What credit card to apply?

[1sty]

I've never had a credit card and my score is a 653....i dont think thats bad at all...

I just went through buying my second home, so I can say with all certainty...653 sucks.

I had a 780 at the age of 22 until my girlfriend royaly screwed up my credit.
It was credit cards that got my credit up to over 750 before I ever even had a mortgage. And they are the reason I was able to rebound in a year from 650 to 700 to get a much better rate on a house.

How much credit you have really doesn't mean dick. The important thing to a credit rating is:
1. how long you have had accounts for
2: How often you get new accounts
3: if you consistanly pay on time.

Other then that, the most important thing is your monthy income to debt ration. Credit to debt ratio is largly ignored.

I would suggest starting with a signal card. Use up to 10% of its credit monthly and pay it off in full every month. Use it for your basic expense like gas, food, and clothes. The trick is not to go a splurge on a bunch of crap just becuase you have a credit card. This is where peolpe get in trouble. Get a card for a special promo rate or program and then get another when that program has expired. I do this until I get one card that give me a great after introductory rate. You just shouldn't get to many as it hurts your FICO score.

Discover was my first card and is still an active one. Its not the best rate but they have never given me a problem. I had an issue with Capitol One a few years ago and they gave me a crappy limit so I axed them but later got another for its 6 months no interest program. They have yet to apply a refund to my account they said that they would though so they are about to go in the trash. Bank One ROYALY pissed me off when they changed my 8% interest to 24%. So I closed that account. They are now Chase who I also have a card with and they have been fine.

My current cars are Chase and Discover. I don't have any more programs or introductory time with them but they have been decent to me and give me an alright rate.

The last thing to mention, is that you should not close a credit card account. Just cut up the card. Closing the account also hurts your credit score.

 

[1sty]

when i lived in Canada, I had 3 credit cards. i got my first one when i was 16. it seems that back home, it's so easy to get a credit card. I later signed up for 2 more. i've always been good with my payments and never ran into trouble.

But since I moved to the US, it seems like getting a credit card is such a huge thing. i know having good credit is important, but reading all of your posts, some of you seem scared to sign up for credit cards or something. i guess the mentality of credit is different in the US.

personally, i haven't signed up for any credit cards yet b/c i haven't lived here long enough. although capital one, citibank and some other companies are sending me credit card applications already... hmmm....

Thats becuase Americans all to often can not control themselves and get way into debt on credit cards. Its not a fear of credit cards but a fear of self control. Currently I have about 9 open accounts between actual credit card sand then store accounts and I have a zero balance on all of them even though they add up to over $30,000 in credit limits. Its all about control.

 

[YellowMP5]

i'm thinking of applying for the citi dividend platnum select card. The only card(s) I have are my visa bank check card and my old Compusa CC whihc can't work anywhere except there which isn't a real CC to me, i'll be canceling that one like asap. What other card do you think is good with building credit and for college fellows like me?

like zoomvt said, never close a credit card account. once you open it, consider it for life. your score depends on how long you had credit cards and if you close an old account, its bad.

it is true that credit cards are bad but only of you don't use your brain. it is very easy to "beat" the system when you use your brain. you can even make money doing it when you a get a good cash back card.

FICO is crap too and made by morons sho should be shot (deadhorse

 

[YellowMP5]

I've never had a credit card and my score is a 653....i dont think thats bad at all...

eh, its nothing to write home about. mine is 750 and i want 800

 

[Notorious_V.I.C]

thanks for the info, I'll keep that card at home. I ahve hear dwhen i worked at Comp that if you don't use your card for 6 months, the account closes. It don't matter cause i never buy anything from there anyways.

But I'll apply for the citi dividend platnum select card. I just don't feel save applying online rather do it over the phone.

 

[YellowMP5]

i think online is safe as long as you do it at the company's website, www.citicards.com. never do it from one of those 3rd party sites.

 

[ZoomVT]

i agree with 1sty except for the credit to debt ratio. It is not highly ignored, it actually jatters quite a bi; especially if you carry a balance.
so for that same reason sometimes is better to just consolidate a couple of cards into a new one if they are giving you an introductory rate. Not only do you take advantage of the rate but also double or more your credit limit which then reduces your debt to credit ratio. Having a debt to credit of 50% or more hurst your score and also raises a flag when doing certain transactions.
Mortgagte for example, your rate will be affected quite a bit depending on your debt to credit ratio, you having over 50% of your credit limit taken up represents high risk and a higer rate.
Always keep your balances to less than 50% (45% is optimal). If you have to then use other cards with a higher rateand pay it all off at the end of the month (that would actually also work to your advantage).

 

[YellowMP5]

actually its more like 30%

 

[Replica]

I just went through buying my second home, so I can say with all certainty...653 sucks.

It's actually above average. Remember....I've never had a credit card. Hell, 4 months ago I bought a new car with a single digit interest rate as a first time buyer....

 

[1sty]

It's actually above average. Remember....I've never had a credit card. Hell, 4 months ago I bought a new car with a single digit interest rate as a first time buyer....

The average is credit score is about 720.

Why not get one if you are responsible and you get a better credit score from having one.

When I got the Subaru, I had a rate of 3.9% from a private bank, not Subaru.

 

[Jliao]

woo wee! got approved for citi simplicity card with credit line of $5000. more debt!

I wonder what my credit score is......

 

[ZoomVT]

well i think CA like VT has a mandatory 1 free credit report per year.

 

[Jliao]

hopefully. from what i heard was that everytime you request a credit check they would take off few points.

 

[ZoomVT]

no for reports.
the few points are taken when there are credit pulls by possible creditors. Even if there are multiple credit pulls, as long as they are for the same purpose (car loan) the they will only deduct the points once (i think the time span is 30 days or so)

 

[1sty]

no for reports.
the few points are taken when there are credit pulls by possible creditors. Even if there are multiple credit pulls, as long as they are for the same purpose (car loan) the they will only deduct the points once (i think the time span is 30 days or so)

Yep.

Applying for credit, canceling credit, being denied credit, and late payments are what drop your score. Also, getting credit can drop your score.

I payed off one mortgage when I sold my home and that raised my rate by 30 points. Getting another mortgage and the inquaries by the various lenders, drop my score 15 points.

 

[Jliao]

what's a good place i can check for my credit?

 

[Greg S]

what's a good place i can check for my credit?

www.annualcreditreport.com

You are intitled to one free credit report from each of the credit reporting agencies each year. Remember that this are not your FICO score which most people use as your credit score but they will give you a good idea of where your credit stands. If you want your FICO score you can go to www.FICO.com ond pay for one, which you should do once a year or so just so you know what it is.

 

[dupa12345]

chase and citi are killing each other to trying to get me to get another and another card from them .. i literally get 1 or 2 offers from them every week even though ive had a number of cards from them .. theyre all 0% intros for 12 mos .. so if you have any credit at all try them .. their decent companies if you dont forget to pay off course
their portals are much improved too
bank of america could be ok too .. mbna is another big one

 

[Replica]

And i admit defeat at the hands of 1sty.....http://www.myfico.com/CreditEducation/CreditScores.aspx?fire=5

 

[Jliao]

just did a credit check and i have 768..
fuk! i was hoping for 800