I have had the secured visa through my bank for a little over a year. I know the reports are clear because I have usaa monitoring I refresh it everyday. I did just get off the phone with my dad though and he says cash is king. He told me the rates on all cards are insane, and I should just use credit for things like cars and houses. He has a Mercedes and has been carrying Amex since I was born...I think he just doesn't want me to get hurt, but it makes me afraid to do anything 
SuzyStellar wrote:I have had the secured visa through my bank for a little over a year. I know the reports are clear because I have usaa monitoring I refresh it everyday. I did just get off the phone with my dad though and he says cash is king. He told me the rates on all cards are insane, and I should just use credit for things like cars and houses. He has a Mercedes and has been carrying Amex since I was born...I think he just doesn't want me to get hurt, but it makes me afraid to do anything
Yes, cash is king, sometimes.
You could have a 99% APR on a credit card and as long as you always PIF before the due date, it doesn't matter, you wouldn't pay a single cent of interest on it.
And unfortunately, the world the credit world works, if you want to have things like car and houses, you need to actually have credit first.
And since he's doling out such "sage" advice, maybe you should ask him if you could be an authorized user on his AMEX card. That would do wonders for your AAOA.
SuzyStellar wrote:I have had the secured visa through my bank for a little over a year. I know the reports are clear because I have usaa monitoring I refresh it everyday. I did just get off the phone with my dad though and he says cash is king. He told me the rates on all cards are insane, and I should just use credit for things like cars and houses. He has a Mercedes and has been carrying Amex since I was born...I think he just doesn't want me to get hurt, but it makes me afraid to do anything
Your father is right, cash is king and interest rates on credit cards are very high compared to interest rates everything else. But that does not mean it is bad to use credit cards, as long as they are used responsibly. If you always pay in full, it makes sense to use credit, especially if you can earn rewards. One needs to establish credit history with credit cards before taking out loans for cars and houses, to show responsibility and get better interest rates. Responsible use of credit cards can save a person thousands of dollars. For most of my time in college, I didn't want anything to do with credit cards because I hated the idea having debt. My parents didn't push me towards credit either, because they feared I'd abuse it. Finally, when I was 21 I started to realize the importance of establishing credit and got my first card. That was one of the best decisions I've ever made. You really should build up a sold history of responsible credit card usage with multiple cards.
SuzyStellar wrote:I just had some jumps in my fako scores, so I think my real scores must have come up. I have one collection sitting on Equifax ($160), and a paid on Transunion. I have one open secure card with a 0 balance and $250 CL there is nothing else on my credit. We are buying a home in my husbands name in the next few weeks. I was thinking about applying for a Lowes or Home Depot card for things we will need. Then I was thinking about one of those Chase cards, but I heard some banks don't like to see those on your credit as they are for poor credit people? idk What should I do? I would like to have a card that doesn't charge me to use it every year, and some kind of advantages for using it instead of cash. Up till now we have only used cash, and only used the secure card if we really need it, which doesn't happen often. I am just trying to think ahead, if we need it. I know we need to buy a new stove, and maybe some carpet and paint and if we have a card we can pay it little by little and have more free cash available to enjoy our new home and get the kids those new beds! Help please, and thank you!
You need to find out where you stand first and get your EQ score here. Lowes, HD, and Chase are all fine. None are for "poor" people. Lowes is GEMB which is the largest backer of store cards. HD is backed by Citi. Chase is, well, Chase. All are fine and not negative. My choice would be Lowes for the 18 month 0% financing. I got when I bought my house a couple months ago and used the financing offer for new appliances. It also offer 5% off on all purchases if you don't finance, your not going to beat that with any other card.
Your Dad is right, cash is king. But credit used wisely better than cash and will make you money. Using credit cards daily can net you cash back and protection on your purchases. Used wisely this will lead to lower interest rates on your auto and other loans. Just don't carry a balance on your credit cards and you will never notice the difference in using cash other than more cash in your bank account.
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