/biz/ - Business & Finance

Always pay your monthly bill on time. Don't carry a large balance.

And don't use it to withdraw cash unless you can do so without paying a fee. That's it. They're not rocket science.

>>890875
nice job posting a picture of your CC on 4chan you fucking idiot. thanks though I just bought the new metal gear game with it.

First off, congratulations anon, credit card is like a baby, if you take care of it, you won't kill your unborn child, but if you fuck it up, you've basically committed an abortion.

Alright, so, pay off your bill every month, don't ever max out your card unless you can actually pay it off that month.

How much money do you have in your checking account?

Get more than $800 in it, and then leave your debit card at home, or give it to your parents, just use your credit card from now on, and set it up so that it pays itself off using your debit card all the time, like as soon as you swipe it.

Just keep using it, and eventually they'll offer you a bump, usually this happens every 4-6 months, and raises like 25% more each time

That's all there is to it really, eventually after a year you can start applying for different cards from different institutions, and get a larger amount of credit in total.

How old are you btw? early 20s? late teens?

In college?

Depending on how good you keep your credit, you could use it for loans and stuff, at a much lower interest rate, so make sure you do it well, aiight?

>>890913

Fucking retard. "00/00" ahahahahahahahahaha.

no cvv ahahahahahahahahaha

>bought a game.

>more like too bored to troll properly

>or just neet

>both

>retard either way

looking for a credit card myself which one did you get goyem also say you use it to buy something for $300 so you have to pay that $300 at the end of the month or is there set payments

>>890922

>>890925

The ideal thing is to pay it off that month, so $300 now, then $300 at the end.

But if you don't pay it off, you get charged interest.

Most beginner cards charge 20% interest, so if you get $300, then 20% of that, is interest for the time you pay, if you let it carry into the 3rd month, you pay interest, on interest, on the thing you bought.

So if you bought it and left it, you'd be paying interest, on the interest, until you paid it off, so each month it would start around like $10 - $30, then next month $40 - $50, then next month $60 - $70.

It's not something you want to be doing because you're throwing away money.

So just fucking pay the month its due.

>>890919
>leave your debit card at home
Nope. Credit isn't accepted everywhere. Costco, for example, requires cash or a debit card.

> set it up so that it pays itself off using your debit card all the time, like as soon as you swipe it.
1) This isn't possible and 2) that would be fucking retarded anyway. One of the main benefits of a credit card is fraud protection. If you set it up to immediately drain your checking account, then you're opening yourself up to a world of hurt. Just set it to autopay the full balance every month.

Other than that though, agreed. Also, on periodic credit limit increases: some lenders will do this, some won't. I'm pretty sure BofA doesn't do automatic credit increases, but I may be wrong. Outside of a few specific situations, Capital One requires you to request a credit increase. I believe Chase is the same.

Now some caps for an emphasized tl;dr

SET UP AUTOPAY, FULL BALANCE EVERY MONTH

DON'T SPEND MONEY YOU DON'T HAVE

IT IS NOT FUCKING HARD

I found out on my phone app I can pay more money into my credit card and actually have a positive balance on my credit card account

Would I get positive interest?

>>890931
I am with natwest

I have a 950 pound debt yet my interest is just 11 pound per month when I pay just above the minimum fee (22 pound)

Why?

>>890979

Costco accepts AMEX, Discover, BOM, and debit, plus mastercard where I am

They also accept cash.

also the autopay after use, is possible at my bank (TD Canada)

+ it stops you from using over the amount of credit you have, in case you don't have $800 in the debit every single month.

>>890994

950 pound debt isn't much at all, so your minimum is very low and you're paying it, which is good

I'm saying if you did not pay the minimum every month, you'd get more and more each month as time goes on, because the minimum is just the interest for that month.

>>891012
ohhh. I see. Get my student grants soon. Will start to pay 100 pound off until it's all gone.

Eh a lot of what people tell you about credit cards doesn't matter. Of course always pay at least the minimum payment on time every month, read the contract so you don't get fucked with fees, and keep your spending within your means to repay. But stuff like keeping a large balance? I did that for over a year on a credit card, I had a balance of over 80% the limit for maybe 18 months and was paying the minimum, and when I had the money I paid it all off. I wound up with having a credit score at the very top of what's possible without having a car loan or mortgage (score ranging from 740-760).

