Credit card questions

[Wesstron]

The point of having a credit card is the CREDIT concept. Basically, you get a "loan" of the amount you spend for a month with no interest. The catch is you wanna make sure to pay your bills when due. Building up your credit will give you a few $1000 accessible through plastic that can come in handy in case of emergency + future access to funds for bigger investments (car, house etc...)

 

I personally pay almost everything through a credit card and make sure to stay within my budget then pay it when it's due. The reward points take care of the annual fees and so far I never been turned down by any credit check lol

[Waco]

The point of having a credit card is the CREDIT concept. Basically, you get a "loan" of the amount you spend for a month with no interest. The catch is you wanna make sure to pay your bills when due. Building up your credit will give you a few $1000 accessible through plastic that can come in handy in case of emergency + future access to funds for bigger investments (car, house etc...)

 

I personally pay almost everything through a credit card and make sure to stay within my budget then pay it when it's due. The reward points take care of the annual fees and so far I never been turned down by any credit check lol

This.

 

I have an excellent credit rating even though my revolving credit is only ~$1000. I pay my bills on time and that matters more than anything else.

[MercuryDoun]

The point of having a credit card is the CREDIT concept. Basically, you get a "loan" of the amount you spend for a month with no interest. The catch is you wanna make sure to pay your bills when due. Building up your credit will give you a few $1000 accessible through plastic that can come in handy in case of emergency + future access to funds for bigger investments (car, house etc...)

 

I personally pay almost everything through a credit card and make sure to stay within my budget then pay it when it's due. The reward points take care of the annual fees and so far I never been turned down by any credit check lol

 

 

 

The point of having a credit card is the CREDIT concept. Basically, you get a "loan" of the amount you spend for a month with no interest. The catch is you wanna make sure to pay your bills when due. Building up your credit will give you a few $1000 accessible through plastic that can come in handy in case of emergency + future access to funds for bigger investments (car, house etc...)

 

I personally pay almost everything through a credit card and make sure to stay within my budget then pay it when it's due. The reward points take care of the annual fees and so far I never been turned down by any credit check lol

This.

 

I have an excellent credit rating even though my revolving credit is only ~$1000. I pay my bills on time and that matters more than anything else.

 

All of this ^

 

The point of credit is having credit, AKA cars houses, emergency. You'll never get it if you dont start it. You're definitely on the right path IVI. And I'd agree with some saying that higher level "Gold" cards usually have a worth while annual fee, but those starter cards that you are talking about that have an annual fee simple because they can get away with it... They really need to go when you get the chance.

 

Also, AMex is excepted at a LOT of places, i dunno where people are saying they aren't. AMex are really nice cards to have so long as you are are good with the charge card idea. The reason a lot of people hate on AMex is because of this, they just dont understand that a charge card is different than a credit card.

[IVIYTH0S]

As far as the AMEX is concerned I suggest that you read the details of the offer and the contract that comes with it fully, then ask Q if you don't get something, and decide after that. Offers that are really good to pass on often come with a trap or two lol. Those guys will never ever think about your well-being but their own pockets lol

 

About annual fees, it really depends if you are a big spender or not. I have a Visa GOLD whatever and the annual fees are offset by the amount of reward points I'm getting on it. Points I use for travel and hotels mostly. If you don't spend on the card that much, just get rid of it and apply for a 0 fee one... no one has a perfect credit anyway lol

I'll look it over again but I think it's mainly the 2nd year annual fee that would serve as a "trap" in this case.

 

Yeah, it just sucks that all my "rewards" are only paying into themselves and not actually beneficial to me (like my Discover doesn't have an annual fee but has the lessened chance of acceptance like AMex)

 

Also note that AMEX is harder to use because it cost stores and vendors more to use it(so most don't even accept it). I would avoid AMEX.

It wouldn't be much harder than my Discover I'm guessing?? They both charge sellers a similar higher percentage and I've found very few places that doesn't take my Discover.

 

Still don't understand the point in credit cards... If you want something, get it when you can afford it. The only useful aspect of credit is for a house, and maybe a car.

