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dexter6 posted:FWIW, I’ve always paid random amounts on my cards at random times (while always at least paying last statement in full by the due date) and I have a > 800 score. The problem as I've seen it is paying it off to zero at any point in time. It gets reported/scored like you've closed a revolving line of credit or something, or at least that's what the vague guidance looks like. I guess I wasn't entirely clear in what I posted, but seriously......just pay your statement balance before it's due. This isn't hard. It's temporary, it's minor, and it doesn't matter. But if you're trying to play credit karma high score then its something I suppose you should know about.
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Mar 26, 2023 21:50
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Motronic posted:The problem as I've seen it is paying it off to zero at any point in time. It gets reported/scored like you've closed a revolving line of credit or something, or at least that's what the vague guidance looks like. I guess I wasn't entirely clear in what I posted, but seriously......just pay your statement balance before it's due. This isn't hard.
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Mar 26, 2023 22:53
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Technomancer posted:I don't think it's true. I've been clearing my one and only credit card every two weeks for years now, and my CS is around 840 with Equifax and 900 with TransUnion. I think they just care that you are using your credit and don't miss any payment. Perhaps you're looking at a different model. I know for drat sure this was happening in at least the last few years with the FAKE-O whatever it is that creditkarma uses. And it also explains the question this was a response to entirely. So......
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Mar 26, 2023 23:00
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These are all basically edge case scenarios without much impact. The scenario where paying off your card early hurts you is if you are applying for a mortgage and the bank looks at more than just your score, and decides that despite your excellent credit score your not using your credit is a concern. The scenario where paying off your early card helps if if you have a low available credit and your normal credit usage brings you higher than 30% utilization, AND you are going to be applying for something in the next month that requires good credit. The advice "Just pay the card off in full after the due date" is still appropriate because it's simple with the lowest probability of making a mistake and the method that takes up the smallest amount of your time and concern.
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Mar 26, 2023 23:11
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THF13 posted:The advice "Just pay the card off in full after the due date" is still appropriate because it's simple with the lowest probability of making a mistake and the method that takes up the smallest amount of your time and concern. That's why I led with that. I can't imagine whatever model mortgage originators are using takes this into account. Remember that with poo poo like credit karma you are the product not the customer. It's beneficial for them to generate a lot of noise to get your attention about score changes because maybe you'll apply for one of the six dozen credit cards they are advertising.
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Mar 26, 2023 23:16
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^ Or log in again and give them a fresh batch of your data. But yeah, I've never once seen a negative effect from my scores being paid off at reporting time (and whether they are our aren't varies, so I should have seen a fluctuation). The mortgage thing makes sense but I've never seen evidence for it impacting your actual number. I do have a handful of cards that I ignore and just let run on autopay with a small bill because I can't be assed to manage them, so maybe it is a thing and those kind of small balances are just negating it for a lot of people. Who knows. It's still not worth worrying about imo, especially when you have much more impactful steps you could take first.
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Mar 26, 2023 23:35
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Motronic posted:Perhaps you're looking at a different model. I know for drat sure this was happening in at least the last few years with the FAKE-O whatever it is that creditkarma uses.
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Mar 26, 2023 23:49
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Technomancer posted:What do you mean, a different model? I'm not looking at a model, but at my situation for the last 6-7 years. You're not aware that you don't have one credit score and that scoring itself is a product that bureaus sell to lenders? They customize scores for what their customers want - their customers being the lenders that pay them. These are called scoring models. Yeah, that's right...it's doesn't mean poo poo to Bank of America for your mortgage application that Credit Karma said your have an 810.
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Mar 26, 2023 23:56
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Motronic posted:You're not aware that you don't have one credit score and that scoring itself is a product that bureaus sell to lenders? They customize scores for what their customers want - their customers being the lenders that pay them. These are called scoring models. My point is, there is no real strategy to raise your CS, apart from just using your credit, and not be late on your payments. That's all.
