credit, how does it work Options

[bufferdan]

Pay it off in full everytime its due...dont be paying interest charges to "up" your credit score...thats a dumb way to do things. All i have had was a few credit cards and a cell phone...those alone and paying them in full on time is what built my credit up. Here is what it looks like now

[Ale_lock]

i dont believe i have interest but im not sure lol. i got amex blue for students

There's always interest, you'll just have features that other people would normally pay a small fee for or such.
It's like my student checking account, I don't pay any upkeep fees for 5 years which would normally be waived if I have direct deposit, after 5 years it'll switch to a normal checking account which will deduct 3.95 monthly unless I have direct deposit then it continues to be free.

[bufferdan]

btw....amex blue card is nice. Its my favorite! Mine is about worn out from blingin it so much. ha

[quicknstyle]

Pay it off in full everytime its due...dont be paying interest charges to "up" your credit score...thats a dumb way to do things. All i have had was a few credit cards and a cell phone...those alone and paying them in full on time is what built my credit up. Here is what it looks like now

cell phones dont count positively towards your credit... any type of bill like utility phone or cable bills dont count positively towards your credit unless you are more than 30 days overdue... then they only count negatively... and paying things in full do help your credit, but not by much, so it could a very long process...

[JonCars17]

I don't have any credit, but I just got a credit card a few (may) months ago and I have another for college one month ago. I'm not gonna get anymore. THe I use all the time has a 500 dollars limit which was just increased because I paid all of my bills on time without going over. I buy gas with it. The other has a 1,000 dollar limit and I have to use it atleast once a year without being taxed.

I'm thinking of buying me a cheap laptop for school for under 1,000 using the other card to pay for it monthly. Even thou I technically could buy it in full right now -_-.

This post has been edited by JonCars17: Oct 6, 2006 - 2:05 PM

[bufferdan]

[/quote]
cell phones dont count positively towards your credit... any type of bill like utility phone or cable bills dont count positively towards your credit unless you are more than 30 days overdue... then they only count negatively... and paying things in full do help your credit, but not by much, so it could a very long process...
[/quote]

Care to explain how im on the high end of the credit score scale then? I have NEVER had a loan on anything, cept for the house i just bought, my credit score has been that high for years though. All i have had is a few credit cards and a cell phone. I have never had a late payment and always paid in full. Ive only had these things since i was 18 and now im almost 24.... i guess 6yrs did it huh? Most older folks dont even have credit scores that high...must be because they use the "I should get a loan and not pay my bills in full" technique that they think raises their credit.. All that does is "backlog" you... keeping balances on credit cards is a bad thing to start doing. Say you have 1000$ bill...you pay your 150$ you need to on that bill....well next month you have another 1000$ bill + your 850$ from before + interest....ohh ohh. It will just escalate from there and then its very hard to pay it off. You just cant spend more than you have... if you do then your gonna end up getting screwed most likely. The way i use credit cards is, i can buy whatever it may be on my credit card ONLY if i could buy it with cash i have in the bank also. I pretty much just use the credit card as a easy means of purchasing instead of carrying cash and going to the bank alot.

http://www.myfico.com/CreditEducation/ImproveYourScore.aspx

This post has been edited by bufferdan: Oct 6, 2006 - 2:42 PM

[confucious]

BUT as far as BUILDING credit, why buy a new thing on it EACH month and pay it off completely and follow this cycle: buy something, pay it, buy something, pay it, buy something pay it??? I don't think you want to be getting a youngster in this pattern.

Why not just buy something, pay it slowly and it will be reported on your credit each month? I'm guessing he doesn't plan on buying a house in a few months. If you just slowly pay it off, you'll be in awesome shape by the time you are my age.

My credit score is high too and I've been doing that since I was 16.

As far as cell phones/other bills go, it all depends on the company. Some report it, some do not.

[My2Celi]

Thats exactly what im doing. I buy stuff with my credit card and i pay it in full . So far my credit is looking pretty good. I always pay my bills on time. Sounds like your sucessful already bufferdan, it doesnt seem like ima be gettin a house when im 24...

This post has been edited by My2Celi: Oct 6, 2006 - 3:42 PM

[BlackCelicaGT94]

So I have a credit question onw

My parents have gotten credit cards then they make me a co-card holder. If theyre not paying the bill does that make my credit score go down? lol im not sure if they pay the bills or not cuz its not my account but im curious if having my name on the account goes towards my score.

Thanks

[saleeka]

/\ yes your score is affected, good or bad... As a co-holder on an account that goes sour, the issuers expect you to step in if the primary party dosen't pay. When legal action takes place on cards with multiple parties, ANYONE who is on that account can be held accountable for 100% of the balance due.

This post has been edited by saleeka: Oct 6, 2006 - 5:45 PM

[BlackCelicaGT94]

Yeah i was a lil pissed to find out when Express denied my application cuz I already had a card and my mom had put one in my name but not told me!!!!!!! but she wont give it to me - wtf

[saleeka]

I dont know about you, but I would be FURIOUS if I found out my parents were forging my signature on any credit application, regardless of their intention...

[BlackCelicaGT94]

I dont think its forging. I think they call and say "we'd like to add our daughter on to the account" and then they send the card and i never check the mail so they keep it. I dont know how many they have in my name but i get declined for credit cards all the time cuz of my history!

im -100 bucks atleast each pay period. All that is changing in November tho so I can get my g35 :-)

[bufferdan]

BUT as far as BUILDING credit, why buy a new thing on it EACH month and pay it off completely and follow this cycle: buy something, pay it, buy something, pay it, buy something pay it??? I don't think you want to be getting a youngster in this pattern.

Why not just buy something, pay it slowly and it will be reported on your credit each month? I'm guessing he doesn't plan on buying a house in a few months. If you just slowly pay it off, you'll be in awesome shape by the time you are my age.

INTEREST??? Why would you want to give free money to them if you dont have to? You wouldnt have to give away free money (interest) if you use proper spending methods like not charging more than you can afford and paying the amount off in full. Credit card companies dont like people that do it the right way of course....they aint making anything off me, in fact they paid me 180$ last year just for using the card Maybe thats why they keep bumping my limit up though...to try to get me to spend more than i have so i have a balance and get those nice interest charges.

Try this out...
http://www.bankrate.com/brm/calc/MinPayment.asp

This post has been edited by bufferdan: Oct 6, 2006 - 8:01 PM

[Ale_lock]

Nice link, gimmeh more info!

[confucious]

INTEREST??? Why would you want to give free money to them if you dont have to? You wouldnt have to give away free money (interest) if you use proper spending methods like not charging more than you can afford and paying the amount off in full. Credit card companies dont like people that do it the right way of course....they aint making anything off me, in fact they paid me 180$ last year just for using the card Maybe thats why they keep bumping my limit up though...to try to get me to spend more than i have so i have a balance and get those nice interest charges.

Try this out...
http://www.bankrate.com/brm/calc/MinPayment.asp

effort vs. interest.