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ProoN
Enthusiast



Registered: 03/27/06
Posts: 199
Loc: California, Colorado, Michigan
Last seen: 1 year, 4 months
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Building Credit
#23838071 - 11/16/16 08:36 AM (7 years, 2 months ago) |
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Random question -- I'm 28, live on my own, work, pay rent and whatever bills I have, etc, but have 0 credit to my name.
I've signed up for a "Secured Card" with Discover, hoping that goes through. It's basically a debit card but will actually help to build credit.
My question is basically this -- If I have say, 3 of these from different cards/companies, all with just like $300 or so of "credit" line on them, would that help to build my score quicker or would it even make a difference?
-------------------- A human being is part of a whole, called by us, the "Universe", a part limited in time and space. He experiences himself, his thoughts and feelings, as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circles of compassion to embrace all living creatures and the whole of nature in its beauty.
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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Re: Building Credit [Re: ProoN] 1
#23838088 - 11/16/16 08:41 AM (7 years, 2 months ago) |
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No, you are best to start with one card!! Get one card and use it heavily, paying it all off each month. I did this in early 2014. I had no credit whatsoever, so I got a secure card and started using it for pretty much all my purchases. A year later I got a second card, this one was a regular bank credit card and they gave me a pretty nice limit. Now it's about two and a half years later, and I have gotten another store cc, a furnace loan, and a mortgage on my first house!
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Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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larry.fisherman
shoulda died already


Registered: 11/03/12
Posts: 36,294
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Re: Building Credit [Re: ProoN] 2
#23838091 - 11/16/16 08:42 AM (7 years, 2 months ago) |
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Using the credit is what builds it. Having a bunch of cards isn't going to do much. The best thing to build credit is just pay all your bills, and when it comes to credit cards, spend what you can afford every month. Use it for necessary shit like groceries, then pay it off immediately. Treat your credit card like your own cash rather than a loan you can get whenever and you'll get good credit.
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ProoN
Enthusiast



Registered: 03/27/06
Posts: 199
Loc: California, Colorado, Michigan
Last seen: 1 year, 4 months
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Yeah, I'm hoping for a small loan. Trying to build credit as quickly as possible kinda thing. Why wouldn't having multiple cards help build it quicker? I'm not really sure how credit scores work.
-------------------- A human being is part of a whole, called by us, the "Universe", a part limited in time and space. He experiences himself, his thoughts and feelings, as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circles of compassion to embrace all living creatures and the whole of nature in its beauty.
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Shiithead
Your Huckleberry



Registered: 04/05/13
Posts: 9,997
Loc: God's Flat Green Earth
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Re: Building Credit [Re: ProoN] 1
#23840924 - 11/17/16 08:38 AM (7 years, 2 months ago) |
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No one does.
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Ephesians 6:12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. Psalm 12:6 The words of the Lord are pure words: as silver tried in a furnace of earth, purified seven times. Hebrews 11:3 Through faith we understand that the worlds were framed by the word of God, so that things which are seen were not made of things which do appear. Revelation 3:11 Behold, I come quickly: hold that fast which thou hast, that no man take thy crown.
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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Re: Building Credit [Re: ProoN]
#23840926 - 11/17/16 08:40 AM (7 years, 2 months ago) |
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If you apply for a lot of cards, credit issuers will see you as "shopping around" for credit - not something a credit-worthy person does (apparently...it's their words, not mine ). Specifically, on your credit score you are penalized for each credit card you have that is less than 2 years old, so less new credit cards is always a good idea.
Get a card and build up at least a year of good transactions on it. Your cc company will probably give you back all of your security deposit and give you a regular credit card, at this point. You should apply for another card when this happens. Better yet, apply for a small loan for a car or something - you get bonus points on your credit score if you have different types of credit.
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Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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--------------------
Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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ProoN
Enthusiast



Registered: 03/27/06
Posts: 199
Loc: California, Colorado, Michigan
Last seen: 1 year, 4 months
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Re: Building Credit [Re: trendal]
#23873464 - 11/27/16 09:03 PM (7 years, 2 months ago) |
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So, I have a card, a secured card meaning I put X amount on it and that's my limit. Say $300.
Would it look better to use all $300 and pay it off at the end of the month? or use.. $150 and pay it off over 3 months?
Edited by ProoN (11/27/16 09:03 PM)
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blackhawk
Newton's Law of Majesticity



Registered: 04/02/11
Posts: 8,465
Loc: Where Jimmies are Rustled
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Re: Building Credit [Re: ProoN]
#23873703 - 11/27/16 10:38 PM (7 years, 2 months ago) |
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You don't want to use more than 30% of your limit a month. So don't use more than 100$ a month.
Less is also better. Pay it in full each month
Applying for too many cards in a short period of time is not good either.
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OliverJames
Potion Brewer

