Community Discussions
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What’s the next step for me to rebuild credit after secured credit?
Main Post:
I started over in 2022 with nothing. Nada. Well I had my car, but he found that and wrecked it; so I moved again. I’ve worked nonstop to replace everything my son and I lost. Anyone experiencing domestic violence: please know that if I left and got back on my feet, you can too!
I obtained, used, and paid off (early, leaving no balance) a secured credit card a few times. Doing so, and a couple of credit builders in the past, my score is at 703. (My credit age is the only thing that I can’t control.)
What should I do next? I read to get a store card to diversify types of credit. Should I apply for a department store or Amazon card?
My bank said I’m eligible to have secure card refunded and they have 4 types of credit cards with various perks.
I don’t want too many inquiries—doesn’t that affect credit score too? I would like to increase and diversify my credit so I have it, not because I need it yet. A car loan or something may be needed in a year or two, and I’d like to be prepared.
Any advice on what to do first?
Top Comment: It is important to keep a very close eye on your credit score since it factors into many of lifes biggest decisions. A couple steps you can take right now include: Checking and automatically monitoring your credit score - Looking at your own credit score does not hurt your credit, it also includes a credit monitor Freezing your credit reports - This can be done with Experian, Equifax and Transunion to help prevent unauthorized accounts from being opened Boosting your credit score - Kikoff provides you with a tradeline which should raise your credit score for as little as $5 a month. It is a good option if you want a boost to your score. Feel free to ask any credit score related question in this sub
Best Overall Credit Cards Today
Main Post:
Just wondering what are the best credit cards overall on the market right now? Are there any sleepers that most people don’t know about?
Top Comment: No card is one size fits all. People have different spending habits and goals. For cash back you definitely have a lot more choices for lenders. For those who want to travel, there are only ~6 lenders that are worth a look (in my opinion).
How do i build credit?
Main Post:
I’m about to be 19 in a couple months and i have no idea how to start building a credit score and on top of that i know nothing about credit in general, can someone help a girl out?
Top Comment:
Apply for a basic credit card like Capital One's Venture or Quicksilver card, and start using it for regular monthly purchases instead of using cash. But treat it like a debit card. Never buy anything with it that you don't have the money to pay for it.
Pay the balance down to zero every single payday.
This will start building you a good payment history, which is one of the biggest factors in determining your credit score.
After doing this for a year, apply for another card, and use the same rules as I mentioned with the first.
Repeat this process every year until you have 4 or 5 cards. Having a good number of accounts is beneficial to your score as long as you keep them all in good standing (no late or missed payments).
As you're doing this, pay attention to the benefits that each card you're applying for offers. You want good cash back bonuses in different categories. For example I have a card that gives me 6% cash back at grocery stores, another that gives me 3% cash back at restaurants and bars, one that gives 4% at gas stations, etc.
As long as you pay your balances off in full every month (or better yet, every payday), you'll never pay a penny in interest, and all that cash back is just discounts on stuff that you were gonna buy anyway.
Just remember that you have to be responsible with these cards! Building up high balances that you can't pay off will send you spinning out of control with insane interest charges. But if you're disciplined, and you use them properly, and pay them off every time you get paid, then they will help you build a solid credit history, and you can watch your score climb as you continue to manage your credit responsibly.
Speaking of watching it...sign up for an account with Credit Karma, or similar service that will monitor your credit reports and make it easy for you to keep an eye on how you're doing. Check in with it regularly, as it'll help you spot any issues early. Credit Karma is also very user-friendly, and will help you learn and understand what affects your credit, and why. It's a great tool for helping you to learn what to do, and not to do.