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Cash in a credit society

Cash in a credit society

Old Apr 3rd 2011, 1:21 pm
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Default Cash in a credit society

So the big move to San Diego is only 7 weeks away!!

Many questions keeping me up all night pondering, latest one is what is the best way to build a credit history without wasting too much on interest charges?

My thoughts are apply for credit and then pay it off as soon as i get it. Would this help?

Does anyone have any experience of this?

Cheers!
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Old Apr 3rd 2011, 2:29 pm
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Default Re: Cash in a credit society

Originally Posted by choops View Post
So the big move to San Diego is only 7 weeks away!!

Many questions keeping me up all night pondering, latest one is what is the best way to build a credit history without wasting too much on interest charges?

My thoughts are apply for credit and then pay it off as soon as i get it. Would this help?

Does anyone have any experience of this?

Cheers!
Yes - there are a ton of threads on this. Do a search, and also look at the Wiki (link towards the top of the main USA page).
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Old Apr 3rd 2011, 2:59 pm
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Default Re: Cash in a credit society

Yeah, read the wiki, it explains the whole credit thing.

http://britishexpats.com/wiki/Fatbri...it_and_Finance
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Old Apr 3rd 2011, 8:29 pm
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Default Re: Cash in a credit society

Originally Posted by choops View Post
My thoughts are apply for credit and then pay it off as soon as i get it. Would this help?
Credit history is exactly that... history. If you buy something and pay off the card immediately the history is fairly short-lived... maybe 2 months. If you buy something and pay more than the minimum over several months then your history is somewhat longer. While paying the card off quickly is fiscally better (ie. less $$ for interest), paying the card off at a more leisurly rate is better for credit worthiness... especially if you can afford it.

Another good way to build up a credit history is to take out a personal loan from a bank or credit union, put the money in your account, and make monthly payments each month as agreed. Again, you will be paying the interest on the loan... but your history is extended over time.

Ian
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Old Apr 3rd 2011, 8:57 pm
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Default Re: Cash in a credit society

Originally Posted by ian-mstm View Post
Credit history is exactly that... history. If you buy something and pay off the card immediately the history is fairly short-lived... maybe 2 months. If you buy something and pay more than the minimum over several months then your history is somewhat longer. While paying the card off quickly is fiscally better (ie. less $$ for interest), paying the card off at a more leisurly rate is better for credit worthiness... especially if you can afford it.
You don't need to carry a balance on a credit card to build up history.

You can pay it off every month as long as you use the card monthly. There's no need to pay interest to build up history.

It'll be 6 months before anything is reported and one line of credit alone isn't worth anything, so like you say, a small loan is a good idea, usually on a car, pay as much down as you can and perhaps get a loan for the last $1K if you're getting a second hand car and pay it off over 12 months, or get a larger loan and pay the bulk off in the first payment and stretch a small amount out over 12 months.
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Old Apr 8th 2011, 5:20 pm
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Default Re: Cash in a credit society

Originally Posted by choops View Post
So the big move to San Diego is only 7 weeks away!!

Many questions keeping me up all night pondering, latest one is what is the best way to build a credit history without wasting too much on interest charges?

My thoughts are apply for credit and then pay it off as soon as i get it. Would this help?

Does anyone have any experience of this?

Cheers!
Go ahead and apply for a credit card, but as stated previously, you must use it for at lease 6 months to show that you have a 'history'. Don't dare make any payments late though.. the credit card company reports show late payments which could be used against you to either deny credit or to charge a higher interest rate.
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