Uhm This should be required learning. Why Credit Cards Are A Scam - Honest Ads

[DarthWoo]

So I have to admit that I've not actually had a credit card at all so far. I've managed to get by on the money in my checking account via my debit card. I imagine I really ought to build some credit, so what's a good and safe credit card to just keep around and maybe buy a meal with each month just to have something to pay off in full at the end of the month? Preferably something with no fees, maybe with some kind of silly reward program that I'll never use it enough to really redeem anything good, but just to build credit.

 

[Syranth]

Edit: Nevermind. Moment of honesty I'd rather not on record.

 

[Darknight]

Apart from interest you mean ?

Is the cash not put back on the card ? My point was more that if the cash is back on the card you have to use the card again ( probably poorly made point :) )

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If you're paying it off monthly, they're not making money off you from the interest. The only money that is made is not directly from you but through the business that had the transaction. Cash back can be put directly back to the card, which is the easiest if you're actively using it since it just reduces your monthly bill but it is not the only method to receive the money. They can also do other methods of redemptions such as gift cards, a check or even a direct deposit to your account. So you can get that money back without having to spend more or use the credit card again if you wanted to.

 

[Gaming_Groove]

deleted

 

[Syriel]

I suppose there is just completely different ways of thinking about debt in North America vs Europe. The idea of proving that you can take on debt...repeatedly...is just alien to me. Now proving you can save. That is also important.

They don't only look at GDI for mortgage applications. Regular saving commitments and bank statements are required. So on your side, regularly going into debt and paying it off is seen as a positive. Where as over here regularly saving and proving you have the capacity to pay the mortgage each month is what is seen as a positive.

Major difference I would see is that to improve your credit score it is very likely that you have to interact with a credit card company. You have to spend on the card and even if you benefit on the rewards side the credit card company are making money off you. From what I have read in this thread a lot of the rewards tie into flights, cash back on the cards etc...which only ties you back into spending on the card or another big company for vacation etc. But I suppose it all fits nicely with the hypercapitalism that the US seem to have perfected.

Also, sorry but your analogy is bullshit.

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What you call "repeatedly going into debt" Americans call buying groceries and going out to eat.

If you have the $$$ in your checking/savings account, it's not really going into debt. It's just another digital form of payment that offers better benefits and protection than a debit card.

Even without the rewards, using a credit over debit card is preferred, simply because it is one level removed from you account.

If someone steals my credit card and starts running up charges, IDNGAF. I just call the card issuer, report the stolen card and the fraud, and it's sorted.

If someone steals my debit card and starts running up charges, my bank account is immediately drained. Sure, I'll be able to get it back in a few weeks/months, but being out that cash in the short term due to fraud would HURT.

For that reason alone, I can't imagine why anyone would want to risk using a debit card.

No one is suggesting that people buy stuff they can't afford just to get rewards points on a card. That would be silly.

Apart from interest you mean ?

Is the cash not put back on the card ? My point was more that if the cash is back on the card you have to use the card again ( probably poorly made point :) )

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If you get a cash back reward, you get cash. You can apply it to the card. You can request a check. Whatever you like.

Rewards are rewards. They don't force you to spend more on the card. If they did, they wouldn't be very popular rewards cards.

I always thought that paying down the card more than once a month would hurt the amount of points/rewards you would get, since you would only get points for the balance that's still on the card when the monthly statement is actually cut. Is that not the case?

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I've always interpreted "carry a balance" as "get charged interest", as I always pay off my cards the moment I get the statement. But I thought you only got points based on the statement balance, so if you make a mid month payment the statement balance would be lower and you'd get less points.

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Rewards points are based on the total spend. Period.

Ignore all the folks who have crazy strategies to min/max. It's not going to do anything.

Simplest thing to do is just pay your statement balance in full every month so you don't carry a balance. You won't pay a cent in interest.

 

[nofriendo]

What you call "repeatedly going into debt" Americans call buying groceries and going out to eat.

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Yep, that's entirely my point.

If you have the $$$ in your checking/savings account, it's not really going into debt. It's just another digital form of payment that offers better benefits and protection than a debit card..

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It is the literal definition of debt.

debt

noun

1. a sum of money that is owed or due.

