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post #61 of 6421
Same boat. Got my first credit card about 4 months ago. Been buying gas/groceries/and smaller miscellaneous stuff and paying the balance off in full to avoid interest payments. Not sure how quickly this is building my credit, but it is certainly a start.
post #62 of 6421
Quote:
Originally Posted by iLLest View Post

I've been paying my credit card statements in full every month for 2 years. You're telling me I should actually pay the minimum or above the minimum to build my credit? I always thought not making full payments was taboo.

iLLest!

You should pay off your whole balance each month to no incur interest charges. The crucial part is paying off 90%-99% of your balance BEFORE your statement ends. I'm not talking about your due date. I'm talking about the date on which your billing statement ends. The reason for this is that your bank will report whatever your balance is at the end of your billing statement to the 3 major credit bureaus. If you have a high credit utilization rate (higher than 30% of your credit limit), this will lower your credit score. So by paying your most of your balance BEFORE your billing statement ends, your bank will report a low credit utilization rate. This will increase your credit score. Then after your billing statement ends, you will still have a small balance that you owe. This is when you then pay off your entire balance (before the due date) so that you don't incur any interest charges.

As to why one should try and build credit? I'm doing it so that I can get in on credit card offers that have high bonus miles and points offers. You can fly free or make a bunch of money.
post #63 of 6421
This subject is always funny because everyone thinks they are the only ones that have the right answer...

there's different ways to build credit op... But the main objective is making payments in a timely consistent manner. No matter if its full or minimum... Pay on time and you'll be ok.
post #64 of 6421
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Originally Posted by ***a5in11 View Post

Quote:
Originally Posted by crcballer55 View Post

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Quote:
Originally Posted by crcballer55 View Post

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im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling smokin.gif



Why not just keep an emergency fund instead?


I did have one, and I still have one. Having a CC will be an extra form of security. What if my transmission goes out? What if I get hurt playing basketball and will be out of work, to many what ifs can happen to just say that an emergency fund will save you.

What will a credit card do that an EF won't? You're still going to have to pay for it one way or another. The only difference is that the CC will end up costing more. A Transmission should only cost a couple thousand. A proper EF of 3-6 months of expenses should easily cover it. Sports injury? If you don't have insurance, your CC probably won't be nearly enough to cover it, plus, you're going to be paying at least 18% interest on any charges too.

An EF isn't meant to cover EVERYTHING. That's why it's important to supplement it with various forms of insurance i.e. homeowners, life, disability, medical, etc.
Damn bro why the hate. I mean if want to be in your 40's with no credit history trying to get a house what you gonna do? Pay that out in cash too homie?

 

No hate at all. If you want to do it that way, that's your choice.

 

My point is that we have been told our whole lives that we must build our credit to buy the things that we want and protect ourselves from an emergency. The thing is that there are much better ways of doing it that will actually better protect you and help build more wealth.

 

And actually... I do want to be in my 40's with no credit score. wink.gif That means my home will finally be paid off. If I wanted to get another mortgage, I could always go the manual underwriting method with the alternative credit history report.

post #65 of 6421
pay your balance in full each month and let those accounts age, don't fall for the dumb carry a small balance myth for increasing your credit score.
post #66 of 6421
Thread Starter 
A lot of good info in here thanks NT... is there any cards ya'll can suggest as good "starter" cards
post #67 of 6421

Does credit bureaus check your payment history? I ask this because if they do, then I don't see what's the problem paying your balance in full every month rather than having a credit utilization from 10%-30% each month.

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post #68 of 6421
Quote:
Originally Posted by G mat ic View Post

Does credit bureaus check your payment history? I ask this because if they do, then I don't see what's the problem paying your balance in full every month rather than having a credit utilization from 10%-30% each month.

 

for Canada, yes. I don't know if the US is the same.

 

If you want to apply for a line of credit, loan or a mortgage here, we would always send a request with EVERY single detail such as assets and liabilities, the reason why you want this particular line of credit or loan, how are you going to pay for it and so on and so forth. This is very basic and everyone knows these particular steps.

However, the credit bureau can see your payments and how many times you were late. 30 days, 60 days and/or 3 months.

Even to things like your phone bill, cable bills and tax payments.

Just make sure you pay all those on time.

