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

[dam itz lou]

I just received this offer in the mail. I'm definitely taking advantage of it. 50K points for 2 bill payments. If you have the Citi prestige card, they will give you a 15% bonus on the points you earn and a discounted annual fee of $350.

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[slighted]

 
How long have you had the card? How old is your second oldest card?

If you are about to purchase real estate keep the card open, and close it after you close on the property

This card is 3yo. My second oldest card was opened just 3 months ago.

 
I always love that argument. Of course they make money on you. They charge the merchant a swipe fee every time you use your card so there's no such thing as "no making money" on someone unless they just keep it in their wallet.

Yes, I'm aware of the swipe fee, fam. However, I don't use that card / keep it locked away at home.

 

[Brownstone]

Amex is giving me the run around on my credit increase, I was lead to believe they triple your line after a few months if requested

 

[capital sb]

 
This card is 3yo. My second oldest card was opened just 3 months ago.

Yes, I'm aware of the swipe fee, fam. However, I don't use that card / keep it locked away at home.

That is going to cause a decent score drop. Your AAoA will drop from 19.5 months to 3 months, unless you have some older loans I wouldn't close that account.

 

[capital sb]

 
Amex is giving me the run around on my credit increase, I was lead to believe they triple your line after a few months if requested

Did you follow the guide I linked you to? This was a while back when you last asked about it.

3X AMEX CLI Guide

 

[joe cool]

 
Amex is giving me the run around on my credit increase, I was lead to believe they triple your line after a few months if requested

Did you follow the guide I linked you to? This was a while back when you last asked about it.

3X AMEX CLI Guide

Yes its legit

I went from a starting limit of $2,000 to my current limit of $18,000 after two 3x limit increases

Only thing is I waited 4 months instead of 61 days for the first increase since I got a better paying job, then the regular 6 months for the last increse

 

[polosanddunks]

My next and probably last card for awhile is going to be AMEX once these inquiries drop off in may. Which AMEX is the best bet and does that 3X CLI consistently?

 

[capital sb]

My next and probably last card for awhile is going to be AMEX once these inquiries drop off in may. Which AMEX is the best bet and does that 3X CLI consistently?

All of the AMEX credit cards have 3X CLI.

 

[polosanddunks]

All of the AMEX credit cards have 3X CLI.

Which cards do you suggest.

I have a Chase United card, TWO CapOne Quicksilver Cards and a Discover IT Card. All with high limits

 

[gil23]

Which cards do you suggest.

I have a Chase United card, TWO CapOne Quicksilver Cards and a Discover IT Card. All with high limits

what are you looking for in a card?

 

[capital sb]

Which cards do you suggest.

I have a Chase United card, TWO CapOne Quicksilver Cards and a Discover IT Card. All with high limits

It depends on your wants and needs, personally I can't really choose between the credit cards. They all are very similar to me, but I lean towards the blue cash everyday most of the time. Check out their site and compare their credit cards.

 

[polosanddunks]

I did the preapproval. looks like im good for the Green or the Everyday Cash. Probably do one of those two then build within.

btw I travel and I do a lot of purchasing as well

 

[a-friend]

What I been doing is instead of using my debit I use my credit for anything and pay it every month on time in full

This is without a doubt one of the best ways to build your credit and credit score.

Max it out and pay it off every month on end.

Example: Credit card max limit is $2000

Charge it to $1800 or so but never go over the limit

Well don't pay your bills with your bank card or cash, pay them with the credit card, and then use the bank card or cash to pay the CC balance back to zero. This shows that you have the ability to maintain a $2000 balance with ease so what do the CC companies do, they send you a card with a limit 2-3 times that credit limit. When that new CC comes with a $6000 limit, you do the same, charge whatever you can as far as bills and living expenses and pay the balance back down each month on end.

 

[dontbelikethat]

TU Fico score raised 28pts so far, had no credit this time last year. Fico started reporting last December at 706 and its 734 now.

Wish these credit card companies would expand the free fico score checks already. BoA said they would roll it out this year, but that isn't looking likely. Need that free Experian & Equifax score. Personally not interested in current cards with the free score aside from discover it which I have.

 

[sthebest]

Looks like this Capital One Secured Credit Card is starting to pay off. My credit score went from 536 to a 545 in a month

I know it may not seem like a big deal but it really gives me hope seeing that its working. Im really glad i didnt file bankruptcy like I started to do

 

[championboyz7]

What I been doing is instead of using my debit I use my credit for anything and pay it every month on time in full

This is without a doubt one of the best ways to build your credit and credit score.

Max it out and pay it off every month on end.

Example: Credit card max limit is $2000

Charge it to $1800 or so but never go over the limit

Well don't pay your bills with your bank card or cash, pay them with the credit card, and then use the bank card or cash to pay the CC balance back to zero. This shows that you have the ability to maintain a $2000 balance with ease so what do the CC companies do, they send you a card with a limit 2-3 times that credit limit. When that new CC comes with a $6000 limit, you do the same, charge whatever you can as far as bills and living expenses and pay the balance back down each month on end.

However I was told do that but not over 30% of your utilization .
So not max it if your credit limit is 2k
Don't use more than 600 and pay it off

 

[$tatus $ymbol]

This is without a doubt one of the best ways to build your credit and credit score.

Max it out and pay it off every month on end.

Example: Credit card max limit is $2000

Charge it to $1800 or so but never go over the limit

Well don't pay your bills with your bank card or cash, pay them with the credit card, and then use the bank card or cash to pay the CC balance back to zero. This shows that you have the ability to maintain a $2000 balance with ease so what do the CC companies do, they send you a card with a limit 2-3 times that credit limit. When that new CC comes with a $6000 limit, you do the same, charge whatever you can as far as bills and living expenses and pay the balance back down each month on end.

