Credit
Credit questions and answers
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Q: What is the best credit card I can get to start building my credit with? Or how can I start building my credit?
Can I start building my credit by paying for things with my bank card and telling them to charge it on credit? (I do not know much about how to build my credit so please help me!)
Question: Best credit card to get to starting building credit and can I build my credit by using my bank card and telling them to charge it on credit instead of debit?
A: I agree that car loans and mortgages are better indicators of credit. If you plan to use a credit card, please pay on time. Late payments are never helpful for your credit. If you already have a bank card, why not check with your local bank about about credit cards they offer. Please remember to read the fine print on any card application. I have used the below informational website for expert information on various types of credit cards. Shopping around for the best credit card that suits your needs is also important. Many companies offer credit cards with no annual fees, cash back, reward points, etc...Good luck
Q: What credit card should I go for citi bank or bank of america?
I have a credit score of 700 and wanting another credit card. I was thinking about citi bank or bank of america. What one should I get? I only have one other credit card from Wumu. I want a credit card that report to the 3 credit bureaus every month. Anyone has either one of these cards, if so, what one did you like and why?
A: Definitely NOT Bank of America.
They recently upped peoples APR without any explanation or reason; it was all over the news. Try a company that's a little less shady. There are plenty of horror stories of what this company has done to their consumers.
Q: What is the best credit card to start my credit?
I recently turned 18 and im in a great living situation. i live with my dad, make about 1000 a month and im a musician. I wanted to buy a new bass and amp, but more importantly need to start my credit. I already have the money to buy the bass today, but i wanna see if i can start my credit with this purchase.The stores i went to say i need at least a 700 score to apply for their credit.
Is there any credit i can apply for, without having to pay financing and apr and so on without having credit to begin with. My plan is to buy the bass with credit, pay it off right away, and probably cancel the card right after.
A: From what I understand, for the long term if you consistently make your payments on time, Chase is the credit card company that improves your credit rating the best. This information came from my mortgage broker during our first consultation when applying for a mortgage and discussing credit reports.
For someone just starting out, your goal will be to find any reputable credit card company willing to offer you credit and be diligent about paying off your entire balance every month so you won't have to worry about the APR. Quickly, a few months to a year, they will raise your credit and you will be able to access other cards that have the low APR you truly want. Do not choose any credit offers that have yearly membership fees or extra out of pocket fees, there are plenty that do not.
Try not to cancel credit cards. It's better to just not use the card ever again. When your credit score is calculated, it uses debt to credit ratio, a paid off, open card improves that ratio.
Q: No credit, How do I start and what is a good credit card for a beginner\r?
I am 20 years old and after trying to get a card for a store I find I have 0 credit history. I have never owned a credit card and want to pick a good one to start bulding credit. Does anyone know a good card to go with that has low interest? Heck if you have any credit tips it would be helpful too...Thanks!
A: Usually gas cards are the easiest to get.
You might try a Master card but Capital One has some really low interest rates. Ask for $500 and start charging and paying off the total balance each month.
The card company will soon get fed up and up your limit hoping that you will start paying interest
Q: My credit card balance is over 50%. How long will it take my credit score to go back up?
Hi. I recently just got my first credit card ever and used it to make a $1600 purchase. The credit limit is $3000, so obviously I'm over 50% of the balance, and I just learned that's bad for credit scores. I expect to be able to pay off the purchase in the next two or three months. Will my credit score go back up immediately after I get the balance on my card down, or will it take a while? Thanks.
A: Once your percent gets to below 30% of your available credit, you will see improvements. They lower the percentage, the higher your potential score is.
Q: What business credit cards are not attached to my personal credit?
Hello, I am trying to find out how to build my business credit without being attached to my personal credit score. I would like to know if anybody has information regarding what credit cards are available to do this. I would love any free information or links to sites that can tell me how to build my business credit. Thanks!!
A: People think once they screw up their own personal credit the next thing they can do is have a business and get credit that way but it doesn't work like that. Your personal social security number and credit rating are going to be used to extablish credit when you start out and even well beyond.
Added
Reality is as a beginning business you are NOT going to go out and secure credit using an unknown/ unestablished business name or identifying number!
Q: Is it possible to transfer credit card balances to others' credit card accounts?
Situation: Person A has multiple credit card balances on high interest credit cards and Person B has a credit card with a much lower interest rate. Due to a poor credit history, Person A can't obtain a low interest credit card. They've agreed to transfer it to Person B's low interest credit card and have Person A pay Person B the monthly payments to make it easier to pay down their high interest balances.
