- Jun 5, 2008
Thanks. I do plan on paying the card off every month. It's only purpose will be to build credit, be a safer option when shopping or paying bills online and to get a better card with rewards.One of the fast rules I live by is that I don't buy anything on my cards that I can't afford to pay cash for now. So, do what you have to in order to ensure you can do this. If you need to, you may also be able to get the credit card company to change the payment due date each month to a date that works better with your pay dates.
The card companies WANT you to buy things against yet-to-be-realized future income as they know it is a statistical certainty something (i.e. unexpected repair, utility, or medical bills, being laid off work or demoted, having to help family, etc.) will come up that will force you to make a partial payment. And, once you start paying interest to them, it is a very slippery slope. The balances expand very rapidly at 20-30% interest, and they know once you begin making partial payments eventually your payments will tend to trend more towards minimum payments which makes them more money.
When it comes time to start looking for a better card than the one you have, since your current card is Capital One look at Capital One's offerings first. Closing a card account will hurt your newly built credit, but Capital One may let you "upgrade" to a better card without showing an account closure on your newly built credit history. In a few years, this won't matter as much, but for now it is something you have to consider.
I didn't even see Capital One's other cards. I thought they only offered 3 when I first signed up. So what would be the best way to move to another bank/card? Would I really have to wait a few years before switching? Or would it best to keep the account open and open one with another bank in a year? If so can I limit the credit limits with both since I don't want a ton of credit available to me. Or will that hurt my credit?