694#comment-14765 @ D4L I am getting the 5% on Discover. They have a rewards program where every three months you get 5% on certain items. Right now it is gas and groceries and that is where all my money is going anyway. @ Twiggers In my younger days I would have said that I was $300 richer...but now that I am wiser I see it as the potential to get into more trouble. :-) @ Ryan Glad you enjoyed the post. You have to be really careful with credit cards because the card companies will use ANY excuse to jack up your rates. @ D4L
I am getting the 5% on Discover. They have a rewards program where every three months you get 5% on certain items. Right now it is gas and groceries and that is where all my money is going anyway.

@ Twiggers
In my younger days I would have said that I was $300 richer…but now that I am wiser I see it as the potential to get into more trouble. :-)

@ Ryan
Glad you enjoyed the post. You have to be really careful with credit cards because the card companies will use ANY excuse to jack up your rates.

]]> By: Ryan Thorson http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14764 Ryan Thorson Thu, 02 Oct 2008 21:49:10 +0000 http://www.howisavemoney.net/?p=1694#comment-14764 I've always not been sure about Credit Cards. i think they can be a great tool for making purchases and a way to build good credit, but it has its pitfalls as well. Thanks for your post, it was insightful. Ryan Thorson http://hackalife.com I’ve always not been sure about Credit Cards. i think they can be a great tool for making purchases and a way to build good credit, but it has its pitfalls as well. Thanks for your post, it was insightful.

Ryan Thorson
http://hackalife.com

]]> By: Twiggers http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14763 Twiggers Thu, 02 Oct 2008 20:33:49 +0000 http://www.howisavemoney.net/?p=1694#comment-14763 I would never think of a card as money! It is just the potential to go deeper in debt...although I'm guessing $300 isn't going to make or break anyone. That said, I would have done the same thing just to reduce my overall utilization! I would never think of a card as money! It is just the potential to go deeper in debt…although I’m guessing $300 isn’t going to make or break anyone. That said, I would have done the same thing just to reduce my overall utilization!

]]> By: Dividends4Life http://www.howisavemoney.net/save-money/300-richeror-notit-depends/#comment-14762 Dividends4Life Thu, 02 Oct 2008 17:16:33 +0000 http://www.howisavemoney.net/?p=1694#comment-14762 What card are you getting 5% on? Best Wishes, D4L What card are you getting 5% on?

Best Wishes,
D4L

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