Does biz used Credit Cards? Why or Why not?
>>1207788
Yes, for everything. Why would you use anything else?
>>1207788
I absolutely do.
Businesses rarely offer a cash discount, and I get kickbacks from using a CC so fuck it. I run everything I possibly can through my 3% cashback card, and anything that can't go through that card goes through my 2% cash back one.
I even run bills on the card. I'm going to get back every little bit I can get.
>>1207791
Also forgot to mention. If your CC is ripped off, they're stealing the CC company's money. If a debit card is ripped off, they take your money. It only makes sense to use credit if you're going to be running it on a card.
No but I really should use it more.
Currently I only use cash for most things
>>1207830
Just one? Damn, shooting for the stars I see.
You can start off with one but your target should be about 4+ cards.
>>1207830
Make sure you know you'll get accepted, every rejected credit card app goes in your credit history.(It's a "hard pull" on your credit record)
NEVER withdraw money with it, this stains your record, you'll be denied for prestigous cards simply for doing this once.
like >>1207791 said, if you can put a lot of your regular expenses through a rewards card(cashback or airmiles), you technically make more money.
Here again >>1207797, if you get defrauded, the credit card company will fight hard to get the money, whereas the debit company may not care.
Make sure to NEVER miss a payment, do NOT spend what you can't afford, treat it as a debit card and you'll build a nice credit history for whatever you need to borrow money for in the future.
>>1207788
>oh god not this thread again
Use them or don't no one cares. Euros seem to use them less, Americans more.
So long as you pay them off at the end of the month, it's no different than using a debit card or writing a check, except its easier to cancel fraudulent purchases on a credit card.
I'm planning on opening a chase preferred sapphire card and pay off 4k of my sister's student loans on it (she'll pay me back of course) to get the free airline miles. Then cancel because there's an annual fee for the second year and on. Any flaws with this plan?
>>1207866
>loaning money to family and friends
breaking personal finance rule #1, there's your problem
>>1207868
Well, that aside, anything wrong with the plan?
>>1207875
>Any problems besides breaking the most important rule
No. Absolutely no problems -other- than breaking the most important rule.
>>1207840
Why 4?
>>1207877
Well, that's fine then. She has a 162k loan and literally wanted to go through a 30 year repayment plan until I knocked some sense into her. Might as well help myself and get some airline miles out of it.
>>1207893
If you've got the money to pay the credit card bill in full at the end of the month then there's really no issue, expect to fight tooth and nail with her to get the 4k back and expect there to be issues between you and her after then.
>>1207791
What fucking card gives you 3% cashback?
What is the apr?
Any annual fee?
>>1207853
This has been a very useful thread, thank you guys, gals?
>>1207788
I never buy anything except by credit card. The buyer protection is absolutely necessary in our current times. There was even a thread yesterday where some poor anon bought a laptop online without a cc and got ripped off. Don't ever pay for something without the ability to doa chargeback. That goes especially for WesternUnion, Money Gram and Bitcoin. If anyone tells you to pay with those, tell them to fuck off.
>le cashback meme
>its free money!!
herewefuckinggo.jpeg
>>1208037
So no cashback card, just a normal one?
i just use a credit card for the dank marriott points desu
free vacations senpai
>>1208037
How is it a meme? Care to explain?
it is LITERALLY free money. F R E E.
It makes no sense not to use something MORE CONVENIENT, MORE WIDELY ACCEPTED, EASIER TO USE and also gives you FREE MONEY.
Yeah, it's not a lot. ~$400-500/year usually if you spend $2000/month on your credit card. But still, $500/year isn't chump change by any means for most people, you can afford a couple pairs of nice shoes for that or whatever you buy.
>>1207788
For almost everything. I'm a bit paranoid about NSA tracking my metadata, but I have nothing to hide really. So I use my cash rewards card for everything, but I always make sure I have enough of my own money to pay it off every month so I never have a balance. The number 1 mistake people make with credit cards is that they treat it as their own money. It's not your money, it's the bank's money and you have to pay it back. However, building credit can make your life easier down the line (i.e. low mortgage rates, low interest business loans, not getting turned down for a job for bad credit, etc.). Just remember this shit and you'll be fine.
