MissElphe

I thought that you could turn in your 'credit' at costco to get real cash if you wanted? of course, for those of us who shop at costco, i guess it's not really a big deal either way.

I love this card! I am not a fan of cards that have 'rotating categories' or 'UP TO 1% back on everything else' (it seems like .25% for the first $3000 and 1% after is common, but that's less than $8 for your first $3000 in "other" purchases!!) I also don't like yearly fees, but with my costco membership, the yearly fee is waved. I pay off my card each month, so I have never paid any interest on this card. But I'm looking at a big reward come spring! I get 3% on gas (up to $3000/yr, but I dont spend that much in gas), and at resteraunts, 2% on travel, and 1% on everything else (none of this quarter of a percent crap) Overall I think this card is great!

depends on your discipline. i would say probably not. having the account open will help your credit. but you dont need to use it necessarily. if you're afraid that in a moment of weakness you'll charge it up again, cut it up. make it a party with any friends or significant other who are on the dumping debt band wagon with you.

I highly recommend the 'snowball method' this is part of Dave Ramsey's 'Baby Steps' Pay off the debt you would have paid off first anyway (usually the smallest). Throw any extra money you can find at it. Then, once it's paid, take the old payment and put it towards the one you would have paid off next anyway. (usually the next smallest) keep going like this till all the debts are paid.

I recommend paying your card in full when the bill comes, if you do that you will never owe interest no matter what the interest rate is. However, if you're trying to transfer debt to an interest free card so you can attack principle for a time, it MIGHT be a good deal. Watch out for the hike though, after 1 year, they'll raise the interest rate, make sure you know what it is, that it's not any more than what you're paying now.

sometimes they'll give you a "Deal" (0% int.) for a year and then slam you (20%, 25%, 30%) which if you just stayed where you are (10%) over the long run you'll probably be paying less than if you go snag that "Deal" double check the math. There are financial calculators online you can use.

Both fantastic advice. However, if you can't get a card, ask for a 'line of credit' instead. NEVER USE IT! (basically if you go in the negative on your checking account, instead of bouncing the check or declining your card the bank will pay, and you owe them back, plus interest. but interest starts from day 1 instead of like with a card after about 1 month)

If you can get a card, i recommend paying it off IN FULL every month. You will still show continual use on the card, and on time payments, but you will never pay interest. Also, it is possible to go up by more than $500 at a time. When i started out (18 years old) I had $500, then later I asked for $1,500, now, (2 years later) I have $5,000 limit on one card and $2,000 limit on another. It all depends on how good you are with your cards and paying them off etc.

A car loan (or any loan you pay on time) is a good way to build credit, but think about how much you're spending on interest alone before you jump in with both feet. There are many calculators online that will be able to tell you how much interest you'll be paying over the life of your loan. It's up to you to decide if your score going up is worth that much interest.

BEST OF LUCK!!!
:")

Best to wait I think. Your bank, Credit Union, or Credit Card company sends a report to the credit bureau on a monthly basis. If you charge and immediately pay it off, the chance of you having some debt on there is low. However if you can set aside the money you would use to pay your card, and wait just a little bit, you can pay the 'full balance' after the statement comes.

As long as you pay the balance in full before the due date, you will never pay interest. AND you will have 'revolving credit' it will show that you had a balance, and that you paid it off.

Check with your bank, CU, or CC company, many places you can set up automatic payments to pay the full balance before the bill is due so you wont have to worry if you'll remember or not. (just make sure you don't spend the money from the account it will pull from twice!)

One easy way to make sure you don't double spend your money (especially if you plan on still using your debit card for most purchases):
~Set up an automatic payment for a reoccurring bill on your credit card (like your phone, electric, car ins, etc.)
~Have that money set aside into a separate account. (NOT your checking account) for example, use a savings account instead.
~Have the credit card bill paid automatically from the savings account that is specifically for those bills.

This will accomplish # things:
1. your reoccurring bills will be paid on time.
2. your cc bill will be paid on time.
3. your credit report will show use.
4. you won't owe interest.
5. you can continue to use your checking account for your regular purchases.

BEST OF LUCK!!!
:")

You may be able to get some stuff from the library, if you just want to see. Or listen on the radio to see what he's all about.

Dave Ramsey's Total Money Makeover has helped many many people become debt free. daveramsey.com. He's also on talk radio.

Look into what he's got. That's easier than trying to explain it all here.

Best of Luck
:")

There is SO MUCH INFORMATION on this topic. Try the credit simulator to see what different things will do for your credit. Another great tool is the credit 'report card' take a look at where you have c's and d's. and f's. See why they are low, and try to make them go up.

Disclaimer:
My advice is only for people who are IN CONTROL of their money. People who have written budgets and tell there money where to go instead of asking where it went. If you follow my advise but you are not in control of your money it may have the opposite effect on your credit.

If you can open a 'line of credit' with your bank or CU that will help, and you usually don't need a co-signer. I got one for $500 when I turned 18, my sister only got $200. Don't know why the diff, but it doesn't matter. The key here is NOT TO USE IT!!! Don't get sucked into the trap of thinking you have an extra $XXX to spend. You don't. And the interest rate attached to these is ridicules. (Not using it will show that you're responsible and can possibly handle having a CC) At my CU after 6 months of having a line of credit they let me get a CC.

