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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

Just got my first credit card: some questions

What's the best way to build your credit score quickly? I know that just making your payments on time is key but as far as purchase go, is there any type of purchase that would help more than others? Or does that even matter? I realize building credit takes time but I was just wondering if there were any suggestions.

TIA


Siderophore
LSU Fan
Member since Nov 2010
3335 posts

re: Just got my first credit card: some questions
Just time.

Don't miss payments and keep the account open (even if you stop using it) to build age of credit history.

One benchmark that will tell you if you are ready for top teir cards is if you have a clean record, with a card or loan with a limit/balance of at least 5000, for 3 years.


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions
I have a small amount of credit that I've built up. I've always just paid with cash or a debit card. I guess no credit is a good credit, as they say, but on the other hand you need good credit to get loans. I'm a late arrival to the credit card population but I guess you gotta start somewhere.
This post was edited on 2/9 at 8:49 pm


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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4936 posts

re: Just got my first credit card: some questions
I've heard of some credit unions having "credit builder loans". You basically sign a note saying you will pay x amount per month to the credit union and they deposit the money in a savings account and the money is your's at the end of the term.


Crimsonsaint24
Alabama Fan
Alabama
Member since Jul 2011
552 posts

re: Just got my first credit card: some questions
quote:

I've heard of some credit unions having "credit builder loans". You basically sign a note saying you will pay x amount per month to the credit union and they deposit the money in a savings account and the money is your's at the end of the term.
I did this


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions
I'm going to look into that.


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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
43109 posts
Online

re: Just got my first credit card: some questions
Use your credit card as if it were your debit card now.

Put everyone you can afford to buy each month on it and pay it off. This alone did wonders for my credit score

ETA: if you don't mind me asking what card did you get?
This post was edited on 2/10 at 12:11 pm


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions
Thanks, Bacon! I just went and did the platinum card with chase since that's who I bank with.

So you're saying use it as a debit but only with things you can pay off at the end of the month. Is that correct?

Not platinum card. I meant freedom.
This post was edited on 2/10 at 2:54 pm


BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
43109 posts
Online

re: Just got my first credit card: some questions
Yeah... Instead of using your debit card use your new credit card. I even pay off my cc multiple times a month just to keep my budget in check


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions
Appreciate it, Bacon! Any opinion on the freedom card? I said platinum but meant freedom.


jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
5168 posts

re: Just got my first credit card: some questions
Freedom is a solid no yearly fee card.

I use the sapphire, I'm signed up on a 1st year no annual fee deal and if I can't get my fee waived after the first year I'll probably switch it to the freedom card.

Signed up for the Sapphire to get the 40,000 point bonus.


BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
43109 posts
Online

re: Just got my first credit card: some questions
I don't have it... But I would say it is probably the best card without a fee that does not require a membership (usaa / penfed)

I am a big fan of Amex though


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King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions
I wanted the sapphire but the lady said since its my first card, the freedom would be better to start off with. I'd like to get the sapphire after using the freedom for a while.


jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
5168 posts

re: Just got my first credit card: some questions
quote:

I wanted the sapphire but the lady said since its my first card, the freedom would be better to start off with. I'd like to get the sapphire after using the freedom for a while.


good plan


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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4936 posts

re: Just got my first credit card: some questions
quote:

Use your credit card as if it were your debit card now.


This is what I do as well. I pay with credit cards then payoff the cards a few times a month.

And if you're looking to maximize your score, do some research on the FICO scoring model because that is what lenders use when granting consumers credit. CreditKarma, Quizzle, FreeCreditScore, etc. are all decent ways to track your progress but don't have anything to do with what your FICO score is. That being said, you need more trade lines to increase your score. Most people in the know of FICO scoring recommend 2-3 credit cards with low utilization, at least one installment loan and eventually a mortgage.


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5861 posts

re: Just got my first credit card: some questions


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Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
39843 posts
Online

re: Just got my first credit card: some questions
Keep your credit utilization to under 50%.


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