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That's not necessarily what they mean when they say that. They're not talking about not paying off your balance from the previous month (aka your "beginning balance") but not to pay off the entire card on the due date (aka "current balance). Basically, the theory is you don't want a $0 balance at opening of each new month.
No, there are actually people who believe in carrying over a tiny balance because they've misunderstood how it all works. I've had a surprising number of discussions about that misunderstanding in recent years.
I like Citi Double Cash... no annual fee, no caps, 2% on every purchase in any category. Amazon Credit Card is also great if you are a Prime member because you get 5% back on all Amazon purchases along with Whole Foods, no annual fee... if you aren't a Prime member, I think you get 3% back. Discover It is another good card with no annual fee, they have a rolling 5% cash back based on categories.
That's not necessarily what they mean when they say that. They're not talking about not paying off your balance from the previous month (aka your "beginning balance") but not to pay off the entire card on the due date (aka "current balance). Basically, the theory is you don't want a $0 balance at opening of each new month.
Who told you that you don't want a $0 balance? If you carry a balance, even a tiny amount, you pay interest on the balance and the entire amount purchased for the month. If you pay it off every month, the amount purchased during the month incurs no interest on most cards. I have a credit score well above 800 and ALWAYS pay off every month.
Go to a local credit union and open an account. Get their credit card. Also checking and savings, which actually pay interest. The credit card interest rate is lower than the commercial banks. We belong to two of them and have savings, checking with debit cards and credit cards at both. We even got an unsecured personal loan at only 9% interest.
This. And pay off your credit card balance EVERY month.
That's not necessarily what they mean when they say that. They're not talking about not paying off your balance from the previous month (aka your "beginning balance") but not to pay off the entire card on the due date (aka "current balance). Basically, the theory is you don't want a $0 balance at opening of each new month.
If you mean to pay the closed statement balance only and not the next month's open balance (which would not yet accrue interest), this is correct. If you mean to let a small amount of the closed statement balance revolve and accrue interest, that is false. If at all possible, ALWAYS pay your closed statement balance in full. You will pay no interest and it will have absolutely no negative effect on your credit score. The goal with any credit card is to have your goods and the money required to pay for them simultaneously for as long as possible. NEVER pay interest, if you can avoid it.
I've never had a card before, and I would like to get one.
Like my title said I want a card that would be approved for a 706 score.
I also want one that doesn't have a membership fee attached.
Which card and company would be a good fit for the above criteria?
Bank of America FTW. Their cash rewards VISA card gives 3% cash back, no fees. I believe it's lately been rated the best credit card. I've been using it since it came out a few years ago (and they have something like a $200 or $300 sign up bonus reward). Previously I was using their rewards point VISA, where you'd get free gift cards, which took care of all holiday shopping.
Chase apparently has something of a reputation for not wanting to be someone's first credit card. I'd try a Capitol One no-fee card or Discover first, give it a year, and then pick up a Chase Freedom or American Express Everyday when the credit report shows a year of responsible credit card use.
Wow, really why is that?
I've wined it down to five cards.
Capital One. A family member has been with them for years so I'm familiar with how they operate.
However she had some recent issues with them and decided to cancel her card.
Chase Freedom Unlimited - My tiny dip into chase has been though my sister. She has their Sapphire card, and it has been very good to her,but I think you have to have excellent credit for that.
Amazon Prime Card. I've been a prime member for a about seven months. However, I don't really use it. It's just there on the rare occasions I shop on amazon.
Costco lol. This one wasn't even on my radar,but my sister became a costo member two days ago and made me a alternative member.
Bank of America
If I apply for card,but get rejected how soon can I apply again from them or another company?
You haven't had a credit card before, but would like to get one.
So, WHY would you like to get one?
Want to use it for everyday purchases instead of your debit card, and then pay it in full every month? Then all that matters is any cash-back feature and annual fee. You don't care about the interest rate, because you'll never pay interest. Maybe you weren't aware of that - you wouldn't be the first. This is what I do, and my Costco Visa costs me $100 year (the Costco membership fee) but I'm getting > $1K "back" at Costco where I can easily use the $900 net. I also have an Amex Blue, I think it's also $100/yr but 3% statement credit which works out to a $500 net benefit/year. Amex is accepted at far more places now than it was 10 years ago - I'd say ~98% of places.
Plan to charge a significant purchase and then pay it off (quickly) over time - like a vacation package or furniture? All you care about is lowest (should be $0) annual fee and lowest interest rate.
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