In article <2ef9b043.0404062008.453b16bd[at]posting.google.com> , Xao
<te[at]ivorypetal.com> wrote:

- quote -

If you buy the item, and pay the bills on time, and pay off the
balance prior to next spring, this will be a small net positive
on your credit history.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I wasn't looking to purchase anything like a $5000 item, it was more
like a $500 camera and I could do it with cash.

I've been living by the rule for sometime now, I only have a few minor
"incidents" from my divorce to address, which I am currently doing. I
have an old bankruptcy which was dismissed in '98 and a couple
non-secured credit cards with like $1200 limit which I keep in check
and haven't been late on a payment for over four five years now.

I was just wondering if I took out a $500 no-interest charge at a
Bestbuy etc.. if it would help my credit rating so I could use it to
help build me up, I'm looking at taking a mortgage out probably next
spring.

If it negatively affects my credit score, I will just pay cash.

Thanks!

Tad Borek <borekfm[at]pacbell.net> wrote in message news:<1Pgcc.46742$uH7.26434[at]newssvr25.news.prodigy.com> ...

- quote -


While I recognize the risks of SACs I think they also present an
excellent opportunity to have the lender buy your item and then you
just pay them later with no interest.

I use them regularly while my money sits collecting interest and then
pay them 2 yrs later in cheaper dollars. Its a win-win as long as you
have the amount borrowed in an accessible form and keep it there until
pay-off.

PR

Xao wrote:
- quote -

Using SAC consumer credit to improve your credit score is kind of like
curing binge drinking by having "just one martini" every day at lunch.
How about breaking the habit of borrowing money to buy the kind of stuff
you get at Best Buy, CC, etc? Rule #1 of personal finance: if you don't
have the money to pay for nonessentials in cash, don't buy them. Follow
that rule and a good credit score will follow.

That's especially true because of the potential for a SAC deal to blow
up and cause worse financial problems. If you look closely the actual
rate is probably around 20%. That interest is accruing at the bottom of
your bill, but is "waived" as long as you keep up with the payments and
pay off the balance within the stated period. All it takes is one missed
payment and the whole thing blows up, retroactively - you owe all that
accrued interest in addition to the interest charged going forward. And
a $5,000 HDTV might end up costing $7,000+.

"But I won't miss a payment." That may be true but be sure to consider
the circumstances that led to a 595 before taking on a SAC payment plan.

-Tad

In article <2ef9b043.0404040804.5aa0967c[at]posting.google.com> , Xao
<te[at]ivorypetal.com> wrote:

- quote -

Call them and ask. They might not even use FICO scores. Some have
their own credit decision software. I would think that getting into
the lower to mid 600's would do the trick.

- quote -

Paying interest doesn't affect your credit score. Properly handling
a new credit line does improve your score by paying on-time over time.
Getting and using more credit will lower your score since you have
more credit in use compared to the same income level. Once you have
the credit paid off, it will help your score since you now have a
lower ratio of used credit to available credit.

The biggest help for your score is time and good behavior (ie, paying
your bills on time).

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

Couple questions....

1) What would be the credit score range (I'm working on rebuilding
credit, I'm at 595 now) to get these "same as cash" financing deals at
places like Best Buy, CC, furniture stores, etc...

2) How does this affect your credit score? Does it lower it because
you're not paying interest, or will it help showing that you paid on
time....

Thanks!