Cycling and bicycle discussion forums. 
   Click here to join our community Log in to access your Control Panel  


Go Back   > >

Foo Off-Topic chit chat with no general subject.

User Tag List

Reply
 
Thread Tools Search this Thread
Old 05-13-08, 02:02 PM   #1
phantomcow2
la vache fantôme
Thread Starter
 
phantomcow2's Avatar
 
Join Date: Aug 2004
Location: NH
Bikes:
Posts: 6,266
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Am I building credit?

A few weeks ago I got myself a Visa Classic credit card. So I have gotten into the habit of paying off a purchase as soon as I make it. Online bill payment works well for this .
I got this card to establish some credit. Am I actually establishing credit if I just pay off my balance right away?
__________________
C://dos
C://dos.run
run.dos.run
phantomcow2 is offline   Reply With Quote
Old 05-13-08, 02:07 PM   #2
Pheard
Banned
 
Join Date: Sep 2005
Location: South City, Ca
Bikes:
Posts: 3,348
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Keeping the balance low and paying it off ASAP gives you a good credit rating.
Pheard is offline   Reply With Quote
Old 05-13-08, 02:14 PM   #3
andychang
Chicago needs more hills.
 
andychang's Avatar
 
Join Date: Mar 2008
Bikes:
Posts: 76
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Yes, you are.

Yep, you are. Although, I think that with new credit card members (I might be wrong in assuming that you are one but it sounded like this was your first card?) it takes around 6 months to establish an actual rating. If you haven't done so already, see if you can pull up your current credit score, because even if this IS your first card, you might still have one. annualcreditreport.com should be able to give you a free one once a year. Your habit is great - I think most experts recommend that you charge no more than 30% of your total limit per month, and if you are paying it off every week or every two weeks it's even better. Credit institutions also look at your bank accounts, so having both a savings and a checkings account will be beneficial to your credit rating!

Sorry for all this spouting. As someone who made POOR decisions in college regarding credit cards, and having to re-build my rating after college, it's true that with careful monitoring and a little discipline, building good credit is MUCH EASIER than going back and fixing mistakes.
andychang is offline   Reply With Quote
Old 05-13-08, 02:30 PM   #4
crypticlineage
Senior Member
 
Join Date: Sep 2005
Location: Aggieland
Bikes: Cannondale 2.8 Ultegra / 105
Posts: 517
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Savings accounts don't show up on credit report.

Phantom: You're doing a great job. Within six months, apply for another credit card and/or some sort of loan, even if its secured. Variety and number of credit accounts plays a crucial role in establishing credit too. Try to keep your balances less than 10% of your total limit every month.

Bankrate.com has some great articles about establishing good credit. Check it out.
crypticlineage is offline   Reply With Quote
Old 05-13-08, 02:38 PM   #5
skiahh
Senior Member
 
skiahh's Avatar
 
Join Date: Aug 2003
Location: CO Springs, CO
Bikes: 08 Stumpjumper FSR Expert, 02 Litespeed Tuscany, 04 Specialized S-Works Epic
Posts: 1,035
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Concur; your credit rating does not consider checking or savings accounts (unless possibly you write a bunch of bad checks and the bank sends you to collection, but that's pretty extreme).

No need to pay off as soon as you buy something; wait until you get the bill, then pay in full. You do no better (or worse) by running home to pay the bill. Get in the habit of TRACKING your expenses and then paying in full. That way, you can use a card responsibly without over charging and then not being to pay off.
skiahh is offline   Reply With Quote
Old 05-13-08, 06:00 PM   #6
JF1
Senior Member
 
JF1's Avatar
 
Join Date: Aug 2005
Location: Kaysville, Utah
Bikes: 2006 Giant OCR 3 Composite
Posts: 544
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
And if you have a CC with rewards, all the better.
JF1 is offline   Reply With Quote
Old 05-13-08, 06:05 PM   #7
goldfishin
Senior Member
 
Join Date: Mar 2007
Bikes:
Posts: 521
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
uh, why did you do that? be careful, one mistake and they own your ass.
goldfishin is offline   Reply With Quote
Old 05-13-08, 06:09 PM   #8
phantomcow2
la vache fantôme
Thread Starter
 
phantomcow2's Avatar
 
Join Date: Aug 2004
Location: NH
Bikes:
Posts: 6,266
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Okay, well this is good. I guess I'll continue to use my credit card whenever possible and pay it in full each month. I'll be taking out a student loan either either in the fall or spring, hopefully this will earn me some credit as well.
__________________
C://dos
C://dos.run
run.dos.run
phantomcow2 is offline   Reply With Quote
Old 05-13-08, 06:12 PM   #9
phantomcow2
la vache fantôme
Thread Starter
 
phantomcow2's Avatar
 
Join Date: Aug 2004
Location: NH
Bikes:
Posts: 6,266
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by goldfishin View Post
uh, why did you do that? be careful, one mistake and they own your ass.
Because whatever some people say, I believe I need credit in this world. I just will avoid making mistakes (ie. not buying something I don't have money for unless it is a dire situation). Plus, I went through my credit union, so I got an interest rate of 13%. The offers I've received from Capital one have interest rates in excess of 25%! My parents, both of whom have well established credit, got a rate of just 11% from the credit union.
__________________
C://dos
C://dos.run
run.dos.run
phantomcow2 is offline   Reply With Quote
Old 05-13-08, 06:13 PM   #10
phantomcow2
la vache fantôme
Thread Starter
 
phantomcow2's Avatar
 
Join Date: Aug 2004
Location: NH
Bikes:
Posts: 6,266
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by JF1 View Post
And if you have a CC with rewards, all the better.
This is something to look into. My card has no rewards, it's just bare bones. Perhaps I can get a gas card.
__________________
C://dos
C://dos.run
run.dos.run
phantomcow2 is offline   Reply With Quote
Old 05-13-08, 08:14 PM   #11
deraltekluge
Senior Member
 
deraltekluge's Avatar
 
Join Date: Sep 2006
Bikes: Kona Cinder Cone, Sun EZ-3 AX
Posts: 1,195
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phantomcow2 View Post
I got this card to establish some credit. Am I actually establishing credit if I just pay off my balance right away?
No. The credit card companies HATE you. They call people like you "deadbeats" because you deprive them of the interest fees that they think they're entitled to.
deraltekluge is offline   Reply With Quote
Old 05-13-08, 10:36 PM   #12
2wheeled
Cheers!
 