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post #69 of 6421
Thread Starter 
Anyone ever get a card from citi bank? how are they
post #70 of 6421
Quote:
Originally Posted by tyisny View Post

Anyone ever get a card from citi bank? how are they

 

Out of all the cards I had, I liked it the least because the bill due date was never the same each month. At that time, the perks weren't that great either. Not to mention the fact I would never do business with Citi because of their reputation, but that's just me.

post #71 of 6421
Quote:
Originally Posted by Rico x Hood View Post

Get a Capital One Secure Credit Card.


Did this like 4 yrs ago... like a year n some months later called em up n switched to a dif cap1 "platinum" card that wasnt secured. 500 dollar limit. Like yr after that switched to my new card. With a 1500 limit i thi.k i dunno as ive.never had more than 300 on any one card. Cc intrest rates r scary b. Esp when ur first starting out. My credits n ok.shape now tho... ill be good.

So yea... secured card. Reg card. Utilities. Car note.

N that order and u should.b straight.
post #72 of 6421
im 20 and have had discover for a year.

i only use it sometimes but make sure to pay it off every month. because after the first 6 months the int rate jumps to a ridiculous 17or 20 percent.

treat it as a debit card and u should be fine.
post #73 of 6421

this might help you pick one out:

 

http://www.nerdwallet.com/credit-cards/

post #74 of 6421

Question to da credit gawds. I'm looking to get a credit card but i've gotten denied when I applied due to no credit. I applied for a card about a month ago and got denied and their reason was that I had too many recent credit inquiries. What can I do about this? I got a letter in the mail about a Discover it card and want to apply for it but am afraid if I do that i'll get denied and it'll add on to my "recent inquiries".

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post #75 of 6421
Quote:
Originally Posted by Bernie View Post

Question to da credit gawds. I'm looking to get a credit card but i've gotten denied when I applied due to no credit. I applied for a card about a month ago and got denied and their reason was that I had too many recent credit inquiries. What can I do about this? I got a letter in the mail about a Discover it card and want to apply for it but am afraid if I do that i'll get denied and it'll add on to my "recent inquiries".

 

I think you answered your own question. Have patience grasshopper.

post #76 of 6421
Thread Starter 
has anyone tried a capital one card?
post #77 of 6421
Quote:
Originally Posted by tyisny View Post

has anyone tried a capital one card?

Got one last week b
post #78 of 6421

8o

 

 

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post #79 of 6421
The people who are saying to pay it off in full are depriving themselves of improving their credit scores.

I carry debt (credit card) purposely. I never have a balance no more than 25% of my total allowed credit. Here are some of the cards I have:

-Delta Reserve American Express (Use this mostly for traveling)
-American Airlines Advantage MasterCard (Use this for most purchases)
-American Express Platinum (Use this for BIG purchases or whenever I need their concierge service)
-American Express Platinum Business (Company credit card which I use for work expenses)
-Bloomingdale's
-Best Buy
-Macy's

No car payments, mortgage or student loans.

Credit score of 815 FTW pimp.gif
post #80 of 6421
i just recently started carrying a balance on my bigger card.

still a low limit but love to use it online since i get 10% cashback on NDC
Lookin to get a discover card? Contact me and sign up under me and $100 FREE when you get approved. Also double cash back on all purchase for one (1) year https://refer.discover.com/s/ewgdw
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Lookin to get a discover card? Contact me and sign up under me and $100 FREE when you get approved. Also double cash back on all purchase for one (1) year https://refer.discover.com/s/ewgdw
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post #81 of 6421
What would be a good CC for me? I'm 24 and most of my expenses go to gas, food, and online shopping (amazon)

Something with nice perks

EDIT: I have no credit
Edited by wanksta23 - 11/6/13 at 10:36am
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post #82 of 6421
Quote:
Originally Posted by wanksta23 View Post

What would be a good CC for me? I'm 24 and most of my expenses go to gas, food, and online shopping (amazon)

Something with nice perks

Do you have credit already?

If you do, then I recommend you get Chase Freedom. Now, some people would disagree, but I did the math plenty of times back and forth and you save a lot of money with them if you use their rewards program.
post #83 of 6421
If anyone wants to get a Discover IT card, pm me laugh.gif
Lookin to get a discover card? Contact me and sign up under me and $100 FREE when you get approved. Also double cash back on all purchase for one (1) year https://refer.discover.com/s/ewgdw
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post #84 of 6421
Quote:
Originally Posted by NikeAirForce1 View Post

So much conflicting information in here. Here's some tips for you because you don't have a credit card yet.

