Credit Tips: Which Credit Card to Start Building Credit?

Posted On: January 1, 2006

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Posted: Thu Sep 23, 2004 7:10 pm
Post subject: Which Credit Card to Start Building Credit?

Curtis
Date: 3/7/2001 7:23 pm CDT

I am a recent college graduate w/ no previous credit history. I never have owned a credit card in my life. For college I worked my butt off and paid for it all in cash by myself. I currently am working full time making $40,000/year and just leased a 2001 Chevy Blazer at the end of January in which the payments are to GMAC Financing. I need to start building credit and would prefer to get a major credit card, not any retail store credit cards. I don’t even care if the limit is only $300 - $500. I have applied online and via the mail and keep getting denied. My father is a gm card holder and has exelllent credit history and has been w/ them for years….they have told us various things…one day they said they could approve me for a card, the next day they said they couldn’t, the following day they said they could put me on as a user onto my fathers account (that won’t do me any good), and so on and so forth….this has been a royal pain in the *****. At anyrate, it is pretty sad that they’ll extend credit to any sorry college student, any new individual to the U.S., any person that already has racked up thousands of dollars in debt, and to anyone who has gone bankrupt before, what the heck, can’t the good guy or the one who isn’t in debt over his head ever get a break?? This really sucks to say the least. I think it is pretty pathetic!! At least I can say I am debt free, bust my butt to afford to live, and so on, the heck w/ the others I say!! Any advice??

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Posted: Thu Sep 23, 2004 7:11 pm
Post subject: Which Credit Card to Start Building Credit?

Anon
Date: 3/7/2001 7:53 pm CDT

You may have to go the secured route. But you are incorrect about being an AU on your fathers account. This WILL HELP your credit rating, especially if he has an excellent history with them.

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Posted: Thu Sep 23, 2004 7:11 pm
Post subject: Which Credit Card to Start Building Credit?

Eugene
Date: 3/7/2001 10:45 pm CDT

You may have to go the secured route.

Yes, that’s a good way. Or order credit report and see if the auto lease is reported. If so, in about six months you could get an unsecured card without getting a secured one now.

But you are incorrect about being an AU on your fathers account. This WILL HELP your credit rating, especially if he has an excellent history with them.

I disagree. Some issuers do not report authorised users to CRAs at all, some do not even require their SSNs to give them the card. Even if you are reported as an authorised user, and that is your only credit history, it takes forever until you qualify for anything unsecured.

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Posted: Thu Sep 23, 2004 7:12 pm
Post subject: Which Credit Card to Start Building Credit?

Anon
Date: 3/8/2001 8:35 am CDT

But you are incorrect about being an AU on your fathers account. This WILL HELP your credit rating, especially if he has an excellent history with them.

I disagree. Some issuers do not report authorised users to CRAs at all, some do not even require their SSNs to give them the card. Even if you are reported as an authorised user, and that is your only credit history, it takes forever until you qualify for anything unsecured.

Yes some don’t report AU, but they don’t have to have your social security number to add to your report. I have done with twice with my husband, never asked for ss# and both accounts are on his report. These accounts had very low ratios and his scores improved dramitcally after these were added. I was in the mortgage process so I saw our scores over a 3 month period, HUGE difference.

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Posted: Thu Sep 23, 2004 7:13 pm
Post subject: Which Credit Card to Start Building Credit?

