They are good for establishing credit if you do it right,you need to find one that reports to the credit bureaus every month and use the card every month, even if just for 5 bucks and pay it off, that way when they report, it shows paid in full every month. However with no real credit history you probably wont get a great interest rate but a lot of times you can get companys to bid against each other, when i changed companies the card i did have dropped there interest rate offer to me by almost 10%. So just tell them which company is offering you what, hope this helps, however dont depend on cards to buy stuff, if you dont have the money to buy it, dont buy it, I learned this the hard way after college when i had to pay back all my good times from college

 

No offense intended here ... but some of this information is wrong.

 

If a person truly wants to "build credit" through the use of a credit card ... they actually need to carry some kind of balance from month to month. It doesn't have to be huge ... but you are going to improve your CBR (credit bureau rating) much quicker. 13 years in the business .... for the largest scammer in the world ... uhmmm I mean financial institution leads me to this point.

 

Credit is just that .... an extension of funds ... paid in payments. You are not actually acquiring and or using credit when you pay the card off every month. If you pay off the balance every month .. you don't get the interest (which is good) ... but again--that isn't credit.

 

Another point .... the CBR's are also going to provide a higher (better) credit score if you actually use the card a little bit. There are many consumers now that get a card for their rate--hold on to it for a while--then either transfer the balance (which actually HURTS you CBR) or just close the account. Use the card a little bit and PROVE that you are "responsible" enough to make monthly payments. Just keep in mind ... in the business ... we want REVOLVERS ... aka: people who are carrying LARGE balances every month (so they can make more money off interest). But you don't have to do that to increase your credit (again--something that could hurt you do to your debt to income ratio).

 

If you just want to pay off the balance every month ... get an American Express card. That may/may not be harder to get .... but it sounds like it suits your purpose.

 

It may be sound advice to pay off a card every month .... but it is going to take much longer to build credit through the use of that one card.

 

Also--there are 1000's of variables that can hurt or help credit that people would never even imagine. Not to be a jerk--but most of the ideas that have been presented by others actually will not help anywhere near as much as the common, every day person thinks.

No offense intended here ... but some of this information is wrong.

 

If a person truly wants to "build credit" through the use of a credit card ... they actually need to carry some kind of balance from month to month. It doesn't have to be huge ... but you are going to improve your CBR (credit bureau rating) much quicker. 13 years in the business .... for the largest scammer in the world ... uhmmm I mean financial institution leads me to this point.

 

Credit is just that .... an extension of funds ... paid in payments. You are not actually acquiring and or using credit when you pay the card off every month. If you pay off the balance every month .. you don't get the interest (which is good) ... but again--that isn't credit.

 

Another point .... the CBR's are also going to provide a higher (better) credit score if you actually use the card a little bit. There are many consumers now that get a card for their rate--hold on to it for a while--then either transfer the balance (which actually HURTS you CBR) or just close the account. Use the card a little bit and PROVE that you are "responsible" enough to make monthly payments. Just keep in mind ... in the business ... we want REVOLVERS ... aka: people who are carrying LARGE balances every month (so they can make more money off interest). But you don't have to do that to increase your credit (again--something that could hurt you do to your debt to income ratio).

 

If you just want to pay off the balance every month ... get an American Express card. That may/may not be harder to get .... but it sounds like it suits your purpose.

You are right on the money. I tell people that all the time and look at me like I am crazy.

I have two credit cards (Capital One, Best Buy) and I do not have too much on them. I usually try and pay them off very quickly. I have dug a little hole at this point but will shortly be paying them off. I think I will start using the capital one card only for emergencies and I may destroy the best buy card. I don't need it. I'm not in a huge hole, but a hole none the less. I wouldn't recommend getting more than one card.

I've been in finance for over 27 years and paying a credit card balance off every month most certainly is credit and does help when it comes time for a larger purchase such as a car or house. Anytime you obtain the service or product for a promise to pay later, that is credit. It is not determined by whether or not you pay it off in installments or a single payment. Sv-first you say you want the lowest interest rate and then you post you plan to pay if off each month. You really need to determine how you will use it before determining which card works best for you.

Search for a credit card with no annual fee. There are plenty out there, you just have to find them!...:thumb:

 

Also--there are 1000's of variables that can hurt or help credit that people would never even imagine. Not to be a jerk--but most of the ideas that have been presented by others actually will not help anywhere near as much as the common, every day person thinks.

 

Isn't one of the variables that can hurt your credit rating having a bureau run too often?

I've been in finance for over 27 years and paying a credit card balance off every month most certainly is credit and does help when it comes time for a larger purchase such as a car or house. Anytime you obtain the service or product for a promise to pay later, that is credit. It is not determined by whether or not you pay it off in installments or a single payment. Sv-first you say you want the lowest interest rate and then you post you plan to pay if off each month. You really need to determine how you will use it before determining which card works best for you.

 

Finance and the ins/outs of credit/risk scoring are about as far away as two things could be. I respect your opinion .... but I work with CBR's everyday of my life in a portfolio that is worth well over 40 billion dollars.

 

Again .... not to be rude ... but as I stated previously ... there are 1000's of different factors/combinations that come into play when a credit/risk score is determined.

 

For instance--your scenario is true if you have ALREADY built a solid score. (That is also combined with your income but especially your debt to income ratio). But in the same breath .. you could blow that completely away by deciding to transfer 2 to 3 balances onto one card.

 

If a person is trying to build credit ...... you need to be a "revolver" ...... also ... there is no credit card company in this country that considers a card that is being paid off every month as an extension of credit. None ... period .... point blank. When speaking of credit cards--credit is only extended if there is an outstanding balance AFTER the set BILLING DATE.

Isn't one of the variables that can hurt your credit rating having a bureau run too often?

 

 

Think of this more like--if there are too many "inquires" on your CBR--it could potentially affect your score. "Inquiry" meaning that you are constantly applying for cards and or credit. Or if credit granting companies are "inquiring" about your credit/score.

 

Banks or CBR's see it like this--you are constantly trying to acquire credit ..... and there is a "potential" for you to become a delinquent debtor--who is looking to charge up your lines of credit ... then file bankruptcy. Now--with the new bankruptcy laws ... this is something that has started to trend differently.

 

To answer your question directly (if I didn't touch on your "intended" question) the answer is no. You--reviewing your credit/score is not something that is any any of the formulas that I have ever seen. When too many credit companies make that inquiry-is when you could see issues.

 

A couple more things to watch out for ...

*The cards to stay away from are from small "private label" type cards. Department stores, jewelry stores, etc ... they usually have nasty interest rates ... and send delinquent accounts to outside agencies in a hurry (things get real interesting there).

 

*Also--even if you have good credit--and you have many accounts that are paid off AND open--that could hurt your score as well. Remember--if the line of credit is open ... the CBR's sometimes see this as a red flag. So, if you have a paid off account that is open ... CLOSE IT ...ASAP.

 

*Keep a close eye on your debt/credit to income ratio. Many credit granting operations use a formula (especially in today's credit climate) that links directly back to this percentage.