24 Looking to build Credit... What are some good tips on your first Credit Card

24 here with no credit card. I will say, ever since I been using "Bill me later". My credit score has gone up substantially.
 
Kiiing said:
24 here with no credit card. I will say, ever since I been using "Bill me later". My credit score has gone up substantially.
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its basically a virtual credit card

good for you, as long as you pay on time and dont screw around of course its gonna help
 
DaBottom305 said:
 
223 at ya said:
 
DaBottom305 said:
Does anyone know what the minimum score is required to have a


Amex?


Best Buy?


Target?
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well what kind of credit score do you have?
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At the beginning of the year I was at 540. Made it a point to improve it, now I'm at 650. I'd like to get up to 750 by the end of next year.

Right now I have a Wells Fargo CC which used to be a secure card. I recently got increased in November. I'll increase again next year but I want another CC just so I can spread the charges. I'm way over 50% right now.
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Pay that card off bruh, being over 50% isn't a good look when you're trying to get another card.
 
truth about credit




paying off a 1 or 2k credit has about as much affect as a sneeze does on a hurricane.

It's all about your debt to income ratio and how you handle that.

Having accounts open that you consistently keep paying on is what helps.

"We saw how you handled a little bit, so here's more."

People that pay credit off early are not what they are looking for.

They are looking for someone who can consistently pay a lot of interest. Hence a better score.

Paying off stuff quickly is your attempt at circumventing finance charges over time.

They are in business to make money.

Think about where you fit in as a consumer of credit in that scenario.
 
oidreez said:
Purposefully paying interest does not help your score. On time payments help your score
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Exactly. Think about why people want to establish good credit score, it's usually for house loan, auto loan, or business loan. All will require that they carry a balance and pay interest. Institutions will not look at your credit history and think "oh he paid off all his 2k CC balance without paying interest, he's gonna do the same for this 160k house loan." They're gonna see that you always pay on time and therefore you have a low chance of defaulting on the loan, which will earn you a lower interest rate since they are pretty much guaranteed to be paid back in full.

If people want to purposefully give away money to CC company who already make a fee off of retailer for every purchase, then let them. You're funding the CC company so I can continue to take advantage of their rewards without paying them an interest.
 
nrg1604 said:
 
oidreez said:
Purposefully paying interest does not help your score. On time payments help your score
Click to expand...
Exactly. Think about why people want to establish good credit score, it's usually for house loan, auto loan, or business loan. All will require that they carry a balance and pay interest. Institutions will not look at your credit history and think "oh he paid off all his 2k CC balance without paying interest, he's gonna do the same for this 160k house loan." They're gonna see that you always pay on time and therefore you have a low chance of defaulting on the loan, which will earn you a lower interest rate since they are pretty much guaranteed to be paid back in full.

If people want to purposefully give away money to CC company who already make a fee off of retailer for every purchase, then let them. You're funding the CC company so I can continue to take advantage of their rewards without paying them an interest.
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This is the part I don't think most people realize. There was this myth for many years that CC companies didn't want people who paid on time because they didn't make any money on them when in reality, they just don't make AS MUCH. Retailers are charged a transaction fee every time you swipe, which is always a percentage higher than you make on your points from the CC company. It's a win for everyone but the consumer because you end up paying ~15% more on your purchases vs. using cash and the CC company makes 3-8% off the swiping fees.
 
You can carry a balance without paying interest fees. :rolleyes


quoting myself from page 2.


NikeAirForce1 said:
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.
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To be fair, when people are saying carrying a balance, they're talking about from my billing period to another, which would incur fees. Your way, in the end is still paying in full which is what most of us are saying.
 
I just got a Chase "Slate" credit card a few weeks ago. The limit is $800 and I get 0% interest until Feb. 2015. This is my second credit card I got. I got my first credit card through this company called "1st Financial Bank USA" back in March of 2005, but it got closed in 2008 for me spending it like I was a fool (Young and dumb)..smh. I ended up paying it off back in October of 2012. I learned a lot from those times and I'm not playing with credit anymore. I'm trying to get a new car in late 2014, so I think this can possibly get me a very low apr. With this new Chase "Slate" card, I'm mainly going to use it for gas and small purchases that I know I will pay back as soon as it is posted on my account.

I do have a few questions:

1. Have anyone ever got a Chase "Slate" card

2. Does paying the amount in full help your credit score instead of letting it build interest by paying the minimum? ( I plan on paying the amount in full every month)

3. What does it mean when your credit limit increases after 6 months?
 
I have the Discover it card and the Chase  Amazon  rewards card. By paying my CCs on time my credit has improved substantially. Chase started me off with a $500 limit and they recently increased it to $800. 
 
Just got approved for a bank of America Visa rewards card. 
 
FDUB said:
I just got a Chase "Slate" credit card a few weeks ago. The limit is $800 and I get 0% interest until Feb. 2015. This is my second credit card I got. I got my first credit card through this company called "1st Financial Bank USA" back in March of 2005, but it got closed in 2008 for me spending it like I was a fool (Young and dumb)..smh. I ended up paying it off back in October of 2012. I learned a lot from those times and I'm not playing with credit anymore. I'm trying to get a new car in late 2014, so I think this can possibly get me a very low apr. With this new Chase "Slate" card, I'm mainly going to use it for gas and small purchases that I know I will pay back as soon as it is posted on my account.

I do have a few questions:

1. Have anyone ever got a Chase "Slate" card

2. Does paying the amount in full help your credit score instead of letting it build interest by paying the minimum? ( I plan on paying the amount in full every month)

3. What does it mean when your credit limit increases after 6 months?
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3) It means you have more credit available to you on that card
 
WhatCanISay said:
It's actually not wise to use a certain amount and pay it off in full every month to build credit. The CC companies don't make any money off of you.

1) have a small amount of open accounts (line of credit , CC etc...). Quality>Quantity , you rather have 2 CCs with 30k total available credit than 15 CCs with 30k total available credit.

2) keep your debt to credit ratio low (probably around 20%, Don't pay everything off in full. You want to pay interest so that the CC company can see that you are responsible and can handle debt )

3) Never skip a payment or make a late payment( they usually give you a grace period so don't surpass that)

4) ask for when you're eligible for a credit increase and how you will be able to qualify, ask for the credit increase rather than getting a new CC.

5) Spend responsibly and never go close to your limit, remember to keep it at 20% or lower.

6) Be patient and don't make too many credit inquiries. Everytime they run your credit, it lowers your score by a little.
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This whole system is so crooked :smh: Ah well.
 
FDUB said:
I do have a few questions:

1. Have anyone ever got a Chase "Slate" card

2. Does paying the amount in full help your credit score instead of letting it build interest by paying the minimum? ( I plan on paying the amount in full every month)

3. What does it mean when your credit limit increases after 6 months?
Click to expand...
2. The only difference in your score would be not paying your balance in full and using too much of your available credit. If it's too high, it'll actually lower your score. Just pay the balance in full if you're going to use a credit card so you're not paying any more than you need to to the bank for a good score.

3. You have more of the bank's money available at your disposal to use.
 
crcballer55 said:
2. The only difference in your score would be not paying your balance in full and using too much of your available credit. If it's too high, it'll actually lower your score. Just pay the balance in full if you're going to use a credit card so you're not paying any more than you need to to the bank for a good score.

3. You have more of the bank's money available at your disposal to use.
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SO, paying it in full every month is the best way to raise your credit score?
 
I'm 19 and have a 750+ credit score

I don't have any idea.

Just got my first credit card today actually. Discovery card.
 
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