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

[jewseejay]

Crc said most of what needs to be said.

But as a rule of thumb... if u want a nice house... you need nice credit

After the 08 madness its considerably harder to get approved for home loans. Youd hafta have a HIGH income to even be considered without the backing of a solid credit history

Now if u have ither assets you want to put up or if the property value is lower its less of a concern but in 2015 if your looking to borrow hundreds of thousands the bank wants to know your worth it. They dont make money reposessing your home and taking on the responsibilty of maintaing it until it sells for less than its worth. Or worse letting it sit and kill the property value of surrounding homes

First time home buyers get a GANG of benefits i wont go into if its gunna be an investment vehicle.

 

[jewseejay]

Oh... 500 a month average car loan tho? U on that dust haha 350 has been my max and ive had niceish rides

 

[crcballer55]

Crc said most of what needs to be said.

But as a rule of thumb... if u want a nice house... you need nice credit

After the 08 madness its considerably harder to get approved for home loans. Youd hafta have a HIGH income to even be considered without the backing of a solid credit history

Now if u have ither assets you want to put up or if the property value is lower its less of a concern but in 2015 if your looking to borrow hundreds of thousands the bank wants to know your worth it. They dont make money reposessing your home and taking on the responsibilty of maintaing it until it sells for less than its worth. Or worse letting it sit and kill the property value of surrounding homes

First time home buyers get a GANG of benefits i wont go into if its gunna be an investment vehicle.

No, you don't necessarily need a high income unless you're going to buy a big house. Sufficient assets and/or a stable work history (3-5 years) will due.

Also, you'd be surprised (or maybe not) at how little the banks actually care about overall home value. They have insurance to cover any losses, so unless they have prudent management like some of the smaller banks, they are pretty liberal with their standards

Regarding the standards, while it may be a little more difficult, FHA loans are going to people with as low as 580 credit.

Oh... 500 a month average car loan tho? U on that dust haha 350 has been my max and ive had niceish rides

I misspoke. It's only $450/mo. But the concept is still the same.

http://www.cnbc.com/id/48844052

 

[jewseejay]

Perhaps I just work for such a small institution we dont take those gambles but were not touching you on a mortgage for any dollar amount sub 640. In fact with a 580 wed prolly not even give u a secured card or checking account hahah.

 

[willie mcfly22]

Don't you end up payin way over the amount barrowed on FHA loan cuz of the extra insurance? As low as 3% down and low credit scores and closing cost assistance is awesome but sounds like you get shafted on the back end...

 

[capital sb]

Lol but i asked about investments man @JEWSEEJAY  . Thanks for the information given so far @crcballer55

I am looking to start buying rental properties, so I am trying to get more information about the loans, down payment , etc.

For my first home that I am buying to live in is FHA  a go or no? I heard there are income limits on FHA loans.

 

[jewseejay]

Lol but i asked about investments man @JEWSEEJAY
 . Thanks for the information given so far @crcballer55


I am looking to start buying rental properties, so I am trying to get more information about the loans, down payment , etc.

For my first home that I am buying to live in is FHA  a go or no? I heard there are income limits on FHA loans.

My b thought crc adressed what u wanted to know

You need to decide if your first home is gunna be an investment or a home is all. Because the amount of assistance youll get in financing said property will be exponentially more if your buying a home to live in.

Is your plan to buy live there and rent to freinds? Can be a solid idea so long as everybody in the house is responsible. Or do you mean your buying two seperate properties a rental and one to live in? Cuz if its the latter you oughta see if your mom or dad will hold the house in a trust or somethin for ya and give it back after you buy the home you really want with first time homeowner tax credits/ benefit initiatives etc.

 

[dont be a menace]

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 meant food as in eating out.

Also, I plan on traveling overseas so no foreign transaction fees are a plus too.

And thanks, I'll look into those cards you linked.

 

[dam itz lou]

I meant food as in eating out.

Also, I plan on traveling overseas so no foreign transaction fees are a plus too.

And thanks, I'll look into those cards you linked.

