- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Spinoff thread... Money Board.... Credit.. Blah blah
Posted on 11/9/18 at 10:26 am
Posted on 11/9/18 at 10:26 am
So, I noticed in my money saving tips thread that alot of repsonses were in regards to not having debt, credit card debt, etc.
For one, I think one of our society's biggest issues is not teaching fundamental financial guidance in our schools. Things like paying your taxes, how to build credit, how to use a credit card, how mortgages work, etc.
I was cluesless to all this when I was younger as well...
So... Here are my credit and credit card tips.
1. Get one early. One of the biggest things that affects your credit is it's timeline history. Having a credit line that spans back to your early 20's is great. You can also get yourself added as a authorized user at the age of 14 or so on your parents card or some other responsible credit card user. I have my daughter added to mine as already to start building her credit.
2. Only use about 10% or less of your credit line. This is a biggy. Up to 20% is ok, but no more for sure.
3. Pay that shite off! Set it up to be automatically paid off. And pay it off earlier just so it is paid off and you don't have to worry about it. Don't ever spend what you can't pay off.
4. Every six months ask for a credit line increase. You can do this pretty easily with most cards these days without having to have your credit checked. Usually it just amounts to filling in some monthly mortgage/rent info along with your yearly income.
5. Slowly add multiple cards with better benefits (cash back, etc), but never cancel your oldest lines of credit.
That's pretty much it til it comes to taking out a real loan for a mortgage.or something like that.
Do those things and you should be in good shape.
For one, I think one of our society's biggest issues is not teaching fundamental financial guidance in our schools. Things like paying your taxes, how to build credit, how to use a credit card, how mortgages work, etc.
I was cluesless to all this when I was younger as well...
So... Here are my credit and credit card tips.
1. Get one early. One of the biggest things that affects your credit is it's timeline history. Having a credit line that spans back to your early 20's is great. You can also get yourself added as a authorized user at the age of 14 or so on your parents card or some other responsible credit card user. I have my daughter added to mine as already to start building her credit.
2. Only use about 10% or less of your credit line. This is a biggy. Up to 20% is ok, but no more for sure.
3. Pay that shite off! Set it up to be automatically paid off. And pay it off earlier just so it is paid off and you don't have to worry about it. Don't ever spend what you can't pay off.
4. Every six months ask for a credit line increase. You can do this pretty easily with most cards these days without having to have your credit checked. Usually it just amounts to filling in some monthly mortgage/rent info along with your yearly income.
5. Slowly add multiple cards with better benefits (cash back, etc), but never cancel your oldest lines of credit.
That's pretty much it til it comes to taking out a real loan for a mortgage.or something like that.
Do those things and you should be in good shape.
This post was edited on 11/9/18 at 11:22 am
8
Posted on 11/9/18 at 10:28 am to NATidefan
It always baffled me how you can't have good credit unless you have debt.
Posted on 11/9/18 at 10:30 am to upgrayedd
Rigged system. Debt is evil. They know what they’re doing. They can’t make money if you don’t owe them money.
Posted on 11/9/18 at 10:30 am to upgrayedd
quote:
It always baffled me how you can't have good credit unless you have debt.
I have great credit and have never had any real debt.
PAY THAT shite OFF ON TIME!... Pay it off early.
This post was edited on 11/9/18 at 10:32 am
Posted on 11/9/18 at 10:32 am to NATidefan
quote:
5. Slowly add multiple cards with better benefits (cash back, etc), but never cancel your oldest line of credit.
Don't cancel any of them, unless there is an annual fee and you're never using it to earn enough rewards to outweigh the fee.
Posted on 11/9/18 at 10:35 am to NATidefan
quote:
I have great credit and have never had any real debt.
PAY THAT shite OFF ON TIME!... Pay it off early.
I mean, I get that, but I'm saying the concept was always odd to me. I remember seeing something about how when the US first became a nation, they had trouble getting financing from other countries because they had no debt.
I'm not a finance guy, but I assume the credit system is that way so you can prove you pay your debts.
Posted on 11/9/18 at 10:38 am to LSUBoo
quote:
Don't cancel any of them, unless there is an annual fee and you're never using it to earn enough rewards to outweigh the fee.
True, they all tie together to form your credit history.
It is worth saying you should really think about every credit card you open and why you open it.
