Quote:
Originally posted by ktsnake
Get a credit card with no annual fee.. then cut it up. Just having a card builds credit.
|
That's not all true actually. Having a card on your record that is "dormant" or doesn't show use can actually hurt a credit rating, not always, but it can.
Another thing on trying to find a low interest card, if you don't have a credit history or a very limited one, you might get stuck with a higher interest rate. Many credit card companies use low interest rate cards to gain customers that have an extensive and decent credit history.
The last thing about the credit card. If you want to build your credit a little faster, try putting a few things on the card and when the statement comes, pay the minimum balance. Yes you will be charged a little more in interest, but it shows that you are capable of making a montly financial obligation, even if it is only $10 or so.
If you have a high interest rate on the card and you just pay it off every month, the company may be more reluctant to give you a lower rate down the road, because there would really be no use anyway, they aren't making any money off of you because you keep paying the card off right away. lol
Oh and one more thing, credit inquiries can hurt your credit as well. Sorry if people already touched on these, I didn't read through the posts....I'm so slack, I know.