some reading material!
cap one complaint
cap one complaint 2
sounds like my story...guess it wasn't just me.
cap one complaint
cap one complaint 2
sounds like my story...guess it wasn't just me.
Help on getting a credit card
- Thread starter exranger06
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Originally Posted By: Clevy
Forget the credit card. Pay cash. Only money you should owe is on your house. If you can't afford it then you can't afford it. Simple.
Great I want to rent a car and book a hotel in Germany, how do I do that without a CC and cash only?
Forget the credit card. Pay cash. Only money you should owe is on your house. If you can't afford it then you can't afford it. Simple.
Great I want to rent a car and book a hotel in Germany, how do I do that without a CC and cash only?
Originally Posted By: hattaresguy
Originally Posted By: Clevy
Forget the credit card. Pay cash. Only money you should owe is on your house. If you can't afford it then you can't afford it. Simple.
Great I want to rent a car and book a hotel in Germany, how do I do that without a CC and cash only?
Love to see you get money back if you get scammed with something, too.
Originally Posted By: Clevy
Forget the credit card. Pay cash. Only money you should owe is on your house. If you can't afford it then you can't afford it. Simple.
Great I want to rent a car and book a hotel in Germany, how do I do that without a CC and cash only?
Love to see you get money back if you get scammed with something, too.
JHZR2
Staff member
OP,
As you can see there are two sides to the coin. And for every person who has used credit cards successfully, there are three people carrying a balance on their card at 10+%.
THere are a ton of studies that show financial irresponsibility due to credit cards.
That said, there is a time and a place, but you need to be VERY careful.
Id definitely recommend reading Dave Ramsey's books before going after a credit card.
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house? Most anyone worth doing business with can override the scenarios where a credit check is required, and to have it as a tool to buy things in haste that you couldnt afford will only put you into a stupid position.
As you can see there are two sides to the coin. And for every person who has used credit cards successfully, there are three people carrying a balance on their card at 10+%.
THere are a ton of studies that show financial irresponsibility due to credit cards.
That said, there is a time and a place, but you need to be VERY careful.
Id definitely recommend reading Dave Ramsey's books before going after a credit card.
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house? Most anyone worth doing business with can override the scenarios where a credit check is required, and to have it as a tool to buy things in haste that you couldnt afford will only put you into a stupid position.
Originally Posted By: JHZR2
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house?
I agree 100% JH. You have nailed it squarely.
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house?
I agree 100% JH. You have nailed it squarely.
Originally Posted By: JHZR2
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house?
I generally agree with the idea of not jumping into the whole credit scene for the wrong reasons, but a house? Do you suggest he saves up several hundred grand to buy a house for cash? How long will it take him to do that while he's dumping money into rent?
These days even employers can look at your credit score to determine if they should hire you.
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house?
I generally agree with the idea of not jumping into the whole credit scene for the wrong reasons, but a house? Do you suggest he saves up several hundred grand to buy a house for cash? How long will it take him to do that while he's dumping money into rent?
These days even employers can look at your credit score to determine if they should hire you.
You do know part of the basis of cost on many insurance policies is based on credit scores, right? More things than most would like to acknowledge ride on having a good credit history. With current home lending practices, a good credit history is beneficial as well.
Used properly, there is no harm in building a strong credit history early. In addition, part of the credit score is length of history, so why not get it started early.
Used properly, there is no harm in building a strong credit history early. In addition, part of the credit score is length of history, so why not get it started early.
Will a $500 credit limit on a secured credit card be reasonable? what bout ATM?
I'd say if he is worried about going out of control, start with ATM then transition to credit card with small limit, then raise it if he is able to control the urge.
Making all credit card evil is just covering up the biggest problem: the lack of discipline. And if you think credit card spending is bad, wait till you try to buy the biggest house you "think" you can afford.
I'd say if he is worried about going out of control, start with ATM then transition to credit card with small limit, then raise it if he is able to control the urge.
Making all credit card evil is just covering up the biggest problem: the lack of discipline. And if you think credit card spending is bad, wait till you try to buy the biggest house you "think" you can afford.
