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Credit Building? Answered

I'm 19, and have no credit history.
I was considering getting a Wells Fargo Secured Credit card, and securing it with the $300 minimum collateral. What would be the best way to build credit with it? I was going to treat it like my debit card, only paying for things like gas, coffee here and there, and maybe a night out or two a month; then paying back the full amount I owe every month.
Would that be a wise choice?  And how quickly could I improve my score?

Discussions

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seandogue

4 years ago

Using it for small expenditures will, in my opinion, do little more than acclimatizing you to using a credit card for frivolous spending. Use it for medium sized purchases of $50-100 and pay each of those off in big chunks as soon as humanly possible, PRIOR to using it again.. It's very easy to get sucked into the credit scheme and end up carrying a big fat debt for years, or even months. The interest adds up very very rapidly.

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avocadostains

4 years ago

Not sure what your goal is but in most scenaios no credit is actually good credit. Just getting the card should helpto put you on the map. Use it and pay it off. No need to spend a lot on it, just that you use it and pay it off on time. You can use that account as sort of a saving too and as you get more money apply for a higher limit. Oddly, getting loans seems to raise a credit score. What is your goal though, because if you have no debt and a a job you dont have bad credit. You just have no credit history. Having the secured card should get you a score. Sign up for creditkarma.com. That will give you an idea of your score, though it can be inflated as much as 50 points or more due to the difference between consumer credit scores and the mysterious FICO score that in many cases matters more for gwtting loans, etc. Still it should give you some idea though and let you know ehen theres a change to your credit.

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The Dark Lordavocadostains

Answer 4 years ago

The goal, in my case, would be to raise my credit to look better when I go to apply to rent apartments.

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iceng

4 years ago

Watch the Suzie Orman TV show she has a formula for raising your score.

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Wired_Misticeng

Answer 4 years ago

+1

Not one of my fav shows, but she's given me some fiscally sound advice a few times :)

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steveastrouk

4 years ago

Use the card you get to something like 40% of its limit, and repay on time everytime.

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steveastrouk

4 years ago

We have similar issues in the first few months since we emigrated to the USA. The key step for me was a Discover card and a car loan. I now have a moderately good credit score, but its taken six months to register on the credit companies computers. Discover just raised my credit limit.