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1.I was wondering when does your credit history start, is it when you open a line of credit or when you start using your credit card?
2.I have been using my credit card for at least 3 months and I always paid in full whenever my balance appear on my online banking so I pay my credit card within a week after my purchases, but since I have to use more than 30% of my credit card limit, how much does it hurt my FICO score?
3.I wonder do I even have a FICO score already establish, it is because I don't want to call a credit bureau and have them say that I don't have one yet?!
4.Is there any other line of credit should I consider right now when it comes to establishing a good credit history and a good credit score?
5.For my credit card, the APR for my purchases is between 11.24% to 20.24% variable, so does it mean if I miss a payment for one purchase then the APR is the interest that I have to pay on the purchase itself?
6.What is a balance transfer, cash advance, and delinquency rate?
If you have opened any line of credit, your credit history has now started if you never had a credit file before.
If you use over 50% of your limit it can affect the score since you are going closer to your limit.
You need to establish a steady history for at least 6 months before you have a credit score. If you never had credit before prior to you having your first card, then you have no score yet.
The old catch-22 always applies when trying to establish credit, because to do that you need credit. I would suggest maybe another credit card (with a FIXED rate) and keep those paid on time each time the bill comes in. You could also maybe do a small loan from a local bank or credit union and pay it back in a timely matter, and that will look good on your history.
The bigger stuff that will have a bigger impact as far as score would be a car loan and a mortgage. Personally I would pay cash for a car, but in your case since you are establishing credit, I would go with a decent used car with manageable payments each month (that is if you dont already have a car).
As for the interest rate, having a variable APR is bad news. Miss a payment and they will have no problem jacking up the interest rate, plus late fees. Its better to have a fixed rate interest credit card to prevent that, because most times the rate will go up and rarely down, if at all.
Balance transfer is when you want to transfer a balance say from a higher interest credit card to a lower-interest card (alot of those 0% interest cards from transfers can be useful when you can get them) so that you can pay off the balance faster.
Cash advances--stay away from them. NEVER EVER do a cash advance on a credit card, no matter how bad the circumstance is. First thing is that the interest is very high on that and any payment you make later will not go to your balance as it will pay on the amount you advanced first, plus the interest. Someone correct me if I am wrong, but thats what I have known them to be.
1.If you want to buy something that is close or over your credit limit online, is there another method to pay online (if you already have the money in your checking account)?
2.So, even though I used more than 30% of my credit card limit in the past and paid it off on time, does my credit score go back up to where it was before I used more than 30% of the limit?
3.In addition, what subscription do you guys use when it comes to checking and monitoring your FICO score and checking your credit report? Should I buy a product from myFICO.com?
4.In addition, why does myFICO.com sell product that send you FICO score from the 3 major credit card bureaus, I thought the FICO score are the same from every bureau except that each credit card bureau send their own credit score that is based on their formula that differs from the FICO score? As a result, you would get have 4 different credit scores in total!
If you want to buy something that is close or over your credit limit online, is there another method to pay online (if you already have the money in your checking account)?
Yes, you can use a debit card that is linked to your checking account. Never max your credit card or exceed the limit because once you do you will be slapped with the OL (Over Limit) fees. If you have a debit card and have the enough funds to cover your purchase, then I would recommend that instead of using the credit card, and best part is that since the amount is deducted from your checking account, its paid for. No bills, no hassles.
One piece of advice I have to new credit holders I wish I would have emphatically received - never carry a balance month to month on a credit card. It seems tempting, but very quickly you'll find that a very significant portion of your monthly payment is just to cover interest (essentially you're giving away your hard-earned money). It seems simple, but nearly everyone of my friends went into credit card debt while attending college. Some were fortunate enough to have parents bail them out; others ended up needing to work part-time (and even full-time) to cover the bills they accumulated. This is basic advice, most everyone has heard or read it, but I place it here in case it can make a difference for anyone who reads it.
One piece of advice I have to new credit holders I wish I would have emphatically received - never carry a balance month to month on a credit card..... It seems simple, but nearly everyone of my friends went into credit card debt while attending college.
I can't agree more. My father always did told me this as well when I was in college, but back then the philosophy among many students was that they wouldn't need the card if they could actually pay off the balance in full and so having a floating balance and paying when you can is what the credit card was for. I am sure ideas like this were the product of good marketing slogans coming from the credit card representatives on campus that appealed to the naive students. Personally, I think one of the worst things ever was actually allowing credit card representatives to set up numerous stands on college campuses.
I know people in their mid-30's who still have not climbed out of the debt they accumulated in college. I sure hate to be them in retirement.
If you have a credit card you will have a credit history. The history tracks whether you paid each month or were later or haven't paid, etc... So if you want all green marks then pay in full on time each month. That will raise your score. And if you have more cards, that will raise it even more if you always pay on time in full, even if it is just $5.
If you have a debit card and have the enough funds to cover your purchase, then I would recommend that instead of using the credit card, and best part is that since the amount isdeducted from your checking account, its paid for. No bills, no hassles.
And what is so wrong with paying from your already-accumulated cash? Why is there so much emphasis on building up "credit" (which is really "debt", not "credit") and worrying about FICO scores? At 19, you should be looking forward to a life filled with education, sports, enjoyable work, meeting girls, and having fun. NOT being saddled with debt!
My best advice to a young man: if you can pay off what little (I hope it's "little") debt you have accumulated so far in your young life, do so. Cut up the stupid credit cards. Don't go near a bank for anything but checking (there are better ways for saving). Don't get mixed up in this business. You are still in your teens. Those sharks will eat you alive; the name of their game is to get you on a debt and payment treadmill for life. Hop off now, while you still can, and thumb your nose at the banksters. They are nothing but crud and scum.
Probably nobody else will tell you this. This is the voice of experience.
Well, I'm paying to buy car with cash only, but when I need a mortgage, then I need to have good credit! And can anyone answer my 4 questions from a previous post in this thread, please!
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