Credit Card advice

[quote name='Cornfedwb']You have to use the card, pay your bill on time, and build up your credit rating.[/quote]

you then request for a higher limit
 
Call their customer service line and ask for an increase. If you've missed any payments then your chance of an increase is next to none. But if you've paid on-time and are on good terms then they may offer to increase it without doing a credit pull. Opt for this first as it isn't marked on your credit report. However if they don't offer you enough of an "automatic increase" then ask them for a full review (which will be a hard pull on your credit rating).

When you are young it's difficult to get any significant increases. And then all of a sudden you will turn 30 and have more credit than you know what to do with (if you're responsible that is).
 
Credit limits tend to be offered fairly smartly

Meaning, they'll offer what you can afford.. if you can't pay off $5,000 a month, then you don't need a $5,000 credit limit. Accruing credit card debt is just about the worst thing you can do from a monentary sense.

I'm a firm believer against retailer specific credit cards since they tend to provide almost no help to the consumer. Maybe you can explain why you need a higher limit?
 
Thanks for the quick replies everyone, I'm going to try calling tommorrow. I wanted to pay off part my next school bill with my master card and my bank dosn't offer a master card and that's all my school takes. Plus the rewards on my banks visa card suck. And know alot of people hate credit cards I do to, I always pay it right after I make a purchase. I don't every put my self in any postion where I'm in over my head.
 
[quote name='kongfunk']And know alot of people hate credit cards I do to, I always pay it right after I make a purchase. I don't every put my self in any postion where I'm in over my head.[/quote]

From my understanding, making, say, a 50 dollar purchase, then paying it off the next day, and then making a 30 dollar purchase and paying that off the next day, doesn't help you any in terms of building credit...
 
As Cornfed mentioned, the easiest way to build up the limit is just to use the card. If you continue to pay it off on time, and without problems, they will begin increasing your limit. (They want you to keep spending money!)

With my first credit card, I believe my credit limit increased five or more times within the first year. It was my first year of college, and so, I was using it quite often.

Of couse, I kept paying it off on time. ;)

Some card companies will even increase your limit a bit if you discontinue using the card. It's their way of trying to entice you back in.
 
[quote name='HumanSnatcher']From my understanding, making, say, a 50 dollar purchase, then paying it off the next day, and then making a 30 dollar purchase and paying that off the next day, doesn't help you any in terms of building credit...[/QUOTE]

That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/QUOTE]

Wow.. has anyone here even looked at a credit report?

You don't have to carry-over a balance to build credit.. you simply need to use your credit for an extended period of time.

For instance, purchase $200 of crap on your Visa, pay it off when the bill comes, buy another $200 worth of crap, rinse and repeat. All carry-over will do is give ya interest to pay off, it wont help your credit.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]

I've never carried a balance on my Mastercard. It started at $1200 limit and now its at $15000.
 
keep in mind, it depends on the issuer. Some automatically review and increase your line without doing anything, others allow you to request an increase easily online.
Still others can be frustratingly difficult to get any increase, regardless of your credit, income, or line on other cards.

Also, you never have to pay for an increase. And you might want to get/use a different card than the best buy mastercard for primary purchases. Cards associated with stores often carry higher interest rates and their rewards, while good at that particular store, tend to be worse most everywhere else.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]

That is not true. I got my first credit card when I was 16. It had a $600 limit. I'm now 19 and my limit on my world points visa is $20,000. I have never carried a balance once. I pay off my card in full every single month.
 
[quote name='kongfunk']Thanks for the quick replies everyone, I'm going to try calling tommorrow. I wanted to pay off part my next school bill with my master card and my bank dosn't offer a master card and that's all my school takes. Plus the rewards on my banks visa card suck. And know alot of people hate credit cards I do to, I always pay it right after I make a purchase. I don't every put my self in any postion where I'm in over my head.[/quote]
Why? The nicest feature of credit cards is that they essentially give you an interest free loan (assuming you don't carry-over balances) until the end of the month. Pay bills as they come due. Don't pre-pay.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]
Wow, this couldn't be further from the truth. Credit is built by paying it on time, whether that's the entire balance or the minimum; you are not REQUIRED to carry over a balance to build credit. In fact, the best way to build credit is to use it instead of cash or checks then use that money you would have used to pay off the card.

