Most Popular Articles
Sears Credit Card Balance
Marcia Said:Why do I have an outstanding balance with available credit being more?
We Answered:You should call Sears - looks like someone goofed when doing your transfer.
Ruben Said:If your credit card is past due, are companies allowed to lower your limit, which can put you over-the-limit?
We Answered:Yes it's legal for them to do this they can also raise your interest rate to whatever your State maximum is making it harder to make the minimum payment.
Thomas Said:Can I do a balance transfer with a Sears Credit Card?
We Answered:Most credit cards have the option of giving you checks that you can write against the VISA/MC credit card. These can be used to do most anything you could do with a check, such as pay off other bills, deposit them to and account or make purchases. This counts as a cash advance, and you usually have a fee for the cash advance itself plus the interest on the VISA/MC is higher than a regular charge. Which may be as high as the Sears credit card.
Also, sometimes when you apply for a new credit card (VISA/MC) they will allow you to immediately transfer balances from other cards or loans to the new credit card and waive the transfer fee and offer a lower rate on the transferred balance.
The only real restriction on transferring balances is if you have two credit cards issued by the same issuer, such as CitiCard and you try to transfer balances between the two cards. They will not let you do that.
William Said:Do I have a good case with a Sears credit card issue?
We Answered:No. Because when you read the application it tells you no interest and that if you do not pay in full the 12 months of interest is applied. You feel mislead but many of the no interest for a year deals are like this. Read what you signed and buyer beware. Pay before the 12th to not incur the interest.
Roberta Said:How much does closing a credit card account accutually hurt your credit?
We Answered:This is what makes up your score:
1. Payment history- 35%
2. Total debt owed to available credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%
With that said, closing an account affects factors 1-4. It reduces the active payment history on your open accounts, decreases the available credit, giving the appearance that you're borrowing more than your capable of borrowing, it also shortens the average age of accounts, which if this card's been open a long time, it gives the appearance that you're inexperienced with credit.
My suggestion would be to:
A. Keep the card open after it's paid down and only make SMALL purchases($20/max) and pay it off on time every month. This way, the account is showing activity which builds credit WITHOUT getting charged boatloads of interest in the process.
B. Open another CC with the same limit as the Sears Card or increase the limit on another one of his credit cards to match the credit limit that he will lose if he did close the account. Even though it would shorten the average age of accounts and payment history, at least he can maintain his utilization ratio(debt to avail credit).
Hope this helps
Crystal Said:Does applying for a credit card then cancelling it out hurt your credit?
We Answered:I am not sure it it affects your actual credit rating (score) however some financial institutions frown upon people thathave had and closed alot of credit cards
My wife used to work for transunion and this is what she told me, I used to do the same thing
Victoria Said:Does anyone have advice for the "pay no interest for a year" credit card promotions (Sears Card)?
We Answered:Your best bet is to plan 10 or 11 equal payments - and get it all paid off in less than 12 months. Don't wait until it gets closer to time, make gradual payments and plan on paying it off no later than the 11th month.
I still use 12 months same as cash when it is offered, even when I have money on hand. It just seems like a decent way to maintain/establish credit, and space out payments.
The finance charges go away if you pay on time - but they will hit you hard if you don't.