 

[Syriel]

Yep, that's entirely my point.



It is the literal definition of debt.

debt

noun

1. a sum of money that is owed or due.

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Yes, you technically go into debt every time you eat at a restaurant because you're served and eat before you pay.

You go into debt every month when you use your cell phone, and get the bill at the end of the month.

Most people don't consider temporary transactional debt like that something to worry about, because it is fleeting. It's not debt that's going to stay with you over time (like a mortgage). It's just an artifact of how we pay for stuff.

You're acting like it's the worst thing in the world.

 

[Lumination]

I'm sure you already can think of the answer to this question. Any number of negative outcomes of not being able to pay bills. Collections, wage garnishment, eviction, hunger, job loss, etc. If you can't pay every bill, then something has to go. If I, for example, didn't keep up with the power bill, then my electricity would be shut off, which is grounds for eviction from any apartment I've lived in. If I don't maintain my car then I can't get to work, I lose my job, and get evicted. That happened twice (not up to eviction, just having expensive repairs I couldn't afford), and wouldn't you know, the repair shop offered me a credit card to pay for the $1000 repair, so onto the pile those debts went. Other cuts have mostly been my healthcare and food. I haven't bought new glasses in nearly 10 years for example, and only shop for food at Aldi unless I absolutely need something from a different store. Outside of my hospitalization I had not been to a doctor until the last 6 months, and mostly did so because my own illness was becoming life threatening.

I know I'm not as poor as others based on my income, so I'm definitely not looking for pity or whatever. Just trying want to share my experience. There are many in this thread who would see this as irresponsible I'm sure, and I understand that and they're probably right. For me in the moment, I've always done whatever I could see as the solution at the time that keeps all the bills paid every month.

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FWIW, I don't think you did the wrong thing or are irresponsible and I think everyone here would agree. You did what you had to with the hand you were dealt. And the system not being there for you or your partner's medical situation is part of the problem.

That said, I guess my question is, would you have been better or worse off if you didn't have that credit card to use debt? I'm not at all insinuating that you are better off, but rather, would you have not taken on the debt knowing what you know now? Not trying to be preachy or pitiful, just wanted to hear more of your perspective if you are willing to share. Thanks.

 

[Gaming_Groove]

deleted

 

[Teh_Lurv]

So I have to admit that I've not actually had a credit card at all so far. I've managed to get by on the money in my checking account via my debit card. I imagine I really ought to build some credit, so what's a good and safe credit card to just keep around and maybe buy a meal with each month just to have something to pay off in full at the end of the month? Preferably something with no fees, maybe with some kind of silly reward program that I'll never use it enough to really redeem anything good, but just to build credit.

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If you're not in college and have no credit history, you'll find getting a real credit card very difficult right off the bat. I was in the same position as you a decade ago; I took old fashioned family advice to avoid credit cards, save, & pay everything with cash, which bit me in the ass later on in life.

What I recommend is applying for a secured credit card. The difference between them and real credit cards is you provide the card company with a deposit amount equal to your credit limit as collateral. So you'd need to pay upfront $500 just to open a credit card with a $500 credit limit. However, the cards otherwise are identical to normal credit cards and your account and payment history go towards your credit file. Once you get the card, spend about 10% of the credit line each month (pay for lunch with it or something), and make sure you pay the bill off on time each month. After a year if your payment history is good, the credit card company should convert the secured credit card into a normal credit card with the same credit limit and refund your initial deposit. In addition, your credit score should decent enough that you could apply for non-secured cards.

I'd recommend doing your homework before applying for a secured credit card; I remember during my research some really bad deal cards were being peddled. What I wound up getting was a secured BoA credit card. It was a no frills card with a $39 annual fee, but the credit industry was still in the wake of the '08 financial meltdown, so it was the best I could hope for at the time. But it got my foot in the door and eventually I was upgraded to a better BoA reward card.

Coincidentally, I saw a promo the other day that Discover is now offering a Secured Discover It card. I have the Discover It card and really like it's reward program and customer service. I took a quick look at their product page for it and it might meet your criteria (no annual fee & rewards): https://www.discover.com/credit-cards/secured/#q6

Edit: I forgot to add if you are still a student, you're options are better as most credit card companies have student cards.

