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FluerVanderloo

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Well, I just got my first ever check card in the mail. First really big thing I've gotten with my name on it, save birth certificate and SSN card. So I have a question about these little buggers. Will a check card establish a line of credit?
 
Such accounts are of mediocre weight. What they do is show creditors that you have money, know how to manage money, never dip into the red... bla bla. So long as you have it for a while and don't bounce checks and whatnot.

The major player in establishing credit is actually getting a credit card. Sometimes that can be a pain. A relative might have to cosign with you the first time. Perhaps there are a few plans where you can have a card with a very small amount.. like $300 max credit line. The way to really establish is once you have such a card... don't screw up. Don't be late with payments. Don't miss payments.

Thats the most basic start.
 
I have the option for a Visa Plaitnum through this student banking account I have, but I honestly don't trust myself with a credit card. Then someone told me I could establish credit with a check card, but I wasn't 100% on that.

In June I'm getting an apartment with a friend, so that's when I'll get my credit card.
 
Never, ever, ever, EVER get a credit card. You will regret it the rest of your life.

I established credit by saving cash for a couple small purchases, like tires, opening a store credit account, then paying it off the next week. I chose stores that would extend the credit with my dad as cosigner. Next I took a small loan at the bank I had used since turning 14, and again paying it off early. After that, piece of cake.

Granted, times have changed a bit. But I would never recommend a credit card to anyone.

Ask your folks for the book Financial Peace by Dave Ramsey. Best $25 they'll ever spend on you. Then read it. Then do it. It works, trust me.
 
SouthernN'Proud said:
Never, ever, ever, EVER get a credit card. You will regret it the rest of your life.

I established credit by saving cash for a couple small purchases, like tires, opening a store credit account, then paying it off the next week. I chose stores that would extend the credit with my dad as cosigner. Next I took a small loan at the bank I had used since turning 14, and again paying it off early. After that, piece of cake.

Granted, times have changed a bit. But I would never recommend a credit card to anyone.

Ask your folks for the book Financial Peace by Dave Ramsey. Best $25 they'll ever spend on you. Then read it. Then do it. It works, trust me.
Click to expand...

http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?userid=NW0Pmw8CBr&isbn=014026468X&itm=2

And I'll spend even less than that if I used my Barnes & Noble Reader's Advantage card :swing:
 
No, it will not build credit, because you are not borrowing money. All it does is hit your checking account. That Visa logo don't mean shit.

I disagree (fairly strongly) with SnP about CC's. They have their place, but must be used responsibly. If you don't think you're ready for one, you probably aren't.
 
congrats on the plastic with your name on it! I remember that feeling .. your name there embossed on the plastic .. rising upward ... *soft sigh*

now, GO SHOPPING! hehehehehe
 
I disagree about the credit card too. They are very good if you are able to manage money. I never buy anything on my CC that I do not have the money in my account for (mostly use it for big purchases to get points since it's a GM Visa and points will save me $$ on a car in the future and when I forget my bank card...). Often I go onto online banking when I get home from making the purchase and pay off the purchase before it even shows on my account.
 
If I do hold off for a while though, say...until 21....waiting so long to establish a line of credit won't count against me, will it?
 
FluerVanderloo said:
If I do hold off for a while though, say...until 21....waiting so long to establish a line of credit won't count against me, will it?
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I don't think so...I was 21 when I got my first plastic...as far as I know the only thing is you'll be older when you have what they deem "established credit" because you have to have had credit for a certain length of time before it stops being "new credit" but I think that length of time is the same no matter how old you are when you first get a CC. I still have "new credit" afaik...
 
I agree with SnP in principle at least. Credit cards can be very tempting, but very expensive and have also wrecked many people credit ratings before they ever got the chance to build them. I guess I suggest a nice mix. Get a credit card but tape a note to it that has the interest rate on it. 18-19% for most peoples first credit cards.

Then remember, this $1000 purchase will cost you $15 a month just for interest, the minimum payment will be somewhere around $20. You will pay for this purchase for 89 months, and end up paying $1780 dollars for it.
 
FluerVanderloo said:
If I do hold off for a while though, say...until 21....waiting so long to establish a line of credit won't count against me, will it?
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It will, to a degree, but not as much as having bad credit.

I waited until I was 23 until I got my first CC. No one would take me due to inadequate credit history. Not bad, just not there.

I went to my bank, where I'd been for 8 years, and told them that I expected them to offer me a card. Low limit if they wished, but a card.

You can also help yourslef by getting other types of credit - car loan, etc., as long as you budget well and stay within your limits.
 
unclehobart said:
The major player in establishing credit is actually getting a credit card. Sometimes that can be a pain. A relative might have to cosign with you the first time. Perhaps there are a few plans where you can have a card with a very small amount.. like $300 max credit line. The way to really establish is once you have such a card... don't screw up. Don't be late with payments. Don't miss payments.

Thats the most basic start.
Click to expand...

yep, but I also had a friend that couldn't get a cc. He started by buying
a stereo through the rental place. After about 6mos., he then had good enough to get a cc. :swing:
 
BTW, whatever problems you have in getting a credit card will go away when you buy your first house. You'll have to beat the fuckers off with a stick.
 
catocom said:
yep, but I also had a friend that couldn't get a cc. He started by buying
a stereo through the rental place. After about 6mos., he then had good enough to get a cc. :swing:
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Oh, I forgot to mention, that's an expensive way to do it though.
 
Stay away from credit cards that charge you an annual fee. In fact, stay away from every credit card that charges you any fee (except the percentage rate for not paying the whole debt).
 
HomeLAN said:
BTW, whatever problems you have in getting a credit card will go away when you buy your first house. You'll have to beat the fuckers off with a stick.
Click to expand...

Home equity loans...I once had someone say "When you get a house all your troubles will go away, you can just borrow against the house. That's what I do." I just kinda stared at him blankly...like...how STUPID can you get...LIVE WITHIN YOUR MEANS! Obviously everyone gets into tough spots and may need to borrow some money with a car or house as collateral but this person took out a mortgage on a house that was paid off and continues to borrow against said house simply because he got injured, had to change jobs and take a pay cut and now can no longer live how he used to without the loans...make more than enough to live NICELY but he doesn't think it's good enough...some people are SO DUMB!
 
HomeLAN said:
BTW, whatever problems you have in getting a credit card will go away when you buy your first house. You'll have to beat the fuckers off with a stick.
Click to expand...
You got that shit right man. I just threw away 2 today.
...It was a typical day.
 
I've gotten to the point where, if it charges more than 9.9 fixed, I already have 3 better, so it hits the circular file. You have to offer below 8, or below 9 with something else tossed in, to get my attention.

Oh, and Luis is right. Annual fees are a crock.
 
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