Find out what your credit score is from https://www.annualcreditreport.com/

First off, if your parents have a credit card, tell them to add you as an authorized user to their account. Why do you want to do this? The age or longevity of their credit history will transfer over to you. Let's say they have 15 year old credit history. You will get this as well. Credit history affects your credit score. The older it is, the higher the credit score.

Getting your first credit card is not easy. You might have to get a secured credit card from a bank (Bank of America for example) or a credit union. This means you have to up money upfront. You have to deposit a thousand dollars. Then you use that for about a year or so and then they will transfer you over to a unsecured (regular) credit card. If you're lucky, you might be able to get an unsecured card based on your credit score, income, debts, and expenses like rent.

For the rest of yall:

Don't wait until your billing statement to end before paying off your credit card.

Your balance at the end of your billing statement is reported to three major credit bureaus by your credit card company. Let's say you have a $3000 credit limit. If you spend $2000 dollars a month on that credit card and wait until after your statement ends to pay your balance, your credit card company will report you as utilizing $2000 of your $3000 credit limit. This is a credit utilization rate of 67%. This will negatively affect your credit score, EVEN if you pay it off in full before the due date. Ideally, you want your credit utilization rate to be 30% or less, and under 10% is even better.

BUT...you still want a balance reporting. So before your billing statement is over, pay off everything EXCEPT 1%-10% of your credit limit. THEN you pay the rest of the balance before the due date so you don't incur any interest charges.

Check out creditboard and myfico forums for more info.

 

This is the correct way of building credit.  Do not listen to those folks who are saying to pay interest.

 

Also I would like to add that if you have more than 1 CC, only allow 1 to report 9% or less.  The others should preferably read a 0 balance.

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post #85 of 6421
Quote:
Originally Posted by Hank Scorpio View Post

The people who are saying to pay it off in full are depriving themselves of improving their credit scores.


Credit score of 815 FTW pimp.gif

 

I've never carried a balance in my life and my credit score is right there too. It was in the high 700's prior to buying a house, then it's steadily increased over the last couple years just by making payments on time and having a long credit history.

post #86 of 6421
I started this past summer when I applied for a Capital One CC, and was offered 0% interest for one year. I don't have to pay interest on anything till September, so why the hell not?

Not having credit was killing me!
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post #87 of 6421
Quote:
Originally Posted by AceMaster193 View Post

I started this past summer when I applied for a Capital One CC, and was offered 0% interest for one year. I don't have to pay interest on anything till September, so why the hell not?

Not having credit was killing me!

That's fantastic, use wisely. That could boost your rating a lot in a year.
post #88 of 6421
Quote:
Originally Posted by crcballer55 View Post

I've never carried a balance in my life and my credit score is right there too. It was in the high 700's prior to buying a house, then it's steadily increased over the last couple years just by making payments on time and having a long credit history.

You probably have/had student loans, car payments and/or a mortgage.

Usually if people pay those types of debt off in time without missing a single payment--their credit score shoots through the roof.

I never had any of those things. All I did was have substantial savings and payed my credit card bills on time since I first got a a credit card back in 2005.

I guess what i'm trying to say is that you don't need "large" debt to have a phenomenal credit score. Paying bills on time and having a long history means just as much, if not more towards building strong credit.
Edited by Hank Scorpio - 11/6/13 at 1:58pm
post #89 of 6421

http://slickdeals.net/permadeal/106384/chase---chase-freedom-credit-card-spend-500-in-first-3-months-and-earn

 

thinking about grabbing this card for my first official CC... ive banked with chase for the last 10 years.. (back when they were WaMu)

people on slickdeals seem to think its an easy come up on a free 200$

 

whatta ya think NT?

post #90 of 6421
Quote:
Originally Posted by Dnero1 View Post

http://slickdeals.net/permadeal/106384/chase---chase-freedom-credit-card-spend-500-in-first-3-months-and-earn

thinking about grabbing this card for my first official CC... ive banked with chase for the last 10 years.. (back when they were WaMu)
people on slickdeals seem to think its an easy come up on a free 200$

whatta ya think NT?

great CC. Chase freedom allows you to do several things with the cash back option. You can transfer a portion or all of your points as cash to your personal bank account. You can also use it to get gift cards from certain vendors (macys, starbucks, khols, footlocker and others). Some vendors have a 10% discount on the gift cards.
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