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

[luckyluchiano]

If you cant afford to buy something in cash (excluding a house) you dont deserve to have it, point blank.

Your credit card should be used as a cash equivalent.

you speaking about Non Business expenses right? If not this is terrible advice lol. Even then one can make the argument that why buy a house when you can rent and avoid the headaches of home ownership because the days of buying a home and gaining 200k in equity are over.

At the end of the day Credit can be used to your advantage if you understand it and its purpose.

All this 1920s use cash only logic is just as ignorant as the dudes who spend money they have because both parties dont understand the concept of credit.

 

[antidope]

Its not about using cash only, its about knowing your worth. If I want X, and know I dont have enough liquid for X, I do not deserve it. Just a tenet of life one should live regardless of credit or not.

 

[jon4rd]

Its not about using cash only, its about knowing your worth. If I want X, and know I dont have enough liquid for X, I do not deserve it. Just a tenet of life one should live regardless of credit or not.

How you gon buy a house, my g?

You got 200k+ (In the south) in your account to cop straight cash?

Edit: I see you said except a house in your previous post. What about a car?

 

[antidope]

 

Its not about using cash only, its about knowing your worth. If I want X, and know I dont have enough liquid for X, I do not deserve it. Just a tenet of life one should live regardless of credit or not.

How you gon buy a house, my g?

You got 200k+ (In the south) in your account to cop straight cash?

Edit: I see you said except a house in your previous post. What about a car?

It applies to a car. Cant afford it cash, you shouldnt have it.

 

[jjs]

 

Its not about using cash only, its about knowing your worth. If I want X, and know I dont have enough liquid for X, I do not deserve it. Just a tenet of life one should live regardless of credit or not.

How you gon buy a house, my g?


You got 200k+ (In the south) in your account to cop straight cash?


Edit: I see you said except a house in your previous post. What about a car?

It applies to a car. Cant afford it cash, you shouldnt have it.

Why would i pay cash for a car when i can put a downpayment, have very little interest and invest the rest of the money to go gain more with my investment than i'm "losing" on my car payment interest?

 

[cl-1b]

if you plan to purchase a car, home or other large entity in the future and plan to finance, building credit history (good on-time payment history, how long accounts have been established) will greatly help you save money on interest rates and in turn will save you loads of money. There are a few important factors that determine credit score such as length of time accounts have been established in good standing, along with how much credit you have available to you versus how much is used at the time. Opening new accounts that never have had a late payment are only going to help you in the long run. 

i believe it was said earlier in the thread, but myfico.com is the absolute best forum to search when trying to figure out what is needed to build and garden your credit. 

 

[antidope]

 

 

 

Its not about using cash only, its about knowing your worth. If I want X, and know I dont have enough liquid for X, I do not deserve it. Just a tenet of life one should live regardless of credit or not.

How you gon buy a house, my g?


You got 200k+ (In the south) in your account to cop straight cash?


Edit: I see you said except a house in your previous post. What about a car?

It applies to a car. Cant afford it cash, you shouldnt have it.

Why would i pay cash for a car when i can put a downpayment, have very little interest and invest the rest of the money to go gain more with my investment than i'm "losing" on my car payment interest?

No one said you couldnt do that, thats what I did. I took out a Savings Secured loan with my credit union to get my car, and have a 1.5% interest rate.

But I could do that because I actually had the cash value of the car.

No one said you couldn't make the money work for you, what I said was that if you dont actually have the cash value of said item, you do not deserve to have it.

 

[abernja]

All a credit score shows is that you're good at borrowing money and paying it back.

Lol debit cards give you minimal protection you are at mercy of your bank. Hopefully they side with you.

Discover has the 0% BT and 5% BT offer at all times.

Try buying a house or car with no credit let me know how that works out for you. People act like you have to go into serious debt to build credit. You can get 1 $250 -$500 secured credit card and get the same outcome of a credit score. No debt because it's your money.

Buying a car without credit is easy, it's called saving money and paying cash.

Pay yourself a car payment every month instead of a lender. It's not that hard.

 

[abernja]

You are aware that if you pay your balance off in full, it isn't considered debt right?

Every month you have a $0 balance = $0 in debt .

So you only use cash? Visa/MC get a percentage every time you swipe your debit card too.

As soon as you've swiped your card you acquired debt. Just because you become "debt-free" every month by paying off your statement balance does not mean it wasn't debt.

