I researched it and IMHO Chase Freedom is by far the best.
No fee, 1% cash back on everything, 5% back on stuff that changes every three months. Right now it's 5% back on gasoline and Amazon.com.
https://creditcards.chase.com/freedo.../Chase&Freedom
At 19 I had no credit, but didn't want to fall into the credit card trap. Instead I went to my credit union and asked for a starter loan - just five hundred dollars or so, nothing big. I explained to them that it was simply to establish and build my credit. It took just a few months to pay off.
Yeah, that's perfect. You can get any number of real credit cards after six months to a year.
It's just not the simplest thing, because you don't have to make a few purchases. All you have to do is make a purchase to show activity and then not have any black marks, because that's what they check. Make one purchase and pay it on time and you have zero late payments and zero missed payments. They don't look at how much you spend, just how long you've had the account and how many payments you've failed to make. The longer you go without buying anything, the more they raise your credit limit to try to get you to buy something.
Yes, this is the way to do things if you have the discipline. Still, if I recall correctly, credit reports look at your average, so they still see a balance of your card(s) when you do it this way. Therefore, keep your balance under a 30% max of your available.
B2B; I listen to Dave on occasion too. Wish I was a disciplined as he advocates.
Not certain of this, but I believe you want to used each credit card you have at least for one purchase every six months. then pay it immediately off that billing cycle. I believe the regulations have changed that allow them to change a "maintenance fee" for unused cards.
The average length of time that accounts are open is very significant. There's little help to having multiple short CC's on your record. So doing a store, one purchase and that's it does help get you that initial access, but it doesn't help build/keep the score high. That said, it's not HORRIBLE for your credit - though might actually knock the score down a tad just because your avg open length is now shorter.
Wife had her father put her name on an acct/CC that he had open for ~25 years so she had an emergency card. It shows up on her credit report now and shows an age that's 2 years older than she is. That being on our credit report almost single handedly got us the mortgage we got on our first house at 23 years old.
Number of on-time payments is a very large factor too - does not making a payment ($0 balance) count as an on-time payment? I don't think it does -but I'm not sure.
Certainly there are a few rare birds that have the motivation and discipline to pay their cards off each month but that's not the case for 99.99% of card owners.
The level of indoctrinated beliefs when it comes to credit is sky high in this thread. Right along with the level of bad advice and horrible financial practices.
Just think about what's being suggest here. Sign up for a card so you can make purchases you can't afford while racking up interest and another monthly bill.
As opposed to saving your money for the purchase, earning interest on that money and not obtaining any additional debt or monthly payments.
All so you can say you have a pretty FICO.
At the very least you could put 30% down with a credit union and still earn under 10% interest on a used vehicle if you must finance a car and a home can be bought with little to minimal credit history with a strong down payment or equity such as land...
So what's really left for credit card purchases? Things you don't need or things that are more expensive than you can currently afford...or worse you're buying things that should be budgeted like gas or food or eating out. Say a 1-3k purchase. So essentially its okay to lack the disciple to save up for a 3k jiggawhatchamacallit so long as you can convince yourself you're disciplined enough to pay off a credit card each month.
This thread is desperately lacking in good sound fiscal advice.
This
And if I want to buy something online but for some reason have to avoid using my credit card, my debit card allows me to make online purchases
Dude for the majority of people who want to buy a house and not osu heinous rates, or get outright denied a loan, raising fico scores by the various methods herewill actually save you money in the long run
Then what's the answer for the recent college graduate that got out without any loans, cards, etc? Borrow the family minivan for a few years because they can't get a car loan? Live under a bridge because they can't get an apartment in the new city they got a high paying job in? Sure, living without any cards/loans/etc is a sweet dream, but you simply need SOMETHING established just to get into the real world in this day and age.Certainly there are a few rare birds that have the motivation and discipline to pay their cards off each month but that's not the case for 99.99% of card owners.
The level of indoctrinated beliefs when it comes to credit is sky high in this thread. Right along with the level of bad advice and horrible financial practices.
