how do credit cards work?

Originally Posted by t-maxxracer32

oops.

ive applied for a bunch of cards... just for the fun of it.

when you apply places to see if you get the free 18 months no interest crap does that hurt it too?

done that a couple times.

since you dont have a credit rating yet I wouldnt be concerned

[pb4ugo]

Originally Posted by t-maxxracer32

oops.

ive applied for a bunch of cards... just for the fun of it.

when you apply places to see if you get the free 18 months no interest crap does that hurt it too?

done that a couple times.

Absolutely. In this instance it won't actually hurt your score since Fico hasn't given you one yet. Here it will show all the inquiries to potential creditors and raise red flags in their eyes.

How many times have you applied for credit, whether it be a card or financing special or whatever?

[t-maxxracer32]

ok cool.

its good to know for the future though.

so when do i actually get a credit score that i can check?

once i get a credit card?

Originally Posted by t-maxxracer32

ok cool.

its good to know for the future though.

so when do i actually get a credit score that i can check?

once i get a credit card?

once you start paying the bill and I dont know how long before your record will start but it will take a couple of years before it will look decent, and if you do carry over a balance to the next month make sure it is below 1/3 of you limit

[JERRY2KONE]

Yea the problem with no credit history is that there is nothing for a credit establishment to gage you on, before they will trust you. If some one is in their late twenties or older and they have no credit history what so ever, the company reviewing your record has to assume that you are some kind of con or identity thief. Identity thieves love this, because if there is no credit histroy of any kind then the person being hacked never looks at thier credit report and will never see what they are doing to them until it is too late. I just saw a report on identity theft and there is a company on line now who helps to protect and even repair damage from this atrocity. "Lifelock.com" is the company name. They are a credit protective service with a $1million garuntee. Sounds like a good thing to have.

As for co-signing for any type of loan. DON'T do it. If your kid wants a car and you are so inclined to do so for them, then buy the vehicle on your own for them. Have them make the payments directly to you so you know that the loan is being paid every month on time. Make sure you have the ability to pay the payments yourself in case your kid stumbles. This will prevent you from getting screwed because your son or daughter fails to pay for any payments, which will ruin your credit. Kids tend to be afraid to tell you when they fail for fear of your disapointment in them. The big problem with co-signing for any kind of loan is that sometimes when there are problems, by the time you find out it is already too late.

Situations just like that can ruin personal relationships with those that you love and care about. Co-signing loans are setups for disaster. Don't do it. Yes I have had experience in this, and I have seen many of my friends get screwed by hte same exact situation. Doing things the other way may be kind of a pain in the rear-end, but it is better then taking it in the rear for your kids. Our kids do not do it on purpose, but it happens every single day.

[t-maxxracer32]

the thing about cosigning for a loan is you have to trust the person to pay it off. my dad helped me out with the tv and stuff i bought and im sure he will help me out if i end up buying a car any time soon.

i dont think it is a bad thing as long as you know you can do it. i have a great work ethic and know what my limits are.

i think that is what it comes down to. knowing what you can and cannot do with your money.

[BP-Revo]

I don't know too much about CC cards (I want to get myself one soon) but I do know that you should pay it off every month, cause doing that is what keeps you out of debt and looks good...

I have a card on my parent's CC which they put nearly every charge on. Its been payed off every month without fail for the last 15 years. Apparently, this helps build my credit score as its a CC that has my name on it. My brother has a card too (but my parents just leave it in a drawer at home). He never uses it, yet it apparently benefits his credit score too.

I'm already getting tons of mail offering me credit cards...

[pb4ugo]

Originally Posted by BP-Revo

I don't know too much about CC cards (I want to get myself one soon) but I do know that you should pay it off every month, cause doing that is what keeps you out of debt and looks good...

I have a card on my parent's CC which they put nearly every charge on. Its been payed off every month without fail for the last 15 years. Apparently, this helps build my credit score as its a CC that has my name on it. My brother has a card too (but my parents just leave it in a drawer at home). He never uses it, yet it apparently benefits his credit score too.

I'm already getting tons of mail offering me credit cards...

Yes, that is called being an authorized user on their account. It does help build you a strong file. Credit repair scams have been selling authorized user accounts to boost otherwise weak files for years. Because of this abuse of the loophole, Fico is supposed to stop taking authorized user accounts into consideration in calculating the score. It was already supposed to have happened, but I'm not sure if it has yet or not.