Credit score !@#$%^&

The above quote is accurate. It’s good to build up a “little” bit of debt on the card for a bit and then pay it off. It shows that you can have the debt but not put yourself in the hole and be able to pay it off. It is good to keep small balances on your card each month. That’s what I did with mine when I first started and I’m in the 800s

 

I disagree. Paying credit card interest is a killer and should be avoided if possible. Especially when your interest rate above 20% apr. If you just pay your statement balance in full every month it will show the agencies that you have been using your card and paying it off. While it does not hurt your credit score if you dont pay it all off as long as you pay your minimum balance. But you will be wasting money.

 

I’m not saying leave it with hundreds to thousands each month. But it does help build credit as well. I’m just offering my advice and what I did when I built my credit. YMMV

 

If you are trying to recover from destroyed credit, you shouldn’t be going into debt at all let alone trying to go into debt for a car. Tell yourself youll never borrow money for a vehicle ever again.

Focus on paying off all your debt. Worry about getting a credit card later.

Trashing your debt will be the fastest way to improve your credit. Getting a credit card and paying it off every month will do very little to build credit that has been tarnished. In fact it can be temptation for poor decisions for most people.

You have a larger issue that needs a more conprehensive approach than just getting a credit card for gas purchases.

While I do not agree with everything he says, I do believe his philosophy, Total Money Makeover by Dave Ramsey. Highly recommend.

Instead of rebuilding a credit score work on rebuilding your life.

 

You have no idea how credit scores are determined.

Credit to debt ratio.

 

Guess not. I just pulled my credit score out of my ass

 

Just because you have a score over 800 doesn’t mean you know how to get there the best way.

That is horrible advice and it’s plain wrong.

Even a blind squirrel finds a nut sometimes.

 

I forgot, I’m on the internet. Everyone’s knowledge is all that exists. You win

 

Capital one quick silver

 

I still don't think you guys are following.

Having a statement balance with less than 10% of your avaible credit, but greater than 0 is what you want. Make whatever payment is necessary to get the statement amount there before it closes. I'm not saying to not make a payment.

 

That’s what I was agreeing with. But apparently that’s horrible advice and just plain wrong. But what do we know?

 

I paid off my school loans before I had to pay a single cent in interest. Only helped my credit score. When my CC statement comes in I pay the full amount on the statement, I never pay a dime over what I spend. Paying interest is non-sense.

I even shopped around for my truck loan and landed 3.5%. I'll only end up paying a grand or two over the price at the dealership when I pay it off in 3 years.

 

I just applied for it on Amazon


I pay it off every time and have pretty good credit now

 

The OP has been through a rough time and had multiple bills in collections.

Going further into debt to any degree will not help him. It will only hurt him.

You aren’t understanding context nor what it means to rebuild your credit after hardship.

You are the blind squirrel.

 

I agree with Taco Addiction, cash is king. The Wife and I cut up our cards about 2 years ago and haven't looked back.
I would highly recommend using a secured credit card to build your credit back up. It is way too easy to get back in a hole with a regular card and with most being around 20%apr, the interest really keeps you from paying down the balance.

 

Read some of dave ramsey's books. Rebuilt my credit two yrs after bankruptcy looking at buying a house. Just remember every acount you apply for, open or close lowers your acount by an average of 10 points.keep your debt to income ratio as low as possible. Get ONE PREPAID credit card from your bank every time u get 1000 in extra cash put it into a savings acount. Having more than 1 account helps alot. If you are good at book keeping have 2 checking acounts 2 savings acounts. Having money balances in multiple acounts helps just as much as having a credit card.

 

We had a day pass to the local costco. I had to go to my third card to pay. :faceplant

 

I get what they are saying about the balance. If you prepay.. Ie, pay mid month before it is due, leave some balance at the end of the month so it gets reported, but then pay your full statement balance to avoid intrest.

I do this sometimes just to avoid a big number. I need to set up that 3% checking account.