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

[a-friend]

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.

But he's looking for advice to build credit, not for advice on how acquire a Credit Card without falling into trouble due to expenditure.

What I gave him is what he asked for, ways to build credit. It can't be terrible advice, but he can make a terrible mistake if he is not disciplined and that, is not my concern in this instance  where I'm giving advice to "build credit".

 

[Koncrete Kickz]

NT peer pressure got me again I got my IT card today... My Fico was 757 I didn't think i was in the 700 club, I get a Fico score from Amex also but it's from experian and it 697... Im pretty much set with CC for now

 

[oidreez]

This thread isn't just about how to build credit. It's also about how to do it responsibly.

 

[a-friend]

If you want a good tip on Credit Card responsibility, don't get them at all. Serious.

 

[sunshineblotters]

Also does your utilization have to be low on the due date or the "interest date"? (for credit score purposes, not interest purposes)

If you want a good tip on Credit Card responsibility, don't get them at all. Serious.

Or you can just not be an idiot. The benefits outweigh the cost if you do it right. There is soemthing truly wrong with people ******* their lives up over credit card debt

 

[a-friend]

Also does your utilization have to be low on the due date or the "interest date"? (for credit score purposes, not interest purposes)

If you want a good tip on Credit Card responsibility, don't get them at all. Serious.

Or you can just not be an idiot. The benefits outweigh the cost if you do it right. There is soemthing truly wrong with people ******* their lives up over credit card debt

Most people will be an idiot with them. Like it's free money. 

 

[polosanddunks]

If you want a good tip on Credit Card responsibility, don't get them at all. Serious.

In college i'm so glad I did not get one at first. I know I wouldn't have missed a payment but I would of acted like I was balling and interest would of killed me. getting declined entering college was a blessing on the low.

As for no CC's at all. Nah def need good credit the way this country runs nowadays. Its too easy to be responsible with them too

 

[dam itz lou]

Also does your utilization have to be low on the due date or the "interest date"? (for credit score purposes, not interest purposes)
Or you can just not be an idiot. The benefits outweigh the cost if you do it right. There is soemthing truly wrong with people ******* their lives up over credit card debt

The statement date, which is about 2-3 days after your due date.

Most people will be an idiot with them. Like it's free money. 

keyword, MOST PEOPLE. If youre smart, you should be making money off your cards,enjoying the perks, and paying zero interest.

 

[capital sb]

That's not the only way to build credit. What's wrong with just getting a card and using it. I mean there is no real benefit of maxing a card and paying it in full. The outcome of your example was a CLI. You can get CLIs without maxing a card every month.

You can use a credit card responsibly lol. Started off advising people to max em out then go to the other extreme and say don't get any cards at all

My first CC was 15K and I didn't do anything special to get that limit.

 

[thadangerousmind]

Lol this really is a bro science credit thread. I feel like I'm on the other misc.

 

[a-friend]

That's not the only way to build credit. What's wrong with just getting a card and using it. I mean there is no real benefit of maxing a card and paying it in full. The outcome of your example was a CLI. You can get CLIs without maxing a card every month.

You can use a credit card responsibly lol. Started off advising people to max em out then go to the other extreme and say don't get any cards at all

My first CC was 15K and I didn't do anything special to get that limit.

Obviously 2 sets of advice, for 2 different situations.

If the thread is how to build credit AND how to use cards responsibly, you got my 2 pieces of advice. 

If you don't see the benefit in maxing and zeroing, cool, but to say there is no benefit is  incorrect, it just is. 

The outcome of my exampe is CLI, but it;'s not the ONLY outcome, it isn't singularly specific to CLI.

Will a CLI happen by maxing and zeroing it out; yes

Will a significant credit score increase happen by maxing and zeroing it out; yes

Will it build your credit; yes...

sidenote: If your first CC was 15k and you never "did anything special" like establishing prior credit, then good. That's amazing. I'd guess that's rare.

 

[capital sb]

Why do you believe it will cause a huge score increase? There aren't many factors into building credit and increasing your score. It's not like a 2K card being increased to 6K is going to cause a 100 point jump. Only other effect it will have on your report is having another green/good standing month which will also not cause a huge jump.

It's not rare, I found out who gave out high limits and applied. The CU usually gives 10K minimum. Like I said the maxing out of your card isn't needed for high limits or building credit. The risk vs reward isn't worth it at all.

