I was approved for my first credit card!

[Eos]

All of this talk about points and cash back and whatnot made me rethink my debit card lifestyle. I had an offer in the mail this week, so I called and they approved me for $750. Not sure what the rate is, but I won't carry a balance. The fee is based on a carried balance as well.

I concluded a chapter 7 bankruptcy filing in February of 2004, so this is also a way to get my personal credit rating back in order. My g/f and I decided I will buy my fuel and lunches with this card. If it goes well, she will consider getting her own "super bonus card" and we can both use that for the free stuff. My new card has no bonuses. I can't expect everything, eh?

*First card since about 1996.

 

[upsciLLion]

Make lunch at home. Much cheaper.

Congrats on getting things back on track. :thumbsup:

 

[clickynext]

I agree, make lunch yourself, saves quite a bit of money. Only eat out on occasion.

 

[Eos]

Originally posted by: clickynext
I agree, make lunch yourself, saves quite a bit of money. Only eat out on occasion.

Like the two times a week I do now?

 

[mh47g]

Originally posted by: eos

Originally posted by: clickynext
I agree, make lunch yourself, saves quite a bit of money. Only eat out on occasion.

Like the two times a week I do now?

two is even excessive. I used to eat out all of the time and I now realize how stupid it was (college student). 2 or 3 times a month max for me if I can help it... (trying not to forget my lunch is a tough one at 5:30am)

 

[Eos]

Two times is fine for me.

Thanks to all for the unsolicited advice. :thumbsdown:

 

[Muse]

When I had a good full time steady job, for once in my life I ate lunch out every day, after a while, anyway. Now I eat out maybe once a month. The stuff I make is healthier, anyway, plus I know what's in it. Well, sort of.

It took me so long to get my first credit card I refuse to ever carry a balance. I was never in debt my whole life and still owe noone anything. It was a catch 22. They wanted to know if I payed off my debts, but I never had any! I had a full time job, cash, a car, they still wouldn't give me a card. I applied several times. After a while, I think they see your applications and count the rejections against you, the bastards. Finally I got approved, and soon the offers were coming in the mail constantly. I probably have 1/2 dozen cards now, but only use 1 or 2, both having rebates. That 1%+ is an incentive to use plastic, plus the ~1 month deferred payment, which I always set up autopayment on my checking account.

 

[Eos]

I am looking forward to the benefits. We should be there soon.

Maybe I'll even cut my lunch restaurant trips in half!

 

[soonerproud]

To help build credit quickly here are a few tips.

1. Never max out the card. It actually can hurt your credit score if you max out the card and leave the balance on there more than 30 days.

2. Pay at least double the minimum payment (Paying the entire balance is recommended). Paying only the minimum payment is a red flag that you are overextended and can hurt your score.

3. Use the card frequently and pay the entire balance off when the bill comes. Keep the money you would spend on gas, groceries, etc in the bank and use the card. This builds a history and will help build a solid credit score.

4. Keep $100 on the card all the times.(Pay the rest of the balance off.) The banks that issue these cards do so to make some money on the interest. If you keep a small balance on the card the bank will be more inclined to raise the limit. This will improve your credit score as long as you follow the advice I previously gave you.


Edited for clarity.

 

[kevnich2]

Just out of curiosity, why did you file Chapter 7 bankruptcy in 2004?

 

[RichUK]

How long does it take to turn around a bad credit rating?

 

[MrChad]

Originally posted by: soonerproud
To help build credit quickly here are a few tips.

1. Never max out the card. It actually can hurt your credit score if you max out the card and leave the balance on there more than 30 days.

2. Pay at least double the minimum payment. Paying only the minimum payment is a red flag that you are overextended and can hurt your score.

3. Use the card frequently and pay the entire balance off when the bill comes. Keep the money you would spend on gas, groceries, etc in the bank and use the card. This builds a history and will help build a solid credit score.

4. Keep $100 on the card all the times. The banks that issue these cards do so to make some money on the interest. If you keep a small balance on the card the bank will be more inclined to raise the limit. This will improve your credit score as long as you follow the advice I previously gave you.

You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

 

[Mxylplyx]

Given your apparent past issues with credit, the day you catch yourself carrying a balance, you should cut up the card and never look back. Keep youself from going down that road again by not allowing youself to give an inch. Dont carry unsecured debt....ever.

 

[soonerproud]

Originally posted by: RichUK
How long does it take to turn around a bad credit rating?

It can take as little as a year if you do the right things. You will probably not have stellar credit, but you will have a decent enough score to be able to buy a car or a home.

Keep in mind that the better the score you have, the lower the interest you will pay.

 

[krunchykrome]

Originally posted by: kevnich2
Just out of curiosity, why did you file Chapter 7 bankruptcy in 2004?

Why does anybody file for bankruptcy? Think about it.

 

[Eos]

Originally posted by: MrChad

Originally posted by: soonerproud
To help build credit quickly here are a few tips.

1. Never max out the card. It actually can hurt your credit score if you max out the card and leave the balance on there more than 30 days.