 

[SJurgenson]

Yes, you technically go into debt every time you eat at a restaurant because you're served and eat before you pay.

You go into debt every month when you use your cell phone, and get the bill at the end of the month.

Most people don't consider temporary transactional debt like that something to worry about, because it is fleeting. It's not debt that's going to stay with you over time (like a mortgage). It's just an artifact of how we pay for stuff.

You're acting like it's the worst thing in the world.

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What could be worse than someone giving you a short term loan with negative interest?

If I buy a $50 of gasoline with my debit card, it costs me $50. If I use my credit card with 2% cash back, I pay $49.

 

[DarthWoo]

If you're not in college and have no credit history, you'll find getting a real credit card very difficult right off the bat. I was in the same position as you a decade ago; I took old fashioned family advice to avoid credit cards, save, & pay everything with cash, which bit me in the ass later on in life.

What I recommend is applying for a secured credit card. The difference between them and real credit cards is you provide the card company with a deposit amount equal to your credit limit as collateral. So you'd need to pay upfront $500 just to open a credit card with a $500 credit limit. However, the cards otherwise are identical to normal credit cards and your account and payment history go towards your credit file. Once you get the card, spend about 10% of the credit line each month (pay for lunch with it or something), and make sure you pay the bill off on time each month. After a year if your payment history is good, the credit card company should convert the secured credit card into a normal credit card with the same credit limit and refund your initial deposit. In addition, your credit score should decent enough that you could apply for non-secured cards.

I'd recommend doing your homework before applying for a secured credit card; I remember during my research some really bad deal cards were being peddled. What I wound up getting was a secured BoA credit card. It was a no frills card with a $39 annual fee, but the credit industry was still in the wake of the '08 financial meltdown, so it was the best I could hope for at the time. But it got my foot in the door and eventually I was upgraded to a better BoA reward card.

Coincidentally, I saw a promo the other day that Discover is now offering a Secured Discover It card. I have the Discover It card and really like it's reward program and customer service. I took a quick look at their product page for it and it might meet your criteria (no annual fee & rewards): https://www.discover.com/credit-cards/secured/#q6

Edit: I forgot to add if you are still a student, you're options are better as most credit card companies have student cards.

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Thanks, that looks like a promising place to start.

 

[Walter White Walker]

It is the literal definition of debt.

debt

noun

1. a sum of money that is owed or due.

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You're being way too literal. Yes, when you use your credit card you technically have created debt. In the real world, it isn't debt unless you don't pay it in full on the next statement. Until that time, you're just using the credit card companies money instead of your own.

 

[Syriel]

What could be worse than someone giving you a short term loan with negative interest?

If I buy a $50 of gasoline with my debit card, it costs me $50. If I use my credit card with 2% cash back, I pay $49.

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Pretty much. Hell, when I've got 5% back on groceries, I'll buy MC/Visa debit gift cards. End up paying less than face value.

 

[Pet]

I like using the reward points on my Chase to pay for grocery/dining charges, since Chase gives you an extra 50% for the point redemption. Reduced my bill by $200 last month, and that's the result of about ~three months of credit card activity.

 

[Jacknapes]

Only had 2 credit cards my entire life, and on both cards I've never gone over £1,000 at one time. Only use it for big purchases, which the last one was the PS5 with accessories. Then, pay it off in chunks over a few months. Sort of like Klarna, but not tied to 1,000% APR if you miss a payment (probably an exaggeration).

I've known people to use a credit card to pay off another credit card, and then getting caught up in a downward spiral.

 

[lazerface]

Do people really have 0 self control? Credit cards are literally free money as long as you pay off your statement balance every month. I pay for EVERYTHING on credit card for that cash back, by the end of the year I'll have $1000 in free money.

 

[Hollywood Duo]

Do people really have 0 self control? Credit cards are literally free money as long as you pay off your statement balance every month. I pay for EVERYTHING on credit card for that cash back, by the end of the year I'll have $1000 in free money.

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Some have 0 self control, others are desperate to scrape some money together to survive.