BILL
Date: 3/9/2001 1:01 pm CDT

#1 NEVER FALL FOR THE STUPID IDEA OF PAYING SLOW 2 BUILD CREDIT. WANT A CREDIT CARD? MY 1ST CARD WAS A SECURED CARD. THE ONE U SEND THEM $500 OR WHATEVER TO HOLD FOR YOU. THATS YOUR CREDIT LIMIT. AFTER ONE YEAR THEY’LL RETURN YOUR DEPOSIT WITH INTEREST AND U KEEP USING THE CARD AS OTHERS DO. THEY’LL INCREASE YOUR CREDIT LIMITS AS TIME GOES ON AND OR AS YOU ASK FOR IT.
#2 ALWAYS PAY IN FULL, IF U CAN. HOW? CREDIT CARDS ARE A CONVENIENCE 2 AVOID CARRYING $100′S OR 1000′S IN YOUR POCKET. I BUY WITH THE CARD WHEN I HAVE MONEY TO BACK IT UP IN THE BANK. IF NOT, I WAIT. THATS WHY I NEVER SEE A PENNY IN FINANCE CHARGES. ALWAYS PAY IN FULL AND OVER PAY SO Y HAVE TO SEND LESS ON NEXT PURCHASES. IF IS IMPOSSIBLE FOR U, THEN PAY SLOW, BUT AS MUCH AS U CAN. DONT FALL FOR SENDING ONLY THE MINIMUM. SENDING THE MINIMUM ON SOMETHING THAT COST $500 WILL END UP COSTING $800. I PAY IN FULL OR MORE AND EARN CASH BACK ON ALL PURCHASES. I GET $20 FOR EVERY $2000 I SPEND. CAREFUL WITH DISCOVER OR AND AMERICAN EXPRESS. THEY GIVE YOU 2%-5%, BUT ONLY WHEN U PAY SLOW. THATS GARBAGE BECAUSE U END UP GETTING ZERO BACK BECAUSE PAYING SLOW U GET CHARGED MONTLY AND THE CASH BACK DESAPEARS. GET IT? I’VE BEEN USING BELL ATLANTIC VISA. THEY’LL STOP THE 1% CASH BACK ON MAY 15TH 2001. CHECK THIS OUT. BEFORE THAT DATE I’LL GET THE EYE/LASER SURGERY DONE($5000)SO I GET $50 CASHBACK. I ALREADY HAVE $6000 READY, BUT USING THE CARD EARNS ME 50. GET IT. I’LL PAY IN FULL AS SOON AS I GET THE BILL. I KNOW! SOME PEOPLE SAY, “WHY USE THE CARD IF U’LL PAY IN FULL?” I SAY, “CONVENIENCE ONLY.” MY FRIEND SPENT $5000 BUYING HOUSE STUFF. SHE’LL PAY IN FINANCE CHARGES OVER $150 A MONTH ON TOP OF WHATEVER SHE PAYS FOR EVERY MONTH THE BILL ISNT FINISHED IN WHOLE. U DONT NEED A CARD IF U PAID EVERYTHING CASH UNTIL NOW. WHY THE HEADACHE. I USE IT FOR THE CONVENIENCE OF NOT CARRYING CASH AND TO EARN MONEY FROM THEM OR STUFF. AND NEVER JOIN CARDS WHO WANT AN ANNUAL FEE. SOMETIMES I THINK, “I CANT BE THE ONLY GUY WHO TRIES 2 TAKE ADVANTAGE OF EVERY MONEY OPPORTUNITY.” EXAMPLES:
1-ONCE I GOT MY SECURE CARD OF $500 SENDING THEM MY DEPOSIT OF $500 TO HAVE A $500 CREDIT AND GRADUATED AFTER A YEAR WITH MY $500 DEPOSIT BACK AND $30 INTEREST AND THEY INCRESED MY CREDIT WITHOUT ME HAVING TO MANTAIN A DEPOSIT. THEY TRUST YOU AFTER A WHILE AND RETURN YOUR ORIGINAL DEPOSIT. I THEN STARTED APPLYING EVERY CARD I SAW. ALTOGETHER 7-8 CARD, BUT SMART ME ONLY USED THE ONE WHO GAVE ME CASH BACK. GET IT? THE OTHER CARDS WERE JUST IN MY DRAWER. THEY’LL NOTICE U DONT USE IT AND WILL SEND U OFFERS, LIKE… DISCOUNTS OR GIVE U $10-20 AS A CREDIT TO SPEND ON YOUR 1ST PURCHASE.
#2 OTHER NEW CARDS WILL SEND U OFFERS SAYING..U’LL GET A LEATHER PORTFOLIO AFTER YOUR 1ST PURCHASE. I BOUGHT A $6 WARM UP PANT I NEEDED AND 6 WEEKS LATER GOT MY PORTFOLIO. U GET THE POINT. I DONT SPEND JUST TO GET SOMETHING FREE. I SPEND ON SOMETHING I NEED ANYWAY TO GET THE FREEBIES.

#3- JUST FOLLOW YR INSTINCT, PAY IN FULL OR WAIT UNTIL U HAVE THE CASH TO THEN BUY WITH CARD THAT GIVES U SOMETHING U NEED/WANT: CASH, GAS, IF U DRIVE OR WHATEVER. WHY THE HEADACHE OF WISHING A CARD SO BAD? IS THE POINT TO BUY STUFF WITHOUT HAVING THE MONEY FOR IT YET AND PAY SLOW, WHICH MEANS OVER PAYING BECAUSE OF THE FINANCE CHARGES? I GUESS IT IT FOR MOST PEOLE. WHICH IS WRONG. CREDIT CARD COMPANIES CAME OUT WITH THEIR OWN WAY TO BUILD CREDIT, WHICH IN IMAGINARY TRICK EVERYBODY FOLLOWS LIKE PUPPETS, “I DONT HAVE THE MONEY TO BUY SOMETHING THAT IS $4000, BUT I HAVE A CREDIT CARD. I’LL PAY SLOW AND I’LL B HAPPY.” $4000 TURNS INTO $5900 OR MORE AFTER ALL IS PAID BECAUSE THEY PAID $79 A MONTH FOR 8 YEARS. SAVE MONEY. GET CD’S, LET THEM MATURE AND RE-BUY AGAIN, SAVE, SAVE, BUDGET YRSELF. CANT U WAIT AND BUY LATER UNTIL U HAVE MONEY? IF IS EMERGENCY, OK!!! ANOTHER TIP, IF U HAVE A CARD ALREADY….TRY TO BUY ONE DAY OR LATER, AFTER YOUR BILLING CYCLE CLOSES. THIS GIVES YOU AT LEAST 45 DAYS OR LONGER INSTEAD OF 30 DAYS BECAUSE THE BILL COMES ON THE BILL AFTER NEXT.
JUST USE YOUR HEAD AND RELAX.