The premier doesnt have foreign transaction fees. If you want you can look into the the Chase sapphire preferred. Theyre offering a 40k sign up bonus. It's one of the best travel rewards cards out there. 2X on dining and travel but it doesn't cover gas. No foreign transaction fees either.

I just got approved today for a AMEX SPG card. It's regarded as the most valuable points by a few travel blogs because of its transfer partners and huge discounts when booking with one of their hotels.

Here's a good post on what people have in their wallets to earn points.

http://thepointsguy.com/2015/03/which-credit-cards-do-you-use-team-tpg-compares-wallets/

 

[crcballer55]

 
Lol but i asked about investments man @JEWSEEJAY  . Thanks for the information given so far @crcballer55

I am looking to start buying rental properties, so I am trying to get more information about the loans, down payment , etc.

For my first home that I am buying to live in is FHA  a go or no? I heard there are income limits on FHA loans.

I'm pretty sure it's just a loan limit. Couldn't find anything on the HUD site about income limits.

Personally, I'd go for a conventional loan on my personal residence. They're cheaper than going FHA, even though FHA reduced their insurance rates.

I covered it in the Real Estate thread, but unless you have a lot saved up and know how to handle rental properties, I'd stay away for a while until you've familiarized yourself with Real Estate and tenant laws. In some states and areas, it can be nearly impossible to evict someone. If you want a good investment that's also fairly liquid, stick with mutual funds or ETF's for a while. They typically have a higher rate of return over time than Real Estate too.

http://niketalk.com/t/345379/home-buying-real-estate-thread/330#post_22882574

 

[alexody]

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.

I always had a plan, I was going to pay 270 a month after a decent down payment. But the fact there was an financing fee, I had to pay for a new tag, and my insurance would double, the act of leasing the car was similar to buying a car on credit card APR.

I was going to try and do something similar to that, but if there was/is a way to get loan on a car w/o having to change my tag and insurance I'd prolly do it

 

[penny1folarin]

how long do inquiries stay on ?

 

[dam itz lou]

how long do inquiries stay on ?

They stay on your credit report for two years but affect your score for 12 months.

 

[nazdrowie]

https://www.mint.com/blog/credit/millennial-credit-crash-course-infographic033115/?display=wide

my b, iono how to (re)size it properly 

 

 

[vtotheinay]

sorry for the noob question but i have a chase freedom card which i got last month. my first payment is due may 4th. i utilized the 30% of the $500 limit they gave me. im not going to use it anymore til may 4th, but should i pay now or wait til the day payment is due? ive asked a few people and gotten mixed responses on which way is best for my credit score on when to pay. i know theres quite a few knowledgable guys in here that can help me out. thanks in advance

 

[capital sb]

Discover just gave me an automatic 1k credit limit increase right on schedule with the 6 month auto CLI. Goal is to get the card to a 10K credit limit.

That credit crash course is okay it could be much more informative.

 

[crcballer55]

sorry for the noob question but i have a chase freedom card which i got last month. my first payment is due may 4th. i utilized the 30% of the $500 limit they gave me. im not going to use it anymore til may 4th, but should i pay now or wait til the day payment is due? ive asked a few people and gotten mixed responses on which way is best for my credit score on when to pay. i know theres quite a few knowledgable guys in here that can help me out. thanks in advance

Neither will have more impact on your score than the other. As long as it's paid on time. Just to be safe, I always paid mine about 3-4 days ahead of time so I would have time to take care of any issues if they came up.

 

[vtotheinay]

Neither will have more impact on your score than the other. As long as it's paid on time. Just to be safe, I always paid mine about 3-4 days ahead of time so I would have time to take care of any issues if they came up.

gotcha. so basically I have from today (april 13) til may 4th to pay. regardless of when I pay between now and then it wont make a difference?

 

[dam itz lou]

gotcha. so basically I have from today (april 13) til may 4th to pay. regardless of when I pay between now and then it wont make a difference?

Right. Your statement will usually print 3-4 days after the due date and that's what they report to the credit bureaus.