>>891027

Yep, when I first got my card, I paid the minimum the first month ($10)

Then after that I had to pay the minimum again ($20), then ($35) or something like that, anyway it kept growing for 6 months, by then I had a job that month

My debt was $917

So I worked in that 5th month, and paid off my balance in full, in cash at the bank, and they raised my credit from $1000 to $1500 on the spot, lol

>>891041
my min has been £20 for 5 months straight, maybe things are different here in bongland

>>891046

Probably, but not that much $ anyways, so w/e

I've also been with the same bank, since I was 10/11, so almost 10 years now, and I guess I built up a good relationship with the managers at the branch I bank with

So yeah, good luck paying off your 950 mah man

>>891046
At least on the card I had, there was a minimum minimum payment. Meaning if you had a balance of like $50, the minimum payment never dropped below $25/mo. It only went higher than that when the balance was over $200.

>>891032
Carrying a balance does not, never has, and never will positively affect your credit score. In fact, the higher the balance relative to your total credit limit, the lower your credit score will be.

Holding a balance just to pay interest on it does nothing to help your credit score, and only throws money away.

Source: First credit card 1 year ago, $300 limit. Today, (1 year later) 6 credit cards, total credit limit just under $15,000, and credit score around 740 due to recent credit inquiries. This is with one year of history.

>>891134
Oh, and all the credit cards have no annual fees and I have never paid a single cent in interest. Other than the most recent card, they're all rewards cards too. I've gotten a net total of probably 1.5-2% back on all my spending in the last year. In the next year that should go up to about a 2.5-3% total cash back on all my purchases.

This is all without EVER paying any credit card company any money whatsoever.

>>891134
What is the point of having six credit cards?

On tor sites there are some "stolen" cards with money on them for sale. Anyone want to share expiriance? I am thinking of buying such a card.

>>891140
Hey, glad you asked. Two main points: 1) better rewards and 2) improved credit score. The rewards are simple so I'll talk about those first.

Some rewards credit cards give you a flat percentage cash back on all purchase; 1%, 1.5%, 2% are all common with 2% being the highest (Citi Double Cash). Other credit cards will give you higher cash back on rotating categories. Take the Chase Freedom, for example: from July through September of this year, the 5% bonus was on Kohl's (lol idk why) and much more importantly, gas stations. So while I have a 5% bonus on gas, I'll use my Chase Freedom. Once that's over, I'll use the Citi Double Cash (2%). I also have a Discover It and as a signup offer, rewards get doubled in the first year, so I think from January-March I'll be able to get 10% back on gas. Basically, with multiple rewards credit cards you can average out to much higher cash back.

Continued next post.

>>891163
Now, the credit score has a bit more info. Your credit score is calculated by looking at a few different areas of your borrowing stats. Pic related.

>amounts owed
This is the ratio between your current balances and your total credit limit. The best place to be is 1-10%, ie if you have a $1000 credit limit, keep your balance below $100. Unlike the other metrics, "amounts owed" doesn't have a "history" and can change (and therefore change your score) every month. If you're running a 90% balance one month and pay it all off, your credit score could jump 20 points.

>payment history
Simple. On time payments. Pay everything on time (autopay is your friend) and you're gravy. Note it's the single most important factor. Pay on time. Pay on time. Pay on time.

>new credit
If you have a bunch of new accounts or inquiries (a lender checking your credit score), other creditors may think you're desperate for credit. This makes you look risky.

>length of credit history
Simple. Average amount of time you've had your credit accounts. Keep your oldest credit card(s) open. This is also why I recommend never getting one with an annual fee.

>types of credit
Two parts: what mix of credit do you have (lenders like to see car loans, home loans, etc all being paid on time, in addition to credit cards) and how many lines of credit do you have (more is, paradoxically, better).

So why do I have 6 cards for my credit score? 1) Increased overall credit limit. This lowers the "amounts owed" metric. 2)Types/lines of credit. More is better. 3) Stability in "length of credit history". If you have one card for 10 years then open a new account, your average age of credit drops to 5 years. No bueno. If you have, for example, 6 cards for 10 years and open a new account, your average age of credit drops to 8.5 years. Much less bad.

Note: all the stuff I'm doing is not based on hearsay and retards on the internet. This is just how the scoring works. If anyone can correct me, please do.