Is this possible?
A: I think in this case person B would need to add A as an authorized user on the account and then the transfer can take place. Most companies will not transfer debt if the names on the account are different, but if person A is authorized on the account then there should be no problem and also person A could then check the balance remaining when ever and also make payment on line with out having to bother person B. Good luck and I hope that I have been able to help.
Q: How many credit cards is too much to affect your credit score?
I am going to ask another question regarding which CC should I add to my credit card profile to add to my rewards. I have excellent credit, pay my balance in full each month, and I use my CC to pay for everything I can to rack up points/miles etc.
I am at a point where I want to increase my points and miles so there are some options. The question is, what is too much. I basically share a VISA with my wife, and have an older VISA that i keep. I realize that you should keep older credit cards for history. I want to add at least one AM/EX either the Starwood points, or the Delta Miles. I also might switch our Cap1 card to the signature to get 2 points for every $1 spent, instead of 1.25 for $1. That is a new card, not a switch. And recently, I have received letters for UNITED miles (20,000 bonus) and AA Miles (21,000 Bonus). I would love to use those just to add to my miles on those flights. Could I add 3-4 cards without hurting my excellent credit? I will not rack up debt.
A: You could have 50 cards and as long as you kept them in good standing, low utilization, no lates, etc. they won't hurt your scores - you would take small dings for inquiries though.
If you are adding 3-4 cards, and you already have a good card portfolio that has fairly good history, the inquiry dings should be small. After 6 months the inq's will be less of a significance on your scores and at one year they will have no impact at all.
Available credit is not debt.
I can see only one card that you currently have that is probably keeping your scores from actually being higher than they are now. That would be the Cap One card.
Cap One is notorious for not reporting credit limits, they only report high balance - that makes it look like you are over utilizing the account.
Q: Can credit card companies close your accounts without warning? How does it affect your credit score?
I received a letter in the mail from Juniper (iTunes Rewards) stating that they have closed my credit card account due to inactivity. I opened the account about 18 months ago and have never actually used it. Can they close my account just like that without any warning? How should I handle the situation? (Is there anything I can even do?)
Also, I know that closing credit card accounts lowers your credit score. Does anyone know how much mine will be affected?
A: Canceling a credit card can ding your credit because part of your credit score is based on something called a debt-to-credit ratio. When you cancel a credit card, you lower the amount of credit available to you, making that ratio look bigger (and more risky) to creditors..
15 percent Length of Credit History: "In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts."
35 percent Payment History: "Having a long history making of payments on time and no missed payments on all credit accounts is one of the most important items lenders look for
Q: What credit cards in CANADA will I be approved for with a 529 credit rating?
I have paid almost everything off except for OSAP (of course it seems like eternity til that happens!)
I would like a credit card for emergencies and to re-establish my credit. Please help me find a credit card that is available in Canada!
A: The other answers are right, with that credit score you're not likely going to get approved for any conventional cards, and you're likely stuck with a "secured" card to rebuild your credit.
Capital one is likely your best bet. Other secured cards require 100% of your credit limit as security (ie. $500 deposit for a $500 limit), Capital One varies and some qualify for a $750 limit with a $75 deposit (10%). Capital One will also convert your card to a normal credit card after 6, 9 or 12 months of good payment history (increasing your credit limit etc).
http://www.capitalone.ca
Next after Capital One I would recommend "Citizens Bank of Canada" for their secured Visa (this WILL require a 100% deposit), but as with the Capital One card they will convert it to a normal credit card (refunding your deposit) after 12 months of solid history.
https://www.citizensbank.ca/Personal/Products/VISACards/
(Note, the secured card is not listed on their website, you have to call 1.888.708.7800 and tell them you are interested in their "Secured Visa").
Also out there are Horizon Plus and HomeTrust, both these cards require a 100% deposit and neither of them will ever convert to a "normal" credit card. They will only increase your limit if you increase your security deposit and the only way to get your security deposit refunded is to cancel the credit card (which is less than optimal when trying to rebuild your credit history).
http://www.horizonplus.ca/index.html
http://www.hometrust.ca/securedvisa/
Hope this is a some help. Good luck!
Q: What should your credit score be to get a good credit card?
Is it 600 or above? I am working on fixing my credit and I have an auto loan that will help rebuild my credit. I need a credit card for emergency's and to help my credit, just wandering when I should apply for one. Right now Its not near 600.
