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Posted: Fri Jun 04, 2010 9:17 am
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I've got a lovely bunch of coconuts. There they are a'standing in a row!
My mom, in a random spurt of wisdom, brought to my attention while shopping at the mall yesterday, that I should have begun establishing credit at one of the department stores.
Because my mom has a lot of our local department stores sending her bills in order for her to pay off her cards, I'd rather not have that stress. Then again, I shouldn't have stress if I pay off the card, right? If I don't get crazy with it, right?
As my mom and I were walking through the mall, she told me that I would have trouble buying a house or a car if I don't have a history because the businesses won't have an idea on whether or not I'll be able to make the payments, blah blah blah.
I just want to know what you guys have done in order to establish your credit. I'm doing my research right now, seeing if I want to take that step right now.
What to talk about: -Establishing credit -Credit score -Credit problems -Possible credit lures/traps -Debt -Whatever comes to mind as you're discussing
"Give them a twist, a flick of the wrist!" That's what the showman said!
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Posted: Fri Jun 04, 2010 9:32 am
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Posted: Fri Jun 04, 2010 10:29 am
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Posted: Fri Jun 04, 2010 10:45 am
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Posted: Fri Jun 04, 2010 11:42 am
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Posted: Fri Jun 04, 2010 12:21 pm
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Posted: Fri Jun 04, 2010 1:51 pm
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Posted: Fri Jun 04, 2010 2:39 pm
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Posted: Fri Jun 04, 2010 3:06 pm
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Posted: Fri Jun 04, 2010 3:10 pm
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Posted: Fri Jun 04, 2010 3:56 pm
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Kals is questing again!
Here's what I did: My parents insisted that I get a low-limit Mastercard through a local gas station as soon as I was 18. I was to use the card only for things that my parents would have given me money to pay for anyways, like picking up groceries and running errands for my mom, and putting gas in the car. They paid off the balance in full every month. Then when I had a job, I started paying the bill myself. As long as I never spent more than I could afford and I payed the card off in full every month, it was not a problem.
The problem came when I was on a medication that amplified the negative symptoms of my ADHD (impulsiveness, lack of self-discipline, inability to delay gratification, not connecting actions to consequences, etc) to the point where I was basically manic for about 8 months straight. During that time, I was offered three more credit cards, and I took them all. Then I got kicked out of school and my parents withdrew their financial support (they had been helping me with my rent while I was a student) AND all five of my roommates moved out, leaving me with $700/month rent, plus utilities on top of that, for a three-bedroom townhome and several months left on the lease. Between the impulse buying, the delusional schemes (like entering a vanity poetry "contest" and being invited to the poet's conference in Hollywood... and thinking I could go), the lack of planning ahead, loosing track of how much money I had available where, and the financial burdens of being a grownup, I maxed out all four credit cards. All four of them. In less than a year. Actually, it was less than six months. That was somewhere around $5000 of debt, plus the landlords were going after me for another $3000 (and they evicted me), and I already had $10,000 of student loan debt. I was 22 years old, and owed no less than $18,000 to various companies and/or people.
I have actually had very good experiences with the credit card I got through my bank. It's actually the only card I ever paid off. The only time I had a problem was when they froze all my accounts because my credit card bill was overdue, but a quick call to the bank with an explanation that I was on social assistance and attending a full-time medical treatment program, and I just needed $20 for groceries, along with a promise to make a payment with my next deposit, cleared that up. The other companies just sent my file to the meanest, nastiest collection agencies around, who started leaving threatening and abusive messages on my voicemail.
Needless to say, although I started out on the right path to establishing a good credit rating, my own foolishness and stupidity has made it so I cannot have a credit card now, and I will probably never get a car loan or a mortgage without someone reliable to cosign. I probably ought to declare bankruptcy and start over with a clean slate.
Also, renting and paying utility bills on time improves/affects your credit rating. Not helpful if oyu live at home, I know, but it's a good thing to keep in mind when you're on your own. I would use a credit card for groceries and stuff rather than books, as long as I could keep my spending within my means to pay it off, and never carry a balance. That way there's no interest fees, and the credit card company is happy. Books are a twice-a-year expense, and will not demonstrate your ability to maintain a monthly bill. Buying groceries every couple of weeks will. The key is to never spend more than you are able to pay back right away.
I disagree with Xik about letting a balance carry forward -- interest costs money, and to a university or college student, every penny counts! Also, student credit cards have horrifically high interest rates. Banks LOOOOOVE to give credit cards to students.
Check sig for details!
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Posted: Fri Jun 04, 2010 4:45 pm
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Posted: Fri Jun 04, 2010 4:58 pm
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Posted: Fri Jun 04, 2010 5:53 pm
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Posted: Fri Jun 04, 2010 6:38 pm
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