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A "real credit card"

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Contributor

A "real credit card"

What determines a real cc ......in regards to one card with a small balance and the other 2 at $0

I know it can't be an authorized user
Does it have to be a visa? Or is Mastercard okay?
Message 1 of 5
4 REPLIES 4
Super Contributor

Re: A "real credit card"

The one card that reports your positive balance should have all of the following true about it:

 

(1)  It is a true credit card, as opposed to a charge card

(2)  It is a card in your name, rather than a card on which you are an AU

(3)  It has at least $5 but otherwise has a small balance

(4)  Its credit limit is < $34,900.

 

Otherwise it could be a store card, a Visa, Amex, Mastercard, or Discover, etc.

 

To expand:

 

(1)  Charge cards are cards where you are required to pay the statement balance in full.  With credit cards you can play less and carry the remainder.  The balance of charge cards are sometimes ignored in a utilization calculation

 

(2)  The balance of AU cards are sometimes ignored in a utilization calculation.

 

(3)  You want your total utilization to be very low (< 8.9%) and your individual util to be < 29%.  You can achieve both if you just make the amount small, like $10 or $20.  If the amount is ultra-tiny, like $1-3, however, it can sometimes be treated as $0.

 

(4)  Cards with an astronomical credit limit are sometimes ignored in a utilization calculation.  That may not happen until your CL reaches 50k, but might as well play it safe and make it < 35k.

Message 2 of 5
Contributor

Re: A "real credit card"

Okay. So my mastercard shpuld do I think......it's barclaycard.....

Not sure if it's a charge tho....never let a balance carry
Message 3 of 5
Super Contributor

Re: A "real credit card"

I assume its a credit card.  If you aren't sure, that's something you should find out.  It's important that for every account you have, you understand its basic properties.  For example, you should know its credit limit, what purchases the card is best used for, whether it is a credit card or a charge card, etc.  Minutia it's fine not to know.  But whether a card is credit or a charge card is like knowing whether you can put diesel gas in your car or not -- you gotta know that in order to be a responsible owner of the car.

 

Good luck, bud!

Message 4 of 5
Super Contributor

Re: A "real credit card"


@Creditcardman wrote:
Okay. So my mastercard shpuld do I think......it's barclaycard.....

Not sure if it's a charge tho....never let a balance carry

The logo of the financial service corp. on the card (MC, Visa, etc) does not make it a credit card; debit cards have this on them as well.  As CGID suggested, you need to find out more about the card by calling the creditor (Barclaycard) and asking them about it.  Do you receive a bill/statement monthly?  It should have the information you need on it. 

Message 5 of 5
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