Just think about what's being suggest here. Sign up for a card so you can make purchases you can't afford while racking up interest and another monthly bill.
As opposed to saving your money for the purchase, earning interest on that money and not obtaining any additional debt or monthly payments.
All so you can say you have a pretty FICO.
At the very least you could put 30% down with a credit union and still earn under 10% interest on a used vehicle if you must finance a car and a home can be bought with little to minimal credit history with a strong down payment or equity such as land...
So what's really left for credit card purchases? Things you don't need or things that are more expensive than you can currently afford...or worse you're buying things that should be budgeted like gas or food or eating out. Say a 1-3k purchase. So essentially its okay to lack the disciple to save up for a 3k jiggawhatchamacallit so long as you can convince yourself you're disciplined enough to pay off a credit card each month.
This thread is desperately lacking in good sound fiscal advice.
I'm in Manny/Lefty/and others boat... I use cards for everything, pay the balance every month... I make large purchases on 0% credit cards. Sure, I could pay cash for this entertainment center or this lawn mower, but why not finance it at 0% and collect the interest while my money is in my bank. I have 8 or 9 cards, never paid a dime of interest on any of them.
I get and agree that many are not disciplined to live this way, and if they're not, then some of the advice here may not be applicable to them... but a lot of this info really isn't bad if someone can utilize these methods responsibly.
Credit cards are good for inflight airline services, emergencies like towing or auto repairs you don't have enough money for, etc.Certainly there are a few rare birds that have the motivation and discipline to pay their cards off each month but that's not the case for 99.99% of card owners.
The level of indoctrinated beliefs when it comes to credit is sky high in this thread. Right along with the level of bad advice and horrible financial practices.
Just think about what's being suggest here. Sign up for a card so you can make purchases you can't afford while racking up interest and another monthly bill.
As opposed to saving your money for the purchase, earning interest on that money and not obtaining any additional debt or monthly payments.
All so you can say you have a pretty FICO.
At the very least you could put 30% down with a credit union and still earn under 10% interest on a used vehicle if you must finance a car and a home can be bought with little to minimal credit history with a strong down payment or equity such as land...
So what's really left for credit card purchases? Things you don't need or things that are more expensive than you can currently afford...or worse you're buying things that should be budgeted like gas or food or eating out. Say a 1-3k purchase. So essentially its okay to lack the disciple to save up for a 3k jiggawhatchamacallit so long as you can convince yourself you're disciplined enough to pay off a credit card each month.
This thread is desperately lacking in good sound fiscal advice.
I wouldn't go as far as saying 99.99% of people don't have discipline to use a credit card, lol. Thinking about it, I essentially treat my credit card as a debit card - I pay for things I have the money for. If I'm buying a Home Theater system on my CC, it's because 1) I don't want to carry cash for that 2) I'm doing it for reward points.
I agree with you that it doesn't make sense to get a credit card solely for the sake of buying stuff to generate a credit history for yourself. That being said, credit cards can be a useful tool that you can use to your financial benefit. Personally, I don't like carrying cash. I like the thought of being able to recoup some of what I spend in the form of benefits. I like being able to hang on to my money past the time of purchase. I like some of the consumer protections that credit cards can provide. I have the financial discipline to be able to use credit cards while maintaining a budget and am therefore able to use credit cards to my advantage. Obviously there are a lot of people who can't handle CC's and they need to stay away. But that doesn't mean that the only sound fiscal advice is to avoid credit cards like the plague.Certainly there are a few rare birds that have the motivation and discipline to pay their cards off each month but that's not the case for 99.99% of card owners.
The level of indoctrinated beliefs when it comes to credit is sky high in this thread. Right along with the level of bad advice and horrible financial practices.
Just think about what's being suggest here. Sign up for a card so you can make purchases you can't afford while racking up interest and another monthly bill.
As opposed to saving your money for the purchase, earning interest on that money and not obtaining any additional debt or monthly payments.
All so you can say you have a pretty FICO.