Hah, wow people telling someone that building credit is a bad idea. Okay, maybe you can afford to drop a couplehundred thousand in cash down on a house, or 25k or whatever down on a car, but most people can't, and don't want to. Having good credit is essential these days.
Originally Posted By: JHZR2
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house? Most anyone worth doing business with can override the scenarios where a credit check is required, and to have it as a tool to buy things in haste that you couldnt afford will only put you into a stupid position.
Like I said in my original post, I want to buy a house. I don't want to live with my mother forever, and I don't want to waste money on rent. I have no plans on buying unnecessary junk I don't need. I plan on keeping my current cars until they're ready for the junkyard. I'm well aware of the responsibility in having a credit card and how easy it is to get into huge debt. This card will be treated as a debit card (if I don't already have enough money in my checking account to pay for it, I won't buy it). If I could build credit using my current debit card, I wouldn't even consider getting a credit card. But of course that's not how it works.
Also, why do you think you need to build your credit so bad? Is it to buy trinkets you cannot afford? A car you cannot afford? A house? Most anyone worth doing business with can override the scenarios where a credit check is required, and to have it as a tool to buy things in haste that you couldnt afford will only put you into a stupid position.
Like I said in my original post, I want to buy a house. I don't want to live with my mother forever, and I don't want to waste money on rent. I have no plans on buying unnecessary junk I don't need. I plan on keeping my current cars until they're ready for the junkyard. I'm well aware of the responsibility in having a credit card and how easy it is to get into huge debt. This card will be treated as a debit card (if I don't already have enough money in my checking account to pay for it, I won't buy it). If I could build credit using my current debit card, I wouldn't even consider getting a credit card. But of course that's not how it works.
Secured Credit Cards are a nice idea.....but I've heard some horror stories. My sister is in the same boat as you....she's been with her bank, BoA for 2-3 years now....is 19 years old, and has not received any credit offers yet at all....she doesn't have any debt or payments of any kind that I know of.....she was looking into credit cards and her bank referred her to a secured credit card, but they said she would have to put like 200$ "down payment" before she can even use the card or something......? I.E.: pay 301$ to the card, and her "usable balance" would be $101 - just doesn't sound right to me. I thought you'd be able to use the whole amount right away, put $301 on the card, and you'd be able to use the $301...? Nope, not according to them, according to them it's like an activation fee/deposit.
Chain stores used to be the "bees knees" for first timers looking to obtain credit....but now as mentioned previously, most of these cards are issued under other "big names" (HSBC, Chase, GE Money, etc...) and sure enough, they're gonna check your credit report first, to see if you're 'credit worthy'.....
Getting a co-signer on your bank account is a good approach...I think that's what boosted my credit a bit.....my parents co-signed my 2 very first cards....(at different times of course)....though I don't know how/if it affected my credit, the fact that the vehicles got wrecked/totaled.......but both vehicles had GAP coverage, so the accounts got "paid off"/closed...
About a year ago, I applied for the Chase card.....can't remember which was...if it was the Freedom, or the other one they advertise, and they actually "declined" me....can't remember the exact reasoning, but it was something on my TransUnion report they said, something along the lines of "too much activity" - probably due to the fact that I had too many accounts open (2 previous car loans, that were then "paid off" and in "Good Standing", some doctor bills from the second accident, and my student loans....My income was too low for the "open credit" or soemthing I think was what they said, but that was about 2 years ago or so that I applied.....was thinking about trying again.
When I was still in High School I did get one of the "CapitalOne Student Cards" - which to my amazement, they did not take away when I stopped going to school
But I've been paying it off monthly....started out right out of HS with a 500$ credit line....but didn't use the card for 2 or 3 years, since I was in school, and wasn't working, so obviously, I didn't use it
But then I got a job, started using it as I would a debit card, and paying it off monthly, they raised my credit to $1000 - couple months later to $2000, and now I think I'm at $2500 or something.....
But yea, kind of wanting to "move on" - I've heard bad stuff about Capital One..... something about the way they report to credit unions....if I recall, they don't report to all 3 or something like that....
