Rewards Credit Cards and credit scores

[disneymom3]

I am wondering if anyone can tell me what kind of a credit score one needs to qualify for one of the credit cards that offer rewards? Several years back, DH was unemployed for a long time, we had some big medical bills hit and our credit got pretty bad. We have brought it up significantly but it is still nowhere near where it needs to be at a final point or where it was before this. I know it is high enough to qualify for a mortgage at a decent rate, but that is all I know. I'd rather not say what it is on a public message board. Does anyone know the range that is used? We do each have a credit card that is paid in full each month, a car loan and no other debt other than our mortgage.

 

[natenapril]

try creditboard.com. I think you can find some of that info there.

 

[disneymom3]

Great. Thanks for the site!

 

[summerrluvv]

The site is actually www.creditboards.com. There is an "s" in it.

You could apply with Juniper..www.juniper.com and they offer several rewards cards. Carnival Sea Miles and US Airways are two that offer the most approvals for less than stellar credit. Also, www.hooterscard.com is another one that approves those with not so perfect credit. It's a mastercard and you earn points for each dollar and they offer gift cards, etc.

 

[seashoreCM]

Do you still get junk mail offering you credit cards, some with rewards?

Apply for one and see what happens. Even if you get only a small credit limit such as $2000. you can earn a lot of rewards with that. Just be careful not to go over the limit as there is a fee charged for doing that.

To me a rewards card should offer at least one dollar's worth of points for every one hundred dollars of purchases made using the card. In some cases points may have more value when redeemed for some things versus other things, check what qualifying things or gift cards you are interested in before applying for the credit card.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[disneymom3]

We do get lots of preapproved offers in the mail but none of them ever seem to have rewards associated with them. I went on creditboards for awhile but I think I am more confused now than I was before! There sure is a lot of information there.

Thanks for the rec. for the cards that may be a good place to start.

 

[dclfun]

We had severe problems with our credit about 10 years ago due to medical issues and my having to quit my job due for medical reasons. After going through VR to get a power wheelchair and other equipment I am now back at work. We purchased a home even though we had no credit cards at the time and found out that due to our home purchase through Wells Fargo they HAD to give us a credit card. Our available credit wasn't much to start with but it helped in emergencies. At the time I wasn't concerned about rewards- just getting a card! Now, several years later, our card has been upgraded by Wells Fargo to a Visa Signature Card with a very high limit and lots of perks, as well as a great reward structure. I don't know if this would help, but it seems like every few years the card we had was eligible for an upgrade...we went to gold, then platinum, and now the signature Visa. I recently got a Disney Visa just to take advantage of the $75.00 off DVC dues but their interest rate is much higher if I don't pay it in full every month and I doubt I'll use it much. My Wells Fargo card has only a 5.9% interest rate for any remaining balance. I try to pay my CC bill every month but still have lots of medical issues and sometimes it isn't possible. ---kathy

 

[disneysteve]

Even if you get only a small credit limit such as $2000. you can earn a lot of rewards with that.

I'm not sure I agree. If you get a limit of $2,000, the most you really should charge is 30% of that, or $600. Most rewards are given at 1% of charges, so you would rack up about $6 worth of rewards/month. It would take you a year to earn one nite at a hotel, for example. Not that its bad, but it isn't terrific. Though once you get established with the company and have a good track record, they would probably up your limit, so it would be a start in the right direction. Am I contradicting myself? It's early and I didn't sleep well.

 

[kaddjr]

I'm not sure I agree. If you get a limit of $2,000, the most you really should charge is 30% of that, or $600.

Just curious, but why do you say this? Is it the debt to credit ratio? As long as the balance is paid in full each month, what's the big deal?

 

[disneysteve]

Just curious, but why do you say this? Is it the debt to credit ratio? As long as the balance is paid in full each month, what's the big deal?

