I have no credit and no job. I keep getting these "pre-approved" cards in the mail. I want to build credit so this is my strategy. Buy three cards A,B,C card A I buy 700 bucks is consumer goods. Before the time comes for them to add interest I pay it off with credit card B, then pay B off with C and rotate it. I do this before late payment interests are tacked on. This will inevitably raise my score, is there any problem with this method??
2007-07-01 18:10:33 · 11 answers · asked by bboyballer112 2 in Business & Finance ➔ Credit
It won't raise your score because it will be evident that your flipping the balance from one card to another. Another thing to consider is that, if it is possible for you to do this, you'll have to do it with balance transfers and these cost you fees. Before you know it, again if you manage to obtain these cards, your debt will have climbed significantly because you're not really paying anything into it and, again, adding fees. This is how uncontrollable debt is created and people end up in ruin.
Here's your best bet, get a job, then get one (1) credit card, put a small balance on it, then start paying it off with a little more than the minimum payment due. The fact that you pay more than the minimum looks good on your credit. If you take a little time to pay it off, it builds your credit because creditors see that you're reliable. Make sure that the amount of debt you get into is small enough that you could pay it off all at once if you had to. This is how you build good credit.
Check into the credit card being from Washington Mutual. The reason for this is that you can monitor your credit score via your account information on-line.
2007-07-01 18:18:25 · answer #1 · answered by CUrias 5 · 0⤊ 0⤋
Jeremy's right. It's almost next to impossible to find a credit card without an annual fee even if you have good credit let alone bad credit. There are some cards (First Premier, Millenium, etc) that aren't really worth having because of the fees. Orchard Bank has cards that have cards with fairly low annual fees. Chase cards don't have a fee, but they're harder to get especially if your credit's tanked. Wells Fargo and Bank of America offer secured cards that have the lowest annual fees that I've seen for secured cards. Granted with a secured card, you'd have to put a deposit upfront in order to get the same amount in a line of credit, but usually you get that back after a year of paying on time every month and keeping the balance low. I posted links to those websites, including orchard for you to take a look.
2016-05-21 00:30:09 · answer #2 · answered by ? 3 · 0⤊ 0⤋
This is a bad plan! Trust me and trust everyone who is in credit card debt. I would stay away from credit cards. You can build good credit with a a personal loan from your bank by borrowing $3,000 (or Whatever amount) against $3,000 of your own by putting it into a CD. Talk to a personal banker about this thy can explain. Do the loan for a three to five year term. This is a good idea because the loan is fixed. Remember that you are doing this for the purpose of building credit. If you have any questions then please feel free to send me an email. Once again i do not think that credit cards are a good idea, take a look around you and at everyone who thought that it was a good idea.
2007-07-01 18:30:45 · answer #3 · answered by What's Up? 6 · 0⤊ 0⤋
This method is okay but time consuming. And why 700 bucks?
Here is what I know:
*the more credit you have the better off you are.
*have high credit limits with low balance
*pay your bills on time
*American express cards a excellent
*get top rated card you know visa,MC, discover etc not so much retail sore card
*credit worthiness is built over time
*always check your credit report for identity theft and any mistakes
Good Luck!!!
2007-07-01 18:20:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I guess I am just wondering how you pay one credit card with another, since I tried and they would only let me use a bank account? But I know that people use 0% cards to pay off things and then before the APR changes they do balance transfers. Is this what you mean? Nothing wrong with it, but I'm sure they don't like it.
2007-07-01 18:20:34 · answer #5 · answered by Kitkat 1 · 0⤊ 0⤋
my dog got one in the mail once too, but if you don't have a JOB, you wont get it and also look at small print. NOT paying will hurt you score too, better off getting a job and maybe a debt card, no interest rate cant spend what you don't have. Don't mess up your credit score it sticks with you your whole life. Hard to clean it up
2007-07-01 18:21:17 · answer #6 · answered by mom90cookin 2 · 1⤊ 0⤋
You cant pay credit cards off with other cards. Well, you could by taking out cash advances then putting the cash in your checking account.. but.. you get charged so much interest there would be no point in doing that.
Good concept, but wrong execution. Get the cards if you wants. But pay them off with money you actually have... thats your best option.
2007-07-02 05:01:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I'm sure there is a little fine print there.
If that was the case everyone would rotate their debt.
Just read every little bitty thing before doing it. Even if you are "pre-approved" you still have to go thru the application by the way. They will ask your income and job.
2007-07-01 18:16:19 · answer #8 · answered by nothingconstant 7 · 1⤊ 0⤋
ya, you cant pay one credit card with another, payment has to be made with guaranteed funds...Good Luck...PS the guy above isn't a lawyer
2007-07-01 18:14:39 · answer #9 · answered by neversummer187 2 · 1⤊ 0⤋
I'd probably get a job for backup funds in case something goes wrong with this plan.
2007-07-05 12:25:54 · answer #10 · answered by amaya7 5 · 0⤊ 0⤋