But I haven't had any problems with Capital One....but yea, it's a high interest rate....I think 20% or something...so it gets paid off when the bill comes in
I would check with Capital One....
Other than that....the U.S. govt. allows us 1 free credit report, annually, from each of the 3 credit bureaus.....Go to annual credit report dot com and get your free credit report.....make sure all your information they got is "correct" and you aren't a victim of Identity Theft or anything like that.....cause that would most definitely hinder your credit history! If you are a victim and don't even know it....
In fact, I gotta tell my sister to do the same....just seems odd that she's now 19 and has not received ANY "pre screened" credit offers in the mail.....I was receiving them like 1-3 a week during high school...lol. The only thing I can think of, is the fact that she's got a bad history of over drafts through her bank....but other than that, no debts or "bills" to my knowledge...
Chain stores used to be the "bees knees" for first timers looking to obtain credit....but now as mentioned previously, most of these cards are issued under other "big names" (HSBC, Chase, GE Money, etc...) and sure enough, they're gonna check your credit report first, to see if you're 'credit worthy'.....
Getting a co-signer on your bank account is a good approach...I think that's what boosted my credit a bit.....my parents co-signed my 2 very first cards....(at different times of course)....though I don't know how/if it affected my credit, the fact that the vehicles got wrecked/totaled.......but both vehicles had GAP coverage, so the accounts got "paid off"/closed...
About a year ago, I applied for the Chase card.....can't remember which was...if it was the Freedom, or the other one they advertise, and they actually "declined" me....can't remember the exact reasoning, but it was something on my TransUnion report they said, something along the lines of "too much activity" - probably due to the fact that I had too many accounts open (2 previous car loans, that were then "paid off" and in "Good Standing", some doctor bills from the second accident, and my student loans....My income was too low for the "open credit" or soemthing I think was what they said, but that was about 2 years ago or so that I applied.....was thinking about trying again.
When I was still in High School I did get one of the "CapitalOne Student Cards" - which to my amazement, they did not take away when I stopped going to school
But I've been paying it off monthly....started out right out of HS with a 500$ credit line....but didn't use the card for 2 or 3 years, since I was in school, and wasn't working, so obviously, I didn't use it
But yea, kind of wanting to "move on" - I've heard bad stuff about Capital One..... something about the way they report to credit unions....if I recall, they don't report to all 3 or something like that....
But I haven't had any problems with Capital One....but yea, it's a high interest rate....I think 20% or something...so it gets paid off when the bill comes in
I would check with Capital One....
Other than that....the U.S. govt. allows us 1 free credit report, annually, from each of the 3 credit bureaus.....Go to annual credit report dot com and get your free credit report.....make sure all your information they got is "correct" and you aren't a victim of Identity Theft or anything like that.....cause that would most definitely hinder your credit history! If you are a victim and don't even know it....
In fact, I gotta tell my sister to do the same....just seems odd that she's now 19 and has not received ANY "pre screened" credit offers in the mail.....I was receiving them like 1-3 a week during high school...lol. The only thing I can think of, is the fact that she's got a bad history of over drafts through her bank....but other than that, no debts or "bills" to my knowledge...
Well since this thread has been dragged up again, I guess I might as well give an update. I got approved for a secured card from Bank of America. A $99 deposit gets me a $500 credit limit. I should be getting it in the mail within the next week. I'm well on my way to financial ruin.
Just kidding. From what I've heard, it's best to use only about 35% of your credit limit. So I'll be using the credit card only at the gas station (I spend over $200 a month on gas, that's almost the only thing I buy nowadays, plus I get 3% cash back on gas
) As soon as I spend about $160, I'll put the card away and use my debit card for everything else for the rest of the month. Pay my entire balance every month and repeat. This money stuff is easy.
Just kidding. From what I've heard, it's best to use only about 35% of your credit limit. So I'll be using the credit card only at the gas station (I spend over $200 a month on gas, that's almost the only thing I buy nowadays, plus I get 3% cash back on gas
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