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-   -   Credit Card for utility only (http://www.thefinanceforums.com/showthread.php?t=6115)

austinrayman 11-03-2011 10:39 AM

Credit Card for utility only
 
I earn a very small hourly wage at wal-mart. The idea of purchasing things with credit terrifies me in these hard times. However, I know that in the event that I need a major loan or maybe even a job, my credit history is important. So I have a question.

How would I use my account for the purpose of building credit, and that purpose alone, keeping my checkbook the lightest shade of red possible?

I read so many conflicting and confusing things. It all seems so counter intuitive. I just want to make sense of it all. Maybe there is an easy to follow website that can help me, or a book that you could recommend. Anything that will help me navigate this deep dark forest of credit card confusion.

littleroc 11-03-2011 05:54 PM

Re: Credit Card for utility only
 
If you want to play the FICO score game which I currently do, not out of want but for the time being I personally have one Discover card that we use for gas and that's it and pay it off each month. We also have a home mortgage that we pay on and have never missed. Our scores are either over 800 or close. Someday I plan on ditching all credit once my mortgage is paid off and to never use credit again, but for now I have to play the stupid game.

payday250.com 11-16-2011 11:33 PM

Re: Credit Card for utility only
 
Having one credit card, possibly two is a good idea. Make very small puchases on them, then pay them off every month, or if you wish, make payments on them. This will surely improve and help to establish your credit score :-)

Herbert 01-09-2012 08:12 AM

Re: Credit Card for utility only
 
Having one credit card is okay and also make sure you don't misuse and always keep its payment constant.

ASPIRE4GRACE 01-23-2012 01:29 AM

Re: Credit Card for utility only
 
If you're looking for a good book on the subject, I would recommend and of Dave Ramsey's books. The man KNOWS finances! He's been dirt poor with no credit, to filthy rich with BMW's and Porche's, and had to declare bankruptcy when he lost his job and start all over again, then managing to get even richer in the long run. The man has learned a lot as he went through these tribulations and has some awesome ideas when it comes to managing money and credit. He's my idol for the most part. Do a search for him online or go to his facebook page, you will learn more than you ever thought you could.

Quote:

Originally Posted by austinrayman (Post 27106)
I earn a very small hourly wage at wal-mart. The idea of purchasing things with credit terrifies me in these hard times. However, I know that in the event that I need a major loan or maybe even a job, my credit history is important. So I have a question.

How would I use my account for the purpose of building credit, and that purpose alone, keeping my checkbook the lightest shade of red possible?

I read so many conflicting and confusing things. It all seems so counter intuitive. I just want to make sense of it all. Maybe there is an easy to follow website that can help me, or a book that you could recommend. Anything that will help me navigate this deep dark forest of credit card confusion.


expertinsurance 02-28-2012 08:04 AM

Re: Credit Card for utility only
 
You can make a good credit score by paying all your financial debts on time. Pay credit card bills and loan payment and other premiums on time. All these factors will help you in getting a good credit score.

Wealth-e 02-29-2012 09:02 AM

Re: Credit Card for utility only
 
Quote:

Originally Posted by lincon9 (Post 28575)
Owning a credit card should provide convenience and not confusion. The key in maintaining your credit card is to make sure that whatever you charge to the card can be paid in full on due date. This will avoid paying for financial charges, and incurring credit card debts. It will also help in building good credit history.

I absolutely agree with this. Purpose is to have an ease instead of a life time hassle.

fathappycows 10-04-2012 08:55 AM

Re: Credit Card for utility only
 
It's a good idea to use your card for your score. It also has other benefits. If you put all of your purchases on your card, you can easily keep track of your spending by checking your statement each month. You can check your balance via internet banking to make sure you don't go over your personal budget each month. If you put all purchases on the card and pay it off each month before interest is charged, the money you would have otherwise spent stays in your bank account for another 30 days earning interest for you. Good Luck

Shailacooke 11-07-2012 02:26 AM

Re: Credit Card for utility only
 
You can get a credit card and use it at least once a month. In this way, you will be able to establish your credit history. Make sure that you don't max out your card and if possible pay the entire amount whenever you receive the billing statement.

thelastsubject 11-26-2012 01:18 PM

Re: Credit Card for utility only
 
Quote:

Originally Posted by austinrayman (Post 27106)
I earn a very small hourly wage at wal-mart. The idea of purchasing things with credit terrifies me in these hard times. However, I know that in the event that I need a major loan or maybe even a job, my credit history is important. So I have a question.

How would I use my account for the purpose of building credit, and that purpose alone, keeping my checkbook the lightest shade of red possible?

I read so many conflicting and confusing things. It all seems so counter intuitive. I just want to make sense of it all. Maybe there is an easy to follow website that can help me, or a book that you could recommend. Anything that will help me navigate this deep dark forest of credit card confusion.


Does it anger anyone else that this basic information is not part of our public school curriculum???


You should be terrified of debt. Especially with a lower income. This is the first realization that most people never make. They simply do not "respect" debt. Took me a good decade to learn. I think you are starting off on the right foot in that you realize you can get a credit card and not use it to overspend, but to establish a good credit history of on time payments.

It doesnt matter how much you spend, what you spend it on, or how you pay the card back, as long as you are never, ever, EVER, late on your payments. Also, what you will find is that you may only get approved for a $250-$700 credit limit. I would use it only for gas or a recurring monthly expenses you know you can pay off. Over time as your credit score and history improve, you will be able to borrow more, which is also scary.

Kudos to you for realizing the importance on educating yourself before walking into a bank and just asking for a card. Let me know if you have any other questions.

Sincerely,
The Last Subject


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