Other Creditors
Keep in mind that Book and Music Clubs are vendors that can be accessed by new credit users. They also report non-payment to credit agencies. Used incorrectly they will hurt a report and even used correctly not help build it. Rent; getting that first apartment usually means a credit check. Meeting your rent and utilities in a timely fashion will help build your credit. Avoid any purchase that must be financed or has an automatic loan attached.
After Bank Cards:
What kind and how many cards should you carry. First never have more credit cards than you need. Some folks seem to feel that the more credit cards they have the better off they are. Wrong. One card that can cover your monthly purchases is just fine. Slowly growing your credit is the best way. Starting with a gas card and adding a bank card is a good way to start.
Do you stop there? That depends on lifestyle, travel, expenses, safety and income level. You need a rewards based, low interst, no fee bank card to cover the amount you need or want to spend per month and at least a (10-15%) cushion. This is the card you pay (without fail) in full every month. It would not hurt to have an another favorable terms emergency card that is NEVER used except for emergencies. You could also have a third card that would be used as your "savings account funded" vacation card.
Most large stores, merchants and service providers have their own cards these days, but also accept traditional bank cards as well. They is no good reason to duplicate Credit Limits of private companies unless they simply don't accept traditional bank cards AND you need to shop there. As this is written CostCo (A large discount wharehouse memebership store) accepts only American Express cards. If you wish to charge there you must use an AmEx card.
Credit Facts:
To maintain good credit and grow your credit there are somw simple basic rules:
There's no better way to keep debt under control than by tracking your spending and sticking to a budget. A budget can help you control your finances, decrease your debt, and build a strong credit history.
Keep track of the checks or "drafts" you've written and track what you owe. Make sure account statements are accurate. Review monthly statements when they arrives, check for any possible discrepancies and be sure to report them immediately by phone and follow-up with written documentation.
Pay what you owe ON TIME. Don't skip payments. Always try to pay more than the minimum or better yet the entire balance every month. Pay attention to the "payment due" dates to ensure the payments arrive on time. Mail your payments at least a week before they are due to avoid late fees. When possible pay and track accounts online.
Always pay at least your Total Minimum Due. Your payment should be received by the creditor on, or before, the due date printed on your statement to keep your account in good standing.
New spending and carry-over balances combine to increase the balance amounts and the finance charges owed. You can decrease finance charges by paying down the balances as much as possible every month.
Never exceed any account's credit limit.
"Available Credit" is how much credit is left (your Credit Limit minus your Outstanding Balance).
Add any charges made after monthly statement's closing date to the outstanding balance to find out how much credit is really left (Available Credit). The best way to do this is to check the online information against the current charge slips. (Yes, always keep them and compare to statment listed charges.
When moving, fill out the change of address form on the statements. Call your CSR to insure the changes take place.
