managing credit.....tips?

any tips besides dont use credit cards?

i dont have bad credit but i dont have good credit either.
i have no credit card debt because i have never had a credit card. i rent my house and i paid cash fro my cars.
utilities are always paid on time and my checking account is always in good standing.

i applied for a credit card at a store yesterday and did not get approved. today i got one of those pre approved offers and figured it was some bs scam but i went to the site and filled it out anyway...sure enough, i got it.
its a low limit but its an unsecured card...

so i want to know the best way to manage it.
ultimately i would like to have a higher limit, or other offers, and the score to make a large purchase like a vehicle.

depending on where i read the info, i see
its best to pay off the balance in full every month
or
its best to make the minimum payment due
and
its best to get close to your credit limit
or
its best to keep the amount charged low


it would be nice to have some personal feedback.

in the end i would like my credit score to improve and i would like to have better/more offers in the future.

ive always been of the opinion that unless its a house or a vehicle you shouldnt purchase on credit. just personal taste and things my mother told me.
for the most part ive had no problem paying cash for things but there have been times where it would have been nice to have the credit to buy something big(money wise) or a vehicle.

a reply to: Grovit

Personally, I put everything on my only credit card, while ensuring I have the funds to pay to it come bill time (ie, no money in the bank, no credit spend).

Lots of purchases, and always paid on time will bring you good credit, i believe.

a reply to: Grovit

I worked for a bit with credit cards, and here is the actually best way to do this. This is to increase your credit rating the fastest possible.

1. Get a credit card, with a relatively low limit. Something in the 500 to 2000 range.

2. MAX THAT SUCKER OUT.

3. Pay it off 10 days before the due date.

Do this every month for a year, and watch your score climb like crazy.

You'll never pay any interest, the company will report that you paid not only on time, but before the due date and it will open other opportunities for further credit.

You'll start receiving calls and marketing material for all kinds of stuff once you get 1 credit card company to like you.

Personally, I use my card for everything, all month long and pay it off every 19th of the month in full.

~Tenth

Credit is a good tool for the right person. A bane to those that aren't. Which is most people. Credit cards can give you an easy means of purchase. IF you have the means to pay it right off. If not you're letting someone else to control your funds as you DO have a minimum obligation. And that interest NEVER goes away until your balance has.

originally posted by: tothetenthpower

2. MAX THAT SUCKER OUT.

3. Pay it off 10 days before the due date.

Do this every month for a year, and watch your score climb like crazy.

its only a $500 limit.
i would like to get to the point where i have a few grand....

i have the ability to pay off $500 every month for the next year or so but im not sure i like that idea.
i wouldnt be able to do it for much longer than a year though.

i appreciate the help..

how effective is it to charge half the limit and pay it off every month?
or
how effective is it to make minimum payments only but on time every time?

for the record, i dont need this card. im happy about it though cause i want this card.

there have been times in my life where i have wanted to buy something for 5 billies and have not had it....

You build credit by paying your bills on time. Your rent and utilities do not count for building credit because they do not report to the credit bureau. Not paying the above bills will hurt your credit because they do report that.
The best way to build credit is to have a credit card with a small balance and pay the bill on time. The little interest you pay will pay benefits in the end by giving you lower interest rates when you do borrow money. Your bank will give you a credit card with a low limit as long as you don't have bad credit.
Debt to income is also important. Don't dig a big hole.
I'll give you a little idea how stupid the credit rating system is.
Say you have a card with a $5k limit and have $4.5k on that card.
That is cause for a lower credit rating than having a $4.5k balance on a $10k limit card.
Try to figure that one out.

a reply to: Grovit

Today, everything revolves around your credit rating. Even though you don't want to get into a bad habit of using a credit card, it's always best to have a couple on hand. Just to establish good credit, I only use it occasionally and when I do, I usually pay off the balance at the end of the month.

When I was starting out in life, I ran up a credit card that took me a good 10 years to pay-off! I was never late on payments so my credit rating was good. Once it was paid off, I learned my lesson and made sure I paid cash more often than reaching for my credit card.

It's too easy to run up a balance on a credit card. Today credit card companies and businesses want to entice you into getting their card or using their card in hopes that you run up a balance. Saving 20% on an item if you charge it on a retailers card, will cost you in the long run with high interest rates and running balances.

originally posted by: WeRpeons
Even though you don't want to get into a bad habit of using a credit card, it's always best to have a couple on hand. Just to establish good credit,

this is the frame of mind i am in now.

is not something ive ever really bothered with and that have been times where it would have been nice to have credit

If you're paying your bills online, I would just use the card, then pay the amount you've spent, online a couple of days later. Keep track of everything!!!!!

They don't mind if you make multiple payments through the month, and if the card has any type of bonuses (points, air miles, etc), those bonuses build up fast, as well as your credit.

