I've never had a credit card before...

[dullard]

Originally posted by: AMDZen
I had my first credit card at 18, used it for gas and paid it in full every month. I didn't get another CC until 21, same deal with that one just used it for small things.

I never really had much credit even though I never had any issues. Until I got 5 credit cards all in 1 year and spent $10k easily on cards with 12 months no interest type stuff. Paid exactly 1/12 of what was due each month until they got paid off. Went from a 650 type score to 800 within a year.

In other words, many people say pay your CC's off every month, but it wasn't unitl I actually kept a monthly "debt" so to speak that I had great credit.

I bolded the reason that your credit score went up. Credit scores are a measure of trust. You have to show that MULTIPLE companies trust you with that credit and that you have a history of using it properly. With just one credit card, you have little track record. It is almost as bad as no credit cards. Also, you really didn't use your credit. Just gas. That is what, $100 a month back then tops. You basically had the "650 since I've never proven myself" credit score.

It wasn't paying interest that mattered (heck you said no interest cards anyways). It was that you got MULTIPLE credit lines and actually USED them significantly. Then you proved that you could responsibly handle debts.



Nonameo, my answer to you is the same. Get at least two cards. You might get crappy cards at first, but who cares. As long as you don't pay fees or interest, they are good enough. Then actually use them. Time is all that you'll need. A couple of years and your credit score will be steller.

 

[AMDZen]

Originally posted by: dullard

Originally posted by: AMDZen
I had my first credit card at 18, used it for gas and paid it in full every month. I didn't get another CC until 21, same deal with that one just used it for small things.

I never really had much credit even though I never had any issues. Until I got 5 credit cards all in 1 year and spent $10k easily on cards with 12 months no interest type stuff. Paid exactly 1/12 of what was due each month until they got paid off. Went from a 650 type score to 800 within a year.

In other words, many people say pay your CC's off every month, but it wasn't unitl I actually kept a monthly "debt" so to speak that I had great credit.

I bolded the reason that your credit score went up. Credit scores are a measure of trust. You have to show that MULTIPLE companies trust you with that credit and that you have a history of using it properly. With just one credit card, you have little track record. It is almost as bad as no credit cards. Also, you really didn't use your credit. Just gas. That is what, $100 a month back then tops. You basically had the "650 since I've never proven myself" credit score.

It wasn't paying interest that mattered (heck you said no interest cards anyways). It was that you got MULTIPLE credit lines and actually USED them. Then you proved that you could responsibly handle large debts.

I understand but the first CC they only gave me $500 limit so I couldn't do much with that, and the second cc wasn't that much later and about the same kind of limit.

My main point was to get more then 1 as well - in agreeance to what you're saying. Where as my parents and others told me that I should only get 1 or 2 max and use them and pay them off. That is also what many others are saying here. I think you should get 5-6, and just use CC's as much as possible especially now for this guy being 24

 

[dullard]

Originally posted by: AMDZen
My main point was to get more then 1 as well - in agreeance to what you're saying. Where as my parents and others told me that I should only get 1 or 2 max and use them and pay them off. That is also what many others are saying here. I think you should get 5-6, and just use CC's as much as possible especially now for this guy being 24

3-4 would be my recommendation. You need to use multiple cards (thus you need 2 minimum). But you have to show restraint in NOT using at least one or two cards (add in one to two more). That is, you can control your spending and you have a buffer in case of emergency.

If you go much beyond 4, you won't harm your score too much, but you may have a harder time getting loans in the future.

 

[Special K]

Originally posted by: Oyeve
Get a low APR card. If you get a limit of say, 10k, use 2k and always pay at least twice the minimum every month. Keep the card at 2k but double the minimum payment. In six months you should have a decent credit score. Paying off the balance every month is not a good thing if you want a score higher than 700.

This is completely wrong. You do NOT need to revolve a balance on your credit cards each month to improve your score. Doing this is a great way to throw away your money by paying unnecessary interest to the bank.

 

[JMapleton]

Get a secured credit card if they won't give you a real one and it will take about a year and then you'll be able to get one.

 

[nonameo]

Originally posted by: dullard

Originally posted by: loki8481
my old roommate was the most anti-CC guy I ever knew. adamantly refused to even think about getting one... he'd give me cash to buy things online for him and all the apartment-related bills were in my name.

and then he got all pissed off when he went to buy a car and found out he had bad credit.

Yep. Being anti-credit will only hurt you.

Your credit score is a measure of TRUST. Do companies that work with you trust you? If so, then your credit score goes up. Do companies that work with you want to avoid you like the plague? If so, then your credit score goes down. Do you not trust yourself enough to work with credit? If so, then you have no credit (which is middle to bad on the ranking scale). Your roommate and possibly the OP have shown a lack of trust in themselves.