2. Pay at least double the minimum payment. Paying only the minimum payment is a red flag that you are overextended and can hurt your score.

3. Use the card frequently and pay the entire balance off when the bill comes. Keep the money you would spend on gas, groceries, etc in the bank and use the card. This builds a history and will help build a solid credit score.

4. Keep $100 on the card all the times. The banks that issue these cards do so to make some money on the interest. If you keep a small balance on the card the bank will be more inclined to raise the limit. This will improve your credit score as long as you follow the advice I previously gave you.

You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

I saw the same thing. No big deal... :laugh:

I'm following #1 and #3. Faithfully. Reading the other threads about credit card use over and over gave me a good base to work with.

 

[nageov3t]

I hear maxing out the credit card by buying things you can't afford and then never paying off the balance is a sure-fire way to big success :thumbsup:

 

[soonerproud]

Originally posted by: MrChad
You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

Yes. If he must leave a balance on the card pay double the minimum. On #2 I was talking about the entire balance except the $100.

The $100 is money he should forget is on the card for the time being to help improve his credit.

 

[DT4K]

One more tip:
Be very careful about taking credit advice from anyone on AT. About 20% of the people here know what they are talking about and the other 80% will continue to spread misinformation every chance they get. If you want to be sure to get the correct answer to a credit related question, head over to creditboards.com.

 

[coaster831]

Originally posted by: soonerproud

Originally posted by: MrChad
You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

Yes. If he must leave a balance on the card pay double the minimum. On #2 I was talking about the entire balance except the $100.

The $100 is money he should forget is on the card for the time being to help improve his credit.

Don't leave a balance on your card. The whole point of a good credit score is to save you money and get favorable rates in the future... paying interest doesn't accomplish that (even if it's only the interest on $100).

Your credit score will go up plenty just by making your payments on time and using your card responsibly.

 

[MrChad]

Originally posted by: soonerproud

Originally posted by: MrChad
You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

Yes. If he must leave a balance on the card pay double the minimum. On #2 I was talking about the entire balance except the $100.

The $100 is money he should forget is on the card for the time being to help improve his credit.

What's your source on this?

 

[edro]

Originally posted by: MrChad

Originally posted by: soonerproud

Originally posted by: MrChad
You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

Yes. If he must leave a balance on the card pay double the minimum. On #2 I was talking about the entire balance except the $100.

The $100 is money he should forget is on the card for the time being to help improve his credit.

What's your source on this?

Don't listen to him. Having a positive balance on a credit account does NOT help your credit.

BTW...
I eat breakfast in our work cafeteria 5 times a week. ($4 each)
I eat lunch out every workday (5). ($5-7 each)
And I usually eat dinner out 3-4 times a week. ($6-20 each)

Hmmm... it seems that I use a lot of my money towards food.

 

[dullard]

Originally posted by: MrChad

Originally posted by: soonerproud
To help build credit quickly here are a few tips.

1. Never max out the card. It actually can hurt your credit score if you max out the card and leave the balance on there more than 30 days.

2. Pay at least double the minimum payment. Paying only the minimum payment is a red flag that you are overextended and can hurt your score.

3. Use the card frequently and pay the entire balance off when the bill comes. Keep the money you would spend on gas, groceries, etc in the bank and use the card. This builds a history and will help build a solid credit score.

4. Keep $100 on the card all the times. The banks that issue these cards do so to make some money on the interest. If you keep a small balance on the card the bank will be more inclined to raise the limit. This will improve your credit score as long as you follow the advice I previously gave you.

You suggest that he pay double the minimum payment in #2, the entire balance and #3, then leave $100 on the card in #4.

That is because he has no idea what he is talking about.
[*]#1 is a good idea, but it has nothing to do with "building credit quickly". So, while it is a valid tip, it is mislabeled.
[*]#2 isn't true. Your credit report only mentions if it was paid on time in accordance with the agreement, not how much was paid. Thus your score can't be affected by how much you pay. Plus, you shouldn't pay double the minimum, you should pay it off in full.
[*]#3 is right on.
[*]#4 is just false. They make money by the fees they charge the stores. Interest on occasion by a good customer gets them some money, but interest isn't a money maker at all for many customers. Interest can be (and often is) a money loser to the CC company. Also, the credit score is unaffected since it doesn't know how much money you paid. Finally, you are just throwing your good money away.

 

[coaster831]

Originally posted by: DT4K
One more tip:
Be very careful about taking credit advice from anyone on AT. About 20% of the people here know what they are talking about and the other 80% will continue to spread misinformation every chance they get. If you want to be sure to get the correct answer to a credit related question, head over to creditboards.com.

This is also good advice. Read the finance forum at fatwallet.com.

 

[Eos]

Originally posted by: Mxylplyx
Given your apparent past issues with credit, the day you catch yourself carrying a balance, you should cut up the card and never look back. Keep youself from going down that road again by not allowing youself to give an inch. Dont carry unsecured debt....ever.

As a family, the g/f and I have not bought anything on credit for over 2 years. We're on our way to being debt free.