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Joined: Aug 2000
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Hard-core CEG\'er
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Hard-core CEG\'er
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Having a credit card and building credit is essential in the modern economy. I do advocate only using it to purchase items you have cash in hand for, or doing without until you do. Advocating responsible use of a credit card does not mean you advocate the holder going into debt.
As long as you pay off the bill on time every month, credit cards are smarter than cash. You can gain interest on the float and perks such as rebates for just using the card. Pay it off in full so you don't pay interest, and you're ahead.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Sep 2004
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Veteran CEG\'er
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Veteran CEG\'er
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I'm sorta in the same situation. I love my debit card but I need to build credit. If and when I choose, VISA all the way.
My ride(Cardomain link) :
'95 Contour 16V Zetec DOHC, Teal , ATX
Born on Sep. 4, 1995
86+ miles
*LEDs mods are on their way!*
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Joined: Feb 2002
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by coatsy:
I agree don't get one at all.. Pay cash, or do without!
They are not necessary!!!
Good luck getting a decent deal when you buy a house, or a car for that matter. Building credit is essential but you have to be responsible about it as well. As far as the difference between Visa and Mastercard, that's debatable but I would simply look for the card that has the lower interest rate and hopefully no annual fees. Both cards are widely accepted.
Vinny 2000 T-RED CSVT
MODS: 18" REV model 2 ST200 struts/Roush springs
CTA intake Pipe/K&N Filter
Dtec Heatshield
Optimized TB
True Duals w/ magnaflow mufflers/resonators
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Hard-core CEG\'er
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Why does everyone think you have to have a credit card to build credit? There are other ways that won't put you in debt and/or charge you ridiculous interest rates.
BrApple-its all in the way it is presented...but everythign on my resume is all me
TexasRealtor-I hope you spelling improves on your resume.
MxRacer-ladies and gentlemen, welcome to ironyville. population, texasrelator.
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Joined: Aug 2000
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Hard-core CEG\'er
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Hard-core CEG\'er
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Because a credit card is an essential component to a good credit history. Not having one is a serious negative on both the main scoring models. You can build that history without going into debt beyond the float period and without paying a penny in interest. In 14 years, I paid interest to my VISA card one month and zero to my other cards.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Feb 2002
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by IRingTwyce:
Why does everyone think you have to have a credit card to build credit? There are other ways that won't put you in debt and/or charge you ridiculous interest rates.
Please be more specific..... Typically, the most common ways that young people build credit are with credit cards. The only other examples I can think of are car loans and student loans. If you don't have a car payment and never had any school loans, which other ways do you suggest?
Vinny 2000 T-RED CSVT
MODS: 18" REV model 2 ST200 struts/Roush springs
CTA intake Pipe/K&N Filter
Dtec Heatshield
Optimized TB
True Duals w/ magnaflow mufflers/resonators
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Hard-core CEG\'er
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The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
BrApple-its all in the way it is presented...but everythign on my resume is all me
TexasRealtor-I hope you spelling improves on your resume.
MxRacer-ladies and gentlemen, welcome to ironyville. population, texasrelator.
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Joined: Aug 2000
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Hard-core CEG\'er
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While that will help establish the other important credit type (installment credit), few college students need help in that area. Student loans will provide coverage in that area for most, and auto loans will help for many others.
It still is no replacement for credit card experience.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Feb 2002
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by IRingTwyce:
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
We're talking about people with no credit, not bad credit. Chances are being that he's a college student, he probably doesn't have any cash to work with.
Vinny 2000 T-RED CSVT
MODS: 18" REV model 2 ST200 struts/Roush springs
CTA intake Pipe/K&N Filter
Dtec Heatshield
Optimized TB
True Duals w/ magnaflow mufflers/resonators
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Joined: Jul 2003
Posts: 1,882
Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by Pienstars:
Originally posted by IRingTwyce:
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
We're talking about people with no credit, not bad credit. Chances are being that he's a college student, he probably doesn't have any cash to work with.
Have you seen some of the mods in his sig? He's got SOME money from somewhere. All he has to do is save it instead of spend it for a few months. This works regardless of good/bad/no credit. That's because it's a secured loan. Banks LOVE this kind of loan because there's zero risk in it for them.
BrApple-its all in the way it is presented...but everythign on my resume is all me
TexasRealtor-I hope you spelling improves on your resume.
MxRacer-ladies and gentlemen, welcome to ironyville. population, texasrelator.
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