Registered: 02/28/12
Posts: 3,085
Last seen: 6 years, 3 months
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I'm in the same position OP. Is there a way to link the credit card to a checking account so that it auto-pays? I mean, I'd probably try to stay on top of it but it would be nice to know that as long as there was cash in my checking account, the bills would always be paid on time
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blackhawk
Newton's Law of Majesticity



Registered: 04/02/11
Posts: 8,465
Loc: Where Jimmies are Rustled
Last seen: 1 hour, 11 minutes
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Re: Building Credit [Re: trendal]
#23873738 - 11/27/16 10:56 PM (7 years, 2 months ago) |
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Quote:
trendal said: Your cc company will probably give you back all of your security deposit
LOL
I never got mine back. I tried a couple of times and they won't do it. I've read up on other people's reports on the refundable deposit and it's more likely to get anal fisted by a unicorn Best they'll do is waive the annual fee or reduce your interest rates. This is with capital one though, I don't know how the other companies will work.
Good thing I only put down 50$.
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blackhawk
Newton's Law of Majesticity



Registered: 04/02/11
Posts: 8,465
Loc: Where Jimmies are Rustled
Last seen: 1 hour, 11 minutes
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Quote:
OliverJames said: I'm in the same position OP. Is there a way to link the credit card to a checking account so that it auto-pays? I mean, I'd probably try to stay on top of it but it would be nice to know that as long as there was cash in my checking account, the bills would always be paid on time
Most likely You probably just have to fill out an online form
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ProoN
Enthusiast



Registered: 03/27/06
Posts: 199
Loc: California, Colorado, Michigan
Last seen: 1 year, 4 months
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No idea. I went with Discover just because it was the first thing that came when I looked into getting credit without a cosigner. They withdrew the money from my bank account after verifying it was mine, not really sure about automatic payments though.
-------------------- A human being is part of a whole, called by us, the "Universe", a part limited in time and space. He experiences himself, his thoughts and feelings, as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circles of compassion to embrace all living creatures and the whole of nature in its beauty.
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tealeaf
Just Touch It



Registered: 09/21/06
Posts: 2,907
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Re: Building Credit [Re: ProoN]
#23874354 - 11/28/16 07:22 AM (7 years, 2 months ago) |
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I got a few years ago from Cap 1 and had a $300 credit limit to start. Used it a TON and always paid off the whole bill each month. Worked for me. Trust me they LOVE to raise your limit.
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Repertoire89
Cat



Registered: 11/15/12
Posts: 21,773
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Re: Building Credit [Re: ProoN]
#23874379 - 11/28/16 07:34 AM (7 years, 2 months ago) |
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The only way to establish good credit is to prove yourself to the bank
If you wanna roll with the bank, you're going to have to kill someone
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tealeaf
Just Touch It



Registered: 09/21/06
Posts: 2,907
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It get dirty for sure rolling with the bank sometimes..........no wait all the times
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Prisoner#1
Even Dumber ThanAdvertized!


Registered: 01/22/03
Posts: 193,665
Loc: Pvt. Pubfag NutSuck
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Re: Building Credit [Re: ProoN]
#23874423 - 11/28/16 07:54 AM (7 years, 2 months ago) |
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Quote:
ProoN said: Random question -- I'm 28, live on my own, work, pay rent and whatever bills I have, etc, but have 0 credit to my name.
I've signed up for a "Secured Card" with Discover, hoping that goes through. It's basically a debit card but will actually help to build credit.
with secured cards always pay them off, the interest rate is typically 24.99% monthly which is the same a pawnshop charges, that comes out to over 300% per year, keep this card for 2 years and then start looking for lower interest rates. after 1 year the discover card will have a higher limit but your interest rate will never be reduced
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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Quote:
blackhawk said: You don't want to use more than 30% of your limit a month. So don't use more than 100$ a month.
Less is also better. Pay it in full each month
Applying for too many cards in a short period of time is not good either.
It only matters what amount you have on your cc on your statement date, that is the number that they will report to the credit bureau each month. It doesn't matter if you spend all $300 each month, as long as you have it paid in full by the statement date.
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Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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Quote:
blackhawk said:
Quote:
trendal said: Your cc company will probably give you back all of your security deposit
LOL
I never got mine back. I tried a couple of times and they won't do it. I've read up on other people's reports on the refundable deposit and it's more likely to get anal fisted by a unicorn Best they'll do is waive the annual fee or reduce your interest rates. This is with capital one though, I don't know how the other companies will work.
Good thing I only put down 50$.
My first card was a secured card from Capital One...they wanted a $75 security deposit for a $1500 credit limit. About a year after I got the card they switched me over to a Gold card with the same credit limit and sent me the $75 deposit back in a cheque.
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Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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Shiithead
Your Huckleberry



