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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 (41-50):
Anonymous
by Anonymous 1 - Original Poster on Jul. 7, 2013 at 9:45 AM
That's essentially what I want to do. I'd use it once a month to get cat food, litter, toilet paper, trash bags. That's about the only time I go to Target. I don't really like their clothes and their kids clothes are too expensive.

Quoting Foolynroo2:

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.





LilliesValley
by on Jul. 7, 2013 at 9:45 AM

Don't get a store card the interest rates are usually higher and the perks aren't as good. Just get a regular credit card. Or another option that does build up credit is a secure credit card. Just make sure to pay it off each month, don't spend money you know you don't have.

Anonymous
by Anonymous 8 on Jul. 7, 2013 at 9:47 AM
Yeah that's an installment loan


Quoting Anonymous:

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 11 on Jul. 7, 2013 at 9:47 AM

It actually is not that much better to have no credit than bad credit.  You can start with a store credit card and only use it to purchase things you otherwise would be buying and then pay it off every month.  You can even use it and then make the payment in full right at the cash register.  That will build credit and not put you in debt. 

Anonymous
by Anonymous 1 - Original Poster on Jul. 7, 2013 at 9:54 AM
That's precisely how I'd use it. To buy things from there (like cat food, litter, TP, etc). So I'd only charge mayve $30/month on it.

Quoting Anonymous:

It actually is not that much better to have no credit than bad credit.  You can start with a store credit card and only use it to purchase things you otherwise would be buying and then pay it off every month.  You can even use it and then make the payment in full right at the cash register.  That will build credit and not put you in debt. 

Anonymous
by Anonymous 4 on Jul. 7, 2013 at 9:55 AM
Yes those bigger purchases are installment loans. I already said that in my post. But revolving credit works in a similar way. Especially if she is trying to get an installment loan and the only credit history she has is revolving credit.

It all depends on your credit card company and how they report to the credit agencies. If they report all information every month then paying it off monthly is fine. But if they report only current balance information and/or every other month, it might look like there is never a balance owed. Which would help her score if she had other credit but this literally being the only thing on her credit report isn't going to help her.


Quoting Anonymous:

Yeah that's an installment loan




Quoting Anonymous:

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 1 - Original Poster on Jul. 7, 2013 at 9:58 AM
what banks offer secure credit cards? That's where you put X amount on it of your own money and make payments right?

Quoting LilliesValley:

Don't get a store card the interest rates are usually higher and the perks aren't as good. Just get a regular credit card. Or another option that does build up credit is a secure credit card. Just make sure to pay it off each month, don't spend money you know you don't have.

Val99
by Ruby Member on Jul. 7, 2013 at 10:01 AM

Try Bank of America or CitiBank.  They are both national and have credit cards you can apply for online.

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 12 on Jul. 7, 2013 at 10:07 AM

rofl, im 28 and now i finnaly have a credit score!!! i was elated when  capital one finally accpeted me despite no credit score , at 1st my limit was 300, then  after like 7 months they bumped it up to  500!

 but i recently applied for a basic discover card and they turned me down! i was so pissed, blah blah blah not enough credit history or score too low, but they did include my score in the rejection letter, its 615. a few points away from the next better credit level.

 what has not help build my cerdit was  buying 2 cars out right, paying  in full and never having  had to make a car payment or take out a car loan. i was stupid , had i realized that it would keep me at  no credit for so long id of opted for payments and taking out a loan. 3 years ago i applied for a sears card and was also turned down due to no credit history. and despite  always payign bills ontime and in full they didnt report that to the cerdit  agencys.

 but i will say this, despite  that it can be scary  taking a loan from your bank, it is one of the best ways to start building your credit!  basically get a loan and put that money from the loan into its own savings acount, and make the loan payments with the loan money iteself!!!! plus with it being in a savings account you will gain interst on the balance! i am about to do this to help build my credit before i  apply for  another credit card.

 however i do have $281 balance of debt on my current card but  with our  get out of debt plan  we recently did it whould be paid off by the end of  the month! i only have one reoccuring charge on the card which is  under $20 a month ,  thats netflix. after its all paid off we will  then change our aggressive get out of debt plan into a savings plan and put 100-150 into savings per week  to catch up to our 52 week money challenge.

RMC007
by Silver Member on Jul. 7, 2013 at 10:09 AM

I have a few store credit cards from my favorite stores. I use them, come home, and pay the bill. The only reason I have them is because I normally save an extra 10%, and I earn rewards to use on future purchases. You could also try an Amazon Store Card.

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