>>891163
>>891164
Wow thanks for all this info

Anybody have any experience with getting a late payment erased? I had otherwise perfect credit until about 2 years ago when I ACCIDENTALLY missed a single payment on a shitty BofA card that I hardly use anymore. I've kept the account open because I've read that you can write a letter of apology or some shit to your creditor and potentially have the late payment expunged.

I currently have a 730 credit score but that single late payment is undoubtedly fucking my credit and preventing it from going much higher.

halp /biz/!

>>891011
Are you a fellow all inclusive bank account holder?

>>890992
>Would I get positive interest
No.

>>891164
Boy you're all into this credit nonsense, huh? Although that's a pretty accurate description of how credit scores work.

Alternatively, there are other more sensible - old school ways if you will, of approaching the issue of credit. You could just live within your means and pay for everything cash as I've done the last 16 years. You'll have no credit score but you'll learn - you don't need one. These silly scores didn't exist 30 years ago. Also if you've ever travelled abroad, a lot of other countries not only don't have them but think it's completely stupid (and it is really).

Think of your credit score as your own personal 'profitability' score in the banks eyes. They want to know you're a reliable slave for them. The best slaves get little pats on the head with 'rewards'. While the benefits may seem free to you, you're actually paying for them. In the form of higher prices on goods and services since those businesses are in turn paying a fee to the credit card companies to even accept your card to begin with.

Only exception with loans: a home. Buying one cash is possible but requires much more short term sacrifice than most people are willing to make. Without a credit score you're going to need to shop around for a mortgage. There are traditional mortgage companies still out there (also called manual underwriting).

If you ever want to be wealthy, never take out loans.

TL;DR Only poor people care about FICO scores.

>>892328
On the subject of increased prices due to credit fees, that's true. Prices on everything are higher specifically because of credit processing fees (take a look at gas stations that offer separate credit and cash prices). The thing is, if you aren't buying those things with cashback credit cards, you're subsidizing the people who do. Prices aren't gonna go down just because you don't use credit; you're just paying for the people who do.

>If you ever want to be wealthy, never take out loans.
I'm gonna disagree with you here, a little. For the vast majority of idiot consumers, yes: loans and credit will fuck you because you're too god damn stupid to buy appreciating assets rather than bullshit like cars and a new TV. But for some people, smart and well disciplined investors, loans can enable someone of modest means to build a business, buy real estate for income, or invest in the stock market.

Side note, are you the guy who owns his own business(es)/real estate without ever using credit?

>>892328

You know that almost every business ever was started by taking out a loan right, either from friends, family, or an investor

>>890875
Don't spend more than you can pay off in a month
Don't do cash advances unless you wanna get raped on interest, if you absolutely must you can buy a prepaid VGC and use that VGC to buy a money order you lose a few bucks in fees but can get cash in hand.
make ontime payments for 4 months and ask for a credit line increase but make sure it will not result in a hard pull. If it does then just apply for another CC that would give better rewards.

>>892356
So then I'll subsidize the people that do. When (not if) I have a financial emergency, I don't have outstanding liabilities in any form to worry about. I don't have leveraged positions where I'm making this percent from that account which cancels out this percent interest from this account. These are the same people that cry the sky is falling whenever the casino stock market tanks.

The 'if you can't beat em' join em' argument just doesn't gel with me as far as that goes. I believe the best way to win that game is never play it to begin with. That philosophy has yet to fail me in over 16 years. It also never failed the person I learned it from in his 75+ years of life. It's a recipe to not have 'oh shit!' moments for me, personally. A transmission blowing on a car, new roof/foundation issues on the house, a newer car etc are all minor inconveniences. Going back to school? No problem - pay each semester cash outright. Nothing more. Yes, life is a little slower and modest. The most important thing: it's sane. I don't worry what this or that stock price is or what this or that APR is - or what new rotating spinny-do rewards category to use next. Stress level is and will remain at 0.

Yes, it can enable people of modest means to build a business. The same can be said for real estate income. However, both can be accomplished by hard work, responsibility, personal sacrifice and well executed planning. These concepts are almost taboo in our culture at this point.

>I want it now!

>>892361
Apples to oranges. I'm talking about personal finance. Business wise - an investor bares the loss of that business generally speaking. It doesn't bankrupt the founders of it personally should it go belly up.

>>890994
>>890931
The interest is annual, so divide it by twelve and that is how much interest is charged to you each month. You don't get charged 20% each month, it would be 1.67% per month.

Freeze it in a block of ice. Literally.

>>891141

All scams. Have fun getting your identity stolen.