Registered: 04/05/13
Posts: 9,997
Loc: God's Flat Green Earth
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Re: Building Credit [Re: trendal]
#23874901 - 11/28/16 11:15 AM (7 years, 2 months ago) |
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Capital 1 also hooked me up with a card with 300 dollar limit. They are your best choice for getting approved. 6 months later I got a discover card. I also have another card in the last 6 months I needed when I couldn't work. Capital 1 will also approve you for a credit increase after 1 month I believe.
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Ephesians 6:12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. Psalm 12:6 The words of the Lord are pure words: as silver tried in a furnace of earth, purified seven times. Hebrews 11:3 Through faith we understand that the worlds were framed by the word of God, so that things which are seen were not made of things which do appear. Revelation 3:11 Behold, I come quickly: hold that fast which thou hast, that no man take thy crown.
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blackhawk
Newton's Law of Majesticity



Registered: 04/02/11
Posts: 8,465
Loc: Where Jimmies are Rustled
Last seen: 1 hour, 11 minutes
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Re: Building Credit [Re: trendal]
#23877328 - 11/29/16 06:03 AM (7 years, 2 months ago) |
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Quote:
trendal said:
Quote:
blackhawk said:
Quote:
trendal said: Your cc company will probably give you back all of your security deposit
LOL
I never got mine back. I tried a couple of times and they won't do it. I've read up on other people's reports on the refundable deposit and it's more likely to get anal fisted by a unicorn Best they'll do is waive the annual fee or reduce your interest rates. This is with capital one though, I don't know how the other companies will work.
Good thing I only put down 50$.
My first card was a secured card from Capital One...they wanted a $75 security deposit for a $1500 credit limit. About a year after I got the card they switched me over to a Gold card with the same credit limit and sent me the $75 deposit back in a cheque.
Really? How long ago was that?
I put down 50$ and they gave me a $201 limit. It's been maybe 3 and a half years now since I got that secured card and they've only increased it up to $750. Still haven't gotten back that deposit
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trendal
J♠



Registered: 04/17/01
Posts: 20,815
Loc: Ontario, Canada
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Quote:
blackhawk said: Really? How long ago was that?
I put down 50$ and they gave me a $201 limit. It's been maybe 3 and a half years now since I got that secured card and they've only increased it up to $750. Still haven't gotten back that deposit
About two years ago, a year after I got the card. My age may have something to do with it, I was 33.
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Once, men turned their thinking over to machines in the hope that this would set them free. But that only permitted other men with machines to enslave them.
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Konyap

Registered: 06/30/07
Posts: 33,945
Loc: Planet Piss
Last seen: 4 years, 2 months
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Quote:
Prisoner#1 said:
Quote:
ProoN said: Random question -- I'm 28, live on my own, work, pay rent and whatever bills I have, etc, but have 0 credit to my name.
I've signed up for a "Secured Card" with Discover, hoping that goes through. It's basically a debit card but will actually help to build credit.
with secured cards always pay them off, the interest rate is typically 24.99% monthly which is the same a pawnshop charges, that comes out to over 300% per year, keep this card for 2 years and then start looking for lower interest rates. after 1 year the discover card will have a higher limit but your interest rate will never be reduced
jeez
what's the point of a credit card then if it just makes everything you buy 25% more expensive
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: Building Credit [Re: Konyap]
#23877585 - 11/29/16 08:52 AM (7 years, 2 months ago) |
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Quote:
Konyap said:
jeez
what's the point of a credit card then if it just makes everything you buy 25% more expensive
Simplicity. It's a lot easier than cash, faster, and can be used online.
For many, having immediate access to money outweighs the extra cost of the interest. However, if you pay in full each month, no interest accrues.
For me, it makes budgeting MUCH easier, and gets me 1% cash back on everything I spend.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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LSDollar


Registered: 02/09/15
Posts: 2,361
Loc: Up Up and Away
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Re: Building Credit [Re: badchad]
#23877761 - 11/29/16 10:06 AM (7 years, 2 months ago) |
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I got my first CC about a year and 4-5 months ago. They gave me unsecured 300$ starting. Every couple months they put it up more. 100% on time min payment, and try not to use more than 50%. Secured is no fun but its a start.
Since I got my first CC, my score is just about 700, I have 4 cards open, 3800$ on two for one accout, and 4000$ on a different account with 2 other ccs. I don't go over 30-50% used
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