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Mar 27, 2023 00:23
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Can someone explain to me how TLT (iShares 20 Plus Year Treasury Bond ETF) works? How does the Feds increasing / decreasing the 20+ year treasury yield affect the price of TLT? Is TLT something that can be held long term?
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Mar 28, 2023 10:27
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TLT does what it says: it tracks the yield of 20+ years to maturity T-Notes. You can see the CUSIPs of its holdings and their coupons rates. If yields rise that will mean share prices go down. If yields fall, share price will go up. You can see the price graph basically tracks with 20 year yield. You can buy and hold it - sure why not? You can buy and hold anything. Edit: to be clear the Federal Reserve does not increase or decrease the yield of Treasuries. The yield of newly issued treasuries is defined through an auction process and is a market rate. So the KYOON GRIFFEY JR fucked around with this message at 12:05 on Mar 28, 2023 |
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Mar 28, 2023 12:02
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KYOON GRIFFEY JR posted:TLT does what it says: it tracks the yield of 20+ years to maturity T-Notes. You can see the CUSIPs of its holdings and their coupons rates. If yields rise that will mean share prices go down. If yields fall, share price will go up. You can see the price graph basically tracks with 20 year yield. Thank you for the explanation. But there is a limit to how low the 20 year treasury yield can go, right? Since it can never go below 0% does that mean that the TLT price will never go above a certain price point?
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Mar 28, 2023 12:36
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Busy Bee posted:Thank you for the explanation. But there is a limit to how low the 20 year treasury yield can go, right? Since it can never go below 0% does that mean that the TLT price will never go above a certain price point? There are three concepts here that you need to separate in getting a handle on bonds before you think about bond funds. This is well beyond newbie stuff at this point. 1) Coupon rate. This is the six monthly payment on the bond and never changes over the life of the bond. It's established at issuance on the secondary market. Unlikely to be below zero, especially for long term treasuries - theoretically possible but it would involve a lot of crazy poo poo. (TIPS have negative coupon rates with some frequency for other reasons) 2) Yield to maturity. Total return if you buy the bond now and hold it to maturity, receiving face value and the remaining stream of coupon payments. This is always positive in nominal terms unless there is a negative coupon rate. If you bought a primary issuance at auction, your YTM will be the same as the value of your coupon payments. YTM may be higher or lower than the coupon rate if you bought the security on the secondary market, see 3 - 3) Yield and price on the secondary market. The yield is equalized for bonds of the same risk profile, so the price of the bond varies to match yield. If there are two otherwise identical securities with X years to maturity for sale, and one has a coupon rate of 1% and the other has a coupon rate of 2%, I would only buy the 1% coupon bond if I can purchase it at a discount that represents the spread in YTM value between the two coupon rates. Basically, bonds with coupon rates below current yield are sold at a discount, and bonds with coupon rates above current yield are sold at a premium. As you can see above, playing in the secondary market has its pitfalls especially in a situation with rising yields on treasuries. (This is part of what hosed up SVB). Long duration treasuries are more likely to have a marked difference between current yield and coupon rate due to being issued during very much more different economic circumstances. Here's an example: LTIR thread favorite SGOV tracks 13 week treasury yields. It holds 13 week and less T-Bills. Current T-Bill annualized YTM (most recent auction) - 4.81% Lowest possible T-Bill annualized YTM fund (auctions max 13 weeks ago) - 4.36% There's variability in YTM but not that much. TLT tracks 20+ treasury yields. It holds mostly T-Bonds greater than 20 years duration. Current 30 year T-Bond yield - 3.78% Lowest held T-Bond coupon rate - 20% of total holdings are in T-Notes with a YTM less than 2% That's a lot of variability in YTM. If you look through TLT holdings, there are ton of low-coupon rate bonds where you can see that par value (basically the amount that the borrower will repay at maturity) is way higher than the nominal value (the market value of the bond at present). I think a more important question is why you are interested in buying TLT? What investment objective of yours is it supporting?