 

[ItIsOkBro]

There's a lot of talk about how the rewards are funded off the backs of others. But I would use a credit card even without the rewards for the security and convenience.

 

[Neece]

There's a lot of talk about how the rewards are funded off the backs of others. But I would use a credit card even without the rewards for the security and convenience.

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That, plus building the credit gives you the best possible interest rates when it's time to buy a house. That alone makes it worth using.

I learned the hard way by avoiding credit my entire life until I was fucking 30.

 

[RedMercury]

Do people really have 0 self control? Credit cards are literally free money as long as you pay off your statement balance every month. I pay for EVERYTHING on credit card for that cash back, by the end of the year I'll have $1000 in free money.

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People don't have financial literacy because it is not and has never really been focused on in schools, people get themselves into financial issues easily because of the disparity present in our culture, people are overworked and feel they are entitled to certain things that society arbitrarily holds back from them because they haven't been chosen to be part of the privileged few no matter how hard they try to get ahead, and sure some people of course have self control issues as they do in many, many areas be it gambling, drinking, working, you name it. If you're eager to place the blame somewhere and point to failings, there are a lot of places you can point to before the average person.

 

[Deleted member 12833]

I only use credit cards. Secure, increases score, and I get rewards. As long as you pay your statement balance, why the hell not?

 

[PHOENIXZERO]

Thanks, that looks like a promising place to start.

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Discover's secured card is what I mainly used when I started to get serious with this stuff at the end of 2019. I'd 100% go for a secured card if it offers the chance to become unsecured like Discover's and avoid those that don't. Also apped for Capital One's secured card about a week later based off outdated reviews, waste of a hard pull on each credit bureau for a card that's stuck as secured, I've had it for a while and been thinking about closing it since it doesn't really do anything for me now, not even for padding my total credit limit.

Banks/FIs might be a little more skittish right now and really for a better part of a year thanks to Covid but yeah, I'd look into Discover's Student card if you're eligible, it's easier to get for those just starting out and are in school, if not or you get denied it should suggest the secured card unless things are really dire. Discover's minimum deposit for the secured version is $200 (you can deposit more for a higher limit if you wish) and it can graduate to an unsecured card in as little as seven statements/eight months from the account opening, your deposit gets mailed back to you as a check and the credit limit can be increased up to $2,000. Also on the secured card the default rewards at the unlimited 1% CB on everything and 2% on Gas/Restaurants up to $1000 a quarter, you can also do a product change from to the 1% CB on everything and quarterly 5% rotating CB if you choose to, they'll also match your first year's cash back at the end of it. When I got my secured Discover I didn't add more than the minimum and used it for pretty much everything except for when the statement cutoff was close, I'd pay it down to under 10% multiple times over the month but left enough on it to report a balance.


That said, are you a member of a credit union? Or have one near by you could join? Many have secured cards as well and can generally be more accommodating, how about an "in" (you or a immediate family member with military ties) with a major one such as Navy Federal Credit Union?

Also beforehand, sign up for Experian's free service or Discover's CreditScoreCard.com to get a free look at your Experian FICO8 credit score or at least to see if you have any reported history. Can use CreditKarma and the like for that too but the score they provide is next to useless, just good for checking your reports. Experian is also pretty easy to game their paid service to get your reports and FICO8 scores from Equifax and TransUnion as well as several other Experian FICO scores by signing up for the free trial of the paid service and then cancelling it right away.


FICO scores aren't the end all to be all, a lot of financial institutions have their own internal scoring and besides that there's more to it than just the number for example my FICO8 scores are all near or over 800 now but it doesn't really mean a lot because my average account age is still really short. Someone with a much lower score but much longer history still has a better chance at getting approvals for loans, new cards, whatever because there's more to go off on.

 

[UnoriginalNick]

So I have to admit that I've not actually had a credit card at all so far. I've managed to get by on the money in my checking account via my debit card. I imagine I really ought to build some credit, so what's a good and safe credit card to just keep around and maybe buy a meal with each month just to have something to pay off in full at the end of the month? Preferably something with no fees, maybe with some kind of silly reward program that I'll never use it enough to really redeem anything good, but just to build credit.

