Credit History/Score

I was building excellent credit. I made all my payments on time. Then I lost my career job (thank you Obama administration) and was no longer able to make payments. My credit has tanked. As a note I personally think there are only a few things you should want credit for and use it for. If you are interested in a home and or a car. Things that most people will unlikely be able to pay for outright. Building credit to the end and once achieved nit using credit when you do not absolutely have to.

 

If you want an awesome credit rating, just have over a million dollars in your account. You get virtually unlimited credit.

 

That and there is what is something called a secure credit card you get through the bank. Basically you give them your own money and then you use it with the card etc... make payments on time every time and after a year its turned into a real credit card. After 6 months you can request an increase. 1 1/2 years after doing this and having no previous credit I bought a condo. So...it works.

 

1. aside from forgetting to pay the bill a time or two, and realizing it a few days later, nothing
2. Generally yes; haven't missed one in awhile
3. 1. Don't much see a point for a second, though i constantly get offers
4. probably 50-75% consistently. I use it more than cash, and use it over debit for the protections it offers
5. Do they run credit for all those? Yes. Have i used it to finance? No.
6. Hard to remember exactly when. Just before college i think. As long as you can show you generally have some income or capital, and aren't stupid with your money, i really don't think you'll have any problems
7. Good but it could be better.

*** OTHER STUFF ***

1. I know you didn't ask, but my main piece of advice would not be about getting the credit, but after you do - do not use it as more money than you have, if at all possible. If you can, stay within the limit of what you can afford, and pay the bill in full or as much as you comfortably can each month. I know people who treat it as like an extra income source they don't really have, and just pay a minimum or a low amount each month. As you know, not only does this hurt your score, but people seem to underestimate the amount of interest accrued. Sure it's not bad in a single month's amount, but it adds up over time. If you have bill for $750 one month, and pay $150, you still have $600 left to pay next month or whenever going forward. If you have a $500 bill next month and pay 250, you still have 850$ you're paying interest on - it adds up.
2. Overall i think credit is a 'necessary "evil"' - it comes in handy for a lot of stuff such as rent, purchase approvals, etc - but it sounds like you haven't had a problem thus far so i'd say you're alright.
3. Avoid a credit card with yearly maintenance fees, and factor in the interest/APR when choosing a card. Some cards waive the annual fee if you use x amount of credit each month, and some cards don't have fees. Don't go for a card with a high fee unless you're *certain* the perks of the card will justify the cost (e.g 45/mo.)
4. In relation, regardless of which card you have - USE THE PERKS. they're there with the card - the three most helpful are extra fraud protection, purchase protection (if an item is damaged or not as expected you can open a case), price protection (my card will match a lower price guaranteed (with certain stipulations) within 3 mos of a purchase and give that difference as a credit to your balance. Other nice perks are cashback, points for hotels, airlines, etc. Generally the more perks, the most expensive the card is to have (monthly/yearly fee though.) Some really nice cards have concierge service and such, not sure how much use that would be though.

basically, treat a line of credit as just a bill, if you can. stay within your means, and pay off the max or as much as you can. You owe whatever you use on the line, one way or another, regardless of if you pay now or later. If you pay later, you'll pay more. common sense, i know, but some people just don't grasp it.

I wouldn't be worried about getting credit though, it doesn't seem to be a problem for most.

 

Oh boy.

)In an honest answer, (if any), what are some things you regret doing with your credit? How did you hurt your credit the worst?
- Abusing them. The usual overspending.

)Are you good at paying your bills on time?
- Yes.

)How many Credit cards would you say that you obtain? Do you have a lot of store cards?
- I had a max of 5 cards at one point, 2 now. No store cards.

)How much percentage of your credit would you say that you use?
- 88%

)Have you ever used your credit for mortgage, an apartment, car loans, student loans, etc. If so, how did it impact your credit?
- Nope.

)How did you go about getting your first credit card, or building your first credit?
- I got a mailer when I was 18 and I needed a card to buy stuff on ebay. I built a long and good credit history by simply keeping the balance at 0 for a long time.

)How do you feel about your current credit score?
- It blows, at least for anything that needs a good credit score. I'm slowly improving it back to pre-crazy levels.

 

)In an honest answer, (if any), what are some things you regret doing with your credit? How did you hurt your credit the worst?
No. I didn't.
)Are you good at paying your bills on time?
Excellent
)How many Credit cards would you say that you obtain? Do you have a lot of store cards?
3 Major credit cards between my husband and me. 3 store credit cards, not a lot IMO.
)How much percentage of your credit would you say that you use?
1-2% Always in the store credit cards in order to use the discounts associated with, always paid immediately.
)Have you ever used your credit for mortgage, an apartment, car loans, student loans, etc. If so, how did it impact your credit?
No, bad move.
)How did you go about getting your first credit card, or building your first credit?\
I came up in the early 90s, when people were still handing out lots of free, fake money.
)How do you feel about your current credit score?
Excellent

 

I pay this ish on time 'cause dat credit score, yo. I only have one card that I use primarily for groceries, gas/car maintenance, gym membership, and misc purchases such as online payments; I haven't used credit for loans or anything like that. I use about 40% of it on average, though sometimes I may go over if I have larger purchases at once.