I've had a credit card for the last 15 years and have never carried a balance for the last 14. Sometimes it gets tight (those $3500 christmas bills suck) but I never let it slip because bad credit bites you in the ass in the long run. If there is anything that has negatively affected my credit score, it's been signing up for retail cards to get the extra percentages they throw at you. Granted each one is only a few points (credit checks via lending institutions lower your score) but they add up.
 
[quote name='Cornfedwb']Wow.. has anyone here even looked at a credit report?

You don't have to carry-over a balance to build credit.. you simply need to use your credit for an extended period of time.

For instance, purchase $200 of crap on your Visa, pay it off when the bill comes, buy another $200 worth of crap, rinse and repeat. All carry-over will do is give ya interest to pay off, it wont help your credit.[/quote]

That is true, all they show on the credit report is whether you have a account and how long it's been open, and if it's paid on time. And even if it isn't, it's up to the bank to report that you missed a payment. Which they more than likely won't do unless it's about to go default.
 
I have never carried a balance once ether. I always thought that was bad because then interest gets tacked on. I have 3 visa's, 2 with around $8,000 and another with $20,000 limits. I just use the retail Best Buy for couple of months now. It just sucks that it's limit is $1,500. And my school only excepts Master Card or Check.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]
Just to reiterate what everyone else said, this is absolutely WRONG. I've had cards for over 5 years now and never held a balance, and my limits have increased significantly.
One of the best ways to increase your credit limits is to increase your credit score. Keep your old cards and always pay them on time. Also, keep your used balance low. If you keep your balance near the limit, even if you pay it off, that will hurt your credit score quite a bit.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]
Just to reiterate what everyone else said, this is absolutely WRONG. I've had cards for over 5 years now and never held a balance, and my limits have increased significantly.
One of the best ways to increase your credit limits is to increase your credit score. Keep your old cards and always pay them on time. Also, keep your used balance low. If you keep your balance near the limit, even if you pay it off, that will hurt your credit score quite a bit.
 
[quote name='Cornfedwb']Wow.. has anyone here even looked at a credit report?

You don't have to carry-over a balance to build credit.. you simply need to use your credit for an extended period of time.

For instance, purchase $200 of crap on your Visa, pay it off when the bill comes, buy another $200 worth of crap, rinse and repeat. All carry-over will do is give ya interest to pay off, it wont help your credit.[/QUOTE]

Not correct, the main point is keeping your balanc on your card (if you have one) within a certain percentage of the credit limit

I have had a balance on my card of thousands from my wife as she went into nursing school, carried it the entire 2 years she was in school paying down a little as I went. Went and got a new car after she graduated, I had over 800 credit (which I was told had happened to that salesperson only a handful of times in years... I still have thousands on myh credit cards (although 2 incomes will pay it off very quickly). The secret was those thousands wwere only a SMALL percentage of my total credit limit on 4 cards (which over the years has grown to over 60,000). People who max out or charge significant amounts on their cards are seen in a more riskier fashion.

I have researched this topic to great extent... paying bills on time is one big factor, what I mentioned is another, not having too many cards is another, having a wide variety of different type of loans is another... just be responsible and it will all work out in the end. Then you can lobby for other things, such a lower APR's etc

Being responsible allowed me to get super low 0% balance transfers from my wifes cards to mine when she entered school
 
[quote name='zman73']Not correct, the main point is keeping your balanc on your card (if you have one) within a certain percentage of the credit limit
...
Being responsible allowed me to get super low 0% balance transfers from my wifes cards to mine when she entered school[/quote]

No, you don't need to carry over a balance to build credit.

And those 0% balance transfer offers aren't always a sign of responsible credit use. They almost always tack on a 3% transfer fee. It's still 0% APR but that 3% fee gets added to your balance and is like free money to lenders. And in that fine print, most of those offers can be voided if you miss payments and they'll up the APR. And if I remember correctly, your payments go towards that balance transfer first, so if you use that same card, you're getting hit with interest on that balance until you pay off your 0% balance first.
 
[quote name='polly']No, you don't need to carry over a balance to build credit.