We have multiple loans and auto payments coming out of our bank, so I've set up a detailed spreadsheet with dates and amounts to help me track incoming and outgoing. It makes tracking stuff a lot easier. I budget about 3 months in advance this way, and have room to not be too strict about spending

originally posted by: snowspirit
If you're paying your bills online, I would just use the card, then pay the amount you've spent, online a couple of days later. Keep track of everything!!!!!

killer idea.
i pay over the phone but i use my debit processed as credit.
going to start doing this

Have you tied Sears? I have heard are easy, or try capitol one or credit one for a actual bank card. They only give you a small credit line to start like 2-300.

make a purchase, make regular timely payments. It isn't about paying it off real quick, its about showing that you can be trusted to commit a portion of your income to debt service.

a reply to: proob4

yeah.
sears said no but it has been a long time since i tried
capital one is where it is coming from

a reply to: Grovit

credit cards are viewed as an "unsecured loan" or a "signature loan" by the lender. So if you go with Capital 1, you will end up paying a super premium for the line of credit as it is a high risk/high return business for them. If you get a Cap1 card, move away from it as quick as you can. You will likely get a bevy of banks courting you as your credit improves.

Another "easy" way is to purchase a vehicle. Car loans are not unsecured, as you have the vehicle as collateral. So a car loan is typically a little easier to get, and will build credit. Again...they will charge you more interest as you will be viewed as a greater risk.

originally posted by: Grovit
a reply to: proob4

yeah.
sears said no but it has been a long time since i tried
capital one is where it is coming from

Seriously try capitol one or credit one. I would post a link but it's prolly against T&C but you can search online for them and even apply online, hell you might just qualify tonight. Both do have high interests but it's a start?

originally posted by: bigfatfurrytexan
. If you get a Cap1 card, move away from it as quick as you can. You will likely get a bevy of banks courting you as your credit improves.

its a very high interest rate.
thats why i am asking..

i want to be able to transition to a card with a lower rate and hopefully a higher limit as fast as possible

originally posted by: proob4
Seriously try capitol one or credit one.

you quoted the part where i said it is coming from capital one..
could have missed it..
but yeah, high interest rate of course

originally posted by: bigfatfurrytexan
a reply to: Grovit

credit cards are viewed as an "unsecured loan" or a "signature loan" by the lender. So if you go with Capital 1, you will end up paying a super premium for the line of credit as it is a high risk/high return business for them. If you get a Cap1 card, move away from it as quick as you can. You will likely get a bevy of banks courting you as your credit improves.

Another "easy" way is to purchase a vehicle. Car loans are not unsecured, as you have the vehicle as collateral. So a car loan is typically a little easier to get, and will build credit. Again...they will charge you more interest as you will be viewed as a greater risk.

I tottally agree withwhat this post has to say about capitol one and credit one. But like i have said it's a start. You're only gonna get a credit line of $200-300 to start. But you can build on it.

ETA. I should point out I lost my job, home, friends, ect.. and i am now semi homeless. I was never able to pay off these cards and now after being sued by them in court i owe the more than twice as much for the loans. just thought I throw that at you.

a reply to: Grovit

i have an uncle that spent his life living the life of an outlaw biker. He liked fast women, fast bikes, and cheap booze. Among other things. He had a really bad wreck and is now effectively paraplegic (ischemic damage to the nerves in the extremities from him being dead so long).

Anyway, he never tended to his credit. He was a 1%er that lived that kind of life. So now that he is in a wheelchair, and has a very limited income, he finds that unexpected bills can crop up and totally work him over. So he started with a Cap1 card, and after 6 months recieved an offer for a lower interest rate/higher credit limit. He is now on his 3rd card "upgrade" in the last 2 years.

You can do it. And you can do it on a shoestring budget.

Credit is an umbrella on a sunny day.

Hence when you least need it, the more they throw at you. Sure, you can certainly burn yourself doing this.

The best kept secret in building credit is credit unions. Credit unions are way better than a decade or more ago. You don't even have to live near a branch to be a member with their open associations. Virtually all credit unions have a shared service feature, which means if you are a member of SE Pennsylvania/Metro Philadelphia American Heritage Federal Credit Union you can walk into almost any credit union in the midwest or south that participates and put money in or take money out.

You can do a secured installment loan that reports. You take $500 of your own money and then borrow $500 against it in a loan for a year or 18 months. it costs you like 5o bucks in interest or fees to do this. You want it to come out of the account autodeducted and just never touch it. Let this baby steps take it.

A credit union almost ALWAYS will have a better rate than a bank. I heard a CU is capped at 18.99 MAX rate for CC accounts. Some have zero or low %.

Most unions do secured CC accounts as well, that unsecure after a period of time.

The biggest CU around is NAVY FEDERAL. Bigger than most banks since it gobbled up so many smaller CUs years back like Pacman.