Credit Cards.

[ohyeah89]

Ok so what about having credit cards with a 0 balance and not using them? I have heard conflicting reports on how this negatively/positively affects your credit score. I don't want to cancel any of them so I don;t negatively affect my credit score by lowering my debt to credit ratio (only debt I have is student loans though). I also keep them around for emergencies but I am way too lazy to use them and then have to remember to pay the bill each month. Are they hurting my credit score just laying around with 0 balance? Thanks

[Bellvis]

BFlo, I have been in the banking business for 5 years now and will be 100% honest with you. Its going to be very hard for a 15 year old to get a credit card. My advise would be to ask your parents if one of them would be a co-signer with you. Same thing with a checking acct. The bank that I work for will not just open a checking acct for a 15 year old. I make exceptions and will do it if you have a primary form of id (Passport, Drivers license, Military or state ID) and a parent/guardian is on the acct with you.

Every since 9/11 the gov. passed the U.S. Patriot Act which makes it more difficult for people to get bank and credit accts. Banks are required to go through all this stuff to identify their potential clients.

[foofighter]

Originally Posted by ohyeah89

Ok so what about having credit cards with a 0 balance and not using them? I have heard conflicting reports on how this negatively/positively affects your credit score. I don't want to cancel any of them so I don;t negatively affect my credit score by lowering my debt to credit ratio (only debt I have is student loans though). I also keep them around for emergencies but I am way too lazy to use them and then have to remember to pay the bill each month. Are they hurting my credit score just laying around with 0 balance? Thanks

you want to have at least a small balance that carries over because it'll show that you can handle paying a revolving credit account. Duration of how long you've had a credit card will also affect your score...keep the oldest one you have as that establishes history for you. pay everything but like $10 and let it roll over to the next month.

[chongoblanco]

your credit is everything take care of it & be smart, it is part of your backround check, it plays a big role in when you go to make a major purchase later in life.

I even worked for a finacial company that ran a credit check on you to see if you would be eligable for hire.

Lots of good advise on this page but ask your parents about applications, interest rates etc.

My grandfather told me " mijo were not rich! so if you wanna ever have nice things take care of your credit"

Hope we didn't scare you & good luck

[dstepper]

I have credit cards I never use. My credit score gets checked often and I have never been dinged because of unused credit.

Dean

[Bellvis]

Originally Posted by ohyeah89

Ok so what about having credit cards with a 0 balance and not using them? I have heard conflicting reports on how this negatively/positively affects your credit score. I don't want to cancel any of them so I don;t negatively affect my credit score by lowering my debt to credit ratio (only debt I have is student loans though). I also keep them around for emergencies but I am way too lazy to use them and then have to remember to pay the bill each month. Are they hurting my credit score just laying around with 0 balance? Thanks

First make sure you have one with no annual fee.

Second, keep them open, specially the ones that you have had for a while. They are not hurting your credit by keeping them at a 0 balance.

Your FICO score is based off of several different factors.

1. Length of time credit has been established.
2. The amount that is available to you.
3. Payment history.
4. Number of inquiries on your credit.
5. How much you owe.

Lots of great info on www.mycredit.com

[MuddyEdgar]

My favorite card is the American Express Gold (rewards). Requires you to pay the full balance each month.

And you get points that are redeemable at restaurants, flower shops, sports stores, Air Lines etc........

Knowing you have to pay the balance in full will make you think twice before charging the card.

+ this card really looks good on your credit.

[Kid A]

Heed the advise above but if you get one maybe rock this bad boy (err, girl).

george when is STR getting a co-branded card. Rewards point for every lap on fully loop to be redeemed at any LBS and taco joint,

[strobelite]

Originally Posted by Reedster

Credit cards are evil. They are the spawn of the horned red creature with a bifurcated tail.

~R

+1 i agree whole heartedly. so much so, that we have paid cash or check to get my wedding rolling. $700 for this, $12000 for that...... satan made credit, if you miss once, the $h!t hits the fan!

[BFloFoxRider.]

I wonder if STR could get Jenson and Wheelworld and the sponsors to allow us an STR credit card with rewards we can redeem at those stores
That would be sweet

Originally Posted by Kid A

Heed the advise above but if you get one maybe rock this bad boy (err, girl).

george when is STR getting a co-branded card. Rewards point for every lap on fully loop to be redeemed at any LBS and taco joint,

Funny you found that...
i dont remember how it got started, but my mom has this insidew joke with me and she always buys me little hello kitty stuff thats random. Its kind of funny.

[BrewMaster]

AMEX Blue gives cash back. We charge everything on our AMEX Blue and pay it off at the end of the month. This takes discipline and living within our means. If you don't have the discipline, I would not recommend this strategy.

An option for young people like you Brandon is to get a secured credit card. You basically open a savings account that backs up the credit card if you fail to pay. Most secured cards start at $500.00. This is one way to teach you to save.

As others have said, if you can't pay cash, don't charge it. Getting into credit card debit can ruin your life and your plans for years to come. It's just not worth it.

It is good to establish a good credit history while you are young, but just be smart and don't spend money that you don't have.