>>1207853
Seriously? I didn't know withdrawing cash fucks you up. I've never done it, but I've never heard of this. Sauce?
>>1207866
Opening a credit account and closing it is bad for your credit. Even if you keep it for a year, it has a credit history and when you get rid of that credit history it negatively impact your credit. Credit history is one of many criteria used to judge your credit. Look it up on any bank's website.
>>1208136
Depends. If you don't have a lot of money and need to build credit, get a normal one since it will have a lower interest rate. If you know you can pay back the amount in full each month then the monthly interst rate doesn't matter and go for cash rewards
>>1208183
>I didn't know withdrawing cash fucks you up. I've never done it, but I've never heard of this. Sauce?
It's only for retarded degenerates desu, I don't see why you would do it.
>>1208187
That's not what I've heard. I hear they look at the average age of your credit lines.
>>1208136
>So no cashback card, just a normal one?
Get a normal card until you build your credit history and shit.
Personally I have a card with $1000 credit limit with no annual fees that I just use occassionally. I haven't checked my score in ages tho, not sure, I'll probably check sometime next year and see if I can get a nice one with good rewards.
I don't spend a particularly large amount anyway so the cashback would be useless to me anyways since it'd be MAYBE $20-50/year at most.
>>1208037
>>1208144
The issue most people have is that they think the more they spend the more they earn, which is true, but some people may be more inclined to make frivolous purchases with this premise. It's similar to if you see a 2 for 1 deal in the store. Sure, each individual shirt is $20 and if I buy two it's $30. However, if I only need 1 shirt why the fuck would I spend another $10 on something I don't need. Cash rewards are great if you don't get tricked into spending more than you usually would.
>>1208197
They do, but it'll still bring down your average, won't it? I was always advised not to close down accounts, but if someone can show me otherwise I'm more than happy to change my ways.
>>1208203
Well that's a given.
I got a credit card as soon as I turned 18, I didn't spend any more than I had normally. In fact I probably even spent less.
(Presently I use my credit card once every 1-2 months usually).
>>1208194
I mean, sometimes I need to withdraw cash to make a purchase so why wouldn't I build credit while doing so?
>>1207891
Ok, I should clarify - you need multiple active lines of credit. If it's a CC or not doesn't matter, but they do like seeing diversity of accounts (some revolving, some installment) to get you superprime. 1 is "thin file" tier. Fuck yourself if you want a mortgage and your only history is babby's first CC. Auto loans will be ripoffs or require a cosigner.
You could go with 2, but that's still thin. The breakouts are generally:
Lines of credit:
0: Poorfag
1 : Thin file, but $20 is $20 so some pleb bank will take you on
2-3: Getting there, not too shabby, can easily be prime, perhaps superprime
4-6: Good target
7+: Superprime
Of course there are other things to consider, but banks look at people with just a couple lines of credit and think you're probably not a good risk. What responsible 30-year-old white man only has 2 CCs? None. Except for that one idiot on /biz/ who thought 2 is enough. If I sound like a snob, it's because I work in consumer credit.
>>1208214
I think he meant cash advances?
You can get cash back at most stores, BTW. Just ask them to charge your card and give you change when you buy some shit.
>>1208208
Far as I know, opening a credit card is what hurts your score, not closing one, unless it happens to be your oldest card.
>>1208219
Sorry, I did mean cash advances. Some places will only accept cash.
>>1208218
Sounds like a pain managing all those cards; making sure you use the card on something each month and making sure every one of them is paid off each month.
>>1208220
I guess that makes sense. Random question if anyone can answer it. If I have 6 lines of credit, and the 3 oldest ones are 5 years old, how do I go about closing some if any? I have some cards that have history, but I don't use them anymore. Is it more important to have history or less credit lines open?
>>1208218
So I don't need to worry about how many lines of credit I have open as long as they're all in good standing and I'm not constantly applying?
