I've heard that too. But doesn't the same happen as you pay rent, utility bills, etc.?
There should be a mechanism to maximize your credit-building. You could have a program that tells you how much to put on the card each month, and reminds you to pay your credit card bill on time, automatically (paying small bills won't show them how you'll do with big bills, too much spending is a risk-factor). I wonder how much one ends up paying for credit this way, assuming an empty credit history.
By the way, if you planning to get a mortgage or a car loan, then you are planning to go in the red (that contradicts the premise).
I've heard that too. But doesn't the same happen as you pay rent, utility bills, etc.?
not really - the credit rating you accrue comes from payment of loans mostly (either credit card payments, or actual loans for school/car/house/etc).
You could have a program that tells you how much to put on the card each month, ...
But that assumes you know exactly how the credit agencies calculate your rating - a fact which I don't think is widely publicized, if at all.
By the way, if you planning to get a mortgage or a car loan, then you are planning to go in the red (that contradicts the premise).
Sure, but planning to buy a house, or even a new car, with cash is pretty damn hard to do. Even people who live "in the black" their whole lives otherwise still find this kind of loans pretty useful.
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(no subject)
Date: 2002-07-11 06:26 pm (UTC)There should be a mechanism to maximize your credit-building. You could have a program that tells you how much to put on the card each month, and reminds you to pay your credit card bill on time, automatically (paying small bills won't show them how you'll do with big bills, too much spending is a risk-factor).
I wonder how much one ends up paying for credit this way, assuming an empty credit history.
By the way, if you planning to get a mortgage or a car loan, then you are planning to go in the red (that contradicts the premise).
(no subject)
Date: 2002-07-11 06:56 pm (UTC)not really - the credit rating you accrue comes from payment of loans mostly (either credit card payments, or actual loans for school/car/house/etc).
You could have a program that tells you how much to put on the card each month, ...
But that assumes you know exactly how the credit agencies calculate your rating - a fact which I don't think is widely publicized, if at all.
By the way, if you planning to get a mortgage or a car loan, then you are planning to go in the red (that contradicts the premise).
Sure, but planning to buy a house, or even a new car, with cash is pretty damn hard to do. Even people who live "in the black" their whole lives otherwise still find this kind of loans pretty useful.
(no subject)
Date: 2002-07-11 07:12 pm (UTC)But I doubt it's a secret. Even if it is, it can't be too hard to figure it out.