[Rockinthecasbah]

credit cards are the devil , im trying to pay mygiant one off right now
the only thing i will use them for is emrgency vet/hospital bills and gas to get to work if i totally topout of funds

[reflux]

Originally Posted by foofighter

you want to have at least a small balance that carries over because it'll show that you can handle paying a revolving credit account. Duration of how long you've had a credit card will also affect your score...keep the oldest one you have as that establishes history for you. pay everything but like $10 and let it roll over to the next month.

I am of a different mentality: pay off the balance in full each and every month. Even if not carrying a balance does drop my credit score, the fact that there hasn't been a late payment on that card in about 10 years certainly offsets it.

As for having several credit cards with no balance or activity, that's an interesting question. Of those credit cards, what is the total credit limit? Bank and other lenders won't look at the activity for each card, but at your total access to credit. If you come into hard times, you have access to a significant amount of credit that would materially affect your credit score.

[Rockinthecasbah]

most importantly , for this thread, brandon dont even think about it! save up your money for a new bike

[BFloFoxRider.]

Originally Posted by Rockinthecasbah

most importantly , for this thread, brandon dont even think about it! save up your money for a new bike

Im saving, i was just curious. im trying to get my parents to open me an account. But im slowly saving...
You never completely realize how expensive bikes really are until you start saving and you realize it takes FOREVER

[Do Work]

Ive take several credit classes and have hear a lot of different information regarding the way cards work but here is the some of the useful info:

-for inactive cards it is my understanding that if they go without any activity for longer than a 6 month period they then become inactive and actually lower your credit score so the best thing to do is if you can remember (thats the tough part) use them prior to the 6 month mark for gas or a food purchase and then pay that down
-the longer you have had the credit card the better it is for your FICO because of the lenght of credit history with it so what i did was i pulled my credit and looked at any credit cards that i had a long time ago and closed out and i called them and told them that the cards were closed with out my approval and i wanted them reactivated and they were happy to do so ( of course they want you back) and i automatically regain all that credit history from that card-this is a good trick if you are in need of bumping your FICO up quickly for a big purchase like a home or car
-i also learned that capital one and discover cards are some of the worsts cards to have-they purposely try to find ways to screw you so that they can later raise your interest. They know that most people have figured out to run up their balance during the month and pay it off at the end of the month so what some of these mother f'ers have started doing is checking and reporting your balances mid month when they are at their highest and that way this will affect your credit score, raising it and then allowing them to raise your interest...they are dirtbags!!!
-another way for you to stick it to the man if you are trying to improve your FICO quickly is to be added to a relatives credit card (they must be in good standing obviously) as an authorized user-what this does is that it will give you all of the credit histroy they have gained on this particular credit card over the years (so the longer they have had the card and in good standing the better) by simply adding you and this will help raise your FICO. Another good thing about this is that their good credit will go to you but your bad credit or lack there of will not affect their credit at all. I say a relative because i have good friends and all but none that would be willing to do something like this for me. You will get a credit card in your name which i would have them keep so they are even more certain that you wont be going all willey nillie with their credit.
-here is another interesting thing i learned-it used to be that owing under 50% of your max balance was the cut off but that magic number is now 30%. You want to keep all of your card balances at under 30% of the max limit.

Sorry for the rambling but i hope some of this helps and again, im no expert (with Credit, i dont think anyone is since the game is always changing) but these are the things that i use to keep my credit in line and they have worked for me but at the end of the day...the consensus is right-credit cards can be eveil and if you cant pay for it cash you dont need it!!!

[Rockinthecasbah]

BFLO why dont you sell or part out what you have and put that towards one decent bike

[BFloFoxRider.]

Originally Posted by Rockinthecasbah

BFLO why dont you sell or part out what you have and put that towards one decent bike

If i sold my AC and my Giant Dh i would have barely enough to build a pretty decent XC bike.. but then it would be my training and race bike..
Then technically i guess i wouldnt be on the Dh team. I would, but i havent ridden DH. Im thinking about doing that though

So many types of bike riding, so little money

[92se-r]

I really disagree with credit cards being called evil. It's like saying spoons made Rosie O'donnell fat.

Credit is the most powerful tool you can have when you become an adult if wielded correctly. Without it, you cannot do anything nowadays. Especially in California.

Every month, you require a certain amount of money to live. I assume you will eventually have a job that will pay for your standard of living. In my opinion, you should use a credit card for EVERYTHING you purchase, as long as you do not live beyond your means, which credit will allow you to do, which makes them dangerous if YOU do not have any self control. Credit is a very powerful tool.

The reason I urge you to use them for EVERYTHING you purchase is this. Most credit cards have rewards. Whether it be airline tickets or cash back. If you are using the money anyway, put it on the credit card, get your rewards and just pay the balance off each month. No interest is paid. Most of these card's don't even have annual fees, so you are paying absolutely NOTHING to get these free rewards.

In addition to this benefit, you are putting risk of fraud on the credit company, not you. I absolutely DESPISE DEBIT(CHECK) CARDS. Why? If there is a fraudulent charge, guess what? They take the money out of your account first, then do an investigation, and weeks or months later, refund you your money. Meanwhile, your rent or mortgage check has now bounced. On the other hand, if there is a fraudulent charge on your credit card,