I'm this guy >>1208231, the 6 lines I listed are just credit cards, but I have a bunch of others for payment plans or student loans. All are in good standing I just don't know if this negatively impacts me since I can't get past a 800
>>1208224
Set up autopay to pay them in full, don't feel obligated to use them all in a month. I have a few cards in my wallet and randomly pick one. Use a couple is fine, maybe set one to pay your phone bill, one for internet, whatever.
Just try to use them all at least every 6 months or so. If you want to start with 1 card, fine. Move up to 2 eventually. Then 3, 4. If you have student loans (paid off in the past 5 or so years or still active) or an auto loan, you can get by with less.
If you're cool with a 725 credit score, don't worry about it. A couple cards will suffice. If you want the best rate on a mortgage, you'll want to shoot higher. It takes years to build up a score in the 770+ range so better sooner than later.
>>1208243
Well, you seem to know what you're talking about.
I currently have 1 card, no debt anywhere and a credit score of 720-733. I also can see myself purchasing a house in 4-5 years. Is it too late to open 3-5 new credit cards and start building them now?
>>1208235
Right, if you have 6 or 10 or however many lines, no problem as long as you don't open more. Average account age is considered. I'm not a straight-up wizard regarding all the tricks...
But you might want to consider closing younger accounts to bring average account age up. It's a tossup.. some companies will consider account age on closed cards too.
Avg account age at 6-8 years with no dings, low utilization but at least 1%, good ratio of initial to current balance on installment loans, that should get you in the high 700s. 800 isn't really going to help more than 780.
>>1208243
The American credit score system is truly autistic. Who needs more than 1 cc? Here in Germany I don't even need 1.
>>1207840
4+ when all the stats on companies say the best borrowers have over 20 accounts?
>>1207853
When I've called the agents always seemed discouraging.
anyway the fees are too high. @ 3% & special interest rate.
I can just buy a prepaid debit card @ 1%
Thank you for the advice. This is very likely an internal thing. and it makes sense its a very serious trouble indicator.
>>1208259
You don't need 20 lines to get a 780 and that's high enough for the lowest mortgage rates at most banks.
Income risk score also isn't exactly based on open limit or how many lines... I'd take on someone with an estimated $150,000 income and 4 CCs with solid history over some middle-class $50k shithead with 20 cards they got to keep rolling balance transfers and get more points.
Anyone have any recommendations on which credit card to get? Seems like every store and many major websites, not to mention all banks, have their own credit card.
>>1208267
Its just gaming the statistics man.
the more lines you get earlier the better.
But yeah you can get prime rates with about 4 cards.
say you get 10 lines when you turn 18. vs 5
1 new account at 25
affects the age of accounts by
(7*10)/11 = 6.36 years
(7*5)/6 = 5.83 years
Its a product of the inverse function.
Going from the 5th to the 6th card hurts.
but it would take 4 new lines after the 20th to get the same affect.
> shithead
everyone would. The balances show up in the model. cashflow is important.
>>1208302
nerdwallet +
creditpulls on creditboard.com +
myFico or creditkarma/sesame
>>1208218
>it's because I work in consumer credit
oh so its because you are a straight up shill
>1 credit card
>790 credit score
>>1208256
How do you guys determine loans? Just income?
>>1207790
>debit cards but with fees
Its like using a debit card, except more shit.
>>1208252
So what hurts me when I open a new card isn't that I have a lot of lines of credit, it's simply that my average account age goes down?
>>1208302
Get whatever best suits your needs. If you shop at a particular place a lot get a card with them. If you want cash, cash rewards. Don't want to pay a lot of interest? Low interest credit card. Travel a lot? Travel rewards. Have lots of money and spend a lot of it? You're probably okay paying for a card that has an annual fee. Point is you're able to pay the balance every month.
>>1208302
Amex Bluecash for 3% on groceries
Chase Freedom and Discover it for 5% on rotating categories
Citi Doublecash for 2% on everything else
Don't bother with anything else, especially ones with fees
>>1207893
when you give the money, you're not getting it back
unless you sign a contract with her
which will make her resent you
>>1208203
>Cash rewards are great if you don't get tricked into spending more than you usually would.
you gonna need more than 3% for that shit man
the major limit to my purchase is usually not money anyways but how much i can take home at once.