Beyond that, if you already have some credit history, apply for a card. Rewards are nice, but if you don't pay your balance IN FULL every month the rewards are NEVER worth the interest you pay. General rule of thumb: use your CC like a debit card. Only spend the money you have. (Not the money you WILL have next pay day. If it's that important you can buy it after pay day)

Keep a 'low balance.' On creditkarma you get the best score if what you charge on your card is between 1-20% of your limit. So if your limit is low, (it probably will be at first) choose one thing to put on your card each month. For example, only use it for gas, or phone bill. But if your limit is high, you might be able to charge all your expenses for the month on the card. Check back whit the people you card is through every 6 months to a year to see if you can raise your limit.* Always ask for more than you think you deserve, but not more than you think you can handle.

Always pay on time. Lenders especially, but pay ALL your bills on time (phone, gas, electric, etc). The easy way is to set up easy pay. Most CC companies have this as an option. I have my bill pulled from my bank account every month 15 days before it's due. I never have to worry about late payments. Make sure you tell them you want to pay the full balance every month.

Hurry up and wait. Part of your score is based on the average length of credit. So the longer you have them open the better. But it's also based on average. So if you have one or two 'old' accounts and several 'new' accounts it shortens the average length of time. So try and keep your first card, don't close your line of credit, and don't go out to get a new cards or loans just because you can.

*While they've got your credit pulled, ask them what you can do to raise your score. There are going to be several reasons why you score isn't 850. They can tell you what those reasons are, and what you can do to make it go up.

If you have any ?'s or want clarification, reply to this thread and I'll try to answer.

:")

NP. Hope it all works out. :")

YES! part of your score is revolving credit. You should try to keep you balance on your card(s) between 1-20% of your limit(s)(that gives you the best 'grade' on your report card if you look at the one on creditkarma) If you put your car loan on your credit card (unless what's left is really low, or your limits are really high) you will have a 'high balance' which negatively affects your credit score. but paying off a loan (you car) will positively affect your score.

Check out the credit calculator on creditkarma.

However, if you have a very high interest rate on your car loan, and can put it on a very low interest rate on your card, you might save some $$. Do the math. See if the money you save is worth the effect on your score. (think about the future, do you have any major purchases (ex. home) coming up that you would need a good score for? or do you have time to keep building it up?)

Last bit of advice: if you do decide to pay your loan with your card, keep the payment. By that i mean, if you min. payment on your card is $60 and your loan payment is $200, start paying $260 on your card. Sticking to the minimum payments, it can take SEVERAL YEARS to pay off your cards.

There are many different opinions on this. So be prepared for different answers.

The best way to REALLY know is to use a financial calculator and do the math. However, USUALLY it is in your best interest to pay down the one that would be paid off first anyway (usually the smallest). Then use the payment from that towards the next smallest debt. Sometimes this is referred to as a 'debt snowball.' Then use the payments from those two that are paid off towards the next smallest, and so on.

This tends to work really well, because by the time you get to your biggest debt you can make HUGE payments and get it paid off FAST.

Also if you get paid every other week, try to do 1/2 the payment with every paycheck, instead of the full payment once a month. Depending on the loan, this can save you bucket-loads of interest and time. (Check with whoever your loan is through first, as some places don't have this option available.)

One last thought: Make a written budget. Tell your money where to go instead of trying to figure out where it went. See what you might have left at the end of the month, even if it's just $5. I understand that sometimes money is tight, but putting your money on a diet might make things fit better.

I recommend mint.com as a free money management website.

I personally recommend looking into an online bank. American Express Bank is currently offering 1.3% on their regular savings accounts. Once you open an account (or several accounts, you can have as many as you want) you can link it to your regular bank or CU with a routing # and account #.

I currently have 3 accounts with them and I've spoken to their customer service reps. They have been very helpful in answering my questions and helping me with my accounts.

Pros: 1.3% int. multiple accounts optional.
Cons: no building- you have to transfer $ to your actual bank or CU to withdraw etc.

I'm not super knowledgeable in this area, but I think it would suck to have your house paid for but no money to live off of. (once you're retired)

Never mind what the stock market does and doesn't do, I'd rather have a mortgage payment and some left over for food than the house paid for and nothing to eat.

Best advice? Make sure you have a written budget. Tell your money where to go instead of guessing where it went. See what you have left over and put that towards your house. Also, check with your lender and see if you can do half your payment twice a month (with your paycheck). This has the potential to save you mega bucks and lots of time.

sorry i couldn't be more help.

Yes and No. The hard inquiry on your credit sucks, especially if you don't get the card. However, if you feel you will get the card it can have benefits in the long run.
First, you can save on interest if you are not the type that pays your card in full every month.
Second, 'the more people who are willing to lend you money, the more people there are who are willing lend you money.' So, unless you already have an excessive amount of credit cards or other loans it will help your credit there.
Third, eventually it will add to the avg. length of credit. (which means right now it will bring that down too.)

BEST ADVICE: check the 'credit simulator' on this website. you can see exactly what different things will do to your credit. Including a hard credit inquiry.

Also, do some of the math yourself, sometimes the numbers you get in the 'savings' department are not an accurate reflection of reality. See if a new card really is all that much better then the one you have.

There are many different opinions on this. So be prepared for different answers.
The best way to REALLY know is to use a financial calculator and do the math. However, USUALLY it is in your best interest to pay down the one that would be paid off first anyway (usually the smallest). Then use the payment from that towards the next smallest debt. Sometimes this is referred to as a 'debt snowball.' Then use the payments from those two that are paid off towards the next smallest, and so on.
This tends to work really well, because by the time you get to your biggest debt you can make HUGE payments and get it paid off FAST.

Also if you get paid every other week, try to do 1/2 the payment with every paycheck, instead of the full payment once a month. Depending on the loan, this can save you bucket-loads of interest and time. (Check with whoever your loan is through first, as some places don't have this option available.)