Originally posted by YaaaarrroTour:
You dont need Credit Cards to build credit.If you dont believe me, I've never had one and likely never will and my credit score is in the upper echelon of the possible score. Use things like cell phone bills and car loans to build credit. Credit Cards lead to nothing but trouble. Just remember, Credit Card companies love to "give out" their money hoping that you wont be able to pay it back.
They can be a good thing...
Use them responsibly and pay them off in full within a 2-3 month window every time. Larger purchases should be done via conventional loans or revolving lines of credit through a bank or credit union(MUCH better rates than CC agencies, even with unsecured loans). You always have the option of telling the CC issuer to LOWER your spending limit if you feel that it may be a problem. Once you establish a good running record with a CC, bug the living s**t out of them every couple of months, DEMANDING that your rate be lowered. If they don't lower it, dump them, as there are other CC agencies that would be more than happy with a lower-risk customer and will adjust their rates to reflect that reduced risk.
The wife and I have NO cards that are double-digit APR due to shopping them carefully and beating them up on a quarterly basis...
The perks and points can be bloody nice; I run most of my household bills through an American Express card as well as all of my business expenses (paid in full every month as AMEX gives you no other option since it's a charge card and not a credit card). I've had vacations practically paid for due to piling up points; fixed expenses (car payment, house payment, etc., etc.) are great to put on charge cards due to the $$ amount that really piles on the points/perks.
Where people screw up with CC's is when they start viewing them as a supplemental means of income instead of viewing them as EXHORBANTLY expensive debt that carries brutal penalties.
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
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