Advice on Credit

[dimbee]

The FICO algorithm is safeguarded better than our nuclear weapons codes

[tarheelpride]

Appreciate everyone's input.

Like I said, I'm holding off on a credit card for now, at least until I can find a steady part-time job.

I am a bit hesitant on switching banks, but I plan on doing it eventually upon my graduation. I'll consider a credit union when I do. I need a bank that's close to where I live and I already have established a relationship with RBC Bank.

What about using a debit card as a credit card? Does that help any?

[thefuzz]

Appreciate everyone's input.

Like I said, I'm holding off on a credit card for now, at least until I can find a steady part-time job.

I am a bit hesitant on switching banks, but I plan on doing it eventually upon my graduation. I'll consider a credit union when I do. I need a bank that's close to where I live and I already have established a relationship with RBC Bank.

What about using a debit card as a credit card? Does that help any?

No.

If you want to build your credit, get the card. Even if you go to your bank and get a credit card with a $200 limit, that will start building credit.

Buy a McDonalds happy meal every month and pay it off, you don't have to buy a big screen.

[The Saltman]

No.

If you want to build your credit, get the card. Even if you go to your bank and get a credit card with a $200 limit, that will start building credit.

Buy a McDonalds happy meal every month and pay it off, you don't have to buy a big screen.

this

[Khyber53]

You can also go the old route and avoid credit all together. Earn, save, purchase.

It really is the best way, but not the most fun.

[The Saltman]

You can also go the old route and avoid credit all together. Earn, save, purchase.

It really is the best way, but not the most fun.

it all depends on how much you are going to save...it will take you a long tme to save up and pay for a house and car with cash.

[Khyber53]

it all depends on how much you are going to save...it will take you a long tme to save up and pay for a house and car with cash.

It really depends on how you are doing it. Being married helps as does being out of debt.

In my situation, my wife's income can cover all of the monthly household expenses, utilities and the mortgage payment. My income could be dumped into buying a new car and by saving for a year, we can get something moderately nice and new, or something really nice that's got a couple of years of use on it. One year of saving beats the heck out of 3-6 years of car payments.

Houses can be trickier. There is an old adage that rich people used to tell their children: "Only get a mortgage on the first home you buy." The idea is that you start small with the first home, save money and build equity. After 7-10 years, you should have enough equity and savings to buy a larger, better home that will hold your growing family.

It's all about, do you want it now and what are you willing to give up for it? What you can borrow for now may be worthless when it finally gets paid off (anyone had this with a used car and then you have to get another car and car loan?).

And take it from me, when you take out a loan of any sort, you are going into a contract for years to come. Your situation may change at some point. You may lose a job or you may see unexpected expenses or you might get taken to the cleaners by someone you trust -- but those danged payments are still due.

And that's not even considering that by paying someone interest, you are throwing your money away. And until the item is paid off, you keep throwing money away for something that is just getting older and more obsolete.

Save. Trust me. Save.

[Davidson Deac II]

Appreciate everyone's input.

Like I said, I'm holding off on a credit card for now, at least until I can find a steady part-time job.

I am a bit hesitant on switching banks, but I plan on doing it eventually upon my graduation. I'll consider a credit union when I do. I need a bank that's close to where I live and I already have established a relationship with RBC Bank.

What about using a debit card as a credit card? Does that help any?

I got started using a secured credit card. I put 500 bucks in a bank, they use it as collateral for the credit card (which had a $500 credit limit) and they pay interest on the $500 savings.

Debit cards as credit cards have two problems. One, you have to have the money in the bank. Two, if your card number gets stolen, the bad guys are taking money out of your bank account, and its much harder to fix than a credit card.

[tarheelpride]

I got started using a secured credit card. I put 500 bucks in a bank, they use it as collateral for the credit card (which had a $500 credit limit) and they pay interest on the $500 savings.

Debit cards as credit cards have two problems. One, you have to have the money in the bank. Two, if your card number gets stolen, the bad guys are taking money out of your bank account, and its much harder to fix than a credit card.

I rarely use my debit card as a credit card, unless I'm forced to. I'm not comfortable with it.

I will look into some type of credit card with the bank as soon as I get out of Summer School. I need to do my homework 1st on it.

[RazzleDazzle]

Get a credit report too. Annualcreditreport.com is free and you don't need a credit card.