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

[jewseejay]

/\ Listen to Lou... go 0% for 15-18 months then do a balance transfer at the end of that. After two years of paying it down ur score should be prime to take out a small personal loan for the last cpl grand before the CCs insane apr kicks in

 

[District of Columbia]

Wats the general rule on a wait time before you should get your credit pulled again ? Had it ran for two cards last week I never opened and now I'm looking at another one through Navy Federal. Should I wait a month ?

 

[capital sb]

@Hyper Cutter Credit Karma is only good for the credit report everything else is trash

 

[crcballer55]

 

I don't see why not...as long as you have enough credit...but WHY would you wanna do that??

Interest rates on a car loan are like 2-6%
Interest rates on credit cards are like 20% or some wild ****

Never really thought too much into it but it kinda makes sense to me if I were to somehow get that high of a limit, and like buddy said if I were able to get points for it.
To my knowledge, it's already cheaper for a car if you pay straight up. I'm still under my dad's car insurance so if he doesn't co-sign taking out a loan by myself would mean I would have to get my own car insurance (and license plate in my own name). And I'm not sure if my dad is cutting me a deal on my insurance (he does get a military discount) but when I was bout to lease a car I was gonna be paying double on my insurance.
I'm not a dude who misses payments but doing it that way sounds like you can lease it and it'll be harder for the repo boys to come and get ya.

Truthfully I just wanted to know if it's possible, and never rly looked into car loans as far as having good credit. I tried to buy a car with no credit and dudes was giving me the worst.

Not true. The dealership still owns the car when you lease. Nothing hard about them repoing it at all. They'll probably put a tracker in there so you can't hide it either.

Honestly, just save up and pay cash for a used car. You'll save on the depreciation and won't have a car payment.

 

[D StaXX]

I have a couple of questions.
I have a 720 credit score according to Credit Karma.
1. I've had my BOA Platinum Plus Visa for 8 years and I've never received an increase in my limit. The one time I did, I called them and it was a hard pull on my credit. Has anyone here received an increase from BOA?
2. What card would you guys recomend for a person with my credit score? I'm looking at the Discover it card and the Amex everyday card. I'm looking for a higher limit card.

 

[dam itz lou]

Damn. 10k a month...suddenly I need to take a long nap.

Even if you spend 1K a month on the 3X categories, you'd have the annual fee beat in a little over 3 months. I'm not even factoring in the 2X categories.

I have a couple of questions.
I have a 720 credit score according to Credit Karma.
1. I've had my BOA Platinum Plus Visa for 8 years and I've never received an increase in my limit. The one time I did, I called them and it was a hard pull on my credit. Has anyone here received an increase from BOA?
2. What card would you guys recomend for a person with my credit score? I'm looking at the Discover it card and the Amex everyday card. I'm looking for a higher limit card.

What are you going to use the card for ?

 

[D StaXX]

Just regular expenses. Groceries, gas, etc.

 

[dont be a menace]

I'm looking for a rewards/miles card right now but most of what I've been looking at only lets you redeem your miles for the full price of the trip.

Damn. 10k a month...suddenly I need to take a long nap.

Even if you spend 1K a month on the 3X categories, you'd have the annual fee beat in a little over 3 months. I'm not even factoring in the 2X categories.

I'm looking for a rewards/miles card right now but most of what I've been looking at only lets you redeem your miles for the full price of the trip. I just want one where I can pay part of it off with the miles. Hell I think it'd take me a year just to get $300 in rewards even on a 3X category.

I wouldn't mind annual fees neither as long as it has perks like a free checked in bag or something. Any suggestions?

 

[dam itz lou]

Just regular expenses. Groceries, gas, etc.

The Amex blue cash preferred earns 3% back on gas and 6% back on groceries. Stores like Walmart,target, wholesale clubs don't count though.

Menace, I need to know what you're spending your money on. Do you mean you want to use your miles for your flight and pay cash for your hotel or use some of your miles for a flight and pay cash for the rest ?

 

[dont be a menace]

Just regular expenses. Groceries, gas, etc.

The Amex blue cash preferred earns 3% back on gas and 6% back on groceries. Stores like Walmart,target, wholesale clubs don't count though.

Menace, I need to know what you're spending your money on. Do you mean you want to use your miles for your flight and pay cash for your hotel or use some of your miles for a flight and pay cash for the rest ?

I usually put gas, online purchases, and food on my cards. I have a discover IT card so whatever the quarter 5% rewards is on is what I'll use that card for and the other stuff on my wells fargo cc.

And I'm looking for the latter of what you said. Use my miles/points to pay for part of my travel expenses either flights, cars, or hotels and pay for the rest on the card. The ones I've looked into so far like the capital one venture card only lets you use your miles to pay for your whole travel expense.

 

[D StaXX]

I went with Discover. Got approved for 6500. Took less than 30 seconds. They told me I should get an increase within the first 3 months.
Should I go ahead and request an increase on my BOA card since I assume my credit is open right now?

 

[dam itz lou]

I usually put gas, online purchases, and food on my cards. I have a discover IT card so whatever the quarter 5% rewards is on is what I'll use that card for and the other stuff on my wells fargo cc.

And I'm looking for the latter of what you said. Use my miles/points to pay for part of my travel expenses either flights, cars, or hotels and pay for the rest on the card. The ones I've looked into so far like the capital one venture card only lets you use your miles to pay for your whole travel expense.

