suchashorttime Posted January 18, 2012 Share Posted January 18, 2012 Oh, and link as much as possible directly to your bank account online so you can fix yourself in 2 minutes if you get close to fucking up. I pay all my bills online and pay my credit card online once a week or so. something i learned about credit cards in talking to people when looking into student / auto loans: paying your card on time (for reasons of credit or establishing payment history for a credit increase) only counts if the balance is posted to your account (which comes on your monthly statements). some people have told me that paying a credit card more than monthly can actually negatively effect your credit because it shows that you're holding a lower posted balance at the end of every month. take it with a grain of salt. i never know who actually knows what they're talking about when it comes to money and credit. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 18, 2012 Share Posted January 18, 2012 Not necessarily. The credit reports factor in a ratio of how much money you have outstanding compared to your credit limit, and they don't like that number to be high (closer to 1.0). If you keep your outstanding balance low, they are more likely to lend you more and your credit limit will grow, along with your score. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 18, 2012 Share Posted January 18, 2012 Yea, its nice to have Debit/Savings/Credit all on one account. You can make any transfers from one to another at any giving moment.It doesn't necessarily have to be all directly through one service, though.I have my checking and my savings online through M&T Bank. My Discover card is completely separate, obviously, and I have in the past had an HSBC account as well. I can slide money through all my accounts in my underwear in the middle of the night if I want. I have an UGMA account I can access online, too. Quote Link to comment Share on other sites More sharing options...
jordan999 Posted January 18, 2012 Share Posted January 18, 2012 If you have no credit and looking to start, get a department store card. They are easier to get and CC companies are not as "generous" in giving cards to people with no credit as they were, many have phased out student cards. They key is self control, and never ever miss a payment because nothing is worse than a late payment or not paying a debt. Carrying a balance will cost you money but only reflects in your credit score at that moment, your credit score is based on length of credit history, ratio of debt balance to available credit, and LATE PAYMENTS. Obviously not paying or settling a debt is the absolute worst. Apply for a new card every 6 months or a year, each card company will likely raise the limits for you if you are in good standing because they will see you banking with competitors. Never close the card you have had the longest, unless they start charging annual fees. NEVER PAY AN ANNUAL FEE(unless you travel international frequently and the card waives foreign transaction fees), there are way too many cards that pay you back. Chase Freedom and Bank Americard are what I use and recommend, Discover limits your earning more. I made $300 last year and paid $0 in interest or fees, spending around $1000 a month. Getting a card where you bank can be more convenient, but you need to qualify for a card based on credit history alone, your bank account has nothing to do with your credit score unless you run a negative balance and don't pay it back and get sent to collections. And that's bad. Those saying you don't need credit, you are correct if you never intend to need to borrow money to own a home or car, and consider yourself very lucky or prudent. Quote Link to comment Share on other sites More sharing options...
madtired Posted January 18, 2012 Share Posted January 18, 2012 Those saying you don't need credit, you are correct if you never intend to need to borrow money to own a home or car, and consider yourself very lucky or prudent. this. Also.. anything you ever wanted to know about credit is on this website: http://www.bankrate.com/news-advice.aspx An invaluable resource. If I could go back to 2002 when I got my first credit card at 24 yrs old, I would have done things a lot differently. At one point my debt was over 30K. I am in much better shape now, but I am still paying for sushi that I ate 6 years ago. I don't discourage credit cards-- you definitely need one if you intend on doing anything, ever, but you have to be responsible with it. Get a card with a low limit and wait til your statement comes each month before paying it off. Best rule of thumb: if you can't afford it, don't buy it. Quote Link to comment Share on other sites More sharing options...
suchashorttime Posted January 18, 2012 Share Posted January 18, 2012 Those saying you don't need credit, you are correct if you never intend to need to borrow money to own a home or car, and consider yourself very lucky or prudent. this. Also.. anything you ever wanted to know about credit is on this website: http://www.bankrate.com/news-advice.aspx An invaluable resource. If I could go back to 2002 when I got my first credit card at 24 yrs old, I would have done things a lot differently. At one point my debt was over 30K. I am in much better shape now, but I am still paying for sushi that I ate 6 years ago. I don't discourage credit cards-- you definitely need one if you intend on doing anything, ever, but you have to be responsible with it. Get a card with a low limit and wait til your statement comes each month before paying it off. Best rule of thumb: if you can't afford it, don't buy it. i don't think anyone is saying you don't need credit. we were just discussing appropriate timing to get a credit card. and that one can build credit in ways other than opening a credit card. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 18, 2012 Share Posted January 18, 2012 Yea, but for a transient college kid, CC's are just so easy compared to the rest of your options. Quote Link to comment Share on other sites More sharing options...