If used properly, a CC is one of the best deals possible. Just about everything is easier, many things are cheaper, and you get tons of rewards. Being anti-credit is being foolish. The only thing worse is having credit and being unable to control your spending.

its not so much a lack of trust, but a lack of need. I just thought I would correct that. I'm just trying to "prepare" for the future, that's all.

 

[Jeff7]

I'm 26 and have never had a credit card.
But I pay gas and electric bills, plus rent, always on time.

And I have thousands of dollars of loans against my name.

 

[Penth]

Originally posted by: Oyeve
Get a low APR card. If you get a limit of say, 10k, use 2k and always pay at least twice the minimum every month. Keep the card at 2k but double the minimum payment. In six months you should have a decent credit score. Paying off the balance every month is not a good thing if you want a score higher than 700.

I don't know where you heard this from. Last time I checked my score was 806 and I've never paid a penny in interest.

 

[ultra laser]

Credit cards are for impulsive people without any money. Avoid them.

 

[Finalnight]

I use my Amex because the RFID chip is cool and the double warranty feature is nice. I have never had a balance carry over on any of my credit cards ever. (Watch me forget to pay a bill next month, lol).

 

[acheron]

People saying you need multiple cards to get a high credit score are full of shit -- I had a score of over 800 when I applied for my mortgage, and had never had a CC before. Granted, as I said before, I kept getting turned down for CC applications despite the 800+ score, so remember that the score is not everything.

 

[nageov3t]

Originally posted by: ultra laser
Credit cards are for impulsive people without any money. Avoid them.

that's wrong and terrible advice on every level.

 

[Beattie]

Originally posted by: nonameo
I was going to type out a story, but I decided to ditch that idea and cut straight to the point.

I am 24 and have no credit. I want to build credit. What are some good ways to do so? How long before I have a "good" credit score that I might be able to get a mortgage on a house with? I have no intention of getting a loan on a car or pretty much anything else unless it is an emergency-emergency(meaning an emergency that exceeds my emergency funds)

If you have lived this long without a CC, why do you need one now? Particularly if you don't intend to borrow money for a car or anything short of a house. And you can buy a house without having a credit score. It is a little harder (you have to prove employment, income, savings, etc) but you'll end up in the same place rate wise.

 

[DAPUNISHER]

Originally posted by: Beattie


If you have lived this long without a CC, why do you need one now?

Used properly, they pay you to use their card, so why not have one or more?

 

[nonameo]

Originally posted by: Beattie

Originally posted by: nonameo
I was going to type out a story, but I decided to ditch that idea and cut straight to the point.

I am 24 and have no credit. I want to build credit. What are some good ways to do so? How long before I have a "good" credit score that I might be able to get a mortgage on a house with? I have no intention of getting a loan on a car or pretty much anything else unless it is an emergency-emergency(meaning an emergency that exceeds my emergency funds)

If you have lived this long without a CC, why do you need one now? Particularly if you don't intend to borrow money for a car or anything short of a house. And you can buy a house without having a credit score. It is a little harder (you have to prove employment, income, savings, etc) but you'll end up in the same place rate wise.

I don't want a CC, I want credit so that one day I may buy a house. I guess I shouldn't have said CC specifically, but it seems like a pretty straightforward way to get good(or better) credit.

 

[nanette1985]

I can't believe this thread got this far without the number one piece of credit card advice - pay your bill, on time, every time.

In today's world so many things are tied to your credit score - insurance, etc. Unless you know for sure that you're not organized enough to pay on time, get a credit card and use it wisely. Credit score is tied to a lot of things, length of time of your credit history is one of them.

Many, many people use credit wisely.

 

[CRXican]

Originally posted by: princess ida
I can't believe this thread got this far without the number one piece of credit card advice - pay your bill, on time, every time.

In today's world so many things are tied to your credit score - insurance, etc. Unless you know for sure that you're not organized enough to pay on time, get a credit card and use it wisely. Credit score is tied to a lot of things, length of time of your credit history is one of them.

Many, many people use credit wisely.

I'm waiting for Obama to pay off my balance.

 

[YetioDoom]

Originally posted by: AMDZen
I have a different story then most, but here is my 2 cents for what its worth.

I had my first credit card at 18, used it for gas and paid it in full every month. I didn't get another CC until 21, same deal with that one just used it for small things.

I never really had much credit even though I never had any issues. Until I got 5 credit cards all in 1 year and spent $10k easily on cards with 12 months no interest type stuff. Paid exactly 1/12 of what was due each month until they got paid off. Went from a 650 type score to 800 within a year.

