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Mom Confessions Mom Confessions

store credit card?

Posted by Anonymous   + Show Post
Somehow, I've managed to still have no credit at 24. I guess it's better to have no credit than bad credit. I want to build it up but don't want to take out a loan from my bank. The idea of a loan makes me all panicky. So what about a store credit card? Like Target? Does anyone have one? What are the interest rates? Is it a horrible idea? I really want to start building my credit.
Posted by Anonymous on Jul. 7, 2013 at 9:06 AM
Replies (11-20):
Anonymous
by Anonymous - Original Poster on Jul. 7, 2013 at 9:19 AM
I was thinking of just charging like $50/month on it and paying it off every month. Does that make sense? So if I pay it every month, I don't pay interest?

Quoting Foolynroo2:

whatever credit card you get, pay it off every month and the interest rate is moot.

I would get a card with no annual fee though, so it literally will not cost you a dime to  have a credit card.

With no credit you aren't getting a loan or CC with a low interest rate, so just bite the bullet, but pay it of each and every month.

If you are not in the position to do that, then don't get a card.


Anonymous
by Anonymous on Jul. 7, 2013 at 9:20 AM
Get a pre-paid "secured" credit card with a $300-500 limit. Go through a reputable bank: Chase, Capital One and Citi are good for this. Pay it off monthly. Do this with 3-4 cards and your credit will be golden if you ever go to buy a house.
(To get the best rates you'd want 4 trade lines with good histories open for at least the last 12-24 months).
Anonymous
by Anonymous on Jul. 7, 2013 at 9:20 AM
Go through your bank. I wouldn't do it at a store unless you have a lot of self control.
3xangel
by *Angelicious* on Jul. 7, 2013 at 9:20 AM
Really? There's a bank that doesn't issue credit cards? I would honestly switch to another bank or credit union and apply for a credit card from there.

Quoting Anonymous:

I asked my bank about that and they said they don't do that and they never heard of it. :S They do line of credit on your checking but you have to have a certain credit score.



Quoting 3xangel:

I would just get a $500 credit card from my bank, buy gas, and pay it off every month
justbreatheOx
by Platinum Member on Jul. 7, 2013 at 9:20 AM
I got a credit card. Biggest mistake of my damn life!
Anonymous
by Anonymous on Jul. 7, 2013 at 9:20 AM
1 mom liked this
Get a bank loan for $1,000. Put that $1,000 into an interest yielding savings account. Withdraw the money monthly to repay the loan. You probably won't earn enough interest to offset the interest they charge on the loan, but if you make more than the minimum payments, it should be pretty close. For instance, if the payments are $80 a month, pay $110 a month. Gets it paid off that much sooner because a higher percentage of your payment is going toward the principle.
Foolynroo2
by Ruby Member on Jul. 7, 2013 at 9:23 AM

It makes perfect sense , and no if you pay it off each month, you do not get interest.

Don't wait until they cycle the bill.

if you know the bill is cycled on the 28th (your due date might not be until the 2nd)

pay it on the 27th.

You find this out by asking!

Once they pull the bill to assess interest, it's too late, you pay interest.

I don't use my CC often, when I do its typically to get points (it paid for my rental car when I went on a trip to see my son graduate from the navy etc)

I would go out, purchase stuff on the card, then come home and pay it.



Quoting Anonymous:

I was thinking of just charging like $50/month on it and paying it off every month. Does that make sense? So if I pay it every month, I don't pay interest?

Quoting Foolynroo2:

whatever credit card you get, pay it off every month and the interest rate is moot.

I would get a card with no annual fee though, so it literally will not cost you a dime to  have a credit card.

With no credit you aren't getting a loan or CC with a low interest rate, so just bite the bullet, but pay it of each and every month.

If you are not in the position to do that, then don't get a card.




Mom2_Jimmy_Anka
by Samantha on Jul. 7, 2013 at 9:23 AM

Installment loans (personal loans, car loans, mortgage) are better for you credit than revolving accounts (credit cards). There are a million things that affect your credit score. The big ones are how many accounts you have (and more are actually better if you aren't maxing them all out), how close you are to your limtis (lower is better), the length of time you have the acccounts, and the type of account they are.


Is there something you are trying to build credit for? If you want to buy a house many credit unions and some banks will allow you to use "non-traditional" credit. This would be statments from a landlord, utilities, etc saying you pay your bills on time or copies of your bills showing they are all paid on time. "Non-traditional" credit can't be used to erase bad credit though. It takes time to build up credit.

If I were you I would try to get a few cards with lower limits (Orchard Bank, Captial One and several other cards specialize in people with no credit or bad credit) and an installment loan of some sort. One trick on a credit card is to pay it off one day before your due date and then not charge anything until one day after your billing cycle begins. It really helps your credit scrore.

disneymom2two
by Platinum Member on Jul. 7, 2013 at 9:26 AM

My fiirst credit card came from a bank but that was 31 years ago.  


Quoting Anonymous:

I asked my bank about that and they said they don't do that and they never heard of it. :S They do line of credit on your checking but you have to have a certain credit score.

Quoting 3xangel:

I would just get a $500 credit card from my bank, buy gas, and pay it off every month



Anonymous
by Anonymous - Original Poster on Jul. 7, 2013 at 9:26 AM
That makes the opposite of sense to me.

Quoting Anonymous:

Whatever you do do NOT pay it off monthly. Leave a balance, a small one is fine, but you build credit by showing that you can responsibly carry debt. Even if it is $10, carry a balance.
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