magicpanda Posted January 18, 2012 Share Posted January 18, 2012 Discover has a credit card for the college student with a 500 dollar limit. That's what I currently have and it's pretty good. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 19, 2012 Share Posted January 19, 2012 I think my limit started at $1000 when I got it and it's gone up a million times since then. I think I'm on year 4 of having it? Maybe 5? I don't even know what my limit is anymore... I never get up that high. If I get over $600 (a limit I set myself), they email me a notification and I pay it down. Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted January 19, 2012 Share Posted January 19, 2012 this. Also.. anything you ever wanted to know about credit is on this website: http://www.bankrate.com/news-advice.aspx An invaluable resource. If I could go back to 2002 when I got my first credit card at 24 yrs old, I would have done things a lot differently. At one point my debt was over 30K. I am in much better shape now, but I am still paying for sushi that I ate 6 years ago. I don't discourage credit cards-- you definitely need one if you intend on doing anything, ever, but you have to be responsible with it. Get a card with a low limit and wait til your statement comes each month before paying it off. Best rule of thumb: if you can't afford it, don't buy it. i don't think anyone is saying you don't need credit. we were just discussing appropriate timing to get a credit card. and that one can build credit in ways other than opening a credit card. I'm a special case, but I have a 750+ credit score and plan to never use it. Bought a $24k car, paid it off within a year. Bought a $27k house, paid it off within a year. I'm 25 and don't make a ton of money (about $30k a year as a PhD student). I do not come from a rich family. I have had scholarships all through school, which helped me off to a great start. Also, the MI housing market is so depressed that you can move right into a $30k home and buy something incredible for under $200k. Never plan on taking a loan for the rest of my life. Got ahead early and now I will invest my money and make 5-10% on it, rather than paying 5-10% of my paychecks toward interest. Then when I have $200k saved up, will pay cash for the house I plan on living in for at least the majority of my life. Should be within the next 5 years. You can really save a lot without a car and house payment. Then it is saving for an early retirement. I realize not everyone can do this. They have large student loans and will pay two or three times as much money for half the house to live in different states. Definitely is possible to live without credit (maybe not until your 30s or so for your average person) but if you start small and save early in your life, it's definitely possible. Google "how to retire when you are 40" or something like that and it will say about the same thing. Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted January 19, 2012 Share Posted January 19, 2012 relevant article: http://finance.yahoo.com/news/credit-score-zealots-pursue-fools-050101088.html Quote Link to comment Share on other sites More sharing options...
jhog3411 Posted January 19, 2012 Share Posted January 19, 2012 You should get a credit card so that you don't have to carry a ton of cash around. Also it will help you establish credit. This is important because credit let's you get a loan for a car and a house. No credit=no car/house loans at reasonable rates if at all. Using credit cards also protects you if you purchased something that was defective, fraudulent, etc. The key to having credit cards is to pay the balance off every month. If you do this, it is like a loan for 30 days or a substitute for carrying cash. Plus you can get a small percentage back (1-2%) through something like Capital One Rewards. If you carry a balance you're paying more than what you paid at the register. For example, say you averaged $1,000 balance throughout the year. On a 20% credit card, that's 200 bucks that you are just giving the credit card company. I saw a couple comments about paying your bills, etc. Utility bills, cable bill, etc. do nothing to help your credit history. The only time they show up is when you're delinquent on them and they send you to a collection agency, which will be on your credit report. Pay your credit cards and student loans on time, don't max the cards out, and you'll end up with a good credit score. If you can't afford it, don't buy it, that someone mentioned, is great advice. Quote Link to comment Share on other sites More sharing options...
nicole Posted January 20, 2012 Share Posted January 20, 2012 i don't think anyone is saying you don't need credit. we were just discussing appropriate timing to get a credit card. and that one can build credit in ways other than opening a credit card. I'm a special case, but I have a 750+ credit score and plan to never use it. Bought a $24k car, paid it off within a year. Bought a $27k house, paid it off within a year. I'm 25 and don't make a ton of money (about $30k a year as a PhD student). I do not come from a rich family. I have had scholarships all through school, which helped me off to a great start. Also, the MI housing market is so depressed that you can move right into a $30k home and buy something incredible for under $200k. Never plan on taking a loan for the rest of my life. Got ahead early and now I will invest my money and make 5-10% on it, rather than paying 5-10% of my paychecks toward interest. Then when I have $200k saved up, will pay cash for the house I plan on living in for at least the majority of my life. Should be within the next 5 years. You can really save a lot without a car and house payment. Then it is saving for an early retirement. I realize not everyone can do this. They have large student loans and will pay two or three times as much money for half the house to live in different states. Definitely is possible to live without credit (maybe not until your 30s or so for your average person) but if you start small and save early in your life, it's definitely possible. Google "how to retire when you are 40" or something like that and it will say about the same thing. Where the fuck can you get a house for $30K???? EDIT: oh, you live in detroit. never mind.... Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted January 21, 2012 Share Posted January 21, 2012 Huge opportunities in Detroit right now. Automakers pawned off their debt on the public and have better union deals. Making money now. When the auto industry is good, things in Detroit are good. Not saying there is an abundance of jobs, but it's not too hard to get a job in the $60k to $100k (I'm an engineer fyi) if you know what you are doing. Your average middle class house costs in the $50k to $60k range, and lower-middle class houses go in the $30k. I'm not talking about living in the city of Detroit, either. I'm talking about the suburbs. You can buy an average house in the actual city for 5 thousand (or squat in an abandoned building for free). I wouldn't recommend it, though. Most of our parents spent 30 years paying off their houses. Come to Detroit and you can own the same house outright in a year or two. I'm really glad it is my hometown. Quote Link to comment Share on other sites More sharing options...
