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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 (21-30):
Firewoman33
by Gold Member on Jul. 7, 2013 at 9:28 AM
1 mom liked this
Do your research with these. Not all prepaids report to the credit bureaus. Some have exorbitant fees.
They are a good option for gaining credit.


Quoting Anonymous:

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 5 on Jul. 7, 2013 at 9:29 AM
Very true. Always good to research. That is why I listed those three banks. They all offer good cards and good rates and report the the three agencies, so they are good bets. Chucks House of Credit would be a place to avoid. :)


Quoting Firewoman33:

Do your research with these. Not all prepaids report to the credit bureaus. Some have exorbitant fees.

They are a good option for gaining credit.




Quoting Anonymous:

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 8 on Jul. 7, 2013 at 9:30 AM
I'd try the Target card. You get 5% off with each transaction. As long as you pay it off every month no interest or fees.
Or a gas card.
Anonymous
by Anonymous 4 on Jul. 7, 2013 at 9:31 AM
1 mom liked this
When you think about large purchases like cars or houses, you won't be able to pay off the amount in a month. I realize it is a different kind of credit but the principle of it works the same. Your credit score is raised faster and higher by carrying a small balance than paying it off every month. The whole point of credit is to owe money and pay it over time. By paying it off monthly, depending on when they report to the credit agencies, it may show that you never carried a balance at all.


Quoting Anonymous: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.
Anonymous
by Anonymous 9 on Jul. 7, 2013 at 9:31 AM
1 mom liked this


That's because she's speaking nonsense. Ignore her. 

Quoting Anonymous:

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.



Anonymous
by Anonymous 1 - Original Poster on Jul. 7, 2013 at 9:32 AM
It is a credit union. I asked them about a credit card that you can put your money on. Like you put $300 on it, and can't go past $300. You make payments on it every month and it builds your credit. They said they don't have that type of card (I heard of it through a credit seminar thing I went to)

Quoting 3xangel:

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
Anonymous
by Anonymous 10 on Jul. 7, 2013 at 9:34 AM
This is a good idea if you can't get a cc from your bank.
No credit is worse than bad credit. You are going to get a horrable interest rate, but there is nothing you can do about that until you raise your score.


Quoting Anonymous:

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.


x2monstersx
by on Jul. 7, 2013 at 9:34 AM

Actually, I dont know if it is fact, but I have been told by many that no credit is worse than bad credit.  But anyway just get a card from your bank or compare rates from different companies online.  Store credit cards typically have ridiculously high rates.  Not only that but they will send you all kinds of coupons and deals in the mail which will tempt you to buy more.  I have a hard time resisiting temptation :)

3xangel
by *Angelicious* on Jul. 7, 2013 at 9:35 AM
Wow that sucks. Good luck

Quoting Anonymous:

It is a credit union. I asked them about a credit card that you can put your money on. Like you put $300 on it, and can't go past $300. You make payments on it every month and it builds your credit. They said they don't have that type of card (I heard of it through a credit seminar thing I went to)



Quoting 3xangel:

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
Anonymous
by Anonymous 8 on Jul. 7, 2013 at 9:36 AM
1 mom liked this
It's not true. An installment loan helps. Carrying a small balance does nothing.


Quoting Anonymous:

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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