Make sure it's something that benefits you that you will use. I don't do any ones with annual fees.. and would not suggest those to beginners AT ALL... but they can be beneficial to others that take advantage.
Posted on 11/9/18 at 10:40 am to NATidefan
quote:All of those other suggestions are fine little tidbits, but this is what really matters.
3. Pay that shite off! Set it up to be automatically paid off. And pay it off earlier just so it is paid off and you don't have to worry about it. Don't ever spend what you can't pay off.
Posted on 11/9/18 at 10:45 am to upgrayedd
quote:
It always baffled me how you can't have good credit unless you have debt.
No, it makes perfect sense. Nobody knows how well you handle debt until you've had debt.
This post was edited on 11/9/18 at 10:33 pm
Posted on 11/9/18 at 10:47 am to OldHickory
quote:
Rigged system. Debt is evil. They know what they’re doing. They can’t make money if you don’t owe them money.
How is this evil?
Posted on 11/9/18 at 10:47 am to PearlJam
quote:
All of those other suggestions are fine little tidbits, but this is what really matters.
It is the biggest for sure, but starting early is very important to...
I'm man enough to admit I didn't know much about credit or credit cards.when I was younger and didn't get started as early as I should have.
Get a card, even if it only has a 300 dollar balance on it. Put your Netflix bill on it, set it up to be automatically paid off... And your credit will go up dramatically very quickly if you've never had bad credit or any credit.
Posted on 11/9/18 at 10:48 am to OldHickory
quote:
They can’t make money if you don’t owe them money.
Not true at all. Credit card issuers make most of their money by charging vendors. If you pay your bill on time every month it costs you nothing to have a credit card.
Posted on 11/9/18 at 10:49 am to upgrayedd
quote:
It always baffled me how you can't have good credit unless you have debt.
You have to look at it from the creditor's point of view. The only way the creditor can know if you will pay them back is by looking at how you've paid others. They certainly can't take your word for it. It sucks, but the only way to have a good credit history is to have a good credit history.
Posted on 11/9/18 at 10:50 am to upgrayedd
quote:
It always baffled me how you can't have good credit unless you have debt.
Should lenders give lots of money at the best rates to someone with no credit history?
Would you be comfortable lending money to a stranger who hasn't proven that they're responsible and trustworthy?
Posted on 11/9/18 at 10:53 am to upgrayedd
quote:
It always baffled me how you can't have good credit unless you have debt.
Yeah I have a buddy who's dad was an "all cash" guy, and he was the same. Successful guy paid cash for his house level. Bought his cars straight out, new tahoes/vette, kind of things all in cash. Didnt know any better. Had basically all the cash you could want, and zero credit.
As he got older, married, etc...it hurt him bad. Luckily he married a girl that had been in banking/credit, and they worked on getting him caught up.
Posted on 11/9/18 at 10:55 am to NATidefan
quote:
I don't do any ones with annual fees.. and would not suggest those to beginners AT ALL...
I only have one, and the travel rewards more than make up for it.
Posted on 11/9/18 at 10:56 am to NATidefan
Credit is tough for sure.
- I definitely agree that schools dont prep students well. In general. Ie they expect first jobs to train them how to do business email or crms, etc. Why college degrees are really becoming obsolete cause one can learn the "theory" fundamentals on the internet etc etc
(ETA - oops pressed submit before finishing)
- the most important thing mentioned is the history. NEVER close your first CC. I still have mine, from college, it has less than 1K limit on it. it's more of a hassle than anything, but I keep it open. After that it doesnt matter if you open close (trade them out), as long as you spread it out timing wise. Like every 6months, not every month kind of thing.
- if I had kids I would definitely have a CC that will kick it off for them ASAP. I would start paying all that is them specific, clothes, etc, on it, and pay it off properly. Good way to keep tabs on how much you spend on them too. Obviously to have as a reference when they get bratty. Ha. Then when they are mature enough or go to college you can use that as there CC for them to use. Slowly teaching them how to work it. Man I can still hear my dad on the phone, when I was in college, going over my charges. Ha!!
