No Credit Question

[dclifton]

My wife and I are in our late 20s and looking to buy a house or land an build soon.

I have really good credit but my wife has zero credit history to her name.

I have very little debt to my name. Just some Farm equipment that was 0% interest so why not use there money.

Question is what Credit Card is the best option for her to build credit.

I hate having to pay high interest rates on money that we dont need just to build her credit. But i am told that you dont need to pay the card off every month.

There is thousands of credit cards out there so school me on the best route.

Thanks for all the help!

[mmoses]

I hate having to pay high interest rates on money that we dont need just to build her credit. But i am told that you dont need to pay the card off every month.

This statement doest make any sense. Dont put things are a card you cant pay off before the end of the billing cycle.

Do you have any high limit cards you can add her as an authorized user.

[dclifton]

This statement doest make any sense. Dont put things are a card you cant pay off before the end of the billing cycle.

Do you have any high limit cards you can add her as an authorized user.

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.

[150class]

Depends what kind of Rewards you want.

I'd say find a Cash Back card like the Chase Freedom and put groceries or some smaller bills on it and pay it off in full every month.
You don't technically have to pay it off in full but that defeats the purpose of building her credit up and wanting a really high score in my opinion. Its a slippery slope and just paying it off is best.

The trick is not letting the amount get away from her like it happens with 80% of the population...

[Dusty Britches]

I've never understood this logic - so to have a credit history you have to have debt. Stupid, but that's the game the banks want to pay.

Here's what I would do - open a $5000 credit card. Month 1 - charge a dinner or something on it. Pay it off. Don't use it anymore. There - now she has a credit history that shows she pays every month. Actually, it will state "Pays as Agreed".

I have Simmons Bank Master Card with a low limit - only $4000. The interest rate is 8.5%.

[mmoses]

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.

I dont believe you have to pay interest to help you out.

[duckmanep]

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."

[dclifton]

Depends what kind of Rewards you want.

I'd say find a Cash Back card like the Chase Freedom and put groceries or some smaller bills on it and pay it off in full every month. You don't technically have to pay it off in full but that defeats the purpose of building her credit up and wanting a really high score in my opinion.

The trick is not letting the amount get away from her like it happens with 80% of the population...

This was the way i was leaning was Chase Freedom... I was just going to let her pick up groceries gas etc on it. Then pay most of it off every month. My wife is as tight as fiddle string so i dont have to worry about her keeping up with it.

[Dusty Britches]

If you have a line of credit (credit card), look at your credit history for free. It will show you what I'm talking about.

[Dusty Britches]

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."

^^^^ Ding Ding Ding! ^^^ Winner!

[DedDuk]

Why not pay it off? I'm pretty sure that will not hurt credit.

[dclifton]

I've never understood this logic - so to have a credit history you have to have debt. Stupid, but that's the game the banks want to pay.

Here's what I would do - open a $5000 credit card. Month 1 - charge a dinner or something on it. Pay it off. Don't use it anymore. There - now she has a credit history that shows she pays every month. Actually, it will state "Pays as Agreed".

I have Simmons Bank Master Card with a low limit - only $4000. The interest rate is 8.5%.

I agree. 99% of the things we own trucks, Cows, Equipment etc we have bought and paid for cash. So it is frustrating. But its there game.

[150class]

This was the way i was leaning was Chase Freedom... I was just going to let her pick up groceries gas etc on it. Then pay most of it off every month. My wife is as tight as fiddle string so i dont have to worry about her keeping up with it.

Sounds like a solid plan.
Just have to get her to Pass the application for the Card with no credit history but I would be surprised if she did not. Pretty quick and easy to find out.

[Dusty Britches]

And - one other question - did you talk to the bank or Farm Credit or Capital Farm Credit to get pre approved just to see what they actually care about? They may say that your credit history is sufficient.

[dclifton]

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."

Well good. Ill go that route and just pay it off every month. I dont want any credit card debt. I just thought well maybe we could get some cash back rewards since we are spending the money anyways. So it would atleast have some perks and build her credit.