And those 0% balance transfer offers aren't always a sign of responsible credit use. They almost always tack on a 3% transfer fee. It's still 0% APR but that 3% fee gets added to your balance and is like free money to lenders. And in that fine print, most of those offers can be voided if you miss payments and they'll up the APR. And if I remember correctly, your payments go towards that balance transfer first, so if you use that same card, you're getting hit with interest on that balance until you pay off your 0% balance first.[/QUOTE]

Im not stupid, there WAS NO TRANSFER FEE in my case, and I wasnt saying that the only way to build credit was by carrying over balances, but that you could have balances on your account and build credit as long as they were within a set percentage of your total credit limit. I dont get excellent credit by overlooking the finer points. And by having more than one card, I always charged on a different card OTHER THAN the one I transfered to... I have over 800 credit so dont imply I dont know what Im talking about and dont know the finer points of building credit.
 
[quote name='xbox_mole']That's absolutely correct. To build any type of credit history you have to make let's say a larger purchase of let's say, $100. Then pay the minimum payments for a few months and then pay the rest of it off responsibly. If you open an account and then charge and pay off in full the next month you have no credit history. You'll need to carry some sort of balance AND pay your monthly minimums for a few months before you begin to build any type of history.[/quote]Just to make sure no one missed it, this guy is 100% incorrect. Not sure at all where he gets his information, but I'm waiting to see his next post.
 
Another inportant factor in building credit is how long you have had your card, even if you are not using a card you have had for years and years... do not get rid of it
 
Shoot, I'm going to college next year and I can't fathom having any sort of debt. Loans, credit card stuff, whatever.
 
[quote name='Ub3rChief']Shoot, I'm going to college next year and I can't fathom having any sort of debt. Loans, credit card stuff, whatever.[/quote]

Yea, it's still hard for me to deal with, even if it's a little. It feels like an anchor. If I can I always try to pay off the balance immeadiately just so I won't have to worry about it or pay any interest.
 
[quote name='Ub3rChief']Shoot, I'm going to college next year and I can't fathom having any sort of debt. Loans, credit card stuff, whatever.[/quote]

It's not that bad, just don't be an idiot and only get loans when you absolutely have to. And only take out as much as you know you'll be able to pay back quickly.

I personally have one debit card, and one credit card. I make all my purchases with the credit card (even when I have the money in my bank) and then pay it on time. I do this for small purchases, as well as large purchases.
 
[quote name='yukine']It's not that bad, just don't be an idiot and only get loans when you absolutely have to. And only take out as much as you know you'll be able to pay back quickly.

I personally have one debit card, and one credit card. I make all my purchases with the credit card (even when I have the money in my bank) and then pay it on time. I do this for small purchases, as well as large purchases.[/QUOTE]

That will help you build credit pretty well. There are so many people (my friend included) who are afraid to even use their card (he is also afraid to let them bump up his limits even though I tell him it will. help further his score)
 
[quote name='icedout297']That is not true. I got my first credit card when I was 16. It had a $600 limit. I'm now 19 and my limit on my world points visa is $20,000. I have never carried a balance once. I pay off my card in full every single month.[/QUOTE]

Using this method I went from a $2,000 limit to a $28,000 limit and never once asked for an increase.
 
[quote name='zman73']That will help you build credit pretty well. There are so many people (my friend included) who are afraid to even use their card (he is also afraid to let them bump up his limits even though I tell him it will. help further his score)[/quote]
Good to hear!
 
I would disagree with people saying you have to maintain a balance to gain credit. When I turned 18 I got a credit card, the limit was $250. Now that I am 21, I have 3 CC's (Limits - 3800 (original 250 limit card), 6500 (the only card I use), and 500-Kohls). I also had a Sears card that had $2500 limit but I canceled it. I have NEVER paid a penny of interest in 3+ years. I obviously have been building credit otherwise I would still be stuck with my 1 card of $250. I would like to cancel my $3800 limit card and my Kohls card since I don't use them but I'm afraid it will hurt my credit. I've got a lot of mixed answers to this.. I want to cancel them so when I try to get a home loan I won't have a bunch of "unused" credit that may count against me.
 
