No Credit Question

[trophy8]

I was told that you dont pay off the card every month but make payments against it every month. Thats just what I have been told.

I would rather just pay it off every month.

This is false. Keeping a balance hurts you. Pay it off every month. My credit was stalled out at 740-750. I got a chase freedom card a year and a half ago and pay it off every month if I use it. Usually use it for big purchases only for the points. My credit is 820+ now. I’m 29. Fixing to turn 30. I’m pleased with that. I can’t give you advice on which card is best.

What I think you were told and misunderstood is paying off a vehicle early isn’t good credit wise. They like to see several years of payments. This isn’t fact but what I’m told. In my case it seems to be true.

Also on revolving credit. 0% Best Buy credit card etc. charge now more than 30% and keep making payments. I hate payments.

[RiverRat1]

You shouldn't go down that road without understanding your own credit. That is probably the biggest mistake people make when doing home loans. You should know your credit as well as the lender. There are several ways to get an idea of how you stand credit wise without going to the bank to get qualified. Besides, that will also ding the credit score.

He said he has good credit and his wife has none. If that's true I'm just saying he should be fine getting a loan for a house. Unless he's looking for a 500k loan and only makes $10/hr.

[Take Dead Aim]

I have thought seriously about applying for one of the AA cars on a flight myself. They always have 50K point sign on bonus in flight.

I just dont fly alot.. The amazon credit card would get way more use and benefits.

You have heard and listened to some pretty bad info so far. I would go to a bank or lender and talk to them before doing anything.

[Jcjohnson]

I did a secured loan with selflender.com recently. No issues. Payed them 48 a month for 12 months and they cut you a check for 550 when your done with a big boost to my credit.

[dclifton]

Thanks for the input guys I was curious to see the opinions.

If nothing else I learned to pay the card off every month.

[CaptainDave]

People way over think this. Just get a major credit card - Visa, Mastercard, Amex, whatever. Preferably get one with cash back or rewards points.

Use the credit card on some of your everyday type purchases; i.e. gas, groceries, dinner, etc. Pay off the balance in full each monthly billing cycle. Actually, major credit cards carry much better fraud protection than your debit card, so there's other benefits to this. I actually like to consolidate many of my expenses as compared to frequently using a debit card or always needing lots of cash on had.

That's it. By doing that, you can establish some credit. And yes, carrying a balance is a complete myth in regards to building credit. Actually, even if you pay off your credit card in full based on the monthly billing statement, you still will have a balance on the card. This is because your monthly statement has a cut-off date and by the time you get it and pay it, you probably already have made charges to hit the next billing cycle.

[Reelthreat]

from Experian...

"There is a common myth that carrying a balance on your credit card from month to month can benefit your credit scores, but that is not true. Ideally, you should pay off your credit card in full every month."

I call BS on that... I had a score over 800 when I carried a balance in my late 20s/early 30s. Now I have 0 debt and pay everything off monthly and my score dropped to around 725... one month I forgot to pay my balance off and my score jumped to 760. Next month I paid it all off and it dropped right back to 725.

The more money they make off you by interest the more likely you are to get credit/loans.

[Jon B]

I pay all of mine in full every month and our score has been in the low 800s for years.

[Texans42]

I call BS on that... I had a score over 800 when I carried a balance in my late 20s/early 30s. Now I have 0 debt and pay everything off monthly and my score dropped to around 725... one month I forgot to pay my balance off and my score jumped to 760. Next month I paid it all off and it dropped right back to 725.

The more money they make off you by interest the more likely you are to get credit/loans.

I have 827. Zero debt, own House and cars outright, and pay off credit card every month.

Paid off all debt two years ago and it hasn’t changed.

[bmac]

Main concern I would have would be a bunch of inquiries or new accounts right when you want to buy. I think this would be the biggest detriment to your score. Lump all credit inquiries to a short period so you can explain it.


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[TA_Fab]

Just pick one with no fee and that will benefit y’all. Discover IT card is a good general spending card with cash back. Pay off in full every month.


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[12RingKing]

Here’s a suggestion.

If you have a credit card/overdraft on your bank loan, whatever that’s revolving.

You can make her an Authorized User and she will adopt all the credit history of that account. Waaa Laaa instant credit history.

[12RingKing]

I call BS on that... I had a score over 800 when I carried a balance in my late 20s/early 30s. Now I have 0 debt and pay everything off monthly and my score dropped to around 725... one month I forgot to pay my balance off and my score jumped to 760. Next month I paid it all off and it dropped right back to 725.

The more money they make off you by interest the more likely you are to get credit/loans.

This is absolutely not accurate. Complete BS. There’s much more to that story you’re not telling.

[mikemorvan]

Kinda semi-off point, but, if you and your wife haven't gone through the "Financial Peace" course, i'd suggest doing so. Very worthwhile.

[Reelthreat]

This is absolutely not accurate. Complete BS. There’s much more to that story you’re not telling.

There isn't other than not using credit for 10 years. I paid everything off before I got married in 07 and bought a house with no debt. Canceled 3 cards and didn't use or apply for credit until last year to finance my wife's SUV. Didn't like the rate so we paid cash. Got a card for rewards where I can monitor my score and it did what I said.