Yeah but some cards get you deals or cash back on stuff, while also building credit so why not use them (even though I agree, it's dumb as I'm never going to be a person who buys something I can't buy outright...other than a house)

 

I have never had a credit card. I pay cash for everything.(debit card for big stuff, but that is basically cash). Its an easy concept, can't afford it? Don't buy it. Now i realize thats probably not feasible when buying a house, but I'm not there yet.

You might wanna get one and just start building for when you need it, I don't feel too bad for people who finance or take loans out and don't practice good money management. (to a point, though that doesn't mean I side with banks on many big dispute stories) I only use C.C.s to build credit and get deals over just cash (unless cash gets me a better price at the pump)

 

So long as you keep making payments on time then your credit score will go up. Adding more cards really defeats the purpose, since it's just more payments you have to make each month. Stick to one card, pay it off each month (or whatever you can afford to), and your credit score will increase.

Yeah but I would think that more active credit lines would help hasten my credit rating ascension, this isn't the case?? I can handle the multi bill-multi-tasking no problem if that's all I need to worry about.

 

+1 ....and yet in today's world "some credit" is a necessity, (houses, cars, emergencies, etc)....if a person can resist the temptation to over use their credit, and pay off the purchases on time and responsibly then credit can be a benefit,...if not, credit can quickly become an anchor that will drag 'em down...my experience with capital one is that they're ok for establishing some credit, but nothing else,...a few small purchases here and there, pay it off quickly and your credit limit and scores will increase and then ditch them asap...amex forget about it, get rid of them, ....ivi, if you are able to show responsibility with your credit then in about 6 months credit card companies will be beating down your door, junk mail, junk phone calls, "special offers" will come pouring in...

How come you say that about Capital One? I'd say any credit card is "just ok" for establishing credit and nothing else haha (but honestly I've been happy with mine, just don't wish to pay an annual fee if I don't have to)

 

Iirc two is better because it raises your score faster.

This was always my assumption as well

 

I personally pay almost everything through a credit card and make sure to stay within my budget then pay it when it's due. The reward points take care of the annual fees and so far I never been turned down by any credit check lol

Yeah same here, it's just another monthly bill for me to just knock out as needed. Still, I hope to get a nice corral of 3 or 4 of the primary types (Visa, MasterCard, Discover and possibly AMex) to maximize compatibility and credit building. Usually if credit cards are accepted than Visa and MC always will be but I have ordered from a place that only took Visa (which I have a small checking account debit card for but not credit card of that type). Also I want to have my "fab four" (lol) to all be annual feeless ideally so all my rewards are MY rewards and not just rewarding themselves...

 

The point of credit is having credit, AKA cars houses, emergency. You'll never get it if you dont start it. You're definitely on the right path IVI. And I'd agree with some saying that higher level "Gold" cards usually have a worth while annual fee, but those starter cards that you are talking about that have an annual fee simple because they can get away with it... They really need to go when you get the chance.

 

Also, AMex is excepted at a LOT of places, i dunno where people are saying they aren't. AMex are really nice cards to have so long as you are are good with the charge card idea. The reason a lot of people hate on AMex is because of this, they just dont understand that a charge card is different than a credit card.

I'll look more into it, but if you don't mind me asking, why might the the gold cards be worth the annual fee?? (Other than them assuredly giving a higher credit limit, would they offer heftier quantity of cashback/points or more discounts??)

 

Yeah I figured AMex wouldn't be any "harder" to use than a Discover, but Visa/MC would often be there just in case the premium cards aren't accepted.

[Black64]

Still don't understand the point in credit cards... If you want something, get it when you can afford it. The only useful aspect of credit is for a house, and maybe a car.

For the credit score, you can't just buy a house without credit, so in most cases you need a credit card to get a higher score and credit cards are for emergencies, when you can't afford something but have to pay for it.

 

I thought the exact same thing, until I tried to buy a condo, so in the mean time, I have a credit card.