 

[capital sb]

Lol never heard that before.

 

[cl-1b]

As soon as you've swiped your card you acquired debt. Just because you become "debt-free" every month by paying off your statement balance does not mean it wasn't debt.

Actually if you swipe and pay off up to a day before the closing date of your statement period the debt won't report to the credit bureaus

 

[HNL HI]

If you cant afford to buy something in cash (excluding a house) you dont deserve to have it, point blank.

Your credit card should be used as a cash equivalent.

you paid for college upfront my dude? or were you entitled to that?

 

[antidope]

 

If you cant afford to buy something in cash (excluding a house) you dont deserve to have it, point blank.

Your credit card should be used as a cash equivalent.

you paid for college upfront my dude? or were you entitled to that?

Nope, student loans, and the same thing applies.

 

[futurehendrix]

No credit here. I just got a credit card. My max is pretty high for a first. How should I go upon purchasing things? Buy gas and etc and pay off full at the end? Or have auto draft? Or pay every week as I go?.... Also if I had 0% for the first 15 month is it advised to finance something that cost 2k+ to build credit maybe pay it off full first month or pay in 4-6 months?

 

[eyanks]

No credit here. I just got a credit card. My max is pretty high for a first. How should I go upon purchasing things? Buy gas and etc and pay off full at the end? Or have auto draft? Or pay every week as I go?.... Also if I had 0% for the first 15 month is it advised to finance something that cost 2k+ to build credit maybe pay it off full first month or pay in 4-6 months?

What is your limit?

 

[cl-1b]

No credit here. I just got a credit card. My max is pretty high for a first. How should I go upon purchasing things? Buy gas and etc and pay off full at the end? Or have auto draft? Or pay every week as I go?.... Also if I had 0% for the first 15 month is it advised to finance something that cost 2k+ to build credit maybe pay it off full first month or pay in 4-6 months?

Never let more then 20% of your total credit limit report to the agencies. Look into credit gardening on myfico

 

[futurehendrix]

What is your limit?

4k

 

[cl-1b]

4k

800 is the most that should report as debt every month... Pay down frequently. If you want increases in credit limit give them some interest instead of paying in full here and there

 

[futurehendrix]

I hear some people say keep like 10-15 in your account and let it accrue interest. Pay all in full except that $10-15. Is that good or naw?

 

[abernja]

"Consumers are spending over $2,500 a year on credit card interest."

You guys go ahead and enjoy your "perks".

 

[cl-1b]

I hear some people say keep like 10-15 in your account and let it accrue interest. Pay all in full except that $10-15. Is that good or naw?

At times when you want to see small jumps in your score then yes. No one really knows the formula, but when your looking for lending then you do this. Pay down all your cards to a zero balance except the one and let that 15 report to the credit bureaus. (Banks typically report every closing day of your statement) There are so many factors that can effect your score, you just have to research. Even inquiries lower your score and stay on your report for up to two years

 

[cl-1b]

"Consumers are spending over $2,500 a year on credit card interest."

You guys go ahead and enjoy your "perks".

Sometimes it's not feasible to pay in full. They are a great financial tool if used properly

 

[jjs]

"Consumers are spending over $2,500 a year on credit card interest."

You guys go ahead and enjoy your "perks".

I dont understand why you would put everybody in the same boat.

Of course banks and credit card companies make billions off the interests, that's why they offer their products and attract clients with perks hoping they will end up paying more in interest (which globally is always a good deal for the companies).

But what if you use them properly and never pay interest? Why would i throw away these perks if i can control myself and always pay off the balances?

I've never paid interest of my life on a CC and i don't intend to. But i've got free airport vip lounges visit, hundreds of dollars off plane tickets, double waranty on my purchase, etc.

 

[cl-1b]

0% balance transfers are also great

 

[jon4rd]

800 is the most that should report as debt every month... Pay down frequently. If you want increases in credit limit give them some interest instead of paying in full here and there

No this is incorrect. Do not give them interest, you don't have to do that for credit limit increases. There is no reason to not pay your card in full every month if you have the funds to do so unless you are in a bind. Why give them free money? He wouldn't be able to accrue interest anyway because it is 0% first 15 months

"Consumers are spending over $2,500 a year on credit card interest."

You guys go ahead and enjoy your "perks".

Ask me how much I've spent a year on credit card interest. What are you even here for bruh?