What are "good" rates/scores?

iVillage Member
Registered: 12-12-2004
What are "good" rates/scores?
6
Wed, 07-09-2008 - 10:53pm

Hi, ladies. OK, I got the $3K. Put it in

iVillage Member
Registered: 03-17-2003
Thu, 07-10-2008 - 12:09am
Gee whiz I have no wisdom to share with you on how to allocate the $3,000.
iVillage Member
Registered: 05-09-2005
Thu, 07-10-2008 - 12:16am
Hi Whiz,
Just a reminder that prepaying your recurring bills does not help your FICO score;
lowering you debt to credit ratio does. So don't "snowflake" to regular bills. Those aren't really snowflakes anyway; you are just prepaying a little on recurring bills.
Put that money to work for you by paying more on the bills you are trying to eliminate.
Hope that helps.
Megan
iVillage Member
Registered: 12-12-2004
Thu, 07-10-2008 - 12:28am
Hi, Carolyn and thanks:)
iVillage Member
Registered: 12-12-2004
Thu, 07-10-2008 - 12:40am
Hi, Megan. Well, I think I've goofed again. I keep paying a snowflake a little to the cell, gas, electric etc. So that way, when the bills come in, I'm not having a shock, and I can keep track better that way. So for example: the cell was $45,but I had snowflaked $25,so that was more realistic this month. Plus, I kept putting $50 every two weeks toward the "fixed" gas/electric, which is at $200+ each month, so when the bill comes, I "only" owe $75. It works for me like this, then I dont freaked with a huge amount, like a $175 DH CC gasoline bill, as I pay a little every two weeks or so.
iVillage Member
Registered: 05-09-2005
Thu, 07-10-2008 - 3:14am

Hi,
When you lower a credit card balance, your FICO improves since now you have more credit available. Don't close any cards. You don't have to use them. But just having credit available helps your score.
The only time regular bill paying has any effect is IF YOU DON'T PAY, OR PAY LATE, THEN IT IS A NEGATIVE.
Loans are different (mortgage etc) -- they build up a positive report if you pay on time (and of course also lower your score if you don't)

I understand wanting to avoid the "yikes" factor when faced with the recurring bills.
You have probably fixed that for utilities already by signing up for their balanced payment plan. The only thing I can suggest for cell or gasoline is to go back and figure out how much you paid for those last year. Then divide by 12 to get an idea of an average amount per month. That is the amount you would now budget for. If, one month, it is not as high as the average YEA! -- then stick the difference into your savings account and use that money when the bill is higher than the average.
Hope that helps,
Megan




Edited 7/10/2008 4:46 am ET by looking4info2005
iVillage Member
Registered: 12-12-2004
Thu, 07-10-2008 - 12:23pm
Hi, Megan and thanks for clarification. Yeah, the balanced pay plan for gas/electric does work better for us. I went online to check the cell phone (mine) and it averages out to about $30/month. I know this is dumb, but when I get the CC bill online--say, it is $450--I pay $75 one week and then another amount the next, until I reach the total. For me, it is simplfied this way, and I dont freak when I look at that $450 (or whatever it is) and realize I have to have that amount paid in a few days.---then I can snowflake any "extra" once the amount is paid. I did pay ahead on the car payment (DH) and on the HELOC. Why? Well, because we have family coming to visit and I know expenses will be tighter then. Plus, we're having a major cookout thing in a few weeks. So, I am doing it economically. No fancy calorie-laden dishes. I just wish I could get the HELOC done, but for now ,focusing on Kahuna. Appreciate your input:) Whiz.