[cjloki]

I said that about capital one because back when I had them they started arbitrarily raising my fees even though I was responsible and on time...and when something happened to my truck and i needed a limit increase, i was denied...that's when i fired their asses and hired bankamericard...after that, the capital one bastiches wouldn't leave me the heck alone...these days i carry b of a, and discover...low annual fees and a few little perks ...but hey if your experience is ok with you then stay with em...i,ve found that I'm the boss of my credit, it's there if I need it, but I won't stand for being taken advantage of by these companies...they need me and the financial liability more than I need them...they make money by loaning you money and charging interest so if you have to pay bunches for the privilege of borrowing and paying interest then it's not worth it...

Ps....i fired Citibank m/c recently too for the same caca...shop around for YOUR credit ivi, and don't let em punk you...

[ivangela]

I started with credit cards when I was 18, to build good credit, for buying a house or whatever that one traditionally doesn't pay cash for.

 

I would NEVER get a card that had a fee..why would you when there are free ones?

 

I ALWAYS pay the entire balance every month so I pay no interest.

 

I buy EVERYTHING with my Discover because I get at least 1% cash back. I can use that cash any way I want, not limited to just airfare or whatever other gimmicky rewards other cards offer. Also, I can redeem for giftcards at a greater amount than I pay, like a $45 cost for a $50 gc to Lowes. Discover is taken virtually everywhere. Only one place I go doesn't take it, a mom/pop pizza joint.

 

Cancelling cards is not a big deal. The company makes it sound like a big deal but the hit on your credit is negligible. 

 

What can eventually be an issue is if you have too many cards and too much credit. When I tried to buy my most recent house I had five cards that I didn't use, pus my Discover with a total credit line of +100K. The bank didn't like that as theoretically, I could max out all cards and be unable to pay my house note, or default or whatever. That's when I cancelled 2 cards with +20K limit each, my score dropped 5 points, still >780. 

 

Hope this helps

[IVIYTH0S]

I started with credit cards when I was 18, to build good credit, for buying a house or whatever that one traditionally doesn't pay cash for.

 

I would NEVER get a card that had a fee..why would you when there are free ones?

 

I ALWAYS pay the entire balance every month so I pay no interest.

 

I buy EVERYTHING with my Discover because I get at least 1% cash back. I can use that cash any way I want, not limited to just airfare or whatever other gimmicky rewards other cards offer. Also, I can redeem for giftcards at a greater amount than I pay, like a $45 cost for a $50 gc to Lowes. Discover is taken virtually everywhere. Only one place I go doesn't take it, a mom/pop pizza joint.

 

Cancelling cards is not a big deal. The company makes it sound like a big deal but the hit on your credit is negligible.

 

What can eventually be an issue is if you have too many cards and too much credit. When I tried to buy my most recent house I had five cards that I didn't use, pus my Discover with a total credit line of +100K. The bank didn't like that as theoretically, I could max out all cards and be unable to pay my house note, or default or whatever. That's when I cancelled 2 cards with +20K limit each, my score dropped 5 points, still >780.

 

Hope this helps

I should have started earlier but didn't know how important credit was.

 

I had to get a fee card since nothing else was available (I tried for two student cards and two department store cards...all denied me)

 

Yeah I love my discover but use it mostly for the 5% monthly stuff, my Cap1 has 1% on everything too but its cashback balance gets interest of 50% every year which is badass.. (though I may cancel mine before the year anyway, to avoid the new annual fee again lol)

 

That's interesting, but my cards aren't anywhere near that powerful (Cap1 has $500 and the Discover has $750) so I'm good.

 

Also great to hear the credit hit is so mild I was worried it'd be like 50 or 100 points.

 

You have helped greatly, thanks!

 

I said that about capital one because back when I had them they started arbitrarily raising my fees even though I was responsible and on time...and when something happened to my truck and i needed a limit increase, i was denied...that's when i fired their asses and hired bankamericard...after that, the capital one bastiches wouldn't leave me the heck alone...these days i carry b of a, and discover...low annual fees and a few little perks ...but hey if your experience is ok with you then stay with em...i,ve found that I'm the boss of my credit, it's there if I need it, but I won't stand for being taken advantage of by these companies...they need me and the financial liability more than I need them...they make money by loaning you money and charging interest so if you have to pay bunches for the privilege of borrowing and paying interest then it's not worth it...