adamlikesmusic Posted January 22, 2012 Share Posted January 22, 2012 I got a credit card the day I turned 18. Didn't make sense to keep using a debit card when I could use a credit card to build my credit, while also holding onto my money for an extra 30 days of interest. I don't buy anything outside of my means, and my card is paid off in full every month. I went with my bank, and they've been pretty sneaky with it. My limit now is more than 3x what it started at, and they never once told me they were raising it. Not much in terms of rewards, but it's nice being able to monitor it from my online banking dashboard. Quote Link to comment Share on other sites More sharing options...
nicole Posted January 22, 2012 Share Posted January 22, 2012 Huge opportunities in Detroit right now. Automakers pawned off their debt on the public and have better union deals. Making money now. When the auto industry is good, things in Detroit are good. Not saying there is an abundance of jobs, but it's not too hard to get a job in the $60k to $100k (I'm an engineer fyi) if you know what you are doing. Your average middle class house costs in the $50k to $60k range, and lower-middle class houses go in the $30k. I'm not talking about living in the city of Detroit, either. I'm talking about the suburbs. You can buy an average house in the actual city for 5 thousand (or squat in an abandoned building for free). I wouldn't recommend it, though. Most of our parents spent 30 years paying off their houses. Come to Detroit and you can own the same house outright in a year or two. I'm really glad it is my hometown. holy shit. i live in a suburb north of toronto and the houses around here (all nearly 20 years old at this point) cost $500k+. Even the condos are $300k. and this is just average middle class homes. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 23, 2012 Share Posted January 23, 2012 My dad's house cost about $130,000 when he bought it 28 years ago. My mom bought this house for about $60,000 and it's up to around $90,000. This one isn't a mansion, but I think my dad's house was really nice. Buffalo is cheap and awesome. Quote Link to comment Share on other sites More sharing options...
adamlikesmusic Posted January 24, 2012 Share Posted January 24, 2012 Huge opportunities in Detroit right now. Automakers pawned off their debt on the public and have better union deals. Making money now. When the auto industry is good, things in Detroit are good. Not saying there is an abundance of jobs, but it's not too hard to get a job in the $60k to $100k (I'm an engineer fyi) if you know what you are doing. Your average middle class house costs in the $50k to $60k range, and lower-middle class houses go in the $30k. I'm not talking about living in the city of Detroit, either. I'm talking about the suburbs. You can buy an average house in the actual city for 5 thousand (or squat in an abandoned building for free). I wouldn't recommend it, though. Most of our parents spent 30 years paying off their houses. Come to Detroit and you can own the same house outright in a year or two. I'm really glad it is my hometown. holy shit. i live in a suburb north of toronto and the houses around here (all nearly 20 years old at this point) cost $500k+. Even the condos are $300k. and this is just average middle class homes. Houses all through AZ were skyrocketing to prices like those before the bubble burst. Now they're all halved. Hope to buy a house before the market fully recovers! Quote Link to comment Share on other sites More sharing options...
pushbacktosquare Posted January 30, 2012 Author Share Posted January 30, 2012 Quick question: About a year and a half ago, I decided to get an iPhone in my name. It's a single contract under my name (they asked for my social security number). Since I've been paying my phone off for that whole time, is that also building my credit? I haven't been paying it with a credit card or anything, just with my debit card but a couple of my friends mentioned that if I've been paying off my own phone, I've been building my credit. Quote Link to comment Share on other sites More sharing options...
nicole Posted January 30, 2012 Share Posted January 30, 2012 Quick question: About a year and a half ago, I decided to get an iPhone in my name. It's a single contract under my name (they asked for my social security number). Since I've been paying my phone off for that whole time, is that also building my credit? I haven't been paying it with a credit card or anything, just with my debit card but a couple of my friends mentioned that if I've been paying off my own phone, I've been building my credit. don't think so. Quote Link to comment Share on other sites More sharing options...
adamlikesmusic Posted January 30, 2012 Share Posted January 30, 2012 Cell phone contract can definitely affect credit. There are many unexpected sources that can impact your credit. Quote Link to comment Share on other sites More sharing options...
pushbacktosquare Posted January 30, 2012 Author Share Posted January 30, 2012 Cell phone contract can definitely affect credit. There are many unexpected sources that can impact your credit. Is there any way I can make sure it's affecting my credit? Who would I have to speak to in order to confirm that? AT&T? Quote Link to comment Share on other sites More sharing options...
madtired Posted January 30, 2012 Share Posted January 30, 2012 Cell phone contract can definitely affect credit. There are many unexpected sources that can impact your credit. Is there any way I can make sure it's affecting my credit? Who would I have to speak to in order to confirm that? AT&T? this will only affect your credit if you weren't paying the bill.. Quote Link to comment Share on other sites More sharing options...
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