Credit Card Question

[Wilkeral]

O.K I have A first Premier CC with a balance of 237.00 and the limit is 250.00. if I were to pay the balance down to about $5 0r $10 and keep it there for some months. Would that raise my FICO score. Or would I be better off just paying the CC off. ( What needs to be my behavior with this card in order to raise my score. )

[sgip2000]

First Premier is the devil.

Try to carry as low a balance as possible. Keep a zero balance and you'll still have the monthly charge for the "Monthly Servicing Fee".

[Fizzle1979]

O.K I have A first Premier CC with a balance of 237.00 and the limit is 250.00. if I were to pay the balance down to about $5 0r $10 and keep it there for some months. Would that raise my ICO score. Or would I be better off just paying the CC off. ( What needs to be my behavior with this card in order to raise my score. )

Paying the card off in one payment will increase your FICO score. The age of the cc account (the longer the account statys open the better) will help your FICO score.

[Wilkeral]

Paying the card off in one payment will increase your FICO score. The age of the cc account (the longer the account statys open the better) will help your FICO score.

Thanks for the info

[Fizzle1979]

First Premier is the devil.

Try to carry as low a balance as possible. Keep a zero balance and you'll still have the monthly charge for the "Monthly Servicing Fee".

If you are paying a monthly service fee, I would pay the account off and close it.

[Wilkeral]

If you are paying a monthly service fee, I would pay the account off and close it.

May I ask why should I close it. And if so should I look into get another CC since that is my only CC

[jq26]

Because of the fees. But don't do so until you get another better card. The way credit scoring is calculated, everyone MUST have credit cards.

[Fizzle1979]

May I ask why should I close it. And if so should I look into get another CC since that is my only CC

Well for me personally, I would close it. If you are happy with your current card and paying a monthly fee, then keep it. I however, would not want to be paying monthly service fees for a credit card. Of course I realize each person situation is different, and that might be the only way to get your foot in the door.

Do you have your recent FICO score? If so you should visit this web site. It will tell you what other credit cards people are getting approved for with FICO scores similar to yours.

www.whogavemecredit.com

[MaxedOut]

May I ask why should I close it. And if so should I look into get another CC since that is my only CC

If it is your only CC and you are just trying to build credit, do not close it. Let it age long enough for you to get better cards first (at least 6 months, a year would be even better). After that, it should be ok to close it.

For someone with good credit, paying monthly for credit is not necessary. If you are building or rebuilding, it is not such a bad choice. Especially in your situation where it is your only card. Don't close it until it has aged and you have better cards. Just my 2 cents.

[sgip2000]

The problem with the First Premier card is that even if you don't use it, there are still charges being added, so there will never be a zero balance on that card.

Here is a breakdown of all the fees:

Fees, rates, costs and limitations

(Please print these disclosures and keep them with your records)

Annual Percentage Rate for Purchases 9.9%

Other Annual Percentage Rates+ APR for Cash Advances 19.9% and Penalty APR 19.9% for Purchases.

See Penalty Explanation below1

Fees for Issuance or Availability of Credit Account Set-up Fee: $29.00 (one-time fee)

Program Fee: $95.00 (one-time fee)

Annual Fee: $48.00

Monthly Servicing Fee: $84.00 Annually++

Additional Card Fee: $20.00 Annually per card, (if applicable)

Grace Period for Repayment of Balances for Purchases If you pay your previous balance in full on or before the due date shown on your previous statement you will have a grace period on purchases of 25 days (from the statement closing date to the payment due date), and can avoid finance charges on current purchases by paying the statement balance in full on or before the due date.

Method of Computing Balance for Purchases Average Daily Balance (Including new purchases)

Minimum Finance Charge $0.50

Transaction Fee for Cash Advances Greater of $5.00 or 3% of the amount of the cash advance

Late Payment Fee $29

Over Limit Fee $29

Monthly Account Maintenance Fee $3 per month on closed accounts with an outstanding balance of $20 or more.

Fee for Transactions in Foreign Currencies 1.0% of the transaction amount

++The Monthly Servicing Fee of $84.00 will be billed at $7.00 per month.

The reason this card is so bad is this:

Available Credit and Cash Advance Limitations: The initial minimum credit limit will be at least $250 and the following fees will be billed to your first statement: Account Set-Up Fee of $29.00, the Program Fee of $95.00, the Annual Fee of $48.00, the Additional Card Fee of $20.00 per card (if applicable) and Monthly Servicing Fee of $7.00. These fees will reduce your available credit until they are paid. If you are assigned the minimum credit limit of $250 your initial available credit will be $71 ($51 if you select the additional card option).

I'd cancel that sob ASAP.

[CleverCynic]

That card is a necessary evil unitl you get others and scores like Fizzle who has choices.

If you're ever going to close it, you should try for a couple other easy ones like Target now so the ages will be comparable, otherwise your scores will take a huge hit for age of accounts when you close it.