When you say food, do you mean eating out or groceries ? The amex everyday preferred gives you 3x back on groceries and 2x on gas. When you use it 30 times a month, youll get a 50% bonus in points. Right now theyre offering a 15k sign up bonus. Amex has alot of transfer partners where you could transfer your points 1 for 1 to airlines or hotel programs.

https://www304.americanexpress.com/credit-card/amex-everyday-preferred

If you meant food as in dining out then the citi premier card should be good. You get 2X back on dining out and 3X on gas. They have their own travel portal which gives you 20% off of flights when you use your points. I've used it a couple of times and its pretty on point. They also have a bunch of transfer partners that you can transfer the points 1 for 1 and a nice 50k sign up bonus.

https://www.citi.com/credit-cards/credit-card-details/detail.do?ID=citi-thankyou-premier-credit-card

I went with Discover. Got approved for 6500. Took less than 30 seconds. They told me I should get an increase within the first 3 months.
Should I go ahead and request an increase on my BOA card since I assume my credit is open right now?

Yeah, youve been a customer a long time so I dont see why there would be an issue. just wondering, why did you go with the discover IT card ? the 5% rotating categories every quarter are nice but you only get 1% back on every other purchase.

 

[polosanddunks]

Guys is myfico.com subscription even worth it anymore or should I just go with the free creditkarma?

 

[capital sb]

Guys is myfico.com subscription even worth it anymore or should I just go with the free creditkarma?

Credit Karma is FAKO only the credit report is reliable. Doesn't hurt to use it for the credit report.

 

[crcballer55]

Guys is myfico.com subscription even worth it anymore or should I just go with the free creditkarma?

At $25/mo? NO. If you need to find your credit score, just sign up for a free 7 day trial from all 3 sites, then cancel. There's no reason you constantly need to know what your credit score is.

The scoring is just a way for the credit companies to get you to use more of their products.

 

[alexody]

Not true. The dealership still owns the car when you lease. Nothing hard about them repoing it at all. They'll probably put a tracker in there so you can't hide it either.

Honestly, just save up and pay cash for a used car. You'll save on the depreciation and won't have a car payment.

So if you buy a car with a credit card it can still get repo'd? how? It's basically already paid for as far as the dealerships end.
I actually did save up my money to get a used car, just weighin out my options on what imma do next time cuz I ****** getting the car I bought.

 

[D StaXX]

https://www.citi.com/credit-cards/credit-card-details/detail.do?ID=citi-thankyou-premier-credit-card
Yeah, youve been a customer a long time so I dont see why there would be an issue. just wondering, why did you go with the discover IT card ? the 5% rotating categories every quarter are nice but you only get 1% back on every other purchase.

Reading on fico forums, the general consensus that I got was that Discover typically offers higher CC limits, which is what I cared about the most so I went with them.

 

[crcballer55]

 

Not true. The dealership still owns the car when you lease. Nothing hard about them repoing it at all. They'll probably put a tracker in there so you can't hide it either.

Honestly, just save up and pay cash for a used car. You'll save on the depreciation and won't have a car payment.

So if you buy a car with a credit card it can still get repo'd? how? It's basically already paid for as far as the dealerships end.
I actually did save up my money to get a used car, just weighin out my options on what imma do next time cuz I ****** getting the car I bought.

No, the car won't get repo'd since it's effectively paid for. But you're on the hook for the balance on the card.

A credit card is an unsecured loan, whereas an auto loan is secured by that asset (same with a mortgage). That's why CC rates are so much higher than loans secured by an asset. Their liability is a lot higher since they have limited recourse in coming after you to pay for it.

 

[alexody]

No, the car won't get repo'd since it's effectively paid for. But you're on the hook for the balance on the card.

A credit card is an unsecured loan, whereas an auto loan is secured by that asset (same with a mortgage). That's why CC rates are so much higher than loans secured by an asset. Their liability is a lot higher since they have limited recourse in coming after you to pay for it.

Yea but with a low credit score the auto loan is already at a high rate and some places gotta have financing fee on top of that. But with a credit limit comes a better score comes a better loan so I guess it's domino anyway.

 

[polosanddunks]

At $25/mo? NO. If you need to find your credit score, just sign up for a free 7 day trial from all 3 sites, then cancel. There's no reason you constantly need to know what your credit score is.

The scoring is just a way for the credit companies to get you to use more of their products.

I appreciate it. I have had it for 2 months and its been pretty reliable while im working on upping/repairing my credit but im just gonna cancel it now.

 

[crcballer55]

 

No, the car won't get repo'd since it's effectively paid for. But you're on the hook for the balance on the card.

A credit card is an unsecured loan, whereas an auto loan is secured by that asset (same with a mortgage). That's why CC rates are so much higher than loans secured by an asset. Their liability is a lot higher since they have limited recourse in coming after you to pay for it.

Yea but with a low credit score the auto loan is already at a high rate and some places gotta have financing fee on top of that. But with a credit limit comes a better score comes a better loan so I guess it's domino anyway.

Or save up and pay case for a good used car? Nobody NEEDS a car loan, or to finance ANYTHING (except maybe a home) with proper planning. If your car loan is anywhere near what a credit card APR would be, you have no business even considering a car loan. Save $500/mo (the average car payment) for 1 year and you'll be able to buy a $6000 car. Do it again for another year & sell the previous car and you'll be able to get a $11-12,000 car and so on. Within a couple years you'll have a pretty nice ride with NO payments.

 

[capital sb]

@crcballer55 can you explain more on buying a house without financing?

 

[jewseejay]

@crcballer55
can you explain more on buying a house without financing?

Investment property or residence?

 

[crcballer55]

 
@crcballer55 can you explain more on buying a house without financing?

That was actually my exception point. But, you DON'T need a credit score to buy a house. It may be more difficult, but there are companies out there who will give you a mortgage with manual underwriting, a solid work history, & an "alternate credit score".

But if you want to be part of the 1% who buy a home with cash, live as minimally as you can, invest as much as you can, and you can buy a home with cash.

 

[capital sb]

Investment property or residence?

Both, but investment mainly.