No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I started my garden two minutes ago!
I hear all these horror stories about how creditors monitor your credit and any suspicious activity can result in reduced credit limits or even closed accounts. Chase seems to be the most notorious for this.
As a new gardener, I'd appreciate any tips that can help me (besides paying on time and keeping low balances) keep my accounts in good standing with all my creditors.
Find other stuff to concentrate on aside from the next app or CLI, LOL!
Get off this site and sock draw your cards. lol. On a serious note just use 5-25% of your available credit.
Always pay on time and in full if possible. Make sure to keep all accounts active with a transaction atleast every few months. Don't let your credit reports reflect too high a utilization.
Use as much of your total CL as you like, as long as you have the cash on hand to pay the cards off immediately. Don't ever, ever buy something that you can't pay off that month, unless it's on a 0% or something, and even then, think it through.
To keep your scores up, and possibly to keep from alarming your lenders, pay your cards off before their statement dates, all but one card. That way, they'll all report $0 except for the one. Let that one report something low, and then pay it off before the due date, so that you don't pay any interest.
Basically, just think of your credit cards as slow debit cards that hit your checking account once a month. If you want to buy something, but you don't have the money now, or have it budgeted from the next paycheck, don't buy it. Pretty simple, actually.
Thank you for your responses! Yes, it's all common sense, but as a new credit building addict, I am leaving no stones unturned.
If you pay off your balance in full all the time, don't the creditors hate you? They don't make any money off of you if you always pay in full, right? Of course, paying in full is amazing for credit, but will paying in full stop Chase from viewing me as a "deadbeat" customer because I don't make them any money???
I've always been curious about that.
they still make money off of whoever your spending money on with every transaction
@Anonymous wrote:they still make money off of whoever your spending money on with every transaction
+1
Lenders get "swipe fees" every time you use your card.
So yeah, they're not making any money off of me via interest, but with me, they sure get lots of swipe fees, because I quite literally use plastic for everything other than Diet Cokes at the cafeteria and the Sunday collection plate.
It hasn't been a problem so far, and I've gotten auto CLI's from most of my banks.
Also, have some kind of plan where you'd like to be (credit-wise) a few years down the road. Don't end up being one of those people who'll apply for a library card just to get their fix.
@drkaje wrote:Also, have some kind of plan where you'd like to be (credit-wise) a few years down the road. Don't end up being one of those people who'll apply for a library card just to get their fix.
I resemble that remark....