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Go for the Chase Freedom Unlimited, Its not very hard to get the card. If you can spend $500 within the first 3 months then you'll get $150 back(In points have to redeem it). After that you can use the card as little or as often as you want to, it just has to be used once a year. If you use it on the daily it has 1.5 Points per dollar on most things. Once you get comfortable, you can start getting different cards for their Benefits/Points.

 

[ZackieChan]

People don't have financial literacy because it is not and has never really been focused on in schools, people get themselves into financial issues easily because of the disparity present in our culture, people are overworked and feel they are entitled to certain things that society arbitrarily holds back from them because they haven't been chosen to be part of the privileged few no matter how hard they try to get ahead, and sure some people of course have self control issues as they do in many, many areas be it gambling, drinking, working, you name it. If you're eager to place the blame somewhere and point to failings, there are a lot of places you can point to before the average person.

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On the flip side, there is no end to the amount of free resources to learn financial literacy online, feeling entitlement "to certain things that society arbitrarily holds back from them" is entirely within the realm of the self control/mindset, and while there are lots of people who have clinical/addictive self control issues, there are a ton of people who just simply spend beyond their means for no reason other than they just want to.
I got into credit card debt a couple decades ago due to a combination of things - stupidity, laziness, and some addiction issues (not mine), so it doesn't make sense to write off self control or personal responsibility completely like so many on this site do. But the other side can't write off situations and society as a cause, either. It's such a weird either/or debate here that always happens.

 

[Joni]

On the flip side, there is no end to the amount of free resources to learn financial literacy online.

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This already comes from a position of entitlement. The people needing this the most don't necessarily have access to the internet. 14% of school age kids don't have internet at home.

Remote Learning For Students Who Don't Have Internet Access in 2020

Remote learning is a reality for students this year, but what should students do if they don't have internet access? Read on to learn more!

elearningindustry.com

 

[MaxDOL]

Over here in Thailand you can use credit card to pay your income tax in monthly installments with zero fee interest.
I paid my OLED tv , PC gaming set , iPad , iPhone and Airpods in 20 monthly installment with zero fee interest all though credit card. While I put the money that I supposed to pay for those products in full,instead I put the money into high yield saving account and mutual funds to get extra money.
Credit cards are great. Why pay in full price when you can pay in installment.

 

[DarthWoo]

Discover's secured card is what I mainly used when I started to get serious with this stuff at the end of 2019. I'd 100% go for a secured card if it offers the chance to become unsecured like Discover's and avoid those that don't. Also apped for Capital One's secured card about a week later based off outdated reviews, waste of a hard pull on each credit bureau for a card that's stuck as secured, I've had it for a while and been thinking about closing it since it doesn't really do anything for me now, not even for padding my total credit limit.

Banks/FIs might be a little more skittish right now and really for a better part of a year thanks to Covid but yeah, I'd look into Discover's Student card if you're eligible, it's easier to get for those just starting out and are in school, if not or you get denied it should suggest the secured card unless things are really dire. Discover's minimum deposit for the secured version is $200 (you can deposit more for a higher limit if you wish) and it can graduate to an unsecured card in as little as seven statements/eight months from the account opening, your deposit gets mailed back to you as a check and the credit limit can be increased up to $2,000. Also on the secured card the default rewards at the unlimited 1% CB on everything and 2% on Gas/Restaurants up to $1000 a quarter, you can also do a product change from to the 1% CB on everything and quarterly 5% rotating CB if you choose to, they'll also match your first year's cash back at the end of it. When I got my secured Discover I didn't add more than the minimum and used it for pretty much everything except for when the statement cutoff was close, I'd pay it down to under 10% multiple times over the month but left enough on it to report a balance.


That said, are you a member of a credit union? Or have one near by you could join? Many have secured cards as well and can generally be more accommodating, how about an "in" (you or a immediate family member with military ties) with a major one such as Navy Federal Credit Union?

Also beforehand, sign up for Experian's free service or Discover's CreditScoreCard.com to get a free look at your Experian FICO8 credit score or at least to see if you have any reported history. Can use CreditKarma and the like for that too but the score they provide is next to useless, just good for checking your reports. Experian is also pretty easy to game their paid service to get your reports and FICO8 scores from Equifax and TransUnion as well as several other Experian FICO scores by signing up for the free trial of the paid service and then cancelling it right away.


