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

[jjs]

Is showing utilization better? I just feel like it's an old scam banks used to say in the hope people would pay interest.

Yes it's better. If you don't show utilization then it looks like you're not using your credit cards. And you're not understanding that you don't have to pay interest to show utilization. If my statement cuts on the 26th of June, I can leave a small balance on there let's say $10. My due date for that $10 will be the 21st of July. So as long as I pay that full $10 before July 21st, I won't pay a cent in interest and I will show utilization on my credit card. Any money I charge on the card that posts on my account between June 27th-July 26th will show up on my next statement.

I know how a CC work, no need to explain.

But are you sure equifax will assume i'm not using my card if it shows that my balance is 0 when they update my credit? Mastercard know for sure i'm using my card.

Also not using the card = worst for your credit than using it a bit?

How does having a 20k CC and not using is not showing how responsible i am with my credit? It's there and i'm just not using it.

Utilization impacts your score, that's a fact. But a few % of utilization reported on the bureau better than reporting 0%? That's where i'm bugging.

By all means prove me wrong.

 

[3stheluckynumbe]

I know how a CC work, no need to explain.

But are you sure equifax will assume i'm not using my card if it shows that my balance is 0 when they update my credit? Mastercard know for sure i'm using my card.

Also not using the card = worst for your credit than using it a bit?

How does having a 20k CC and not using is not showing how responsible i am with my credit? It's there and i'm just not using it.

Utilization impacts your score, that's a fact. But a few % of utilization reported on the bureau better than reporting 0%? That's where i'm bugging.

By all means prove me wrong.

Speaking from experience, I saw larger gains in credit score month to month when I had less than 10% utilization reported

Biggest jump I noticed is when I paid off card in full

 

[jjs]

Less than 10%, but did you have the same gain if it showed 0%.

That's my point. No point in reportingn a few % if you get the same gain as 0%.

Now if you tell me you had a larger gain with a few % than with 0%, that's another thing.

 

[jon4rd]

I know how a CC work, no need to explain.

But are you sure equifax will assume i'm not using my card if it shows that my balance is 0 when they update my credit? Mastercard know for sure i'm using my card.

Also not using the card = worst for your credit than using it a bit?

How does having a 20k CC and not using is not showing how responsible i am with my credit? It's there and i'm just not using it.

Utilization impacts your score, that's a fact. But a few % of utilization reported on the bureau better than reporting 0%? That's where i'm bugging.

By all means prove me wrong.

You don't know how ccs work if you think that letting a balance report means you'll have to pay interest to the banks. But yes, showing a small utilization on one card less than 10% will give you a better score than showing zero utilization. When you show zero utilization, it shows that you are not using your revolving credit and will cause a drop in score compared to letting a small balance report. Now, utilization has no memory so it will only be monthly/however often your cards that you put balances on report. Just like if you have 75% utilization one month then less than 10% utilization then next, the prior month doesn't matter anymore. You don't have to always let less than 10% report but if you want optimum scores for the month or for something that you have to get your score pulled for, the best way to get the highest scores is less than 10% utilization on one card

 

[turbospartan]

I'm in the camp that leaving a balance to carry over, even a small amount, does nothing for your credit score.  I can't even find a link that suggests that it actually helps your credit score, by carrying over a balance. 

http://www.creditcards.com/credit-c...lance-boost-credit-score-dumb-advice-1294.php

http://www.magnifymoney.com/blog/building-credit/should-you-carry-a-balance-on-a-credit-card

https://www.nerdwallet.com/blog/finance/credit-score-does-carrying-a-balance-help/

https://www.creditkarma.com/article/credit-card-utilization

• You do not have to carry a credit card balance or pay interest every month to show credit card utilization. Even if you pay your credit card balances  in full every month, simply using your card is enough to show activity.

 

[jjs]

Dude i never talked about interest in your case.

Also you're wrong to assume that they will update your credit bureau when you cc statement is due.

They do it once a month and they don't care about your statement. If that moment falls where you cc has high debt, your score will drop. Basically waitting for due date to pay doesn't change anything.

 

[pitman13]

But yes, showing a small utilization on one card less than 10% will give you a better score than showing zero utilization.

You're my guy but this is simply not true.

 

[based mod]

As long as you guys pay off your statements and not let interest hit, that's all that matters.

Don't let a CC go unused for years though, as some banks/issuers will cancel that account and that'll reduce your AAoA. Dust off that useless, no-point-earning CC to buy a pack of gum or $1 Amazon GC every once in a while.

 

[jjs]

As long as you guys pay off your statements and not let interest hit, that's all that matters.

Don't let a CC go unused for years though, as some banks/issuers will cancel that account and that'll reduce your AAoA. Dust off that useless, no-point-earning CC to buy a pack of gum or $1 Amazon GC every once in a while.

Qft

 

[jon4rd]

Dude i never talked about interest in your case.

Also you're wrong to assume that they will update your credit bureau when you cc statement is due.

