So, initially I had signed up for a credit card to get a free tshirt. Well, now I am thinking about it. I am 19 years old, and I would like to slowly begin building up my credit. I do not want to go out of control with this credit card. What are some suggestions for when I should use my credit card, in order to gradually build credit, and still not have to just pay the minimum cost of my bill?!?!
2006-12-25 12:34:58 · 11 answers · asked by Britterrsssss 2 in Business & Finance ➔ Credit
use it, but DO not spend more than you can pay..and do not pay the lowest amount each month but also do not pay it off each month, ( my dad pays it off in full no matter what the balance, and they said he did not have sufficient credit with them, now he makes a few payments, then he pays it off so not to pay interest, now he has credit) bring the balance up and make payments on it..they look at several things,
1) who much your balance is and who much you pay each month..like minimum or half or all of it, they all have credit points with them, paying it off each month does not show them you have credit, because you do not, you pay it off, so make the payments but make at least the payment half or more so you do not pay all year for a few things...
2) they also look at your highest amount of carried balance, to see what you comfortable with, and how much you pay on this higher balance,..if you never get close to the max, they will not raise the limit..
3) NEVER EVER be late, ever...this messes it up for a very long time......a ling time...always pay when you get the bill to make sure they get it on time
and I ask every few months for them to lower the percentage rate, sometimes they do, sometimes they do not, and then on alternate months I ask at least twice a year for them to raise my credit limit up...and a gain sometimes they do...
also take out a credit card for maybe gas card, or a department store where you buy clothes but again do the same thing as stated above,
so follow this and in not time you will have credit..
good luck
smile
2006-12-26 10:24:30 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Let me tell ya one thing first, Do not attracted by so called offered credit cards. Before sign up for credit card you should look 5 things carefully and then decide if you satisfied with it:
1. Annual Percentage Rate (APR)
2. Annual Fees
3. Billing Cycle Period counting method
4. The Issuer ( Bank, Financial Institution, Credit Union)
5. Issuer Reporting your performance to Credit Rating Agencies
As you are new to credit so may be you just decided to go with the offer. But you should always think before sign up with any credit card issuer. Credit is the most important thing if you really care about it. It can save you lots of money and same time can give you an extra edge of life you never imagine.
2006-12-25 21:57:50 · answer #2 · answered by pesific_boy_curious_2_no 2 · 1⤊ 0⤋
LOL a free t-shirt... that's the best thing if heard all year!
Suggestions:
Use the card, but use it wisely, like for gas or groceries, and pay of the entire balance once you get the statement.
Never go above 50% of the limit of your card, your score will start to go down if you do that.
Only increase your limit if you can control yourself, and if you could pay off the entire balance comfortably if you needed to use if for an emergency.
And you have the right idea... never pay the minimum... always pay more if you can.
Good luck with your new found freedom! Don't abuse it, and you'll be fine.
2006-12-25 20:46:22 · answer #3 · answered by baconshmals 2 · 1⤊ 0⤋
if you want AWESOME credit, buy something small every month....when you get the bill, pay it off completely. Do this every month as long as you can! You will start off your credit history with a bang and that will get you very far.....you'll pay lower interest on everyhing, houses, cars, etc. I over charged at 19 years old, and it's taken a long time to get my credit back. It's SOOOO tempting when you see something you want, but make sure you can pay it off the next month. ALSO....if you find you are starting to get out of control, place it in a dish of water and then in the freezer......if you need something bad enough you have to wait for it to melt, and you can't microwave it, since that will ruin it. It's hard! But I'm so glad you're so on top of things!! Good luck :)
2006-12-26 01:02:13 · answer #4 · answered by sleep_chic 3 · 1⤊ 0⤋
just buy a few things like a pair of jeans or something simple u have cash to pay for but put it on the card and keep a low balance and when u get more credit cards in the mall dont sign up for them all because each card cut into your credit score
2006-12-25 20:42:30 · answer #5 · answered by b 2 · 0⤊ 0⤋
All of the advice above is good. It's just a tool for money management, not a way to get a bunch of stuff just because you have a credit line. If you can't afford to buy it out of your regular funds, don't charge it. Buy a few things on it if you want but you need to pay it off every month. If you can pull that off, you would be doing something that 96% of people in your age group cannot do, and they regret it for years to come.
2006-12-25 21:08:58 · answer #6 · answered by The Scorpion 6 · 1⤊ 0⤋
Just use the credit card for emergencies only (no gas and no cash). If you don't or won't have the cash to pay off the full balance or a large chunk of it, then you shouldn't be using it so much. Paying the minimum is just basically paying interest.
2006-12-25 20:41:29 · answer #7 · answered by C_1984 2 · 2⤊ 0⤋
No do no go crazy with credit card never use any card to its full limit never pay minimum payment pay pay bit over always, never get down graded cards or small company cards cause they will taer you off in intrest strat with American express green cards and tell them you need card cause u want to built credit. make lot of transaction each month try to pay it off every month if not pay little over minimum payment try to pay off your credit card in six month. you can make as many transaction as you want on credit card this will be a plus as long as you will pay it off or pay more than minimum payment every month do this for year or so you will see the results. Also try to get phone, cable, electric bill in your credit and pay them on time for more than year do this bank's will beg you to be their customer.
2006-12-25 21:20:32 · answer #8 · answered by MIke 1 · 1⤊ 0⤋
Get a gas card, to build your credit. I learned this in a personal finance class.
2006-12-25 22:09:09 · answer #9 · answered by careb0o 2 · 1⤊ 0⤋
Use it wisely, never spend what you don't have. Like a check, if you don't have it in the bank already, don't try spending it, you'll get burnt.
2006-12-25 20:44:25 · answer #10 · answered by Anonymous · 1⤊ 0⤋