Yes, I was referring to debt utilization ratio. Sorry for not stating that. Having high utilization of available credit can lower your credit score, which is exactly what this person is trying to avoid. Whether or not you pay your bill in full each month actually doesn't affect your credit score, as much as it seems like it should. When you pull your credit report, it just shows the balance at that moment and the total credit line.

 

[summerrluvv]

Yes, I was referring to debt utilization ratio. Sorry for not stating that. Having high utilization of available credit can lower your credit score, which is exactly what this person is trying to avoid. Whether or not you pay your bill in full each month actually doesn't affect your credit score, as much as it seems like it should. When you pull your credit report, it just shows the balance at that moment and the total credit line.

Actually, creditors only report your balance once a month (either at the statement closing date or the end of the month) to the CRA's so if you are paying your bill in full, your credit report will in fact reflect that. I have many cards that I charge up and pay in full and my credit report always reflects a zero balance. It will show the high balance, but that's not the same as current balance. Having a $2,000 limit and charging it up to earn rewards then paying it off each month isn't going to hurt your utilization.

 

[disneysteve]

I have many cards that I charge up and pay in full and my credit report always reflects a zero balance. It will show the high balance, but that's not the same as current balance. Having a $2,000 limit and charging it up to earn rewards then paying it off each month isn't going to hurt your utilization.

I've seen many places, such as in Money and Kiplinger's, where they recommend keeping utilization to 30% or less. They say charging much more than 50% can negatively affect your score.

Even though I pay my credit card bill in full every month, I never have a zero balance. By the time I pay last month's bill, I've already incurred new charges in the current billing cycle.

 

[summerrluvv]

I've seen many places, such as in Money and Kiplinger's, where they recommend keeping utilization to 30% or less. They say charging much more than 50% can negatively affect your score.

Even though I pay my credit card bill in full every month, I never have a zero balance. By the time I pay last month's bill, I've already incurred new charges in the current billing cycle.

Well, they are wrong. If you know how to manage it, you will get it to say zero balance on your CR every month. Many people on credit boards, including myself, do this. I would value the experiences of individuals that actually experience it rather than magazine editors.

Also, if you are just interested in having one rewards credit card and your utlitization is high, it really is a moot point since that's the only card you plan on getting.

 

[disneysteve]

If you know how to manage it, you will get it to say zero balance on your CR every month. Many people on credit boards, including myself, do this.

Very interesting. The only way I can think of to have a zero balance is to not use the card between the end of the billing cycle and the date my payment gets posted (which isn't going to happen). Is there some other way that still allows you to keep using the card?

I don't need to raise my score, but I am curious how you could manage that.

 

[summerrluvv]

Very interesting. The only way I can think of to have a zero balance is to not use the card between the end of the billing cycle and the date my payment gets posted (which isn't going to happen). Is there some other way that still allows you to keep using the card?

I don't need to raise my score, but I am curious how you could manage that.

Most of my cards report at the end of the month. I pay the entire balance online before then (which takes a day to post) and they report a zero balance. I suppose if you are using the card every single day like you and don't pay online thus making the payment posting take a week or so, it will never report a zero balance. I don't use my cards every single day and most of the people on creditboards don't either. Most of us pay in full before the end of the month or statement date to achieve that zero balance on the credit report thus bringing up or maintaining the same FICO.

 

[disneymom3]

summerluv and disneysteve--thanks but I think I am more confused than I was before...

 

[disneysteve]

Most of my cards report at the end of the month. I pay the entire balance online before then (which takes a day to post) and they report a zero balance. I suppose if you are using the card every single day like you and don't pay online thus making the payment posting take a week or so, it will never report a zero balance.

That makes sense. I don't use my card every day (although sometimes it feels that way). I pay my bills with online banking, so it takes a few days to post. But fortunately, my score is fine so I'm not concerned.

 

[summerrluvv]

summerluv and disneysteve--thanks but I think I am more confused than I was before...

LOL sorry!! I hope you find a card that works best for you I know creditboards is confusing at first, but just read, read and read and you'll learn a lot!