Few questions about credit card info/advice.

[kovacs32]

So i asked you guys a couple months back about credit card shit, well i applied for a few more and got the same bull shit letter in the mail basicly saying we wont give you your first credit card. So i took some your guys's advice and applied for a BP gas card on Chase banks website, less than a week later i got it today. So im extremely glad to finnaly have a way to build credit and not have acces to alot of money. anyway I just wanted to know how quickly i can use this card to build my credit, if i use it more ofetn and pay my full balance every month, ho wlong would it take befor i can establish a good credit score?

thanks,
ryan

 

[igotaneed4speed]

find somthing you want to buy.. have the cash in hand buy pay with then make a payment instantly for the amount you just charged to the card..

thats how i got my credit started, then student loans helped alil, and my phone bill if you have a contract phone helps, i dont remember if a checking account makes a diff..

 

[kovacs32]

find somthing you want to buy.. have the cash in hand buy pay with then make a payment instantly for the amount you just charged to the card..

Thats the plan, it also comes with a VISA logo on it so i gues that means i can use it at the store, to pay the restaraunt tabs, and so on and so fourth which is pretty sweet, the credit line is set at $500 for now, ican do cash advance but its like 3% so i dont think its worth it to use as a atm card. anyway, how long will it take me to establish good credit through this if i rack up 300-400 a month and pay it off? will i have enough credit by next year to sign for my own new car (thats my goal) ?

ryan

 

[mdhmi]

if i use it more often and pay my full balance every month, how long would it take before I can establish a good credit score?

Quite a while as that's -not- what Banks want to see.

Banks want you to take your time paying back loans. That's how they make money!.

Make payments for a while and make sure you are -NEVER- late and the banks will give you a nice score.

 

[kovacs32]

Quite a while as that's -not- what Banks want to see.

Banks want you to take your time paying back loans. That's how they make money!.

Make payments for a while and make sure you are -NEVER- late and the banks will give you a nice score.

So i am better to pay the monthly minimum payment plus the APR %which i belive is like 23% than to just send a check for the full amount?

 

[TTA]

So i am better to pay the monthly minimum payment plus the APR %which i belive is like 23% than to just send a check for the full amount?

I've heard carrying a balance doesn't help your credit score, it just makes you pay interest and that you don't want to use more than a third to half of your available credit.

 

[lab1702]

I've done both, keeping a balance, and paying it off monthly.. keeping both small and large balances.. didn't see much of a difference in rating.

I'd say the number one thing to worry about is making at least the minimum payment on time while staying under the credit limit.

If you do that for a couple years, you should start seeing the result in your rating.

 

[Foolsgold80z]

So i am better to pay the monthly minimum payment plus the APR %which i belive is like 23% than to just send a check for the full amount?

NO! That is the worst financial decision you could make. Why would you
want to pay a 23% premium on everything you buy? Use the card wisely
and pay the balance each month. You just have to do your time. You may
be able to buy some small item on a "90 days same as cash" loan. A piece of
furniture or a television or the such. Just make sure and read the contract closely and pay it off properly to avoid the finance charge, and find out if
you can get the loan reported to Experian. Be patient and smart, the rest
will take care of itself given time.

 

[ShadowRuleZ]

Pay it back in full every month. I've heard the max amount you hold on the card makes a difference as well, i.e., don't go over 60% of the limit.

 

[RedXtcy]

my brother is in morgages... he said that you have to be under 50% of the limit or it will hurt your credit

 

[mdhmi]

Pay it back in full every month.

Depending on what your goal is I would agree.

I've heard the max amount you hold on the card makes a difference as well

-YES-. Using the majority of your credit counts against you.

What banks want to see (for purposes of extending credit) is steady repayment.

There are also ways other than obtaining a gas card to start establishing credit. Prosper.com, for example, can be used for these purposes.

 

[L98Terror]

Understand the basics of credit scoring
You need to know that the two most important factors in your score are:

Whether you pay your bills on time.

How much of your available credit you actually use.

It's essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you're never, ever late. All it takes is a single missed payment to trash your credit score -- and it can take seven years for the effects to completely disappear.

You also don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits will help you get the best possible credit score -- and should help keep you from getting over your head in debt, as well.

Finally, you don't need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time

The fastest way to establish a credit history can be to "borrow" another's record, either by being added to a credit card as an "authorized" or joint user or by getting someone to co-sign a loan for you.

Having a co-signer can allow you to qualify for loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit score.

If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.

Being added as an "authorized user" has its risks, for you as well as the person giving you access to the card.

If your father makes you an authorized user of his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. Any late payments or other problems could make it harder for you to get future credit than if you'd established your history without help.

Even if you trust the person adding you to the card, you may not be able to piggyback on his or her credit. Some credit issuers won't report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. If the point is to give you a credit history, the person who's adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Read this it should help

Click it or Miss it

 

[Crazzy_Al]

my brother is in morgages... he said that you have to be under 50% of the limit or it will hurt your credit

And being at 25% would be even better. With that in mind 50% would hurt your credit, now wouldn't it? Who does your brother work for?

Quicken?
Rock?
Shore?
Ameriquest?