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

[oidreez]

 

I paid off a student loan (account closed) and my credit score dropped by 12 points... .


They'd rather you be indebted than free...


...

Same thing happened to me with my car loan. It's because your student loan is considered an installment loan. It's different from credit cards. When you have different types of credit it helps your score. Now that you paid it off and you don't have that account anymore, the only type of credit you probably have is revolving credit which is your credit cards.


It's stupid that you lose points for it but it will bounce back in the next month or two.

That's crazy. I just got a tempurpedic for my back (had back surgery 2 months ago), and they did a hard pull of my score, and I dropped from 700 to 680s. But now I have one credit card, one car loan, and one bed loan. Put a 1000 down and have 2 years to pay off 4000. 

How do you get your Credit score up to upper 700s?

time and amount of available credit you have. Also obviously making your payments on time each month

 

[kal-el-8]

 

 

 

I paid off a student loan (account closed) and my credit score dropped by 12 points...

.


They'd rather you be indebted than free...

...

Same thing happened to me with my car loan. It's because your student loan is considered an installment loan. It's different from credit cards. When you have different types of credit it helps your score. Now that you paid it off and you don't have that account anymore, the only type of credit you probably have is revolving credit which is your credit cards.


It's stupid that you lose points for it but it will bounce back in the next month or two.

That's crazy. I just got a tempurpedic for my back (had back surgery 2 months ago), and they did a hard pull of my score, and I dropped from 700 to 680s. But now I have one credit card, one car loan, and one bed loan. Put a 1000 down and have 2 years to pay off 4000. 

How do you get your Credit score up to upper 700s?

time and amount of available credit you have. Also obviously making your payments on time each month

Yea I think my lower credit score has to do with the fact that I've had my CC for less than a year, and always keep a zero balance. never missed a payment obviously.

With length comes credit/payment history, which determines alot. 

 

[mplsdunk]

I don't have any debt after today except student loans. My credit SUCKS. I'm going to my credit union today to talk to them. Do you think I'm better off with a secured card or just bringing in like 1k cash and just doing some secured loans? Are secured loans the best way to fix it?

Both. Type of credit matters as much as anything. u need revolving credit eventually. (cards)

Word. I'm going to get both then.

 

[jon4rd]

So it's actually better for your credit score to leave a balance on your card (as long as it doesn't exceed that percentage rule) rather than pay it off each month?

 

[jewseejay]

So it's actually better for your credit score to leave a balance on your card (as long as it doesn't exceed that percentage rule) rather than pay it off each month?

Yes. Zero balance signals inactive.

10-30% balance signals proper csrd leverage/usage

>75% usage signals debt ceiling

 

[usabasketball08]

If I have a $0 balance on a card for awhile, will they eventually close my account?

 

[penny1folarin]

If I have a $0 balance on a card for awhile, will they eventually close my account?

 

[superantigen]

If I have a $0 balance on a card for awhile, will they eventually close my account?

No.

Your account is only closed when you contact your cc company and tell them to close it.

A balance of $0 on your cc statement is just that--a balance of $0.



...

 

[frank mucus]

Those of you looking for AMEX might want to look into the one they have available at Costco. It has UNLIMITED cash back.

The only thing is they aren't going to be going to AMEX by 2016, but it's possible the new card will also have unlimited cash back.

 

[mplsdunk]

I just signed up for the struggle capital one secured card. 200 dollar deposit so I think my limit will be 200 bucks. it's all gravy though. Just using it for gas and building my credit.

So I should or shouldn't pay it off every month? Or just pay it off and leave a 10 dollar balance or something?

 

[slighted]

I just signed up for the struggle capital one secured card. 200 dollar deposit so I think my limit will be 200 bucks.

it's all gravy though. Just using it for gas and building my credit.

I had Capital One CC starting out and had a $300 limit. After paying early every month, I got it raised up to $2000 after a few months.

It's a marathon, not a sprint. My credit could be better (770 now).

 

[mplsdunk]

Dope. I don't even need or want a high limit. I just want to be able to finance a whip or whatever in a year or two. My credit isn't thaaaat bad, still bad though like 630.

 

[gregzzy23]

I just signed up for the struggle capital one secured card. 200 dollar deposit so I think my limit will be 200 bucks. it's all gravy though. Just using it for gas and building my credit.

Did you try applying for the capital one platinum card? I like you applied for the secure card just to get my foot in the door and then immediately applied for platinum and got accepted. when I got the acceptance for the secure in the mail to make the deposit I just ignored it.

see if they accept you for the platinum, its slightly better for building credit

 

[mplsdunk]

I already put 200 down... It's ok I'm not in a big rush. I've had bad credit for years. I just got everything out of collections so I'm just chipping away. Next I'll try for a smal loan after I use this cc for some months.

