Do Retail Credit Cards Build Credit
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Posted: Thu Jan 13, 2005 12:26 am
Post subject: Do Retail Credit Cards Build Credit
cardless
Date: 7/30/2000 12:24 am CDT
Here's the deal: to get 6 months (interest free) credit on a store purchase, we had to get one of their credit cards. So, we now have a credit card with a balance, that we obviously don't want to pay off until the end of the 6 month period.
Since I'm trying to build a credit history (don't have any other credit cards), how will this be regarded by the credit bureaus? I saw a credit report where the comment for several cards was "paid or paying as agreed". Would this account qualify for that 'rating'? (Since there is no minimum payment for the next so many months, aren't I "paying as agreed"?)
Would I be better off making (small) monthly payments?
Alternatively, I could start using the card for regular purchases (they're kept separately from the store purchase), and pay for those at the end of the month.
What would look better on my report?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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Posted: Thu Jan 13, 2005 12:27 am
Post subject: Do Retail Credit Cards Build Credit
Board Monitor - AD
Date: 7/31/2000 10:13 pm CDT
Dear Sir/Madam,
In terms of what would look better on your report, it really depends on how the credit card issuer reports current payments. Since you don't have to pay, but there is an outstanding balance on the card, they may report it as a good status account, with payments on time (similar to that of Monthly Payment Holidays offered by some credit card issuers to good credit cardholders). In such cases, making a monthly payment may not make a difference in ratings, but you'll want to check with the issuer of the card on how they plan to report your account to the credit bureaus.
Also, make sure to read the 'terms and conditions' with your new card and balance. As some credit card issuers have special tricks attached to such offers. I recall one such card (Comp USA Card) in where there were no payments or interest for six months, but if not paid in full by the six month billing cycle, the previous months in where no interest was applied, is then applied to the account and at a very high rate.
Sincerely,
Alex Daskaloff
Author of "Credit Card Debt..."
CreditCardFreedom.com
Posted: Thu Jan 13, 2005 12:26 am
Post subject: Do Retail Credit Cards Build Credit
cardless
Date: 7/30/2000 12:24 am CDT
Here's the deal: to get 6 months (interest free) credit on a store purchase, we had to get one of their credit cards. So, we now have a credit card with a balance, that we obviously don't want to pay off until the end of the 6 month period.
Since I'm trying to build a credit history (don't have any other credit cards), how will this be regarded by the credit bureaus? I saw a credit report where the comment for several cards was "paid or paying as agreed". Would this account qualify for that 'rating'? (Since there is no minimum payment for the next so many months, aren't I "paying as agreed"?)
Would I be better off making (small) monthly payments?
Alternatively, I could start using the card for regular purchases (they're kept separately from the store purchase), and pay for those at the end of the month.
What would look better on my report?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Thu Jan 13, 2005 12:27 am
Post subject: Do Retail Credit Cards Build Credit
Board Monitor - AD
Date: 7/31/2000 10:13 pm CDT
Dear Sir/Madam,
In terms of what would look better on your report, it really depends on how the credit card issuer reports current payments. Since you don't have to pay, but there is an outstanding balance on the card, they may report it as a good status account, with payments on time (similar to that of Monthly Payment Holidays offered by some credit card issuers to good credit cardholders). In such cases, making a monthly payment may not make a difference in ratings, but you'll want to check with the issuer of the card on how they plan to report your account to the credit bureaus.
Also, make sure to read the 'terms and conditions' with your new card and balance. As some credit card issuers have special tricks attached to such offers. I recall one such card (Comp USA Card) in where there were no payments or interest for six months, but if not paid in full by the six month billing cycle, the previous months in where no interest was applied, is then applied to the account and at a very high rate.
Sincerely,
Alex Daskaloff
Author of "Credit Card Debt..."
CreditCardFreedom.com
posted by CardRatings.com at 3:51 PM
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