[quote name='Staind204']I would disagree with people saying you have to maintain a balance to gain credit. When I turned 18 I got a credit card, the limit was $250. Now that I am 21, I have 3 CC's (Limits - 3800 (original 250 limit card), 6500 (the only card I use), and 500-Kohls). I also had a Sears card that had $2500 limit but I canceled it. I have NEVER paid a penny of interest in 3+ years. I obviously have been building credit otherwise I would still be stuck with my 1 card of $250. I would like to cancel my $3800 limit card and my Kohls card since I don't use them but I'm afraid it will hurt my credit. I've got a lot of mixed answers to this.. I want to cancel them so when I try to get a home loan I won't have a bunch of "unused" credit that may count against me.[/quote]

AFAIK cancelling a card with history might hurt you in the short term. I don't know if unused credit hurts you. I always thought that the used credit to unused credit ratio is what they looked at. Aka if you had credit lines up to 20,000 and you were only tied up with 2000 it would be better for score than if you tied up 15,000.
 
[quote name='Pookymeister']AFAIK cancelling a card with history might hurt you in the short term. I don't know if unused credit hurts you. I always thought that the used credit to unused credit ratio is what they looked at. Aka if you had credit lines up to 20,000 and you were only tied up with 2000 it would be better for score than if you tied up 15,000.[/quote]
You're absolutely right about unused credit. You don't want to be using all your credit, since that will negatively reflect on your credit score. Keeping your used credit high is a bad thing even if you pay your balance in full every month. It's hard to say how much it will hurt your score, but it definitely does.
 
[quote name='mrx1']I want to get a lcd hdtv from amazon(http://www.amazon.com/gp/product/B000MXYCU4/).Should I apply for an amazon visa.Keep in mind that this will be my first credit card.[/quote]

The card I got from them had around 18 percent interest. So I probably won't even use it. How much income do you make a year, depending on that you will probably get a low limit or won't get it at all.
 
[quote name='mrx1']I want to get a lcd hdtv from amazon(http://www.amazon.com/gp/product/B000MXYCU4/).Should I apply for an amazon visa.Keep in mind that this will be my first credit card.[/quote]
The year no interest deal isnt horrible. You just have to be disciplined enough to pay the minimum amount due every time on time and then pay the balance before the year is up.
 
[quote name='Pookymeister']The year no interest deal isnt horrible. You just have to be disciplined enough to pay the minimum amount due every time on time and then pay the balance before the year is up.[/quote]

also remember that often times with the 0% APR promos if you don't pay off the balance before the end of the one year period, the interest is retroactively added. Make sure to read the fine print.
 
[quote name='thespamofpower']also remember that often times with the 0% APR promos if you don't pay off the balance before the end of the one year period, the interest is retroactively added. Make sure to read the fine print.[/quote]

Yea, thats why you want to pay the balance before the year is up :)
 
[quote name='Cornfedwb']You have to use the card, pay your bill on time, and build up your credit rating.[/QUOTE]

or pay your bill on time, and constantly be at your credit limit.
 
[quote name='Malice']I have a question: How the hell do I check my credit score? Where do I go to see it?[/quote]

You can sign up at myfico.com. Just be sure to cancel before the 30 day trial is up.
Alot of good info for OP in here. If you want a great board with the best info go to: www.creditboards.com

This site is very helpful for anyone. Good or bad credit. Or just wanting any kind of info to do with credit.

Utilization is a part of your score. This is the amount of credit used in relation to amount of credit you have available.
How long you have had a card also is important. Don't close your cc accounts. Just put them in a safe place even if you never plan to use it again.
Ontime payments. Very big.
Hard credit pulls can lower your score.
If you are buying a car don't have every deal run your credit. Wait until you know what you want. Then go to your bank first.
Having alot of newly opened revolving accounts scares the cc companies as well.
This is just a little bit of the info I have picked up off of creditboards. Check out the site. Read and reread and eventually you will start to truly understand how things work
 
Quick question if I may chime in...

I have never had a credit card, as I am in school and only make about 6-7k a year working part time. I use my job to pay for gas mostly (as I commute) and insurance. What is the best card to go with for perks and whatnot? I use my debit card which gives me no rewards whatsoever.
 
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