Zilvian Center for kids who can't finance good: & Finances, Credit, Card, Score - Zilvia.net Forums | Nissan 240SX (Silvia) and Z (Fairlady) Car Forum

dbeiler · 06-22-2016, 08:31 PM

Excellent subject. About time we got some more adult type threads here.

Considering the insane amount of Americans with credit card debt, I can't believe how uneducated most of them are regarding their cards and credit.

Some people actually believe that their credit score will not increase unless they carry a balance on their card. That is absolutely false. For those unfamiliar with credit lingo, "carrying a balance" means not paying the full statement balance by the due date. It refers to the amount left over that you will be PAYING INTEREST ON.
Some people believe paying their phone bill or utilities will improve their credit score. This is also false. None of my monthly bills have ever been reflected on my credit report.

I did not start building credit till I was 19. I realized the importance of credit due to some helpful advice from my bank USAA (United Services Automobile Association) and some required personal finance training in the military. Unfortunately I didn't have anyone to cosign for any decent cards at the time, so my only option was to apply for a low limit, prepaid card that actually charged an annual fee. If I remember correctly, it had a $300 limit and began my score at 500ish. I followed every credit rule to the T, used only a small percentage of my available credit, and always paid my balance in full before the due date. A year later, I was finally eligible for better cards. I applied for and received a Discover card (which I still use today) and got rid of the crappy prepaid card shortly after. I have since added a USAA card and PNC card as well.

Each of my current cards started with a $2K limit which was then gradually increased to a $10K limit each. They are kept strictly for emergency funding. Paying interest on credit card debt is incredibly expensive and it blows my mind to see people live in debt with no remorse.

My credit score has been stuck at 780 for almost 2 years now. I don't know how to get to the 800s. Must I simply wait 20years?

The amount you can borrow on a loan is usually based on income. The interest rate you'll pay on the loan is based on your credit score. Building credit is VERY important and can save you a ton of money in the long run.

06-22-2016, 08:31 PM	#2
dbeiler Zilvia Junkie Join Date: Jun 2012 Location: Lancaster county, PA Age: 34 Posts: 465 Trader Rating: (4) Feedback Score: 4 reviews	Excellent subject. About time we got some more adult type threads here. Considering the insane amount of Americans with credit card debt, I can't believe how uneducated most of them are regarding their cards and credit. Some people actually believe that their credit score will not increase unless they carry a balance on their card. That is absolutely false. For those unfamiliar with credit lingo, "carrying a balance" means not paying the full statement balance by the due date. It refers to the amount left over that you will be PAYING INTEREST ON. Some people believe paying their phone bill or utilities will improve their credit score. This is also false. None of my monthly bills have ever been reflected on my credit report. I did not start building credit till I was 19. I realized the importance of credit due to some helpful advice from my bank USAA (United Services Automobile Association) and some required personal finance training in the military. Unfortunately I didn't have anyone to cosign for any decent cards at the time, so my only option was to apply for a low limit, prepaid card that actually charged an annual fee. If I remember correctly, it had a $300 limit and began my score at 500ish. I followed every credit rule to the T, used only a small percentage of my available credit, and always paid my balance in full before the due date. A year later, I was finally eligible for better cards. I applied for and received a Discover card (which I still use today) and got rid of the crappy prepaid card shortly after. I have since added a USAA card and PNC card as well. Each of my current cards started with a $2K limit which was then gradually increased to a $10K limit each. They are kept strictly for emergency funding. Paying interest on credit card debt is incredibly expensive and it blows my mind to see people live in debt with no remorse. My credit score has been stuck at 780 for almost 2 years now. I don't know how to get to the 800s. Must I simply wait 20years? The amount you can borrow on a loan is usually based on income. The interest rate you'll pay on the loan is based on your credit score. Building credit is VERY important and can save you a ton of money in the long run.