Ok im 19 so I have no credit, I recently got a credit card, I never miss a payment or anything on it, but the rates blow and i was thinking about canceling it, but i saw a post on a site that is bad for your credit if you cancel a credit card? so... how in the world do i get credit?:shrug: should i get bills to my name such as cable/phone etc? keep the credit card and keep paying the payments on time or what ? do you guys know any sites with lots of info about it?:evil:
It's not bad if you pay off the card and cancel, that I know of. Having a responsible credit history can be improved with a good record of credit card ownership but I don't think you get negative marks for not owning one. Having utility bills in your name is good for your credit score, so long as you are prompt with payments.
My first card started out with a rate of I think 19%. There was no way I was paying that rate so I only used it on items I had the money for and paid it off entirely at the end of the month. After a while of doing that the apps started coming in with better rates and higher limits. I still make it a point to pay them off in full each month though since I have seen too many people just go nuts and end up in a heap of debt and really nothing to show for it but a bad credit score.
Basically, you have to lose more money to earn credit, at least via credit card. That's a given when you go into it, though. -_-
What looks good on your credit is having two or three credit cards, with either a zero or low balance. The idea is that you have the potential to use that money. However, be very, very, very careful how you use credit cards. It's very easy to get stuck in a lot more debt than you intended - I don't think I'm the only person here who that's happened to. Whatever you buy, make sure you pay it off soon - and if it's something you can't pay off in a few months, don't buy it. I'm serious, don't buy a $4000 gaming rig thinking you'll pay it off over the next year when you only make minimum wage at Taco Bell. You'll never pay it off, what ends up happening is that it hits a point where the intrest is more than your minimum monthly payment, then you're screwed, and have to do crap like take out bank loans and such to get rid of it (which is what I did. Actually, since I paid off the cards I now have fantastic credt.) I would reccomend starting with a small card, like a gas card or department store card (target, sears, and the like) and make conscious, limited purchases on them, nothing that you can't pay off completely on your next paycheck. It's when people start using them to do stuff like buy gas and groceries that it gets out of control.
I had a girlfriend that paid off $15k in credit card debt by selling bags of weed. She smoked basically none, which is probably where the surplus money factored in.
Eva, see if you can get into a low interest rate card. If you can, then keep the high rate card for at least 6months but without using it unless it's an emergency. Then cancel it. A cell phone and car insurance also count towards credit rating, but not lines of credit, therefore they support a good credit score but they don't help a lot in raising it.
I use my credit card for everything (gas and groceries included ) - no transaction fees unlike most debit cards here. Get much less fees now and usually keep my card in credit or pay it off each payday - even if I transfer some of the funds back out into another account again. Keeps the interest away and is very handy. Get credit card points too. Also had a few items on hire purchase on 0% interest terms. I sell electronics, so I know you still end up paying more than if you bought when there were no finance deals, but it's still a hella cheaper than buying with interest bearing. After paying a few of these off I have great credit. A lot of people are really scared of credit cards, or think they are really bad. In reality - like anything - if you are a grown up and have at least some self control then they can be your best friend.