FICO scores aren't the end all to be all, a lot of financial institutions have their own internal scoring and besides that there's more to it than just the number for example my FICO8 scores are all near or over 800 now but it doesn't really mean a lot because my average account age is still really short. Someone with a much lower score but much longer history still has a better chance at getting approvals for loans, new cards, whatever because there's more to go off on.

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I'm decades removed from being a student, sadly. I just ended up getting the Discover secured, with a $500 limit. I've read that it's actually better for your score if you leave like 1% of the balance to carry over to the next month as opposed to always paying it off in full. Is that why you pay it off multiple times per month, such that the accrued interest on the leftovers will be minimal?

 

[Deleted member 18025]

I have four credit cards over a span of 9 years. Never had any problems.

Literally only spent what I had.

 

[Karateka]

I never spend a penny unless it's on a credit card. Any cent spent not on credit is a wasted opportunity to build credit and collect points or cashback.

 

[GYODX]

Yep, that's entirely my point.



It is the literal definition of debt.

debt

noun

1. a sum of money that is owed or due.

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Debt is not a dirty word. The concept of debt has existed for thousands of years and predates capitalism.

There is literally no tangible drawback to buying things on credit if you have the money to pay it back by the end of the billing period. I put almost all my monthly expenses on credit cards and just pay my balance in full before the end of the billing period. This translates into a net profit of hundreds if not thousands of dollars in a year, just for buying things I was already going to buy.

Of course, the trick there is not to spend more than you otherwise would be if you didn't have a credit card, but that's easy to do if you track your spending with spreadsheets or a budgeting app like YNAB.

 

[superpickleman]

I recklessly build a lot of credit card debt during my partying phase in my early 20s and finally got aggressive about paying it off over the last couple of years. It was a journey that required a lot of sacrifice, but I've been debt free since last September.

I still make all my purchases through credit cards but pay the balance off within two weeks. I won't spend more than I have unless it's an emergency. My credit score is phenomenal now at least.

 

[Zoe]

I'm decades removed from being a student, sadly. I just ended up getting the Discover secured, with a $500 limit. I've read that it's actually better for your score if you leave like 1% of the balance to carry over to the next month as opposed to always paying it off in full. Is that why you pay it off multiple times per month, such that the accrued interest on the leftovers will be minimal?

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That is a myth. As long as you generate a balance on your statement, that is seen as usage. Your credit report doesn't reflect whether you pay it off in full or just a portion.

Pay it in full every time.

 

[PHOENIXZERO]

I'm decades removed from being a student, sadly. I just ended up getting the Discover secured, with a $500 limit. I've read that it's actually better for your score if you leave like 1% of the balance to carry over to the next month as opposed to always paying it off in full. Is that why you pay it off multiple times per month, such that the accrued interest on the leftovers will be minimal?

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Congrats on the card!

That's a myth as stated above, you just want to show usage on a card/account, statement cuts you pay the balance which should be at least under 29% though under 9% is best when it comes to reflecting on your FICO8 score, most don't retain a "memory" so if your balance is a little high one month, it won't matter the next month as long as it's lower. There is absolutely no reason to carry over any balance from month to month to generate even a penny of interest for them, FIs view people who pay their statement balances off in full every month more favorably too even with not making interest off you.

The only time IMO to even consider carrying over a balance from one month to the next is if it's some big purchase and you're in a 0% APR promotion and with those you always should pay everything in full at least a month (so if October is the last month, make sure your bill due in September is paid in full) before the promo ends just to be on the safe side in avoiding deferred interest.

I would highly suggest lurking and joining a forum focused on this still like MyFico's and learn for (a lot) of people's mistakes and the experiences of others there in general.

 

[Davey Cakes]

I didn't realize how bad credit cards were until I had three cards all maxed at $4-$5K. For so long I was careful and only spent what I could pay off immediately. At a point I decided to just throw all my purchases on the cards with a plan to pay it off over the course of a year or whatever.