Ps....i fired Citibank m/c recently too for the same caca...shop around for YOUR credit ivi, and don't let em punk you...

What kind of fees were they raising that affected you?? I always pay full balance monthly so I never get fees other then the beginning annual.

 

You like bank of america's though?? I think the one student card I tried to get as a citi cashback student card so maybe I dodged a bullet with their denial according to you

[Coors]

I've never had a credit card either.  Except for a military Star card and a Newegg preferred account lol

[Fogel]

Thine reason being? I'm just trying to raise my credit up and I can't be too picky with cards yet.

 

 

Some myths on CCs - they don't really raise your credit score.  I thought I was doing good by having a credit card many years, but when I went to buy my first car I finally asked why no one would give me a good rate I was told it was because I had no credit ..."just credit cards".

 

If you want a good quick way of building up credit, take out a loan or two from the bank where there is no penalty for paying it off early.  Take out the loan, don't spend a dime of it and pay it off quick.

 

Also, another thing you will find out the more you deal with banks and other organizations that can loan you money is that having too many credit cards is actually a point against you ...even if you pay them all off on time.  The bank that is considering to loan you money will see each credit card as a hit against you for the amount of credit that card is good for.   So if you make $1000 a month from your job, but CC1 has a limit of $5000, CC2 has a limit of $2000 and CC3 has a limit of $1000 ...imagine your chances of getting a loan.   Not gonna be good.  Not just because you only make $1000/mo but because technically you could rack up $8000 in debt at any time ...and clearly you don't have the liquid cash to pay them off or the loan you are seeking.

 

 

If you can cancel a credit card, send it in writing and then check the 3 Credit Bureaus - contact info here - to make sure the credit card accurately deleted your account from their system because they don't always do it.

[IVIYTH0S]

 

Thine reason being? I'm just trying to raise my credit up and I can't be too picky with cards yet.

 

 

Some myths on CCs - they don't really raise your credit score.  I thought I was doing good by having a credit card many years, but when I went to buy my first car I finally asked why no one would give me a good rate I was told it was because I had no credit ..."just credit cards".

 

If you want a good quick way of building up credit, take out a loan or two from the bank where there is no penalty for paying it off early.  Take out the loan, don't spend a dime of it and pay it off quick.

 

Also, another thing you will find out the more you deal with banks and other organizations that can loan you money is that having too many credit cards is actually a point against you ...even if you pay them all off on time.  The bank that is considering to loan you money will see each credit card as a hit against you for the amount of credit that card is good for.   So if you make $1000 a month from your job, but CC1 has a limit of $5000, CC2 has a limit of $2000 and CC3 has a limit of $1000 ...imagine your chances of getting a loan.   Not gonna be good.  Not just because you only make $1000/mo but because technically you could rack up $8000 in debt at any time ...and clearly you don't have the liquid cash to pay them off or the loan you are seeking.

 

 

If you can cancel a credit card, send it in writing and then check the 3 Credit Bureaus - contact info here - to make sure the credit card accurately deleted your account from their system because they don't always do it.

 

So I'd have to pay money to raise my credit (getting a loan) or you're saying I could pay it off early and incur no interest?

[Fogel]

So I'd have to pay money to raise my credit (getting a loan) or you're saying I could pay it off early and incur no interest?

 

 

I'm not sure how long you have to hold onto a loan to get real benefit from it.  Many recommend holding onto the loan for the full term so if you did that than ya you would have to pay to increase your credit.

 

Though no matter what you are going to have to pay to raise your credit.  I wish someone had told me the loan strategy before I tried buying my first car.  I'm sure the interest rate on a $5k loan is pretty low and the amount you pay over the course of the loan is MUCH CHEAPER than getting a crappy interest rate on your first real investment - house or car.

 

The bank wants to know you can borrow money and you will responsible enough to pay it back.  And credit cards don't give them that warm fuzzy.