Lol absolutely not. Of course a credit card company would be salivating at you maxing out your card every month & give you an increase you're making them money. Using too much available credit hurts your score. Terrible advice.

 

[Chiron]

I did the preapproval. looks like im good for the Green or the Everyday Cash. Probably do one of those two then build within.

btw I travel and I do a lot of purchasing as well

do the everyday. green is a charge card with an annual fee for no reason

 

[capital sb]

His advice is very risky, but as long as you pay off the balance in full before the statement cuts you are fine.
Maxing out your card is not needed to get high CLIs and you really better have an emergency fund saved up doing something like that.

I wish AMEX had a charge card with no fees.

 

[Ritchie X Rich]

Utilization has no memory so don't be scared to use your available credit. One month your balance can report high when your statement cuts and report to the credit agencies, the next month it can report a lower balance if you didn't use it much etc. it goes month to month and so does your credit score in regards to scores going up and down and if you know how it works no matter how much available credit you use up you can always get it to report what you want it to report as long as you pay a certain amount before the statement cuts. Unless you're looking to apply for new credit or loans I wouldn't hassle myself too much on being too detailed about going over "30%". It's good to pay all your bills and everything on your card mainly for the cash back and points. There's also a difference between maxing out your card. There's people who max it out but can't pay for it and do min payments and there's other who can get close to max and clear it all up.

 

[capital sb]

Utilization has no memory so don't be scared to use your available credit. One month your balance can report high when your statement cuts and report to the credit agencies, the next month it can report a lower balance if you didn't use it much etc. it goes month to month and so does your credit score in regards to scores going up and down and if you know how it works no matter how much available credit you use up you can always get it to report what you want it to report as long as you pay a certain amount before the statement cuts. Unless you're looking to apply for new credit or loans I wouldn't hassle myself too much on being too detailed about going over "30%". It's good to pay all your bills and everything on your card mainly for the cash back and points. There's also a difference between maxing out your card. There's people who max it out but can't pay for it and do min payments and there's other who can get close to max and clear it all up.

This man knows. Some people are way too obsessed, and really don't know that utilization and score has no memory.

Best trick I learned on accident, if you don't want your score to report one month change your CC due date.

Statement won't cut for 2 months, this actually screwed me when I did my mortgage loan app 

 

 

[a-friend]

 

This is without a doubt one of the best ways to build your credit and credit score.

Max it out and pay it off every month on end.

Example: Credit card max limit is $2000

Charge it to $1800 or so but never go over the limit

Well don't pay your bills with your bank card or cash, pay them with the credit card, and then use the bank card or cash to pay the CC balance back to zero. This shows that you have the ability to maintain a $2000 balance with ease so what do the CC companies do, they send you a card with a limit 2-3 times that credit limit. When that new CC comes with a $6000 limit, you do the same, charge whatever you can as far as bills and living expenses and pay the balance back down each month on end.

Lol absolutely not. Of course a credit card company would be salivating at you maxing out your card every month & give you an increase you're making them money. Using too much available credit hurts your score. Terrible advice.

Dude, Im 10 thousand percent sure you have no clue what you are talking about. 

Me terrible advice on this? 

Man you guys listen to this guy if you want to, I look at Credit and Credit scores ALL DAY long, All Day. l've spent several Years in FInanace as a Director. (this is the guy resposible for getting the loans for you, approved) 

I'm sorry gamble I am not trying to piss in your Cheerios but please know what you are talking about when you call someone out in matters like these.

 

 

What I been doing is instead of using my debit I use my credit for anything and pay it every month on time in full

This is without a doubt one of the best ways to build your credit and credit score.

Max it out and pay it off every month on end.

Example: Credit card max limit is $2000

Charge it to $1800 or so but never go over the limit

Well don't pay your bills with your bank card or cash, pay them with the credit card, and then use the bank card or cash to pay the CC balance back to zero. This shows that you have the ability to maintain a $2000 balance with ease so what do the CC companies do, they send you a card with a limit 2-3 times that credit limit. When that new CC comes with a $6000 limit, you do the same, charge whatever you can as far as bills and living expenses and pay the balance back down each month on end.

However I was told do that but not over 30% of your utilization .
So not max it if your credit limit is 2k
Don't use more than 600 and pay it off

I don't know who told you this but that is not correct,  just don't go over the CC High (max credit amount) and you are fine, if $1800 of $2000 is paid off each month it's Golden for you.

If you leave it maxed out for longer than one pay cycle it will drop your credit because it shows you have no ability to pay.

The reason its good to get that 2nd credit card for a higher amount is a thing called Credit High.

Think logically here,  I'm going to give you 2 scenarios

One guy goes  to a bank and wants to borrow $30k and they look at his credit and see a CC for $2000 with a $0 balance is his only History

Second guy goes  to a bank asking for $30k loan and they see a $2k card at $0 blanace BUT he also has  a $6k at 0 balance.

In the banks eyes, which of these guys has a better chance at the loan? They both may get it but the guy with several revolving accts and a 2 and 6k high is going to be favored WAY WAY above in the banks eyes AND his credit score should be much higher which means what, A MUCH LOWER RATE

 

[gil23]

 

[$tatus $ymbol]

Personally I'm not over concerned about utilization. If I'm giving advice about using CC's I wouldn't tell a person to swipe it until it's almost maxed out then pay it off before your statement comes. Too many variables in that and too many mistakes to be made that could end up damaging your credit. What if an emergency comes up? I'm speaking strictly from a score standpoint not who would look most attractive to a lender. Imo most folks aren't disciplined enough to use that strategy. Still terrible advice to me.

 

[capital sb]

@gamble  I agree it is very risky. You can easily achieve high CLs by applying to cards that are known for giving high limits or high CLIs.