The interest is the killer.It's hard to dig yourself out of debt when you're getting charged 50+ bucks a month just for having the balance.

Thankfully I'm all paid off now and I have a great credit score because of it.

 

[Polioliolio]

Ya my Amex 6% back on groceries is so nice. Pay it off every month, keep purchases to less than 10% of my credit limit and redeem for cash back regularly.

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How did you score that? Wow. I was offered 3% American Express recently.

 

[ZackieChan]

Over here in Thailand you can use credit card to pay your income tax in monthly installments with zero fee interest.
I paid my OLED tv , PC gaming set , iPad , iPhone and Airpods in 20 monthly installment with zero fee interest all though credit card. While I put the money that I supposed to pay for those products in full,instead I put the money into high yield saving account and mutual funds to get extra money.
Credit cards are great. Why pay in full price when you can pay in installment.

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My wife does this with her insurance payments and stuff like our air purifier. It's great. (also in Thailand)

 

[PHOENIXZERO]

How did you score that? Wow. I was offered 3% American Express recently.

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They're using the Blue Cash Preferred card which offers 6% cash back on it but also has a $95 annual fee though it's currently being waived for the first year.

 

[DarthWoo]

Congrats on the card!

That's a myth as stated above, you just want to show usage on a card/account, statement cuts you pay the balance which should be at least under 29% though under 9% is best when it comes to reflecting on your FICO8 score, most don't retain a "memory" so if your balance is a little high one month, it won't matter the next month as long as it's lower. There is absolutely no reason to carry over any balance from month to month to generate even a penny of interest for them, FIs view people who pay their statement balances off in full every month more favorably too even with not making interest off you.

The only time IMO to even consider carrying over a balance from one month to the next is if it's some big purchase and you're in a 0% APR promotion and with those you always should pay everything in full at least a month (so if October is the last month, make sure your bill due in September is paid in full) before the promo ends just to be on the safe side in avoiding deferred interest.

I would highly suggest lurking and joining a forum focused on this still like MyFico's and learn for (a lot) of people's mistakes and the experiences of others there in general.

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So it's several months later, my secured card is now unsecured and they've tripled my credit line. Would it be helpful to my scores if I just apply for one or two more cards to bring up my total credit available? I figure I'd just have them all on automatic payments and only make a couple small purchases on the spare cards so they don't close them for inactivity while putting most of my purchases on one and keeping that one paid off on a weekly basis. It's actually kind of annoying how long it takes for some transactions to post because I want to pay the balance off my card sooner, but many transactions are just sitting in limbo for days.

 

[TaySan]

So it's several months later, my secured card is now unsecured and they've tripled my credit line. Would it be helpful to my scores if I just apply for one or two more cards to bring up my total credit available? I figure I'd just have them all on automatic payments and only make a couple small purchases on the spare cards so they don't close them for inactivity while putting most of my purchases on one and keeping that one paid off on a weekly basis. It's actually kind of annoying how long it takes for some transactions to post because I want to pay the balance off my card sooner, but many transactions are just sitting in limbo for days.

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Having more than one would help lower your utilization for both and would help your score. Just make sure to keep track of your statements and pay your statements in full before the due date. I have 2 credit cards at the moment and use whatever gives me the most cashback.

 

[AncientReptileBrain]

my general opinion on this is that if you get "free money" from anything relating to this system, it's because the system reaps an incredible toll on huge amounts of people on super high interest mini-loans.

i've seen what this does to people — i find the whole system fundamentally unethical, especially when debit cards exist.

 

[Mezentine]

So it's several months later, my secured card is now unsecured and they've tripled my credit line. Would it be helpful to my scores if I just apply for one or two more cards to bring up my total credit available? I figure I'd just have them all on automatic payments and only make a couple small purchases on the spare cards so they don't close them for inactivity while putting most of my purchases on one and keeping that one paid off on a weekly basis. It's actually kind of annoying how long it takes for some transactions to post because I want to pay the balance off my card sooner, but many transactions are just sitting in limbo for days.

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If you're confident in your financial discipline then yes, this is the exact reason why I have three personal cards. Once every twelve months apply for a credit increase also; my Discover card limit has gone from $500 to $18,000 over the last 10 years