(Editor’s note: this interview was the second of six installments that ran during the week of August 18-22, 2008. To get the most from it, be sure to read my introduction article, which can be found here.)CM: If you don’t mind, give us a few details about who you are.My name is Sharon. I am a small-biz owner and live on the east coast. I’m in my mid-30s.CM: Sharon, what are your FICO scores? I don’t track the exact number. I only track if I am about to make a new major purchase, like a mortgage, for example. I know they range upwards of 770 plus or minus a few points. But they stay around 770-790 for the most part.CM: When did you get your first credit card?When I was old enough to date.CM: How many credit cards do you have (all types)?I have 29 open and I have 31 closed.CM: How did you learn about credit? Who taught you about credit?I really never did learn about credit. I thought not going over the limit was good. I learned more about credit when I wanted to purchase my first homeCM: What advice would you give to someone just starting out in credit?Be selective, have a plan, and research the creditor.CM: If you knew then what you know now, what would you have done differently in your credit life — if anything?I would have been more selective about which cards I applied for. I would have done more research about the creditor that I was seeking to establish a relationship with.CM: What habits have allowed you to maintain such high scores? What do you think the most important thing you do is?The key I have found is keeping low utilization, and only allowing a set number of cards to report balances.CM: If you have a lot of credit cards, tell us why you feel the need for all of them. If you have relatively few cards, why haven’t you decided to get more?I like diversity and different rewards programs. Large credit limits are a side effect.CM: What is your favorite credit card? Why?Right now, it’s rewards cards and they’re rotated if they have a capped rewards structure.CM: Have you ever been late on a credit card payment? If not, how do you stay on top of your bills?I have in the past been late on a credit card, but only a couple of days late (so it didn’t get reported to the credit bureaus). In one instance, I had a balance transfer on the account. I called the bank, explained that I was traveling, and said I was a long time customer, with no previous late payments. They reversed my late fee, re-instated my 0% balance transfer offer, and reversed the rate-jacked APR and interest they charged me. I didn’t call screaming and cussing; I simply acknowledged the fact I was wrong, and inquired about a waiver.CM: Why do you think people run into trouble with credit cards?I think people run into credit card problems because they have no plan. They blindly apply for credit, and run up balances. I have a plan for almost every card that I have. The plan may include systematically getting credit limit increases, getting APR reductions, etc. I usually call the creditor and ask what they’ve done for me lately.CM: When did you first become aware of FICO scoring? Did you ever think that you wanted to reach a certain goal with your scores? In other words, did you always want to have an 800+ score?I first became aware of FICO when I attempted to purchase a home. Beyond bragging rights, 800 is a nice goal, but it’s not essential for me to have.CM: Any parting words for my readers? Some words of wisdom that you care to share?It’s a different credit climate than, say, two or three years ago. Therefore, you have to adjust your credit strategy accordingly: build slower and apply with creditors that will work and grow with you. Keep your credit file adverse-action proof. Keep utilization low, keep few balances reporting. Creditors are looking to reduce risk; don’t give them a reason. Watch your creditors like a hawk. Have a backup or a few. If a creditor decides to adversely affect you, that’s the real advantage of having multiple high-limit credit limits. Finally, time applications in 6-month batches — that way you’ll have a group that will age together.CM: Thanks, Sharon, for giving me some of your time.
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