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Discussion Starter · #1 ·
I have been a member here for a little while, I just haven't posted much. I don't have any money to spare for anything related to survival due to work, High school, Gas and Car insurance if something does happen like SHTF I am learning a lot of useful info on this site to cope.

I turned 18 years old in July and now I am trying to establish credit so I can get a good credit score and in the long run save me money. Is there any special way with a credit card to get good credit fast? Like do I leave a little bit of a balance on the card each month or do I just pay the entire card each month? Which is better?

How did you Establish Credit?(if you have Credit Cards)
 

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Use your card for daily purchases- but never exceed 30% of your limit. And PAY IT OFF IN FULL EVERY MONTH. Make your payments ON TIME- without fail. It doesn't make alot of difference whether you leave a balance or don't- so pay it off completely- save yourself the interest.
 

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Bratach Bhan Chlann Aoidh
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I agree with Kodie1.
There are times that if you have a card you WILL use it and before you know it you will be in too deep.
My advice - Don't start one.
I don't believe it will be worth squat in the next few years anyway. Earn and use cash.
 

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I have to agree with those who say not to have one. My wife and I gave up credit cards a few years ago. The accounts were closed, cards were shredded, etc. I can honestly say that since we did that, our financial situation has improved greatly. We have a visa check card if we want to order anything online and it has worked fine. Other than that, we pay cash for everything.

I'd strongly recommend you read a book called "The Total Money Makeover" by Dave Ramsey.
 

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Good advice from above. But remember, you don't NEED a credit card. (though they are nice for emergencies and travel) Work hard and pay with cash. Buy what you need, not what you want.
... You almost DO need one in today's world, actually... There are ALOT of things that require even just credit card verification. Try reserving a hotel room out of town for a weekend without one... Sure you can pay for it in cash when you get there- but try making the reservation without it... Not gonna happen. Now granted- that particular one can be avoided with a Debit card... But having a credit card and building credit history does help when it comes time to consider a mortgage. No credit history- no mortgage... Or ALOT more hoops... Of course, one can argue that one should pay cash for everything (including college, a house, etc.) but... Is that realistic in today's world/economy? The problem isn't credit *in and of itself* IMO- the problem is *abuse* of credit.
 

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Discussion Starter · #9 ·
yeah I know Credit Cards are bad. lol I have first hand experience, my parents declared bankruptcy when I was in the 7th grade. They had every single card they had maxed out. With over $100,000 in debt easy.

The main reason I am doing this, is to get myself set so when I apply for a Mortgage, car loan, or student loans I won't be totally screwed with Ridiculous interest and high payments. It will also let me be more flexible with my money and paychecks. I already know not to put more on the card than what I can make in a week. Who knows how much longer I will have a job.........

Also carrying around a bunch of cash in Dayton isn't the smartest thing to do.(muggings, Pick-pockets, and the possibility of losing it)

You can't Flag Cash when it gets stolen or lost.
 

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Shooter
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It all comes down to self control. Simple as that. Can you or can you not resist buying something just because you have a card. Ever since the first day I used my card, I made one silent rule. A rule that is basically the only way I ever saw to using a card. Only only ONLY put something on the card if you can pay it off the next day. Literally.

Say I needed 80 bucks in gas. I would make sure there was at least 80 in checking to pay it off (just am example). Then I would put it on the card, wait for the next statement, then just pay it right away (aka - RIGHT AWAY). Thats all.

For all these people that say credit cards are bad/evil/the devil etc etc.....well, thats because they are using them the way the CC companies want them too. Freely and carelessly.

That my advise. Say you went to do that fill up and had 80 bucks with you to pay the gas. Well, charge it instead, and put the 80 bucks in checking. Statement comes, pay it off. Bam, done. No interest, little hassle, built a little more you credit score, showed you can pay off what you charge. If someone has a disagreement, by all means add in. This is just what I have done.........
 

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Shooter
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By the way, try and leave the check book and debit card at home. Accidental loss and/or theft makes it too easy to access everything in your account. Sure, you'll have other important info in your wallet, by why carry it all? I've never used my debit card. Not once. Never had a problem. Also, that statement is correct above, in today age, ALOT of things require credit cards.
Sure you can abstain from current technology if you want, but the majority of transactions are electronic and cc's make it all the easier. Just cover your but and try keeping the online stuff to a minimum. Only buy from respectable sites, if you do. And delete cookies etc etc.....haha. :thumb:
 

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Bratach Bhan Chlann Aoidh
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Aye, we have Debit cards.
You cannae spend what you don't have.
But I could still book Mama Bear a room far away in a distant land. :)
 

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In today's world even getting the best rate on car insurance depends on your credit rating. And if you buy something online you need a credit card for the purchase. So I say, use the card sparingly, wisely and above all, with great discipline. PAY IT OFF EVERY MONTH AND NEVER, EVER BE LATE WITH A PAYMENT. Credit card companies want people to carry a balance. That way they are making money on both ends of the deal--from the merchant as well as the card user. People who pay it off every month, as I do, are USING the credit card company, instead of being used BY them.

Good luck.
 

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Discussion Starter · #16 ·
I do have a Debit card and I use it for buying things online. Using a card is about the only way to buy something online. The card I just got is a Speedway Credit card, so the more I use it the more Speedway points I get which in turn leads to free stuff like food, gift cards and gas. Since I will be paying it off regularly I won't get screwed.

It would be nice if I could live a credit card free life. But until I have a Decent credit score, I will be building it up.

So don't put more on the card than what I have in my account at that very second. Have self control on impulse Items. ONLY put alot of money on the card if it is an Emergency. Pay the card off every time I use it so I won't have to pay the Interest. DON'T FORGET TO PAY OFF THE CARD.

I think I got everything so far.

Anything else?
 

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If you have a credit card,you WILL spend about 18-20% more than if you paid with cash.Statistical fact. McDonalds found that people would spend about 50% more than if paying with cash.I would recommend chopping it up.They are evil in their root nature. Don't worry about a credit score. I just checked mine..no score at all.Yeehah! That score says I'm not a schmuck who is so broke that he has to borrow all the time,just to survive.Are you?
 

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That's a good point. Here's a paper that was written by two MIT professors about how people spend more when paying with plastic.

http://www.springerlink.com/content/vv4543514814107h/

If you have a credit card,you WILL spend about 18-20% more than if you paid with cash.Statistical fact. McDonalds found that people would spend about 50% more than if paying with cash.I would recommend chopping it up.They are evil in their root nature. Don't worry about a credit score. I just checked mine..no score at all.Yeehah! That score says I'm not a schmuck who is so broke that he has to borrow all the time,just to survive.Are you?
 

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Just be careful! If you goto school you will probably be getting loans, make sure you pay them on time every month, don't wait until the last minute.

If you get a credit card treat it like Amex, pay it off in full every month. I beleive if you goto one of the three credit reporting agencies they can explain exactly how your credit rating is calculated. That would be the best way to figue out how to build your credit rating.

Don't count on family, freinds or forums for financial advice, try to get it straight from the source or from a proffessional.

Once you esablish some credit you will be getting a million offers for credit in the mail on a regular basis, it is very tempting and very easy to get in financial trouble quickly. If you don't think your ready for the responsibility of a credit card, then wait until you feel you are. Good luck.
 

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look at his third sentence.He states he doesn't have any extra money,after paying the usual everyday survival bills. A credit card is exactly the last thing on Earth this guy needs.He needs wisdom,and that comes from budgeting,saving,and sacrificing.
A credit card is like the Jogger Motel...joggers jog in,but they don't jog out...
 
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