Hogville

Non Sports Forums => FINANCE/INVESTMENT FORUM => Topic started by: Guinness Snout on June 28, 2014, 08:02:19 pm

Title: building credit using credit card.
Post by: Guinness Snout on June 28, 2014, 08:02:19 pm
I was recently appoved for a credit card and I was wondering if it was best to pay the balance in full every month or carry a small balance.  I've seen conflicting answers so I just want evryone's opinion here.  I would think it would be best to pay off the balance every month and on time to avoid interest charges.
Title: Re: building credit using credit card.
Post by: hog.goblin on June 28, 2014, 11:09:16 pm
Pay it off every month.  You don't need to carry balances to increase your credit score.
Title: Re: building credit using credit card.
Post by: Guinness Snout on June 28, 2014, 11:27:17 pm
Thanks that's kinda what I was thinking just wanted some opinions
Title: Re: building credit using credit card.
Post by: HawgWild on June 29, 2014, 10:51:06 am
Pay it off every month.  You don't need to carry balances to increase your credit score.

Ditto
Title: Re: building credit using credit card.
Post by: kodiakisland on July 01, 2014, 01:56:49 am
Yep.  Pay it off.  Just realize how easy it is to tell yourself you will pay half this month and the rest next month.  Before you know it you have that thing maxed out.  Most people never intend to run up their cards with no way to pay them off, but it happens.
Title: Re: building credit using credit card.
Post by: Old Tusk on July 01, 2014, 01:03:13 pm
The first month you don't pay in full, cut the card up.
Title: Re: building credit using credit card.
Post by: Guinness Snout on July 01, 2014, 01:11:41 pm
Thanks for the advice guys.
Title: Re: building credit using credit card.
Post by: husker71 on July 11, 2014, 10:20:51 pm
yep only way to go and like others I found out the hard way finally just put back enough to pay the whole thing off and have not used it in over a year.  I got my bill today with a $39 payment   it was for their yearly fee   I called them and told them I did not want to be charged that fee anymore and they told me (after a few minutes) they could waive it   If I had a big balance that would have never happened IMHO
Title: Re: building credit using credit card.
Post by: hawgrunner on November 27, 2014, 01:06:26 am
The first month you don't pay in full, cut the card up.

Cut it up anyways, you don't need a credit card to build credit.

Who needs a credit score anyway if you always pay cash??
Title: Re: building credit using credit card.
Post by: HawgWild on November 27, 2014, 11:35:19 am
Who needs a credit score anyway if you always pay cash??

Insurance companies look at credit scores to determine rates and insurability; regardless of whether or not you've got the cash in hand. Same for landlords before offering a rental/lease agreement.
Title: Re: building credit using credit card.
Post by: hog.goblin on November 27, 2014, 12:20:14 pm
Cut it up anyways, you don't need a credit card to build credit.

Who needs a credit score anyway if you always pay cash??

Insurance companies look at credit scores to determine rates and insurability; regardless of whether or not you've got the cash in hand. Same for landlords before offering a rental/lease agreement.

As do employers
Title: Re: building credit using credit card.
Post by: hawgrunner on November 27, 2014, 05:09:26 pm
So to get a job and insurance to need credit card debt?
Title: Re: building credit using credit card.
Post by: hog.goblin on November 27, 2014, 05:15:31 pm
So to get a job and insurance to need credit card debt?

Who said debt? 
Title: Re: building credit using credit card.
Post by: hawgrunner on November 27, 2014, 05:27:25 pm
Ok, so it's just having the credit card and charging it gives you a credit score?

But there has to be other ways right??
Title: Re: building credit using credit card.
Post by: sevenof400 on November 27, 2014, 05:50:06 pm
A credit score is a function of how well you use credit.  There is no one method to improving your credit score but in general there are things you can do to improve your credit score.

Paying your balances in full each month is an excellent practice.
If you don't pay the balance in full, try to pay as much over the minimum as you can afford.
If you do carry a balance on a card for a couple of months, try to pay the card off as soon as you can .... Try to pay more than the minimum.
if you can, let the card sit idle for a month (no charges).

In general, you are better off with one card and managing it well) as opposed to holding three or four cards (and managing them not so well).

Avoid store cards (Sears, Wal Mart, etc) unless the bulk of your shopping is at that store.  Too many people open several store credit cards due to some promotion or giveaway that really isn't worth that much but store cards effect your credit score as well. 

Having too many credit cards can be a problem. 

Just a few thoughts...
Title: Re: building credit using credit card.
Post by: hog.goblin on November 27, 2014, 06:03:03 pm
Ok, so it's just having the credit card and charging it gives you a credit score?

But there has to be other ways right??

Correct, having open accounts with little to no activity is great.

Good advice from seven.
Title: Re: building credit using credit card.
Post by: hawgrunner on November 27, 2014, 06:11:41 pm
I guess then all followers of Dave Ramsey will one day be hurting big time with no credit cards.
Title: Re: building credit using credit card.
Post by: hog.goblin on November 27, 2014, 06:40:02 pm
I guess then all followers of Dave Ramsey will one day be hurting big time with no credit cards.

Only if they need financing.  Dave misses the boat on this issue, though I think it's because he knows people struggle not using credit cards.
Title: Re: building credit using credit card.
Post by: hawgrunner on November 27, 2014, 09:23:31 pm
Only if they need financing.  Dave misses the boat on this issue, though I think it's because he knows people struggle not using credit cards.

Yes, Dave thinks everyone will pay cash for everything even a house.