How do I use my credit card wisely?
Greetings! Well, here is a bankruptcy question that will help answer a common query. Good luck!
I just got a Capital One Visa card with a $500 limit. So far, I have charged about $80.00 on it. I have the money to pay it off in full but I am wondering what are the tips and tricks of credit to make my score go up. I am 22 and my credit sucks so it’s a miracle that I got this card, I don’t want to play around and I don’t want them to close my account. I had a credit card before but it was in my dad’s name and I was put on as in authorized user and it showed up on my credit report ( I was age 16-19 at the time, are they allowed to do that? I was an authorized user, not a co-signer). Anyway, what are some tips and tricks to clean up my credit? I am thankful that I was approved and I know don’t go over my limit and only buy things I can actually pay for but what do I do? There are a lot of pulls on my credit report (I applied for MANY cards, MANY times. I know, not a good idea) and then there is the thing I was talking about before, the authorized user thing. It was paid in full but I don’t know.
Help/ideas?
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Tags: bankruptcy
November 30th, -0001 at 12:00 am
Scores take lots of time to build. And there are a couple of things you MUST DO in order to take control of your credit.
First, since you already have a credit card on your own, GET REMOVED from your parents accounts (authorized user) Consider this: ANY negative information your parents acuire, be it from non paid medical bills, to bankruptcy will end up in your credit report. Yes your parents may be very responsible now you might say and that will never happen to them but this way only you have control over what happens with your accounts.
Why are you saying your credit sucks? Credit is made of several factors. You only have one credit card with no credit history. Relax and forget about it. Go to annualcreditreport.com and chec your credit report for free to make sure everything is the way is suposed to be. Do this regularly.
Credit can get you many things, but it can get you into lots of trouble very easily. DO NOT SPEND WHAT YOU DONT HAVE. Use your new credit card to pay for things you would pay for cash otherwise such as goceries and gas, not that new stereo that you plan to charge now and pay later just because you have a job. Set a savings account aside, and then save to buy what you need. Once you have the money simply use the card and pay it right back.
NEVER EVER PAY LATE! Use bill payment, and pay at least 10 days before the due date. If there is a problem, you will have time to correct it.
Allow your report to heal, DO NOT apply for more cards for gods sake. Everytime you apply your credit score gets lowered.
After one year of using the card, if they have not increase your limit, dont be afraid to ask for it. Later you need to diversify the type of credit you have.
You can request experian, transunion and equifax to removed pulls from non afiliated companies.
And last, although you cold pay for it right away, refrain from charging 499.99 every month on the card with the hopes you are going to get your limit increased sooner. It does not work that way. Cerain companies such as Discover, Capital one and Chase dont increase limits easily these days.Others like Citi still do.
November 30th, -0001 at 12:00 am
Scores take lots of time to build. And there are a couple of things you MUST DO in order to take control of your credit.
First, since you already have a credit card on your own, GET REMOVED from your parents accounts (authorized user) Consider this: ANY negative information your parents acuire, be it from non paid medical bills, to bankruptcy will end up in your credit report. Yes your parents may be very responsible now you might say and that will never happen to them but this way only you have control over what happens with your accounts.
Why are you saying your credit sucks? Credit is made of several factors. You only have one credit card with no credit history. Relax and forget about it. Go to annualcreditreport.com and chec your credit report for free to make sure everything is the way is suposed to be. Do this regularly.
Credit can get you many things, but it can get you into lots of trouble very easily. DO NOT SPEND WHAT YOU DONT HAVE. Use your new credit card to pay for things you would pay for cash otherwise such as goceries and gas, not that new stereo that you plan to charge now and pay later just because you have a job. Set a savings account aside, and then save to buy what you need. Once you have the money simply use the card and pay it right back.
NEVER EVER PAY LATE! Use bill payment, and pay at least 10 days before the due date. If there is a problem, you will have time to correct it.
Allow your report to heal, DO NOT apply for more cards for gods sake. Everytime you apply your credit score gets lowered.
After one year of using the card, if they have not increase your limit, dont be afraid to ask for it. Later you need to diversify the type of credit you have.
You can request experian, transunion and equifax to removed pulls from non afiliated companies.
And last, although you cold pay for it right away, refrain from charging 499.99 every month on the card with the hopes you are going to get your limit increased sooner. It does not work that way. Cerain companies such as Discover, Capital one and Chase dont increase limits easily these days.Others like Citi still do.
November 30th, -0001 at 12:00 am
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Hope you found this as helpful as I did
November 30th, -0001 at 12:00 am
There is a few awesome info of the best fitting choices over on http://www.improveyourcredit.tk. check out the info before choosing your final choice.
Hope you found this as helpful as I did
November 30th, -0001 at 12:00 am
Only charge what you can afford to pay in full every month. And always make sure you make the payment BEFORE the due date. This will build your credit and save you interest.
Authorized user accounts show on your credit report and count in the score for spouses and kids. If that account was paid on time, it should have built your credit. Is it still on your credit report? Your father may have removed you from the account or close it.
Don’t worry about the hard inquiries at this point. Yes, they ding your score but in a year they won’t have any impact on your score at all. They will completely age off in 2 years. Of all the things on your credit report to worry about, inquiries are the absolute last thing on the list.
November 30th, -0001 at 12:00 am
Only charge what you can afford to pay in full every month. And always make sure you make the payment BEFORE the due date. This will build your credit and save you interest.
Authorized user accounts show on your credit report and count in the score for spouses and kids. If that account was paid on time, it should have built your credit. Is it still on your credit report? Your father may have removed you from the account or close it.
Don’t worry about the hard inquiries at this point. Yes, they ding your score but in a year they won’t have any impact on your score at all. They will completely age off in 2 years. Of all the things on your credit report to worry about, inquiries are the absolute last thing on the list.
November 30th, -0001 at 12:00 am
what a lot of people do is when they receive a credit card they use it more so than cash, so they accumulate a large sum regardless of whether they can pay it off or not. My suggestion would be to either go one of two ways. You can ,A, use it for larger purchases such as televisions, stereos, computers, car parts et cetera. Or B, use it for smaller purchase, such as weekly runs for food, filling up at the gas pump, smaller entertainment such as movies, games. Either way, the most important rule of good credit is to have the money to pay it off, and pay it off in good timing.
November 30th, -0001 at 12:00 am
what a lot of people do is when they receive a credit card they use it more so than cash, so they accumulate a large sum regardless of whether they can pay it off or not. My suggestion would be to either go one of two ways. You can ,A, use it for larger purchases such as televisions, stereos, computers, car parts et cetera. Or B, use it for smaller purchase, such as weekly runs for food, filling up at the gas pump, smaller entertainment such as movies, games. Either way, the most important rule of good credit is to have the money to pay it off, and pay it off in good timing.