If you're just starting out I definitely recommend a similar approach as far as what you'd be using the card for (groceries, especially). Small, simple payments over time will help build good history.

 

My first regret was when I was younger, fresh out of college and really struggling to make ends meet. I used my first credit card for to help with overdue bills of things I didn't need and to purchase more things I didn't need.... Like a cell phone and a laptop, which at the time was a luxury that I couldn't afford. This was late 90's early '00's, btw, when laptops were like $4k.
My second regret was getting a joint credit card with my ex who maxed it out and left me with the bills.

When I was younger I had three Visa's, American Express, and a Discover card. I had a Nordstom's, Macy's, and Best Buy cards. All were maxed out and I got myself into a lot of trouble. I consolidated and spent the better part of my 20's and 30's getting out of debt. I'm now down to only one Visa and an American Express that both my husband and I share. We save the Visa for emergencies, like if something goes wrong with the cars, our pipes burst and flood the house, etc. The American Express we use for small purchases, and keep the balance low. I no longer have store credit cards, it was too easy to max them out. Don't do what my younger self did.

25% now. 100% when I was younger. Don't do that.

I never used them for actual necessities. Again, don't do what I did.

My bank offered my first one to me, and after that I got tons of offers for them. Of course, silly me, I was like "Yes! Of course I would like to apply!" And at stores, you know the whole, "You can save 25% on your purchase today if you apply." And me: "Why of course I want to save 25%! That means a whole other pair of shoes I can buy!" Please don't do what I did.

My current credit score is lovely. I'm damn proud of it. BUT... that is mostly due to my husband's diligence with payments and ensuring that I don't go overboard when I want new clothes or something. If my credit were left up to me, I'd be like -800 in credit rating.

 

One year long from now you may just notice, all of a sudden, how your credit score matters no longer.

 

As we approach retirement age, income usually isn't as good as the old days. We own a home, maybe owe a little money on it, but our fight becomes health and property tax related.

Finding a great job with a retirement and benefits should be prioritized. Big houses become too big over the years. Upstairs becomes a concern. One trip to the hospital could ruin everything you ever worked for at some age.

You are preparing for your life. I am fighting to keep mine. After learning the things I learned through my parents' illnesses, my eyes were opened. Go places you want to go to while you can. Enjoy your life. Don't be late.

 

- Have a steady income

- Using a credit card once a year for a sizable purchase (one which you can pay off)

- Make monthly payments on time

 

)In an honest answer, (if any), what are some things you regret doing with your credit? How did you hurt your credit the worst?
Only bought a synth once on credit, but only to budget it in advance. Had the money ready. So never been hurt by the credit itself. No regrets.

)Are you good at paying your bills on time?
Yes, always. I hate being in debt.

)How many Credit cards would you say that you obtain? Do you have a lot of store cards?
Only 1, used to be AMEX, now it's Mastercard.

)How much percentage of your credit would you say that you use?
Ehm...variable? It's handy to have as an extra buffer. But I rarely use it.

)Have you ever used your credit for mortgage, an apartment, car loans, student loans, etc. If so, how did it impact your credit?
No

)How did you go about getting your first credit card, or building your first credit?
Through my work, we use it for travel expenses mostly.

)How do you feel about your current credit score?
No idea, I actually have no idea if i have any credit score, I'm not familiar with the system (don't recall seeing any credit score either on the Mastercard site).

 

Also a general system I've made for myself, as I have a tendency to spend too much on stupid gadgets and whatnot.
It's a basic system but it might help someone, it works for me so far to balance out my spending/saving.

Fixed Costs

- Sum of all fixed costs you make each month (rent, bills, subscriptions, ...).
- The average cost of food and supplies you buy per month.

Variable Costs

- Hobbies and interests
- Going out
- Other spending

Savings Capital

- Personal Savings
- Investments

Step 1. Priority n#1 is to have all Fixed costs covered each month, so that would be the sum of all fixed costs together.
Step 2. Subtract the total fixed cost from your monthly wage.
Step 3. Set a fixed amount of Personal Savings to cover any possible situation in the future. Ideally you would at least have 6x your wage saved up in your savings account at minimum. Subtract from the remaining amount.

With what is left you can:

Step 4. Do variable costs, this is a sum you make from things you'd buy/do/... in that month. You work with a fixed total amount budget which you can spend on during the month. If you paid extra for
a hobby, you'll go out less or spend less on something else. Try to not go out of this fixed budget.

Step 5. Do Investments, if possible. Have a bit on the side to use as investment capital. This capital is meant to generate money on its own (example, stock investment, a project that can return money, ...). You can also
use this capital as an extra push for savings or something else. It's worth putting money into as extra income is always handy to have on the side.

You'll have to find a balance between Variable Costs and Investments. But that's to everyone's personal situation.