They do it once a month and they don't care about your statement. If that moment falls where you cc has high debt, your score will drop. Basically waitting for due date to pay doesn't change anything.

Is showing utilization better? I just feel like it's an old scam banks used to say in the hope people would pay interest.

I know they don't update it when it's due, they update it when the statement cuts that's what I've been saying. I never said wait for the due date to pay. I've been saying let your card report with a small balance on the statement CUT date, then when your statement comes you can pay it off immediately or anytime before your due date and won't pay a dime in interest.

I'm in the camp that leaving a balance to carry over, even a small amount, does nothing for your credit score.  I can't even find a link that suggests that it actually helps your credit score, by carrying over a balance. 

http://www.creditcards.com/credit-c...lance-boost-credit-score-dumb-advice-1294.php

http://www.magnifymoney.com/blog/building-credit/should-you-carry-a-balance-on-a-credit-card

https://www.nerdwallet.com/blog/finance/credit-score-does-carrying-a-balance-help/

https://www.creditkarma.com/article/credit-card-utilization

• You do not have to carry a credit card balance or pay interest every month to show credit card utilization. Even if you pay your credit card balances
   in full every month, simply using your card is enough to show activity.

You guys are misunderstanding. I agree don't let a balance carry over. But you should show some utilization for optimal scores (not let the due balance from last months statement carry over to next month resulting in interest charged). Pay your statement balance in full before the due date, then let a small amount report for your next months statement (let it report on your statement cut date). But like I said you don't HAVE to do that every month, just when you want optimal scores.

You're my guy but this is simply not true.

Try it and report back. Next month, make sure when your statements cut have every card report a zero balance. Then the next month let one card cut with a small balance below 10%. You'll see a jump when the one card reports I guarantee it

 

[freshpairs]

Finally hit the 800 club according to my discover fico check

 

[Bert.]

How good is being used as a cosigner for a car?

 

[turbospartan]

How good is being used as a cosigner for a car?

Big risk, if whoever you are co-signing for decides they are done paying.... you're on the hook

 

[willie mcfly22]

How good is being used as a cosigner for a car?

No real benefit, high risk of responsibility...

 

[isco]

]

How good is being used as a cosigner for a car?

Don't do it

 

[Tony $now]

How good is being used as a cosigner for a car?

I wouldn't do it
I consigned on an apartment for a relative and got hit with a $618 collection on my credit because they moved out without cleaning the damn carpet.

Paid the collection but still can't get it off my credit [emoji]127998[/emoji]‍

 

[polosanddunks]

I wouldn't do it
I consigned on an apartment for a relative and got hit with a $618 collection on my credit because they moved out without cleaning the damn carpet.

Paid the collection but still can't get it off my credit [emoji]127998[/emoji]‍

Stuff like this always happens. I'd never cosign for anyone unless it was my kid and even then I'd just put it in my own credit.

High risk and no reward basically.

 

[pdino]

There seems to be some confusion in showing a balance and having to pay interest. The goal is to use your card, and not pay any interest.

CCs give you a 30 day window to pay off your CC. As long as you pay off the balance, you pay no interest. But, you want to USE your credit card to show lenders that you are responsible. Just need to pay it off.

 

[Bert.]

Those who replied, it's my mother, her credit is ok but wasn't enough to get approved without having a slightly higher payment

I had no issue to help her because obviously I trust her she pays her bills and her last vehicle was fully in my name which was paid in full with zero issue

 

[jon4rd]

There seems to be some confusion in showing a balance and having to pay interest. The goal is to use your card, and not pay any interest.

CCs give you a 30 day window to pay off your CC. As long as you pay off the balance, you pay no interest. But, you want to USE your credit card to show lenders that you are responsible. Just need to pay it off.

Bingo. Been trying to explain this but it was being misconstrued

 

[based mod]

Those who replied, it's my mother, her credit is ok but wasn't enough to get approved without having a slightly higher payment

I had no issue to help her because obviously I trust her she pays her bills and her last vehicle was fully in my name which was paid in full with zero issue

Then why are you asking us?

 

[chennylou]

Didn't know this thread existed, keep flourishing.

 

[Bert.]

Those who replied, it's my mother, her credit is ok but wasn't enough to get approved without having a slightly higher payment

I had no issue to help her because obviously I trust her she pays her bills and her last vehicle was fully in my name which was paid in full with zero issue

Then why are you asking us?

if it helped my credit at all

my point was people said not to do it but I'm not doing it for some random family member or friend who tends to screw people over because I've heard plenty stories from friends who's brother os sister needed a co-sign and stopped paying **** etc etc

I dont gotta worry about moms just wanted to know if it was gonna help my credit thats all...

 

[redd spyder]

is anybody else credit karma app messing up on the iphone?

i made a payment last billing cycle but its still showing my previous balance.

(i checked my native CC app and its updated but C.K. isnt)

 

[Los Angeles]

never cosign for anyone even if its a family member.