In other words, many people say pay your CC's off every month, but it wasn't unitl I actually kept a monthly "debt" so to speak that I had great credit.

Take it for what its worth.

Oh and screw all those annualcreditreport sites. Try this = <a target=_blank class=ftalternatingbarlinklarge href="https://www.creditkarma.com/">https://www.creditkarma.com/</a>

WRONG.

annualcreditreport is THE one site to go to to get free credit reports once a year from the big 3. (Experian, TransUnion, Equifax.)

Creditkarma is ok for getting a free credit score, but freecreditreport is scammy.

You DO NOT need to carry a balance to improve you credit.

Go to creditboards to learn about credit, and go to fatwallet finance to learn about what credit card to get.

 

[TallBill]

Originally posted by: DAPUNISHER

Originally posted by: Beattie


If you have lived this long without a CC, why do you need one now?

Used properly, they pay you to use their card, so why not have one or more?

Yeah, I put rent on mine along with other bills when possible. Got $330 in cashback this year.

 

[Special K]

Originally posted by: ultra laser
Credit cards are for impulsive people without any money. Avoid them.

 

[Beattie]

Originally posted by: DAPUNISHER

Originally posted by: Beattie


If you have lived this long without a CC, why do you need one now?

Used properly, they pay you to use their card, so why not have one or more?

Most people don't use them properly. And most people get caught by tricks in how you have to pay them and when and stuff. And end up paying penalties and late fees. Now, I know most ATOT posters will call and complain about the bill being off by a penny. And you can usually get them to rescind fees if you complain, but most people don't do that.

Even if you do things right, they can expire points without telling you.
http://www.creditcards.com/cre...an-be-revoked-1277.php

And as an example, 75% of airline miles go unused.
http://www.fool.com/personal-f...ck-up-the-rewards.aspx

So, yea, if you are careful and smart it can work out in your favor but why bother?

 

[Mojoed]

Originally posted by: Terabyte

Originally posted by: Oyeve
Get a low APR card. If you get a limit of say, 10k, use 2k and always pay at least twice the minimum every month. Keep the card at 2k but double the minimum payment. In six months you should have a decent credit score. Paying off the balance every month is not a good thing if you want a score higher than 700.

I have 2 CC's and I pay the balance off every month. My score is >700

Same here, I pay in full every month and my credit score is 810.

 

[Oyeve]

Originally posted by: Mojoed

Originally posted by: Terabyte

Originally posted by: Oyeve
Get a low APR card. If you get a limit of say, 10k, use 2k and always pay at least twice the minimum every month. Keep the card at 2k but double the minimum payment. In six months you should have a decent credit score. Paying off the balance every month is not a good thing if you want a score higher than 700.

I have 2 CC's and I pay the balance off every month. My score is >700

Same here, I pay in full every month and my credit score is 810.

You guys already have established credit, he doesnt. Its just for a few months. Then by all means pay it all off! Always.

 

[ghostman]

Originally posted by: AMDZen
Oh and screw all those annualcreditreport sites. Try this = <a target=_blank class=ftalternatingbarlinklarge href="https://www.creditkarma.com/">https://www.creditkarma.com/</a>

With all the scamming credit report sites out there, you're warning people not to use the only legit free credit report site? Got to the FTC page and it'll show that annualcreditreport.com is the proper site:

http://www.ftc.gov/freereports

Your advice on keeping a balance on your CC is also bad. For anyone without an interest free period, that's just throwing money away.

 

[ghostman]

Originally posted by: Oyeve

Originally posted by: Mojoed

Originally posted by: Terabyte

Originally posted by: Oyeve
Get a low APR card. If you get a limit of say, 10k, use 2k and always pay at least twice the minimum every month. Keep the card at 2k but double the minimum payment. In six months you should have a decent credit score. Paying off the balance every month is not a good thing if you want a score higher than 700.

I have 2 CC's and I pay the balance off every month. My score is >700

Same here, I pay in full every month and my credit score is 810.

You guys already have established credit, he doesnt. Its just for a few months. Then by all means pay it all off! Always.

References:

http://www.msnbc.msn.com/id/28544648/
http://www.youngmoney.com/cred.../credit_reports/060401
https://www.istockanalyst.com/...icleid/790841/pageid/1
http://bettercreditblog.org/20...t-common-credit-myths/
http://www.moneyandhappiness.com/blog/?p=36
http://www.cardratings.com/cre...-credit-scores-go.html

Though, to be fair, I found a few less reputable sites that did continue spreading the myth that holding a balance was better than paying it off.