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question about building credit

So hubby and i have paid off most of our debt the only stuff that's left are student loans, car loan, and money i owe to a school which i am working on paying off. In a few years we would like to be able to own a home to do this i realize that we need to build our credit scores up so that we can get a loan at a good rate. One of the ways I would like to do this is by getting a credit card and using it on things like food and gas, stuff I budget money for and that the money is there for and then pay off the balance at the end of the month. We wouldn't charge over the amount that has been budgeted and the money would not get spent else were. I haven't applied for anything yet but am looking at either discover, American express, or a key bank master card (were we bank).

I was wondering about peoples experience with the cards and whether this worked for anyone else?

Answer Question
 
mbaker331

Asked by mbaker331 at 4:43 PM on Nov. 21, 2010 in Money & Work

Level 3 (19 Credits)
Answers (9)
  • We have had Discover and Mastercard. Doing what you suggest is an excellent way to build up your credit. But you really need to be disciplined and pay it off each month. We have done that for years and have excellent credit. It is one way to do it.
    elizabr

    Answer by elizabr at 4:47 PM on Nov. 21, 2010

  • we have made mistakes with cards before when we were younger and have smarted up a lot. I am much more strict about our spending and budget us religiously using a spread sheet. I feel that we are much more capable of keeping control over the card.
    mbaker331

    Comment by mbaker331 (original poster) at 4:50 PM on Nov. 21, 2010

  • This is an excellent way to help your credit score, just to let you know though that not many places accept American Express, and generally they want the balance paid each statement..Also in choosing a credit card, choose one with a fixed interest rate. That way your interest owed isn't up and down all the time. Once you agree to a fixed interest it stays there.
    Kathy675

    Answer by Kathy675 at 4:51 PM on Nov. 21, 2010

  • Excellent - I agree with the others. Just make sure you pay it off as you go that others may lack to do. The interest rate can be sky high with some cards. Just make sure you use them for the right reasons :)
    I have heard that rent-to-own places can help build credit. And, paying off loans.
    CandyHorse

    Answer by CandyHorse at 4:55 PM on Nov. 21, 2010

  • i think i'm leaning toward the key bank MC because i can pay through transferring money around online which i do anyway for the automatic withdrawals we have.
    mbaker331

    Comment by mbaker331 (original poster) at 4:57 PM on Nov. 21, 2010

  • It is an excellent way to build credit, but you must be very careful, and diligent about paying it off.
    SweetLuci

    Answer by SweetLuci at 5:08 PM on Nov. 21, 2010

  • I have found that bank cards have the best options and your payment options like you mentioned are always better!!!
    sweetstkissez22

    Answer by sweetstkissez22 at 11:04 AM on Nov. 22, 2010

  • Just be ready to cut it up if you start having trouble sticking to your plan to pay it all off every month. Paying your student loans, car payments and school debt will build up your credit score by themselves, so if the credit card at all becomes a problem don't hesitate to ditch it.
    riotgrrl

    Answer by riotgrrl at 1:21 PM on Nov. 22, 2010

  • The card will help,IF you can keep about 25-30% of the limit on it as a balance. These days, having a $0 balance is looked down on, and going over 50% of the limit is too!

    My credit score went DOWN 43 points for paying off my credit cards!
    geminilove

    Answer by geminilove at 2:30 PM on Nov. 22, 2010

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