Would this really work? I pay off my credit cards and would like to build credit, but I don't like the idea of paying the bank just to build some credit.
I don't have a card yet either. I just use my bank card which acts like a credit card. I'm considering getting one just to build up credit. During my car ordeal, I found that my lack of any credit history was a difficulty in getting a good interest rate. When I was talking to the lady at the bank, she mentioned that I should get a card and pay it off every month. I'm probably going to get a card just to pay my cell-phone bill, then I'll pay that bill from my regular account . . . Although, I guess it doesn't really matter because I'll be building up some good credit over the next two years . . .
It does work and if you do it the simple interest way, the bank doesn't get paid all that much at all, just a few dollars, hell if you want to you could even ask the bank what the pay off was on the first payment slip and give it all to them then. Point is, like live said paying off a BANK loan is GOLD. I had an auto and debt consolidation loan when I was just out of high school to pay off credit card debt of about $6000 and buy a used truck that cost another $6000. Never missed a payment, paid it off early. After that I could get any credit card I wanted, but instead I bought a new car with a good rate when interest rates sucked.
huh? that was pretty lame. yes a credit card can be a very good thing if used responsibly, but how many kids do you know of that are responsible while going off to colllege and away from their folks for the first time. was i the only irresponsible one? man, when you're that age malls, bowling alleys, the waffle houses, and movies seem like "emergencies". hmmm... i guess i was the only one. a lot of things can be good things if used responsibly. duh. "what are you guys talking about? mar1juana can be a very good thing if used responsibly. it helps build up your creative abilities." "just make sure to pay off the drug dealer on time." seriously, i hope that you're more responsible at that age than i was mr. mooch.
Credit cards turn into debt only if you allow it. That's just weakness on your part. I love the convenience of having a credit card. I don't carry balances. My total debt is $0. I also get a few % back on my purchases. Quit giving credit cards a bad name!!!
congrats, dr. wish i were more responsible. generally at that age (not speaking for everybody), most people aren't. college credit statistics...
Thanks for the tips guys... All I have now are bank cards, but as I get closer to graduating, I become more concerned about building a decent credit history. The bank loan tip looks to be very helpful...
if you get one, just have the bill sent to your folks and you pay them. there you go. you have your credit history and your money in case of an "emergency".
It is a fact that you will spend more using credit cards than you would if you were using actual cash. I don't really use a debit card very much, I use actual green cash. Try it, you will see for yourself. It is harder to count off twenties to pay for something than to just whip out a credit card to pay.
Funny thing is I actually spend more money if I have cash in my wallet as opposed to just a debit card. For some reason, when I have a couple $20's burning a hole in my wallet, I'm more likely to "waste" it on disposable luxuries such as alcohol. When I just have $5 and a debit card, I tend to be much more frugal with my account...
Well....20% down is about the only way someone with little or no credit history will get a decent interest rate. Your beacon or FICA scores are computed based on your ability to properly use credit. Someone who is so risk averse as to only use credit for a house will not have a high credit score because they haven't illustrated the ability to properly manage credit. Of course, they won't have as low a score as someone who has abused their credit though--those people have illustrated NO ability to properly manage their credit. The best scores are computed for people who use a healthy amount of credit, but illustrate the ability to properly manage it. I'm not sure I've seen as much misinformation being dissiminated in a thread recently. Here's a primer: What types of information are used in calculating my FICO score? The FICO score evaluates five main categories of information. Listed from most to least important, these are: Payment history. Approximately 35% of your score is based on this category. It includes: Payment information on accounts such as Visa, MasterCard, American Express, and Discover; retail department store accounts; installment loans; finance company accounts; and mortgage loans Public record and collection items such as bankruptcies, foreclosures, wage attachments, liens, judgments, and delinquencies reported to collection agencies Details on late or missed payments, public records, and collection items, specifically focusing on how late they were, how much was owed, and how recent and frequent were the occurrences How many accounts show no late payments Amounts owed. Approximately 30% of your score is based on this category. The amount owed on all accounts The amount owed on different types of accounts Whether you are showing a balance on certain types of accounts The number of accounts with balances How much of your total credit line is being used on credit cards and other revolving credit accounts How much of your installment loan accounts is still owed, compared with the original loan amounts Length of credit history. Approximately 15% of your score is based on this category. How long your credit accounts have been established (the score considers both the age of your oldest account and an average age of all your accounts) How long specific credit accounts have been established How long it has been since you used certain accounts New credit. Approximately 10% of your score is based on this category. How many new accounts you have How long it has been since you opened a new account How many recent requests for credit you have made (the score does not take into account requests a creditor has made to make a preapproved credit offer, or to review your account with them, nor does it take into account your request for a copy of the credit file) Length of time since creditors made credit file inquiries Whether you have a good recent credit history, following past payment problems Type of credit use. Approximately 10% of your score is based on this category. What kinds of credit accounts you have and how many of each https://www.privista.com/pl/privista/help/help_faqs_score.html
Same here. My wife gets pissed at me for never having any cash, but if I have it....I spend it. But that's a personal matter. Obviously, it works one way for you and I, but it works different for others. Credit scores however...work the same way for everyone.
I don't doubt you can spend more using credit cards, but that doesn't mean I fear credit cards. That's insane. "When things get too hot, they can burn you." "Oh my god, don't use fire, you'll get burned." Somewhere along the way you learn how to use fire... no matter how dangerous it is.
The ones you don't carry a balance on. Seriously, there are 0% APR cards, but they usually hit you with inactivity fees or subscription fees.
Well I am seriously considering getting my parents to pay it initially, and then gradually pay a little as I get some type of income (ie: job in college). I have a nice little savings account that I started about 4 years ago and haven't taken a cent out of it. Not much interest, but it's something. (Quick side story: My Bar Mitzvah money was used by my family's stock broker, which he put into a single stock. Later some of it was moved into another stock. I never liked either, wanted out, but the broker always claimed it would turn around. Those two stocks: WorldCom and Lucent. I don't like stocks any more and I could honestly care less. The about 10% of what it originally was is now in Intel.) But I might just get a check card. Then again, credit might be necessary, conidering my brother doesn't have a credit line whatsoever, and no job!!! (He's 23 with a Communications degree; HAHAHA!!!) I'm leaning toward Blue.
