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Pampered-Z · 10-01-2009, 02:59 PM

Just to add to this thread. Just found this out while working with the banks on my daughter's new home.

Once you get the card, make sure you use it. I'm not saying to go nuts, buy something so that you make payments over time say pay it off in a few months. Also you should use the card at least 3-4 times a year and this will help you raise your credit limit and rating.

Buy something you can easily afford and then make the payments each month. Showing you are good at making the payments helps your credit more then then buying something at them paying off the full balance of the card each month.

My oldest daughter has 3-4 cards but only use 2 of them. She did the buy it / pay if off for years, even for large purchases. What happened is that did very little to help her credit. On one of the cards that she never used, without her knowing? ( or maybe didn't understand if they did notify her ) was that the CC company dropped her credit line from 10K to 5K becuase it was inactive for over a year. Well when that showed up on her credit report that the CC dropped her limit it really hurt her credit score! I never realized all this was factored in because I've had established credit over years. Seeing what my daughter went through was a mess! you would think that someone that pays off their bills right away would have good credit, but that's not how the creditors view it. They want to see more long term ability to make payments. So you need to balance you buying with paying withut getting beat up on the interest.

On the other side, My younger daughter that makes less money then her sister uses her CCs and makes the monthly payments and as a result she actually has far better credit reports because she has demonstated that she makes all her payments and her limits have been raised over the past few years.

10-01-2009, 02:59 PM	#23
Pampered-Z Sliderule / Moderator Join Date: Oct 2004 Location: Catawissa PA Posts: 2,294 iTrader: (1)	Just to add to this thread. Just found this out while working with the banks on my daughter's new home. Once you get the card, make sure you use it. I'm not saying to go nuts, buy something so that you make payments over time say pay it off in a few months. Also you should use the card at least 3-4 times a year and this will help you raise your credit limit and rating. Buy something you can easily afford and then make the payments each month. Showing you are good at making the payments helps your credit more then then buying something at them paying off the full balance of the card each month. My oldest daughter has 3-4 cards but only use 2 of them. She did the buy it / pay if off for years, even for large purchases. What happened is that did very little to help her credit. On one of the cards that she never used, without her knowing? ( or maybe didn't understand if they did notify her ) was that the CC company dropped her credit line from 10K to 5K becuase it was inactive for over a year. Well when that showed up on her credit report that the CC dropped her limit it really hurt her credit score! I never realized all this was factored in because I've had established credit over years. Seeing what my daughter went through was a mess! you would think that someone that pays off their bills right away would have good credit, but that's not how the creditors view it. They want to see more long term ability to make payments. So you need to balance you buying with paying withut getting beat up on the interest. On the other side, My younger daughter that makes less money then her sister uses her CCs and makes the monthly payments and as a result she actually has far better credit reports because she has demonstated that she makes all her payments and her limits have been raised over the past few years. __________________ 93Z M6 Black: The 385 Lives! Supercharged, 3-core front mount intercooler, GTP heads, 3:73's, Street twin clutch, Jethot Longtubes, Mufflex 4" catback/spintech, S+W cage, Spohn Suspenion, Yada Yada Yada 1) Build it 2) Race it 3) Break it 4) Repeat!!! Last edited by Pampered-Z; 10-01-2009 at 03:09 PM.