At the very least you could put 30% down with a credit union and still earn under 10% interest on a used vehicle if you must finance a car and a home can be bought with little to minimal credit history with a strong down payment or equity such as land...
So what's really left for credit card purchases? Things you don't need or things that are more expensive than you can currently afford...or worse you're buying things that should be budgeted like gas or food or eating out. Say a 1-3k purchase. So essentially its okay to lack the disciple to save up for a 3k jiggawhatchamacallit so long as you can convince yourself you're disciplined enough to pay off a credit card each month.
This thread is desperately lacking in good sound fiscal advice.
My advice to someone in their early 20's contemplating getting a credit card would be to first take a look at how they're doing balancing their checkbook, paying their bills on time and living within a budget. If you're not currently doing all three, then don't get a card.
I agree. You just have to use them responsibly and pay them off every month and never be late. I actually am always floating money on mine...say the bill goes out on the 20th and the amount due is $2000...I'm still using it and by the time I pay the bill on the 6th (it's due the 9th) I might actually have $4000. on the card. I will pay $2500. (keeping me current and not paying any charges/interest) and float the $1500 till the next payment cycle interest free. Plus, racking up rewards is like free money...when I get 5% off on gas it's like getting $5 back free every time I fill up my truck.
You might not need a credit card but you need some type of loan otherwise there isn't any information to generate a score.
Any benefit of carry a credit card for emergency purposes is negated by every bank card out there like stated above. You have the same consumer protections from a Visa or MC bank card.
If you have 4-5 months of income saved in an emergency fund that is all the protection you would need.
No one said anything about living under a bridge. A credit card does not save you from living under a bridge. Again this thread is full of indoctrinated beliefs surrounding credit, credit cards and financial freedom. A credit card at best is a convenience not a necessity. Credit is not a requirement for success or living. This boils down to the inability of people to manage their finances, have a working budget and GASP...save money.
I'm not speaking out of blind ignorance here. I abused my credit for years, lived off cards, did the buy now pay off at the end of the month game and went through rough times and good times. I also worked in sales and financing at a dealership so I know what the banks actually require for certain types of loans, particularly luxury loans.
Funny how once I started actually accounting for my money, created a functional working budget (not an unrealistic one) and starting saving I was able to manage making large purchases without the need for credit. I've also gone through two major unforeseen expenditures in the last 2 years both over 3k and I somehow got buy without the need for credit or a credit card. My emergency fund saved my ass multiple times. If you can afford that 400 dollar a month car payment you'd be surprised at how quickly you can actually save to pay cash for that same car. Or save enough for a down payment big enough that you can get financing at a good rate from a credit union regardless of FICO.
In the last two and half years I used my credit one time. And it wasn't for a nice box under a bridge.
For those that have 0% loans on this that or the other so their cash can earn interest. Most people flat out don't function that way. If not 99.99% then 85%...in any event its rare for the average joe to earn 0% on any financing and even more rare for them to function in a system where they purchase on a card and pay it off at the end of the month. Credit card companies cash in on lazy people with ty spending habits and inability to pay things off not just right way but more specifically occasionally late. No matter what the scenario I would rather pay cash and have ownership and equity than earn a small interest for a year by making payments. If you can do all these wonderful things at 0% interest then good for you but lets not act like this is a regular everyday thing.
You guys actually believe that having and using credit while building and tearing down debts are the only way to live or worse are an unavoidable way of life. This could not be more wrong. The only real mistake I've made was not knowing how to change my way of thinking at a much younger age.
Who's building up debt? I don't see anyone advocating racking up a lot of debt in this thread. In fact I see the opposite.
I don't pretend to know what percentage of people are capable of paying off their debts each month but I do know here I stand in regards to that and thats why I use my CC's for buying everything. I HAVE to write a check for the rent otherwise I'd use it for that also.