 

[OneNightDan]

I just signed up for the struggle capital one secured card. 200 dollar deposit so I think my limit will be 200 bucks. it's all gravy though. Just using it for gas and building my credit.

So I should or shouldn't pay it off every month? Or just pay it off and leave a 10 dollar balance or something?

No BS, I payed off my credit cards early every month in full. Got in increase in credit limit, & by result my credit score went up also. Then, after it went up I was able to apply for better credit cards. Enjoy my Capital One Quicksilver got like $10 cash back, not too much but I've only used it this month. A $100+ every year would come in handy during Christmas time.

 

[OneNightDan]

Quick question I have a collections on my Credit Report, but it's from I believe 2008-2009?
I was 16-17 Years Old at that time. There's no way I could have had a bill from there. I didn't have any major hospital bills 'til I was 18, had my appendix removed. But, I'm asking should i call about it and potentially open the case another 7 years or let it fall off? It's suppost to fall off in 2016.

 

[thadangerousmind]

Quick question I have a collections on my Credit Report, but it's from I believe 2008-2009?
I was 16-17 Years Old at that time. There's no way I could have had a bill from there. I didn't have any major hospital bills 'til I was 18, had my appendix removed. But, I'm asking should i call about it and potentially open the case another 7 years or let it fall off? It's suppost to fall off in 2016.

Whatever you do don't pay on it. If you can dispute it and get it removed do that but if not let it fall off. 2016 trumps 2022 any day.

 

[mplsdunk]

I just signed up for the struggle capital one secured card. 200 dollar deposit so I think my limit will be 200 bucks. it's all gravy though. Just using it for gas and building my credit.

So I should or shouldn't pay it off every month? Or just pay it off and leave a 10 dollar balance or something?

No BS, I payed off my credit cards early every month in full. Got in increase in credit limit, & by result my credit score went up also. Then, after it went up I was able to apply for better credit cards. Enjoy my Capital One Quicksilver got like $10 cash back, not too much but I've only used it this month. A $100+ every year would come in handy during Christmas time.

Yeah I'm sure they will for me too. Before I fell from glory financially they gave me a 5k limit within a year of having my card. Then I actually needed it and you know the rest... That's what I had go to collections and just paid off yesterday. I'm getting a proof of payment mailed to me. I saw you mention collections. They can do that if you pay it off so if you're looking for a loan you can show that as proof.

 

[OneNightDan]

Well the bill is like $86, but I don't feel like I should pay something that potentially isn't mine. I'm hesitant 'cause it might reopen the 7 years fall of your credit record thing. It's fall off early next year.

 

[OneNightDan]

Whatever you do don't pay on it. If you can dispute it and get it removed do that but if not let it fall off. 2016 trumps 2022 any day.

But If I dispute it will it reopen the "case".

 

[thadangerousmind]

Oh hell it's only $86 lol. I thought it was in the thousands.

 

[rcdot]

hey guys just need a little help.

what is the best route for me? i have 1.3k saved up and have 3 credit cards 2 maxed out, one for $700 and another for $500 and another line for $800 bucks untouched.

should I pay off the two maxed cards?

pay a big chunk to both of the cards and keep the rest?

pay minimum?

don't have any major purchases coming up. what's the best route?

 

[thekid3456]

hey guys just need a little help.


what is the best route for me? i have 1.3k saved up and have 3 credit cards 2 maxed out, one for $700 and another for $500 and another line for $800 bucks untouched.

should I pay off the two maxed cards?
pay a big chunk to both of the cards and keep the rest?
pay minimum?

don't have any major purchases coming up. what's the best route?

You never want to rely on CC to have cash. I would leave $100 on each of the max cards as a balance. That way at least you can habe $200 with you. Since you only have 1.3K paying them both in full will leave you broke. Never a good thing. So that's what I would do.

 

[crcballer55]

 
hey guys just need a little help.

what is the best route for me? i have 1.3k saved up and have 3 credit cards 2 maxed out, one for $700 and another for $500 and another line for $800 bucks untouched.

should I pay off the two maxed cards?

pay a big chunk to both of the cards and keep the rest?

pay minimum?

don't have any major purchases coming up. what's the best route?

1) have a cushion of $1000 in cash as a small emergency fund

2) throw $300 at the one with the $500 balance. Then finish paying off that one. Next, take the payment you were using towards the $500 card and apply it to the $700 card. Once that's paid off, finish the $800 card.

 

[penny1folarin]

taking out a loan to payoff credit card , good or na ??