 

[slighted]

Just checked out Capital One Credit Score Tracker and my credit dropped from 770 to 738 after opening these 2 new cards (granted, my credit limit jumped up from $1k to $15k across all cards).

@BeezyGotSole -- Thanks for the heads up on not closing the first card. I think I should hold off unless I want my score to drop down to 700 or lower.

 

 

[capital sb]

 
Just checked out Capital One Credit Score Tracker and my credit dropped from 770 to 738 after opening these 2 new cards (granted, my credit limit jumped up from $1k to $15k across all cards).

@BeezyGotSole -- Thanks for the heads up on not closing the first card. I think I should hold off unless I want my score to drop down to 700 or lower.

 

No problem, your scores will go back up after those cards age a bit. Keep pressing them for a product change lol.

 

[sunshineblotters]

I switched over to the ventureone card this morn. But I won't be getting the $200 worth of points for a 1k purchase over the next few months since the promo was only for new accounts. Dropped the yearly fee so it would more than even out over the long term. Don't plan on travelling for 3-4 years (outside of work travels) while I KO these student loans anyway.

 

[willie mcfly22]

Cap 1 jus gave me a little increase on my quicksilver. They have a pay on time for 6 months, and they'll give you a little bump...

 

[a-friend]

Why do you believe it will cause a huge score increase? There aren't many factors into building credit and increasing your score. It's not like a 2K card being increased to 6K is going to cause a 100 point jump. Only other effect it will have on your report is having another green/good standing month which will also not cause a huge jump.

It's not rare, I found out who gave out high limits and applied. The CU usually gives 10K minimum. Like I said the maxing out of your card isn't needed for high limits or building credit. The risk vs reward isn't worth it at all.

Cool

 

[wrightone86]

So another scenario...

Just random numbers for ease of rounding and talking.....

Let's say your statement balance is $500

Your current balance is $750

Should you just pay the $500 before the due date, or just pay the entire $750 balance?

 

[wrightone86]

Also, I didn't know you can link your Discover Rewards to Amazon.com

Talking about redeem your reward points on purchases on Amazon. I would rather keep them for myself for now. 

I have to get used to seeing more $$ in my account than I used to have until I pay the CC off for the month. Looks weird. I can see that is how people get in trouble, when they think they have "X" more money that should be going to paying the CC off.

I still don't understand how people ( I used to work with 2 of them) got into $20k+ CC debt 

Of course Mom & Dad paid it off for them, and they just "pay their parents back." My parents/grandparents might help me out if I needed it, but nothing crazy like that. Especially if I was just reckless with it buying merchandise and random stuff 

 

[heliumclinton]

get a credit limit increase, paid one of my CC off, car note hit 7 months

40pt increase

 

[isco]

So another scenario...

Just random numbers for ease of rounding and talking.....

Let's say your statement balance is $500
Your current balance is $750
Should you just pay the $500 before the due date, or just pay the entire $750 balance?

How much avail credit total?

If u are under 30% utilization it is ok just to pay the $500..better to pay it off completely but it is not bad just paying 5

 

[vtotheinay]

How much avail credit total?

If u are under 30% utilization it is ok just to pay the $500..better to pay it off completely but it is not bad just paying 5

no he should just pay the $500 for the statement cycle and the $250 is towards the next month's statement it doesn't affect the previous month's total. if you pay all $750 and didn't use your card until the current month's statement cycle ends, you would report as 0% utilization

 

[sunshineblotters]

So another scenario...

Just random numbers for ease of rounding and talking.....

Let's say your statement balance is $500
Your current balance is $750
Should you just pay the $500 before the due date, or just pay the entire $750 balance?

Depends on the card limit. For best credit score keep it under 10% by the due date and keep it that way through the statement date. For sure keep it under 30% tho.

 

[Ruck13]

Just received my IT card today..if its not to much, wondering what interest rate you guys came in at? PM if neccesary.

 

[wrightone86]

Just received my IT card today..if its not to much, wondering what interest rate you guys came in at? PM if neccesary.

Well it came with the 0% for the first 12 months, so my statement only showed that rate, but I think it was 10.99% or something like that....I think. 

As far as the scenario question, it was just that, I am not close to even touching my limit.

I had posted pages back when I got it that it was 20k+ on mine. 

I was just asking in general since I know you guys know how to play the game of appearing to use your credit and paying it off properly vs. having it look like I didn't actually use it at all when I did.