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Mar 28, 2023 13:35
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It will never go to zero, but it can certainly be worth less than the original investment. For example, if you have a 1 year $1000 bond that has a 1% (so will return $10) and want to sell it today what is it worth on the market? Not $1000 since a buyer would rather buy a new one at 5% that will return $50. Your 1% bond will still give back $1010 when it matures though so maybe it will be worth $975 on the market today instead.
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Mar 28, 2023 13:41
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Thanks for the explanation. I ask because it is part of a small portfolio that I transferred into my own brokerage account after I stopped working with a financial advisor who is a close family friend. He was taking care of my IRA's + Investment Account for the last 9 years and I wasn't really happy with the overall performance - about 15% increase in portfolio value since. From what I can see, it seems that he has invested into a lot of energy & agriculture stocks, gold and TLT.
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Mar 28, 2023 15:28
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Case number 577425 of don't use family friends to manage your money.
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Mar 28, 2023 17:34
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Jows posted:Case number 577425 of don't use family friends to manage your money. Yup, I was young and confused and seemed like a good idea at the time.
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Mar 29, 2023 07:32
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KYOON GRIFFEY JR posted:in addition to the other good advice you received: why do you care? why is this important to you? Because it’s better to have a better credit score than a worse credit score. Also I am a saiyan and I want my power level to go up and also my credit score. H110Hawk posted:Setup autopay for "statement balance" (not current, not fixed amount, not minimum) for 5 days prior to the due date and ignore it. If something goes wrong you have a 5 day buffer to fix it before it's late. It’s been on auto payment for years and the checking account it pulls from has literally 100% of the time had sufficient funds to cover the credit statement. But I also tend to just pay it whenever I think to pay it. Which is frequently because I have text reminders. Organic payment seems good according to some goons itt but bad according to different goons. WithoutTheFezOn posted:That’s pretty much what a credit score of 740+ is. I’ve never seen anything magic about the number 800. Well that’s still frustrating because it periodically dips down into the 700-teens.
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Mar 29, 2023 18:54
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Ornery and Hornery posted:Because it’s better to have a better credit score than a worse credit score. Also I am a saiyan and I want my power level to go up and also my credit score. Stop fretting over it. Turn off text reminders. Let it autopay. You have better things to do with your life.
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Mar 29, 2023 18:58
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^I don’t fret or worry about paying off my credit. It’s a text reminder and then like 3 clicks on my phone app to pay it. I am pissed about my credit score. I hate this poo poo, I’ve been extremely reliable, diligent, and timely with lying off my credit. My credit score should be flawless. I hate capitalism as much as I love goons (a lot)
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Mar 29, 2023 18:58
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Ornery and Hornery posted:I hate this poo poo, I’ve been extremely reliable, diligent, and timely with lying off my credit. My credit score should be flawless. Sometimes autocorrect makes the perfect mistake. 
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Mar 29, 2023 18:59
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Ornery and Hornery posted:^I don’t fret or worry about paying off my credit. It’s a text reminder and then like 3 clicks on my phone app to pay it. I am pissed about my credit score. Is this a thing where you expect to materially benefit off of a higher credit score, or is it just a number associated with your life that you want to go up? If the latter case, I advise fixating on something you have more control over.
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Mar 29, 2023 19:18
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TooMuchAbstraction posted:Is this a thing where you expect to materially benefit off of a higher credit score, or is it just a number associated with your life that you want to go up? If the latter case, I advise fixating on something you have more control over. This is the same style of anxiety posting that they were doing a few months back in the house buying thread. I assume its related.
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Mar 29, 2023 19:24
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i dont even know my credit score nor do i care
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Mar 29, 2023 19:27
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Motronic posted:This is the same style of anxiety posting that they were doing a few months back in the house buying thread. I assume its related. I assume you are a dick
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Mar 29, 2023 20:47
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He’s not wrong. None of it matters to you and you should just ignore it.