- for me the pay off thing gets hard, cause I forget to go back. I'm on auto draft on everything, so I believe in the "out of sight out of mind" part for bills. I go in once a month, do a quick scan that nothing is abnormal, and move on. I also have a different acct that gets "fixed costs" money deposited (auto set-up) into it every month. it's also a "nest egg" acct so has 6 months worth of current bills excess in it just in case. Gradually excess builds up, and I add a chunk once a year. Goal started with 3months, but the security blanket once I hit that felt nice so I started on building it.
- Being a minimalist is key. But buying things that last, and wont go "out of style". I do have my stupid vices that I'm working on. Nothing sexual or alcohol/drugs, but going out to eat kind of stuff. I'm single so I get bored of cooking for myself, and I dont like cooking that much. Ha.
One of the best things I ever heard was "you arent rich unless you earn 4-5 times more than you spend.". Obviously that can be adjusted some, but the concept is solid. One i've worked towards. Again I'm single, dont know if that will ever change, so obviously easier.
- I definitely agree that schools dont prep students well. In general. Ie they expect first jobs to train them how to do business email or crms, etc. Why college degrees are really becoming obsolete cause one can learn the "theory" fundamentals on the internet etc etc
(ETA - oops pressed submit before finishing)
- the most important thing mentioned is the history. NEVER close your first CC. I still have mine, from college, it has less than 1K limit on it. it's more of a hassle than anything, but I keep it open. After that it doesnt matter if you open close (trade them out), as long as you spread it out timing wise. Like every 6months, not every month kind of thing.
- if I had kids I would definitely have a CC that will kick it off for them ASAP. I would start paying all that is them specific, clothes, etc, on it, and pay it off properly. Good way to keep tabs on how much you spend on them too. Obviously to have as a reference when they get bratty. Ha. Then when they are mature enough or go to college you can use that as there CC for them to use. Slowly teaching them how to work it. Man I can still hear my dad on the phone, when I was in college, going over my charges. Ha!!
- for me the pay off thing gets hard, cause I forget to go back. I'm on auto draft on everything, so I believe in the "out of sight out of mind" part for bills. I go in once a month, do a quick scan that nothing is abnormal, and move on. I also have a different acct that gets "fixed costs" money deposited (auto set-up) into it every month. it's also a "nest egg" acct so has 6 months worth of current bills excess in it just in case. Gradually excess builds up, and I add a chunk once a year. Goal started with 3months, but the security blanket once I hit that felt nice so I started on building it.
- Being a minimalist is key. But buying things that last, and wont go "out of style". I do have my stupid vices that I'm working on. Nothing sexual or alcohol/drugs, but going out to eat kind of stuff. I'm single so I get bored of cooking for myself, and I dont like cooking that much. Ha.
One of the best things I ever heard was "you arent rich unless you earn 4-5 times more than you spend.". Obviously that can be adjusted some, but the concept is solid. One i've worked towards. Again I'm single, dont know if that will ever change, so obviously easier.
This post was edited on 11/9/18 at 11:14 am
Posted on 11/9/18 at 11:02 am to NATidefan
quote:
paying your taxes
if the president wont release his tax information, why should i be forced to pay?
Posted on 11/9/18 at 11:04 am to LSUBoo
quote:
I only have one, and the travel rewards more than make up for it.
They are definitely beneficial if you are able to spend enough on them to reap the rewards. I just wouldn't suggest them for a beginner.
I have a Citibank double cash back card I use for just about every usual thing and then a discover card that gives 5% cash back at different places every 4 months. Sometimes it's not that useful, but right now I'm getting 5% cash back on Amazon and wholesale stores. And since my friend is a manger at Sam's and let's me user her card.... I'm getting 15% off meat for the next two months. Freezer is full! Lol
The cash back stuff is nice, but in the long run it's having good credit that benefits me the most.
This post was edited on 11/9/18 at 11:06 am
Posted on 11/9/18 at 11:06 am to TOSOV
i'm older (50's), married/etc...
i just want add to all the good points made here that you do not know piece of mind until you are debt-free
it may not be the best financial decision when you are younger, but trust me...when you are older it is the only way to live. so yes, build good credit but by using debt wisely, but always with a plan to eventually eliminate it
i just want add to all the good points made here that you do not know piece of mind until you are debt-free
it may not be the best financial decision when you are younger, but trust me...when you are older it is the only way to live. so yes, build good credit but by using debt wisely, but always with a plan to eventually eliminate it
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News