So I haven't seen half of what you're saying is being advocated in this thread actually in here. Most of the advice in here is almost the exact opposite of what you say you're reading... but still - answer my question then because I'd love to know what the answer is without hyperbolizing my under a bridge comment... it's a serious question
Without ESTABLISHING (let alone building) credit, which is the main focus of the thread, how does someone get an apartment then? Maybe a kid worked his way all through college, lived at home, got a degree and a $20k signing bonus out of school. Add that to the $20k he saved while working for 4 years during college... screw the apartment (he can't go get one anyway w/o established credit while someone with ruined credit can), let's go buy a house. But we all know there's not a mortgage to be had if there isn't a credit history. So should he live at home for the next 15 years until he can pay $200k cash for a house while not getting a credit card or a special loan (as also suggested in the thread) to establish a credit history - because that seems to be what you're suggesting is the right/only thing to do for 85+% of people because they're not disciplined or responsible enough?
It seems B2B is advocating saving enough money to cover certain unforeseen expenses, and that's reasonable, but to sit around saving up money to buy a car, when if you had credit you could simply get it financed, and most likely get an even better finance rate, makes a lot more sense. The same thing applies to homes.
Sure it might be stupid to use a credit card to buy things you should be able to reasonably save for in a short amount of time, but for other things it's nice to have good credit.
I'm not saying anyone's advocating it but it goes hand in hand with credit card ownership no matter how responsible and spectacular you are with your cards. That's really the main point I'm making here because most people flat out aren't responsible with credit cards. They're certainly not a necessity in life. Its great that you can work the system to your advantage but most people even well intentioned won't or can't and inevitably get caught up in the credit card game. Its why revolving debt is one of the largest financial downfalls for Americans. I'm certain you can't deny that.
There are better ways for creating and building credit than utilizing revolving debt.
I'm not sure exactly what you're asking me. If I was in college I'd work part time to save up for a car. Say 5k over a two year period until graduation. I absolutely would bum a ride from a friend, take the bus or ride a bike to avoid a car loan at that point in my life. I'd also put 2k in an emergency fund for repairs on that car and/or other unforeseen expenses.
As far as an apartment lease I have no real big issue with secured loans through a bank for building credit. Starting with a small 500 dollar prepaid loan and so forth. Most apartment complexes don't require major tradelines to rent anyway. Only marginally good credit and deposit. Some don't even require credit. To be honest I wouldn't rent an apartment. I'd rent a small house and most renters don't require big credit. The last two houses I rented didn't even require a credit check and both were nice houses in nice neighborhoods.
What I'm advocating is a little more thought and care than the traditional charge it mentality.
There's a reason at 27 years old I had 50-60k in debt and now at 35 I have 8k in debt (all business and only 1,500 personal). It takes letting go of traditional thinking, ingenuity, sacrifice and dedication to live a more intelligent and fiscally sound life.
But again as I mentioned before most credit unions will lend with 35% down and no credit for a car. There are home loans out there for minimal credit and 15% down.
If this didn't answer your question present it again.
Aww yeah, ots. Just got approved by Capital One for a credit card 24.9% and only $500 dollar limit, but it's a start.
Am going to use this for my purchases on Amazon and will pay back right away.
At 24.9, you'd better.
Keep balances low should be a priority for anyone with a card. I currently owe nothing (except for the binge at Kumori last week) with total credit line of 15k. Speaking of, that's another thing to watch out for. Don't take too much credit, even if you don't use it. Having too much open credit hurt my score so I pared it down to 15k.
It ain't easy.
So I paid off my Vita a month or aso ago and bought a cheap Surround Sound System for 250 on Amazon with my card now. I also just noticed my card budget had been increased to 750 without my knowledge. I;ve been thinking about buying a new barbell for around 300 bucks. Is it best not to do so on the same card? I still have $492 of credit.
Seems the debt to limit ratio will be a bit high, tbh....
A little update about myself though: I took a free trial of equifax and turns out my credit is around 750, which is pretty good. MY current Wells Fargo Visa is 10000, but I think I'll be opening an account soon with Bank of America and getting a credit card with them as well.
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