Credit cards

Sep 15, 2004 09:33

I have recently received my first credit card. I have conflicting feelings about this. My mom told me that I need to spend about $300 in order to really start building my credit. Though I would like to do this it is still scary. I fear myself going out of control and maxing it out. I know that I won't do this, but it is kind of the same ( Read more... )

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how its done atrocity_ September 15 2004, 12:41:22 UTC
you are supposed to just buy things with the credit card that you would normally buy with your debit card or cash. Then pay it off every month. If you pay all your monthly expenses this way and only use your cc for things that you would normally use your debit card for, you'll be fine. Going out and buying an xbox just to use your credit card is not how to do this.

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Re: how its done dark_finance September 15 2004, 12:45:21 UTC
Robinson,

I understand how credit works. I work with it every day. To have the best credit score possible, your credit cards should be about 25% full. You not only have to have a credit card and use it, but also make a profit for the credit card companies. This makes you a good consumer and that will increase your credit score. If you have other questions on the subject I would be happy to fill you in.

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Re: how its done atrocity_ September 15 2004, 12:57:26 UTC
For someone who claims to understand so well you seem to have trouble grappling with this issue. You have 284 dollars, find the card too attractive to use, and instead of deciding to use it on things you always buy, like groceries, you decide to buy an xbox (plus a famine mod job ) which all together will probably cost you more than 300 dollars.

It will get you up to your 25% mark sooner, but a month or two of waiting to get there is not going to hurt you. If you didn't plan on buying an xbox before you got the card, then it is not financially responsible to do so now. End of story.

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derektor September 15 2004, 15:33:24 UTC
chris knows about the credit card thing b/c he already went through the credit card debt thing so he's speaking from experience.

anywho...
i think an xbox would be a good investment.

"I've got to earn more money and find a cheaper way to FW."
aren't you living in fw right now? if yes, we should hang out sometime.

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_famine_ September 15 2004, 17:10:06 UTC
He lives in Woodinville. The opposite of FW.

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guess we'll be doing... derektor September 15 2004, 17:27:11 UTC
the opposite of hanging out then.

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dwing September 17 2004, 02:00:55 UTC
I've had a credit card since I was 17. From my experience my credit score was not improved just because I spent money on it or because I had a balance. It is more important that you pay the actually bill in time and if you pay your total balance. When I was about 20 I had about a $3000 credit card debt and was just screwed over by the APR. I payed it all off and that's when my credit improved and at the moment I don't have a balance on any of my credit cards and my credit score is the highest it's ever been. I think the no balance thing is do to the fact that I use American express and you have to choice but to pay your balance at the end of the month ( ... )

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