OnTheBrink Posted October 15, 2011 Share Posted October 15, 2011 I don't have one. I want one. Just a small one to build my credit. Right now, I have only one thing on my credit report and that's a small medical bill that I'm paying off. Where do I start? I've seen ads for Orchard Bank and Capital One, but I've also seen horror stories about them. Any suggestions or experience to share? Quote Link to comment Share on other sites More sharing options...
Jennifer3141 Posted October 15, 2011 Share Posted October 15, 2011 Do you use Amazon a lot? I've got an Amazon Visa that I LOVE! The secret is to keep the limit low (like $500) or so and to pay it off monthly. But free Amazon money? LOVE it! Quote Link to comment Share on other sites More sharing options...
Ginevra Posted October 15, 2011 Share Posted October 15, 2011 You can get a secured credit card to build your credit. With a secured card, you put some amount of money into a bank CD and they give you a credit card with an credit limit that matches the amount you have saved. The money in the CD is collateral; if you default on the credit card, the bank will keep the money you put in the CD. Be wise with credit card use, though. Only buy what you are positive you can definitely pay off at the end of the billing cycle. Pay the card in full every month. Do not carry a balance. If you do it this way, the card will be a useful tool, but if you treat the card as if it were extra money to pay back whenever, it will turn into a trap! Quote Link to comment Share on other sites More sharing options...
mchel210 Posted October 15, 2011 Share Posted October 15, 2011 if you are sure you are not going to build debt...I loved my american express. I had tons of points built up I could use towards either gift cards or airline tickets. BUT...I would think there would be other ways to build credit. Quote Link to comment Share on other sites More sharing options...
OnTheBrink Posted October 15, 2011 Author Share Posted October 15, 2011 You can get a secured credit card to build your credit. With a secured card, you put some amount of money into a bank CD and they give you a credit card with an credit limit that matches the amount you have saved. The money in the CD is collateral; if you default on the credit card, the bank will keep the money you put in the CD. Be wise with credit card use, though. Only buy what you are positive you can definitely pay off at the end of the billing cycle. Pay the card in full every month. Do not carry a balance. If you do it this way, the card will be a useful tool, but if you treat the card as if it were extra money to pay back whenever, it will turn into a trap! Yes, I definitely want a small one. I don't want to go out and buy a lot of stuff; just mostly use it for gas or groceries and pay it off to get my score higher. I watched my EX abuse CC's all through our marriage and there is NO way I want to get into the bind he put our family in with his reckless spending. But, I do want to boost my score and I think the only way I can really do that is to build my own positive credit history. (None of those cards had my name on them and he was given those debts entirely in our divorce). I'll check out the secured cards. Thanks! Quote Link to comment Share on other sites More sharing options...
sparrow Posted October 15, 2011 Share Posted October 15, 2011 I really like our Chase Freedom, if you decide to go the traditional credit card route. They give 1% cash back on all purchases and 5% cash back on rotating categories. During the summer months gas purchases earn 5% cash back. The current categories are dining, department stores, and charities. There's no annual fee, and we pay it off each month, so it's kind of like being paid to use it :001_smile:. Quote Link to comment Share on other sites More sharing options...
ThreeBlessings Posted October 15, 2011 Share Posted October 15, 2011 You can get a secured credit card to build your credit. With a secured card, you put some amount of money into a bank CD and they give you a credit card with an credit limit that matches the amount you have saved. The money in the CD is collateral; if you default on the credit card, the bank will keep the money you put in the CD. Be wise with credit card use, though. Only buy what you are positive you can definitely pay off at the end of the billing cycle. Pay the card in full every month. Do not carry a balance. If you do it this way, the card will be a useful tool, but if you treat the card as if it were extra money to pay back whenever, it will turn into a trap! :iagree: Quote Link to comment Share on other sites More sharing options...
Lara in Colo Posted October 15, 2011 Share Posted October 15, 2011 I'm pretty sure that you have to carry a balance and pay it off over time to build credit. Paying it off monthly doesn't build credit. Check with a credit person about the rules. Quote Link to comment Share on other sites More sharing options...
********* Posted October 15, 2011 Share Posted October 15, 2011 I'd suggest checking out your local credit union. I *think* they're more likely to give someone with minimal credit history a chance. They'll probably start your limit out low, which sounds like it would work for you. And many offer cash back rewards. Quote Link to comment Share on other sites More sharing options...
OnTheBrink Posted October 16, 2011 Author Share Posted October 16, 2011 I belong to a credit union. It never occurred to me to ask them about it! I just don't want a bunch of CC companies doing checks and lowering my score more if they don't approve me. I'll talk to someone at my credit union, too. I do have a Visa debit card, but that obviously doesn't do much for me, credit-wise. Quote Link to comment Share on other sites More sharing options...
LBS Posted October 16, 2011 Share Posted October 16, 2011 I love Discover, and got it, to develop credit in my name. Then, when the VISA got so many fees, etc., we just started using the Discover all the time and getting all these cash-back things. Also, lots of benefit to using it on Amazon. Good luck. Quote Link to comment Share on other sites More sharing options...
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