2wheeled's Avatar
 
Join Date: Feb 2005
Location: Woodinville
Bikes: Scott Addict R15, Cadd 9
Posts: 1,284
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phantomcow2 View Post
This is something to look into. My card has no rewards, it's just bare bones. Perhaps I can get a gas card.
Here's a great forum for anyone wanting answers on building a good credit rating. If you're planning on buying a house, car, etc you'll find some great pointers.

http://www.creditboards.com/forums/
__________________
2wheeled is offline   Reply With Quote
Old 05-13-08, 11:34 PM   #13
skiahh
Senior Member
 
skiahh's Avatar
 
Join Date: Aug 2003
Location: CO Springs, CO
Bikes: 08 Stumpjumper FSR Expert, 02 Litespeed Tuscany, 04 Specialized S-Works Epic
Posts: 1,035
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by deraltekluge View Post
No. The credit card companies HATE you. They call people like you "deadbeats" because you deprive them of the interest fees that they think they're entitled to.
No? WTF are you talking about??

You are correct in saying the credit card companies hate people that pay off their bills each month, but that does not mean you aren't establishing good credit. But, they will report you as a good customer for using and paying your bills.

Can you imagine if credit card companies started reporting negative information to the credit bureaus for fulfilling your agreement with them??
skiahh is offline   Reply With Quote
Old 05-14-08, 08:14 AM   #14
Jerseysbest
J E R S E Y S B E S T
 
Jerseysbest's Avatar
 
Join Date: Apr 2005
Location: DC
Bikes:
Posts: 1,849
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Set up automatic payments, notifications, etc and you'll never forget to pay the bill. And interest rates are pretty much irrelevant if you pay your bill every month. My one card is down to 5.9%, but since I've never been charged a dime of interest, its doesn't really matter, I actually use my discover card with a 12% rate more because of the rewards.

And also look into getting the reward cards, like Discover.

And obviously, lot of people fall into the trap of charging stuff they can't afford. I'm not talking about tv's or big stuff, but everyday stuff they wouldn't normally get, like eating out all the time, movies, and just other general stuff that you may think you need at the moment but if you're on a budget you certainly can go without.
Jerseysbest is offline   Reply With Quote
Old 05-14-08, 09:44 AM   #15
FlowerBlossom
My tank takes chocolate.
 
FlowerBlossom's Avatar
 
Join Date: Jun 2005
Location: Olympia, WA
Bikes: Trek 600 series touring bike, Trek 800 hybrid, Bianchi
Posts: 6,344
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I have a credit card through my credit union, and, I earn a point for each dollar I spend. These points can be redeemed to buy many items, as well as airline tickets on any airline. Check to see if your credit card has this point system, instead of something like Discovery. If so, use just the card you have. It's easier to keep track of your total-owed-balance, and, all your points are accumulated at one account---so they pile-up faster to an amount that is actually redeemable.
__________________
Feminism is the profound notion that women are human beings.
FlowerBlossom is offline   Reply With Quote
Old 05-14-08, 11:27 AM   #16
deraltekluge
Senior Member
 
deraltekluge's Avatar
 
Join Date: Sep 2006
Bikes: Kona Cinder Cone, Sun EZ-3 AX
Posts: 1,195
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by skiahh View Post
Can you imagine if credit card companies started reporting negative information to the credit bureaus for fulfilling your agreement with them??
Yes. I really have no idea if they do that, but based on how they behave in other respects, I certainly can imagine it!
deraltekluge is offline   Reply With Quote
Old 05-14-08, 12:17 PM   #17
stonecrd
OnTheRoad or AtTheBeach
 
stonecrd's Avatar
 
Join Date: Aug 2005
Location: Weston, FL
Bikes: Ridley Noah RS, Scott CR1 Pro
Posts: 2,170
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
The credit score takes into account the amount of credit you are authorized for and the amount of balance you carry. The downside of paying off quickly is that the CC company may not raise your limit. So someone with a $50,000 credit limit and a $2,000 balance may have a better score than someone with a $2,000 limit and no balance. But in all cases keeping your balance below the threshold (I think 10%) of the limit is the key and of course never get a late payment.
__________________
The problem with the gene pool is that there is no lifeguard and the shallow end is much too large

2013 Noah RS
stonecrd is offline   Reply With Quote
Old 05-14-08, 12:30 PM   #18
bluebottle1
Kicked out of the Webelos
 
bluebottle1's Avatar
 
Join Date: Apr 2005
Bikes:
Posts: 239
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
The one thing I'd recommend is tracking your spending on the card very carefully. If you use Quicken or similar software, set up an account for your card, and every time you use it, enter the purchase into the account. Then enter your payment into the other side of the register, and you'll always know what your balance is. It sounds like the way you are using the card is very smart. It will build your rating, and that will be useful for the day you want to purchase a home or make some other large purchase.
__________________
______________________________________________

Kicked out of the Webelos.
bluebottle1 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -6. The time now is 03:15 AM.