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Thread: Credit cards?

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    #1

    Credit cards?

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    So I need to start building credit... So I figured is get a credit card. Any advice on how to best use it? My plan is to use it for gas/groceries and pay it off every month but I'm totally clueless.

    Or ideas on where to get one from? I tried my bank was denied for "not sufficient credit history."
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    #2
    i was always told to leave 10% on the card to build credit otherwise when it gets reported to the credit score company a 0 balance gets reported and doesnt help your credit.

    i would go to your bank and see what they can do for you...usually that is where you will find the lowest interest rates compared to like store cards.
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    #3
    That's a good plan! We also use ours for any and all online purchases, because if for some reason something goes wrong and you never receive the item, you can cancel the transaction. We had two packages go missing within a few weeks of each other. UPS says delivered but we never saw them (suspected stolen but never found out) and we were able to cancel the transactions, whereas if we had used a debit card, we would have been out of luck.
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    Gas is not necessarily a good idea. Most places charge more if you use a CC for gas. It's silly to pay a few cents more per gallon just to use a CC. Groceries are a great idea, and if you have any small monthly charges (like Netflix), that's another good option.

    Never, ever, ever carry a balance. Using it an paying it of *in full* every month will absolutely build your credit. Do not ever, ever allow yourself to carry a balance or make any purchase that you 100% know you can pay off as soon as you get the statement.

    If you get a card through the same bank that you have your checking account with, see if they have an autopay option. I have this set up with USAA so both our CCs pay themselves automatically on the due date, meaning it is impossible for me to pay any late fees or interest. Of course, I still need to log on and check to make sure all the charges are legit, but the payment itself happens without me having to remember.
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    #5
    Quote Originally Posted by [his] lobster View Post
    That's a good plan! We also use ours for any and all online purchases, because if for some reason something goes wrong and you never receive the item, you can cancel the transaction. We had two packages go missing within a few weeks of each other. UPS says delivered but we never saw them (suspected stolen but never found out) and we were able to cancel the transactions, whereas if we had used a debit card, we would have been out of luck.
    Oh! Good idea!

    Quote Originally Posted by *Blondie* View Post
    i was always told to leave 10% on the card to build credit otherwise when it gets reported to the credit score company a 0 balance gets reported and doesnt help your credit.

    i would go to your bank and see what they can do for you...usually that is where you will find the lowest interest rates compared to like store cards.
    Quote Originally Posted by villanelle View Post
    Gas is not necessarily a good idea. Most places charge more if you use a CC for gas. It's silly to pay a few cents more per gallon just to use a CC. Groceries are a great idea, and if you have any small monthly charges (like Netflix), that's another good option.

    Never, ever, ever carry a balance. Using it an paying it of *in full* every month will absolutely build your credit. Do not ever, ever allow yourself to carry a balance or make any purchase that you 100% know you can pay off as soon as you get the statement.

    If you get a card through the same bank that you have your checking account with, see if they have an autopay option. I have this set up with USAA so both our CCs pay themselves automatically on the due date, meaning it is impossible for me to pay any late fees or interest. Of course, I still need to log on and check to make sure all the charges are legit, but the payment itself happens without me having to remember.
    I've seen some gas places charge less for cash but I haven't seen anything as far as a difference between CC and debit cards. I'll definitely keep that in mind, though. I'd hate to pay anymore for gas than I do already. Autopay is another good idea!

    But for the whole carry a balance vs don't carry a balance... Now I'm confused. Pay it off in full every month or let a little roll over?
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    #6
    Quote Originally Posted by Andie View Post
    Oh! Good idea!





    I've seen some gas places charge less for cash but I haven't seen anything as far as a difference between CC and debit cards. I'll definitely keep that in mind, though. I'd hate to pay anymore for gas than I do already. Autopay is another good idea!

    But for the whole carry a balance vs don't carry a balance... Now I'm confused. Pay it off in full every month or let a little roll over?
    I always thought the cash vs card prices meant debit and credit were both more, but just recently I saw a sign at safeway that said "cash/debit" and "credit" listed separately. Most the time I don't see a difference posted, but they might still have a difference? I'm not sure on that one.
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    Quote Originally Posted by [his] lobster View Post
    I always thought the cash vs card prices meant debit and credit were both more, but just recently I saw a sign at safeway that said "cash/debit" and "credit" listed separately. Most the time I don't see a difference posted, but they might still have a difference? I'm not sure on that one.
    Probably depends on the gas station because I'm pretty sure some places don't have any differences at all. I think my regular gas station doesn't have a difference between cash/debit/credit. I'll have to be more mindful of that, though.
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    #8
    Quote Originally Posted by Andie View Post
    But for the whole carry a balance vs don't carry a balance... Now I'm confused. Pay it off in full every month or let a little roll over?
    when i was 18 my dad asked he financial planner how to build mine fastest and they said dont pay it off in full...i never have and have really good credit....so idk
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    #9
    Quote Originally Posted by *Blondie* View Post
    when i was 18 my dad asked he financial planner how to build mine fastest and they said dont pay it off in full...i never have and have really good credit....so idk
    We've pretty much always carried a balance on our card and have phenomenal credit too. LOL.
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    #10
    Quote Originally Posted by Andie View Post
    Oh! Good idea!





    I've seen some gas places charge less for cash but I haven't seen anything as far as a difference between CC and debit cards. I'll definitely keep that in mind, though. I'd hate to pay anymore for gas than I do already. Autopay is another good idea!

    But for the whole carry a balance vs don't carry a balance... Now I'm confused. Pay it off in full every month or let a little roll over?
    Pay it off in full every month. Never carry a balance. You will pay ridiculously high interest rates. I have never carried a balance in my life (minus maybe a couple months in over a decade when I forget to mail the payment) and my credit is through the roof excellent. You do not need to pay 19% (or whatever your card's rate is) in order to buy better credit. Frankly, even if it did make your credit go up a bit faster (and I don't think it will), it would not be worth paying ridiculous interest rates in order to do that.

    If you want, you can pay off the statement balance only each month. (That's how I have my auto pay set up.) So if on January 10, when your statement is mailed, you have owe $400, and they payment is due January 31, you pay $400. But during that time, you will probably have spent some money on your card, so when you pay it on January 25, your card may have $425, but you are only sending $400. Because you are paying the statement balance in full, you won't pay any interest.

    But carrying a balance is really just terrible financial advice. That means that an item that you paid $100 for will cost you $119 if you interest rate is 19% (and that's only if you carry a very small balance). Do not carry a balance. It isn't necessary.
    Science always wins over bullshit. ~Dick Rutkowski
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