How and where can I get a credit card?

[luvthemstrawberries]

Date: 2/8/2009 6:02:35 PM
Author: lovegem
Great news! Capital One approved my credit card application. I have to pay a $30 annual fee, but it is all worth it. Thank you so very much nice PS people.

I will apply one for my DH tonight.

You are the best!

Hey just saw this, I took a long time to post above. Glad they approved you. Stinks you have an annual fee, but at least you have a card.

Now you just need to be sure to make monthly payments. Charge $50 here, pay it off in 2 months. They like to see that you can make payments, not just pay things off in full every month, even if you can. It''s all a GAME you have to play.

 

[lovegem]

Porridge and luvthemstrawberries, are you suggesting that I buy something and not pay it off right away, rather pay it off at two months? Will it help me build my credit faster using the Captial One card?

 

[diane5006]

Congrats on getting your CC...

IMO you should pay off ballance each month...it shows that you can make payments responsibly...and shows you are carrying no debt...plus why pay the interest rate which I suspect is high

When I got my first mortgage...I had no CC...just my check card...and I carried no debt so my debt to income ratio was good

I would not get a store CC...(department store etc...) in my experience they are quick to report you to credit agencies...and continue to report you for years after you have closed the account

Chase is also good...especially if you have accounts with them...

Good luck

 

[luvthemstrawberries]

Date: 2/8/2009 9:18:52 PM
Author: lovegem
Porridge and luvthemstrawberries, are you suggesting that I buy something and not pay it off right away, rather pay it off at two months? Will it help me build my credit faster using the Captial One card?

You definitely want to use the card some. It''s the only way to build credit - you don''t build any just by owning the card. You don''t have to use it for every single purchase you make, unless you just want to, but I wouldn''t. What I''m saying is don''t put too much on the card at one time (50% of your limit is a good ceiling, they don''t like to see more than that on there for a long period of time). Say you go put $20 worth of gas in it, and go out to eat with someone for $30, and you put both those on the card. Pay off $25 this month, $25 next month. Or like porridge was saying, buy a $100 stereo, pay $50 this month, $50 next month. Something like that. This shows you can be responsible with installment payments. That''s what they want to see, because the larger purchases you want to have credit for (cars, house) will be in many, many installment payments.

You''re welcome to pay off your balance in full each month if you want to. I guess it still proves you''re responsible with your payments. But like I said, it''s a game you have to play with them to prove you can be responsible, and I''ve just learned that they like to see that you can make multiple payments over a period of time and make them on time.

 

[luvthemstrawberries]

And in reference to my post yesterday about what cards I have... honestly, if my situation could have withstood it, I would only have my Capital One and one other card - either my Chase or Amex. I only got a third card because I was going on a big trip where the reservations and all had to be on one credit card and I needed one with a higher limit than what I had. My point is that you DEFINITELY don''t want TOO many cards. As someone mentioned above, it''s good to have a good ratio of available credit compared to your income (google it if you want to learn more)... but there is such a thing as too much credit. In my opinion, it''s too much when people have multiple Visa/Mastercards, department store cards, college alumni credit cards, etc. There''s no reason for all that, and it makes you vulnerable to incur way too much debt. Plus the credit folks then look at you as wanting to charge a whole bunch of stuff that you won''t be able to pay off.

Something you may want to educate yourself on is which card companies run your credit when you apply through them. Some only run a partial report, some run a full one... again, google it if you''re interested - it''s good to know. Because every time they run your credit, it will show up on your credit report that you''re trying to get some credit, regardless of if you''re approved or not. So if you apply to 5 different companies within a span of 2 weeks that all run your credit as part of their process, and all deny you, then at some point someone''s going to run your credit and see all those credit checks on there, and think that you''re going crazy trying to get mounds of credit, and that will run the risk of them denying you just based on that, because they could think you''re getting too much too quick. This is what they mean by saying that applying too much can actually hurt your credit. It sometimes lowers your score a bit.

If you''re interested, research this stuff on the internet. Equifax explains a lot of it well, in my opinion. Even about how many times you can apply within a certain time period. This is all very good to know.

