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

[abernja]

1. I charge items to my credit card so I'm not liable if there is a problem with my purchase.

2. It helps build credit, which will help me get a mortgage.

1 - Charging items is a great way to spend 20-30% more than you would with cash. (A debit card with a Visa/MC logo will get you the same exact protection.)
2 - A credit score of 0 with good income and a steady job will get you a mortgage just fine. Just need to use a lender that does manual underwriting

 

[eyanks]

1 - Charging items is a great way to spend 20-30% more than you would with cash. (A debit card with a Visa/MC logo will get you the same exact protection.)
2 - A credit score of 0 with good income and a steady job will get you a mortgage just fine. Just need to use a lender that does manual underwriting

Yeah I've seen that stat of spending more money when you swipe. I try to be conscious of overspending in general. Everything I buy online is with a credit card and using cash isn't a realistic alternative. It's getting harder to find a manual underwriter, even though I think its the better way as opposed to just going by that stupid FICO score. The whole financial system is a scam anyway, but I try to make the it work for me as much as possible. It's so easy to fall behind due to one unfortunate incident.

 

[jon4rd]

1 - Charging items is a great way to spend 20-30% more than you would with cash. (A debit card with a Visa/MC logo will get you the same exact protection.)
2 - A credit score of 0 with good income and a steady job will get you a mortgage just fine. Just need to use a lender that does manual underwriting

Can't get cash back/miles/other perks with a lot of debit cards though.

Won't you get a better interest rate with good credit versus no credit though?

 

[eyanks]

Like Dave Ramsey (google him if you never heard of him), I used to be anti-credit card, and in many ways I still am, and it took me a while to bite the bullet and apply for a few cards. Before that I didn't have a credit score. Essentially, I could have gotten 1 or 2 credit cards, charged items to them that I needed to pay for anyway (like my cable bill) and set up autopay for the full balance. This builds credit, but if I were to pay using my checking account or debit card I don't get that same advantage, even though I'm paying the same amount on time.

 

[abernja]

Can't get cash back/miles/other perks with a lot of debit cards though.

Won't you get a better interest rate with good credit versus no credit though?

My 2 bank accts and PayPal Business card are all debit cards and can get cash back with no problem.

No credit is better than good credit. Holds about the same weight as an extremely high score. Interest rate should be no different than what the current market is offering. If any, would not be much difference. I'm no expert though.


I just know from past experience, credit only works for so long before you subtly dig yourself into a hole. Yes doesn't happen to everyone, but they would be in the 1% of credit users. 70% of Americans live paycheck to paycheck. If you want to break the cycle, you have to do something different than the rest of society. The financial system is designed to keep you poor.

 

[truth-serum]

I don't even use credit. I charge what I would use my debit card for like at the grocery store and pay it off right away. I just use my card to improve my score so I can get a good interest rate when it comes time to buy a house.

Serious question. Why do you guys want credit?

 

[dam itz lou]

Can someone break down Lending Club for me?

Pros / Cons etc

Thx

These two links gave me tons of great info before I decided to invest. Let me know if you need any other info.

https://investorjunkie.com/4/lending-club-review/

http://www.moneyunder30.com/lending-club-investing-10210

Serious question. Why do you guys want credit?

Points & perks without paying interest.

Thanks for the advice. I just applied and was approved for that Chase Slate with 0% APR for 15 months and no balance transfer fee.

Time to knock this balance out ASAP.

Awesome. When you log into your discover account, go to account > balance transfers. I've had my account several years and these are my current offers. Hopefully you won't need it.

View media item 1911793

 

[bluntobject50]

My 2 bank accts and PayPal Business card are all debit cards and can get cash back with no problem.

No credit is better than good credit. Holds about the same weight as an extremely high score. Interest rate should be no different than what the current market is offering. If any, would not be much difference. I'm no expert though.


I just know from past experience, credit only works for so long before you subtly dig yourself into a hole. Yes doesn't happen to everyone, but they would be in the 1% of credit users. 70% of Americans live paycheck to paycheck. If you want to break the cycle, you have to do something different than the rest of society. The financial system is designed to keep you poor.

WHAT?!?!

 

[thadangerousmind]

Lol I saw a lot of activity in this thread here in the past few hours. I just knew somebody popped up and rustled some jimmies.

 

[capital sb]

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.

 

[teamjordan79]

Serious question. Why do you guys want credit?