 

[dam itz lou]

Neither will have more impact on your score than the other. As long as it's paid on time. Just to be safe, I always paid mine about 3-4 days ahead of time so I would have time to take care of any issues if they came up.

Your thoughts on this article crcballer?

http://thepointsguy.com/2015/04/credit-card-strategies-for-mortgage-and-home-loan-applicants/

 

[superb]

gotcha. so basically I have from today (april 13) til may 4th to pay. regardless of when I pay between now and then it wont make a difference?

Right. Your statement will usually print 3-4 days after the due date and that's what they report to the credit bureaus.

Right he needs to look on the paper and find his statement date. As long as he pays down the balance before the statement date that is what they will report

 

[omariwestafari]

Im about to get my 2 cards to 50% of their limit u think thatll help me get offers for new cards so i can transfer balances? Or is 50% available credit still too high?

My other card has a 1000 limit and has no balance.

One has a 7000 limit im bringing to about 3
The other has a 3k limit im bringing from 2k to 1k

I applied for a card a couple months ago and i got denied so im hoping this will open some doors

 

[rightguard]

I have 8 credit cards and pay the balances fully prior or close to due date. Finished paying off my car and make scheduled payments on my mortgage. According to my discover fico my cc score is 791.

Chase and discover every now and then offer a bonus for signing up and spending a certain dollar amount.

There are some who question if paying cc balances early is a good idea or not but my credit score has not been negatively impacted

 

[vtotheinay]

Right he needs to look on the paper and find his statement date. As long as he pays down the balance before the statement date that is what they will report

got it. so my due date is may 4th and my statement print on the 7th. ill have it paid next week anyway so im good. thanks for the help. another couple questions for anyone, if you guys dont mind helping out here as well.

1.) so, say I pay the balance in full next week and its zeroed off. should I start using the card again or wait til the next cycle to use it (may 4th-june 4th)?

2.) I see that some guys are using more than 30% and upwards of 50% in some places I read. a majority of the stuff I researched said to utilize 30% of your limit per cycle. is that what should I keep doing or should I up my usage to like 50%?

 

[crcballer55]

 

Neither will have more impact on your score than the other. As long as it's paid on time. Just to be safe, I always paid mine about 3-4 days ahead of time so I would have time to take care of any issues if they came up.

gotcha. so basically I have from today (april 13) til may 4th to pay. regardless of when I pay between now and then it wont make a difference?

The only thing that may matter is the utilization on the card whenever they pull the report for the month. But if you're only using 30%, that won't matter. You'll start getting red flags if you're somewhere around 70% or higher utilization.

Your thoughts on this article crcballer?

http://thepointsguy.com/2015/04/credit-card-strategies-for-mortgage-and-home-loan-applicants/

Nothing he's saying is wrong. But there are some points he's making that require a bit more knowledge of what actually goes on from multiple sides.

First: 2/3 of consumers are in credit card debt, so while "paying off your card in full each month" is what you should actually do, few people actually do it.

Second:

As cardholders see it, they have no debt, as they never carry a balance and never pay interest.

   While that's technically true, people who pay using credit cards spend on average about 15-20% more than cash.

Do not co-sign for anyone on a new account or loan.

COMPLETELY agree with this one! NEVER cosign. If you think you should cosign for someone, remember there's a reason why a professional credit issuer doesn't trust that person. You'll end up paying their bill about 3/4 of the time.

One of the big misconceptions about credit scores is that having a higher score will necessarily lead to lower rates

Also true. Think like a creditor. A large down payment gives you more leverage against preventing the borrower from defaulting and gives the borrower less incentive to do so since they have more skin in the game.

I also have first hand experience with it too from my first home.

Bottom line, if you're getting a credit card JUST so you can get a mortgage later on you should reconsider. It's possible to get a mortgage with NO credit score. It may be more difficult, but you'll ultimately save more money leading up to the purchase. As long as you have a stable job history, good payment history on your bills, and sufficient assets, you should be fine.