33% on a credit card? That's like sharks from the casino rate!!!

Credit is a trap...set up to get those young & reckless...spend a $1 pay back $5

 

I only use credit card to pay fixed expenses....water bil, gas, Electrical, insurance ditto...expense that you know you must pay monthly...then pay off credit card prompt.

Credit card cannot be use for tangible items...it'll accumulate so fast and next you'll be paying interest only

 

If you get a credit card most lenders want to see you in a 35% range, so if you want to build credit, a small credit card is a good way to start. If you only use 35% of your card and pay double the amount due within a few months you will see improvements within your credit.

If you have credit cards try to get them down to a 35% range and more lenders will want to give you credit which will raise your total credit limit, and show good standings for your payments.

Your credit score is only part of what is determined for lenders, your dept to income is a big factor with buying houses, cars, etc. I think you want to be around or better than 48% dept to 56% income.

I use those free credit score sites, all the time one good site is freescore.com, they give you all 3 scores, and your credit reports, etc - for a $1 - 7 day trial.

 

my credit got screwed up due to a few years ago I had a home loan, car loan, and credit cards. Was making all the payments on time and had great credit. Well one day I got into a really bad car wreck and was hospitalized for almost 3 months, while I was in the hospital the bank had done a repo on my other car (jeep) not the one I crashed. The banks were also in process of taking my house. Unfortunately I thought I had signed up for that insurance that covers if you have an accident and couldn't work. But turns out I didn't.

I lost everything. When I got out of the hospital I still couldn't work and had psychical therapy treatments and stuff for another 6 months or so. Lost my job, house, and cars. It was bad. So even though I had always paid my payments and done everything correctly I am screwed. Oh yeah the final nail in the coffin was that I had auto pay with a few of my bills and they took all the money out of my bank till it was empty. Will bank kept letting them take out till my over draft was hit. Then when I couldn't pay where the bank off for letting them do that, I got blacklisted by the banks.

Basically the only thing I can do to help my credit now is bankruptcy, which I really hate to do. But it looks to be the only way.

 

Oddly enough I've got a friend who's 21 who has phenomenal credit. He's never had a credit card, he's always just had small 3-5k dollar loans for cars and such and paid them off. He's done a few things with his bank account with overdraft where they loan him money if it happens and then he pays it back so it acts as a small loan. He's also a preferred borrower. Idk if it makes any difference that he belongs to a credit union and not an actual bank. My interest rate on my 2,000 dollar bike loan was something like 16%. So now along with my 72 dollar a month payment I also pay $128 principle so my 2000 dollar loan doesn't end at 2,500. I bought the bike last april and I'll have it paid off in another 2 months. I'm hoping that helps my credit as I'm looking at a 11k dollar loan for a new car.

I also had a 4500 dollar loan for the last car I had but a bought of bad luck totaled the car a week after I bought it and insurance paid the entire loan off. I don't know if having the loan paid off within a week helped me, starting to think it didn't since my interest rate was so high on the bike.

 

a credit union will give loans easier than a bank ever will, I got my motorcycle loan with them, some even give a 20 day grace period to pay ( incase you need a few more days ).

The car that got payed off with the insurance probably didn't help your credit as it got payed off too fast. and if you search google for a dept to income calculator you can see if you can get that 11k car you want.

 

Going to add my .02 worth here.

Credit cards are not evil or bad unless that person is not capable of handling them reponsbily. Sure, there are plenty who need the Dave Ramsey school of finance, that is what works for them. For those who truly are responsible credit cards can provide some really great rewards.

Also, for those cancelling credit cards. Be careful because your FICO will, yes, will take a hit down if you close them, even on your own. Part of the credit scoring system is the age/length of the tradelines. The longer the record (with proper pay obv) the better your score will be. I have one credit card that I have had for 15 years, hardly use it but not going to cancel it at the same time.

 

Very true...keep your credit card in good standing & long history.

One thing I do suggest is remember to take a peek at your credit card account once in a while. I have credit card over 15 years which I don't use, sitting in desk. You tend to forget about it being active. Taking a look once in a while, just in case there is activities that you did not authorized...