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Give me some credit, man

by Community Manager

‎06-06-2014 10:25 AM

Millennials are redefining the concept of being an adult. But there are some basic skill sets that every grown-up must master to survive. Like buying car insurance or, um, knowing how to file your income tax returns. At USAA, we can help. Our millennial tips will cut through the blah, blah and deliver the scoop on how to navigate your finances in three minutes or less.

 

Credit Score Infographic

 

Keep an eye out for more millennial tips, because whether we like it or not, we have to grow up sometime. 

 

206306-0614 

 

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Comments
by ED Himself ‎06-11-2014 01:26 PM

Awesome information.  I have never owned a credit card. I would like one to help me build credit. I think the best way would be for me to charge groceries at the store, get home and pay the card's payment with my bank's debit card so i am always on time and with money i already had for the item. Its not like i'm spending money i don't have.  Its simply paying directly with a different source.

by Mason00g ‎07-09-2014 11:04 AM - edited ‎07-09-2014 11:07 AM

@ED Himself,  I get what your saying in regards to charging your credit card then if im understanding you correctly immediately paying it off with your personal debit card IE cash. I would recommend that would be incorrect if that is what your saying. Reason: Most people dont know that even if you charge something on a credit card its not immediately reported to your credit report. You have to built a history so charging and Item then paying it off even after the 30 day period wont work. Sadly in order to build credit you have to show history so paying off your full balance every month wont help you build credit not in the sense that you would expect. They want to so months of owed balance and see how often and on time you pay monthly preferrably 6 months or longer. So buying groceries to me would be a waste. I personally would recommend if you want to do this buy something you really need. Like a lawn mower, TV or something that is going to last for the time and more that it will take you to pay it off. Example lets say you just got a credit card with a limit of 1000.00. I would first before you charge that card make sure you have at least 75% of that in cash just in case of your purchase. Remember you are paying interest to build your credit thats all. So i would not charge more than 750.00 on the card. Then i would purchase something that would last like a desktop PC, a tv or something like that that you need. Then i would make the payments as asked and try and spread it out over at least 6 months or more making your payments on time everymonth. Once you passed 6 months or more then you can focus on paying the CC down but always keep a small balance of about 50-100 dolars on the card. This will maintain your revolving debt thus increasing your credit limit and credit score. Never charge more than 75% of the card capacity/balance as maxing out your CC is a negative towards your credit even if your making the Minimum payments. I hope this helps someone else out. Thank you for your time :)

by ServeNTeach ‎07-09-2014 08:31 PM
Hi, ED Himself! I disagree with Mason00g. Who wants to put a big purchase on a credit card and pay more for an item than he has to? If you're worried about getting yourself into credit card debt, here are a few strategies to help you out. 1 - apply for a credit card with a low credit limit, and ask your company not to automatically increase the limit every month. (Most companies do this on a regular basis once credit is established.) With a low credit limit, you're not likely to spend more than you can pay off in a single month. 2 - Whatever your credit limit is, set aside the full amount in an easy-to-access savings account. That way, if you ever need the money to pay off your monthly bill, it's there. 3 - Keep track of your credit card purchases by writing them down regularly in a register or on a notecard. By physically writing down the amount you're spending and by keeping track of how much you owe, you'll be more conscious of the money you're spending, and you'll be more likely to weigh your decision carefully before swiping the plastic. I hope that helps! Of course, there are other things to consider, such as needing access to credit during emergencies or building a credit score rapidly. A financial advisor can help you with answering those questions and building a plan that's tailored to your needs. And for USAA members, talking with a personal financial advisor is free! I highly recommend giving them a call.
by Gon2o ‎08-03-2014 01:11 PM
Dang plastic gets the best of us sometimes. Great advice USAA!
by cdew002 ‎08-13-2014 08:18 PM
I hope no one reading this actually takes Mason00g's advice. You don't have to incur interest by paying over time to increase your credit score. Paying the balance in full at the end of the month is sufficient.

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