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Mar 29, 2023 23:51
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Most lenders don't even care how high your credit is if it's 750+. If you aren't delinquent and you've taken out loans you will be fine in any borrowing scenario.
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Mar 29, 2023 23:59
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Pay your bills on time and check your credit reports once a year to make sure your identity didn't get stolen. Unless you've hosed up in the last ten years or so that's all the effort you ever need to put into your credit rating.
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Mar 30, 2023 00:00
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KYOON GRIFFEY JR posted:He’s not wrong. None of it matters to you and you should just ignore it. Exactly this. Find something more meaningful to min-max in your life, like the combination of body weight/deadlift weight or something. At least it'd be something you have some modicum of control over where the rules aren't vague/secret and the outcome administered by a set of agencies who don't even agree with each other on the outcome. 
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Mar 30, 2023 00:11
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I minmax my shitposting
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Mar 30, 2023 23:40
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Thank you all for the input
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Mar 30, 2023 23:40
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Ornery and Hornery posted:I minmax my shitposting What are you going to max
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Mar 30, 2023 23:53
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What are the tax implications if I want to transfer stocks from my brokerage account to my son's brokerage account? It will be considered a gift and below the $17,000 USD yearly threshold. I'm assuming that the cost basis will be transferred to my son's account and if he decides to sell it, he will be 100% responsible for any capital gains? Edit: https://www.investopedia.com/terms/g/gifted-stock.asp Found the answer here, "When gifting stock, the recipient assumes your cost basis and holding period. In other words, if you were to give a friend $12,000 worth of stock purchased five years earlier for $7,000, they would be liable to pay long-term capital gains taxes on a profit of $5,000 should they sell straightaway." Busy Bee fucked around with this message at 20:49 on Apr 3, 2023 |
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Apr 3, 2023 13:52
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I've looked around this forum for this but can't seem to find what I'm looking for but apologies if this a FAQ. My wife is BWM. When we got together at least we were poor and her issues had not become unmanageable but I quickly learned that she could not be trusted to pay loans or bills on time or knew even the basics of how credit worked. I took over 100% of responsibility of managing our finances. Despite my MBA I've done very well for us. We're able to service debt ( mortgage, a single car payment and student loans that have been on hold for nearly three years) very easily from our combined salaries and our savings rate is in the top quintile for people our age. Understandably, my wife has expressed interest in sharing more responsibility in our finances an I'm totally open to that. We've been allocating more to her plate(making sure the CC bill is paid on time and there is enough in one of our checking account to cover power bills etc.). The only problem is: I'm not really a good teacher and her needs are significant. Are there any youtube series or online self guided studies that y'all know about that I can steer her towards? Her ability I'm sure is high but her understanding is maybe that of a typical high school senior.
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Apr 7, 2023 16:47
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"you have to pay your bills on time" is not really something that requires a detailed tutorial. Is she past that point at least?
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Apr 7, 2023 17:07
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ultrafilter posted:"you have to pay your bills on time" is not really something that requires a detailed tutorial. Is she past that point at least?
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Apr 7, 2023 17:21
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In that case something like Personal Finance For Dummies is probably a good choice.
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Apr 7, 2023 17:29
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Borscht posted:yup! And a lot of it was that she moved to the US at 27 so there's a ton of knowledge that we take for granted that she never was exposed to. are there countries in which one is not obligated to pay ones bills on time
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Apr 7, 2023 17:32
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in soviet russia, bills pay you
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Apr 7, 2023 17:38
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KYOON GRIFFEY JR posted:are there countries in which one is not obligated to pay ones bills on time oh my sweet summer American child e: yeah. bills don't even exist a ton of places. prepay is just how a lot of the world works where access to banking is limited Borscht fucked around with this message at 18:10 on Apr 7, 2023 |
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Apr 7, 2023 18:06
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