1. I charge items to my credit card so I'm not liable if there is a problem with my purchase.

2. It helps build credit, which will help me get a mortgage.

and both lead to moar debt

 

[jon4rd]

I mean you'll only dig yourself in a debt hole if you're irresponsible with your credit. As long as you are using your cards responsibly you won't plague yourself with debt like some of y'all think. Someone said above, you can just charge your bills that you have to pay anyway or groceries to your card and autopay it. Just because you have a credit card doesn't mean you're not using it responsibly

 

[teamjordan79]

I mean you'll only dig yourself in a debt hole if you're irresponsible with your credit. As long as you are using your cards responsibly you won't plague yourself with debt like some of y'all think. Someone said above, you can just charge your bills that you have to pay anyway or groceries to your card and autopay it. Just because you have a credit card doesn't mean you're not using it responsibly

Or you can just buy stuff you actually have money for.

But i get it, banks make it extra convenient for you to use your card, while making you feel like a responsible adult when you pay your dues on time. However, the $15,355 per capita credit card debt in the US and with $712 billion in total, I highly doubt these banks are out here preaching fiscal responsibility.

 

[jon4rd]

Or you can just buy stuff you actually have money for.

But i get it, banks make it extra convenient for you to use your card, while making you feel like a responsible adult when you pay your dues on time. However, the $15,355 per capita credit card debt in the US and with $712 billion in total, I highly doubt these banks are out here preaching fiscal responsibility.

Everything I buy with my credit card I have money for. not everybody uses their card for things that they don't have money for. What y'all in the building credit thread talking down credit for?

 

[rightguard]

I opened this card not too long ago and received my 200 bonus

http://view.offers.aarp.org/?j=fec0...0&jb=ff3010707d67&ju=fe531676736c0d7a7512&r=0

 

[teamjordan79]

Or you can just buy stuff you actually have money for.

But i get it, banks make it extra convenient for you to use your card, while making you feel like a responsible adult when you pay your dues on time. However, the $15,355 per capita credit card debt in the US and with $712 billion in total, I highly doubt these banks are out here preaching fiscal responsibility.

Everything I buy with my credit card I have money for. not everybody uses their card for things that they don't have money for. What y'all in the building credit thread talking down credit for?

Do you. I just personally can't grasp why every purchase needs to get transformed into debt only to be repaid as a show of good faith instead of using your money. These perks you receive are dwarfed by the perks banks get from your deposits and fees. Visa and Mastercard take a 2-3% cut on every transaction that the merchant has to either eat this or pass it onto the customer. Credit cards are a net loss imo.

 

[capital sb]

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.

 

[dam itz lou]

Do you. I just personally can't grasp why every purchase needs to get transformed into debt only to be repaid as a show of good faith instead of using your money. These perks you receive are dwarfed by the perks banks get from your deposits and fees. Visa and Mastercard take a 2-3% cut on every transaction that the merchant has to either eat this or pass it onto the customer. Credit cards are a net loss imo.

This is an example I made a few pages ago.

For example, the Citi Prestige card.

Annual fee - $350

I received a 60K sign up bonus - $600
$250 Air travel credit (every calendar year) - $250
Points earned via spend + 15% bonus - X
American Airlines lounge access - X
4th night free perk - $350
3 Rounds of Golf - X

There are more perks but i'm not going to get into every single one. You get the point...

 

[jon4rd]

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.

Right lol. So we should all just keep our money in our mattresses essentially using that logic.

And teamjordan79 you said earlier that a mortgage leads to more debt. Are you going to buy your house cash as well?

 

[getback]

Or you can just buy stuff you actually have money for.

So what if I'm in a tight spot and I don't have money to pay for $1500 worth of emissions repairs to my truck (true story)? Should I just disregard my credit card and illegally drive around with a failing inspection sticker until I come up with $1500 cash?

 

[luckyluchiano]

y'all really debating that goofy?

 

[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.

 

[esydc]

 

[HNL HI]

I mean you'll only dig yourself in a debt hole if you're irresponsible with your credit. As long as you are using your cards responsibly you won't plague yourself with debt like some of y'all think. Someone said above, you can just charge your bills that you have to pay anyway or groceries to your card and autopay it. Just because you have a credit card doesn't mean you're not using it responsibly

good post. some of these dudes are making like these cards are swiping themselves.

 

[eyanks]

Credit cards are a symptom of a money issue (whether it be lack of control or lack of funds to start with). Fix those issues and you can benefit from using credit cards.