A: 700+
Q: How to repair credit to purchase a home in the near future?
I have read through a lot of the questions that have already been asked but I have yet to find exactly what I am looking for. I have been slowly but surely paying off some of the items on my credit report, all of which are delinquent by several years. My current credit score according to Experian's Triple Advantage is a 548, and I would really like to increase my credit score by atleast one hundred points so I can purchase my first home in the very near future. I recently contacted a realtor who pulled my credit report and showed my high end credit as 614, mid of 610, and low of 598. I don't quite understand why none of these numbers match what I am showing on my active Triple Advantage account, but I was told to wait atleast six more months and try to apply for a home again. I was approved on this attempt, but for $25,000 less than what I need and the interest rate was 7.5%.
If anyone has any advice or words of motivation for me I would greatly appreciate it! Thanks all!
A: The more negatives you pay off the better. You really need a 2 year consistent on time payment history.
The reason the scores don't match is that you get the consumer version. I understand there's a mortgage version, and a car loan version. Also, are you sure Triple Advantage was giving you your FICO. It's the only score that counts.
Another piece of advice, don't buy more house than you can really afford. Your house payment shouldn't be more than 25% of your monthly income. Waiting another 6 months may work out better as far as finding more house for a cheaper price.
Q: How exactly does a credit card work?
I want to apply for a credit card that starts out with a minimum credit line of $300. If I get it, it will be my first credit card. If I get the $300 credit, I want to make a purchase for like $200. Is this a good thing or a bad thing to do? Can someone give me some good tips on handling a credit card without getting bad credit?
I will mostly be using this card trying to start an at-home business.
Ya mama b*tch. Eat my p*ssy, h*e!!!
Oh, rudecatt63, you've hurt my feelings ever so much, I'm going to cry....NOT. For someone who keeps visiting the GLBT section and has a rainbow in they're background, you sure do do a lot of gay bashing. Self hate is so stupid. But then again if I were you, I would probably hate myself too.
A: The best way is to keep the balence no more than 50% of the limit. If you go higher than the 50%, it will look like you have bad credit instead of no credit.
If you pay the first balence off that month or pay half this payment and half the next, the bank will be very happy and raise your credit limit.
You do not want to make only minimum payments. That will get in you into BIG trouble. They can raise the interest rate and it will cost you way more to borrow that money than you thought it would.
If you have to because of money issues, make the payment that is due a min amount and then make another payment that month that is double the min. That will show good faith to the company. After about 6 months, you can call them and ask for the interest rate to be lowered or a higher limit.
Q: How do I establish credit without a credit card?
Credit cards are becoming more and more picky about extending credit, and the interest rates are through the roof. What are some other ways I can establish solid credit without a credit card or major expenses? I go to college full time and work full time, I don't want to get into heavy debt.
A: I agree with those saying to get a credit card - find one, such as capital one, who offer low limit cards, starting at 250 dollars, to college students. You will pay some fees, but pay the card on time for 6 months (put simple recurring bills such as groceries on it and pay it off in full each month) and after the 6 months ask to be switched to a no, or low fee card. I would also apply for a small signature loan with a credit union, and a small deferred interest federally subsidized student loan if possible. This will build additional credit history and cost you nothing as the government pays the interest and payments until you are out of school. Drop it in your savings account and reap the rewards of some free conservative investment collateral. The reason you should try for these 3 items is that it shows diversity of credit in both amount and type, which highers your score - especially since in the long run your score is based off of the length of history of credit also, and you will have all three types established for a long time.
To clear up some myths - Things like cell phones (as another answerer suggested) and utilities do NOTHING to help your credit! The only time one of these types of accounts would be listed on one of the major credit bureaus would be if you failed to pay it. Positive payment histories are NOT reported.
Also, you very well can find a small signature loan, especially at a credit union.
Q: What is the best credit card for an 18 year old?
I am only getting a credit card so that I can make small purchases and pay them off right away to build my credit. Please do not lecture me on how to use a credit card, I am already fully aware. I just want to know which credit cards have the lowest rates for an eighteen year old with no credit. Thanks in advance!
If you are just going to answer "none' don't bother.
A: As long as you're responsible and pay off the purchases ASAP you won't have to worry about interest rates. I've had a card for 5 years and the only time I paid interest rates were my first few months before I realized you could pay off your balance more than once per month. Good luck!