 

[lovegem]

luvthemstrawberries, Thanks a lot for the info.

I signed up a Capital One cc with no annual fee for DH yesterday. So I think we are all set to get some credits.

 

[MichelleCarmen]

Date: 2/8/2009 11:21:20 PM
Author: diane5006

I would not get a store CC...(department store etc...) in my experience they are quick to report you to credit agencies...and continue to report you for years after you have closed the account

If you''re paying your balance off on time, don''t you want a credit card co. to report you to the agencies regularly so it shows your good payment history and that will boost your score? I have three dept store cards (two of them for over 15 years - Macy''s and Nordstrom) and I''ve never had any problems. Credit score over 700.

 

[luvthemstrawberries]

Date: 2/9/2009 2:38:31 PM
Author: MC

Date: 2/8/2009 11:21:20 PM
Author: diane5006

I would not get a store CC...(department store etc...) in my experience they are quick to report you to credit agencies...and continue to report you for years after you have closed the account

If you''re paying your balance off on time, don''t you want a credit card co. to report you to the agencies regularly so it shows your good payment history and that will boost your score? I have three dept store cards (two of them for over 15 years - Macy''s and Nordstrom) and I''ve never had any problems. Credit score over 700.

This is a good point also. Different cards are going to report you to the credit agencies at different times of the month (depending on various things, such as when you signed up or received the card), but they all will report just as quickly - once a month. And they all report, period. What they report depends on how much balance you carry at the time they report, which in turn will affect your credit score. The only things that might not be reported, like I said before, would be the applications through certain companies.

Department store cards aren''t bad. They''re all done through banks or lending companies somewhere. I just don''t see the need for one when you can have a Capital One or whatever other regular card that lets you charge anything on it, not just things at that department store.

In regards to the comment about department stores reporting you for years after you close the account - almost any card company will do that. That''s why it''s never recommended to close a credit card account - it almost always hurts your credit. (It''s only recommended to do so when you''re really having credit/debt problems.) But this is why most people say not to get department store credit cards - you''ll usually get a better card through other companies with better benefits or that is easier to maintain, which means you won''t want to close down the account.

I''m glad you got a Capital One and your husband''s getting one too - no annual fee = great! Department store cards aren''t bad at all, but I think the Capital One''s a much better choice for you, especially right now.

 

[luvthemstrawberries]

Date: 2/9/2009 2:22:10 PM
Author: lovegem
luvthemstrawberries, Thanks a lot for the info.

I signed up a Capital One cc with no annual fee for DH yesterday. So I think we are all set to get some credits.

Hey, no problem! Glad to help. My fiance has been through a lot with his credit, not his fault, but he''s learned SO much valuable information about what to do early on or when you''re trying to rebuild bad credit. So he''s taught me a lot - I''m very thankful for that. Just trying to share the knowledge! I''m sure there''s lots I don''t know, but this definitely helps you get started. You''ll learn a lot if you research a good bit.

 

[Elmorton]

I am far from a credit guru, so this isn''t advice but more of a question to those who suggested that the OP get a dept. store card - one thing that I''ve noticed is that department store cards are rarely just a department store card anymore - most are a Target Visa, a Macy''s Mastercard, etc. Even my gas card is this way now. I''d heard a long time ago that store cards are not good to have because too many can cause a negative score, but does it make any difference if the department store credit card can be used anywhere?

 

[SarahLovesJS]

Date: 2/8/2009 3:33:55 AM
Author: lovegem
Sarah, Now that I think about it... I don''t really know what is a department store card. I''ve never had one before. I always refused to sign up for one when I was asked.


Every time I shop at Macy''s the cashier would ask me if I had a Macy''s card. Is this Macy''s card a credit card issued by Macy? or just some cards that you can only used in Macy''s?

Sorry for the delay lovegem! Looks like your problem is solved. But I got a Macy''s card back during the summer as my first CC..I don''t have any credit really since I am a student and only have P/T jobs but they even gave me a card!

Not a huge limit or anything, but hey I like it!

I try to charge no more than I have the $$ for, then just make a big payment over the minimum of course (which is like a few dollars since my limit is so low, lol) and pay it off over months.