Help Ozzy Find a Credit Card

[OzzyKP]

I hate credit cards. But everyone tells me that if I one day need to buy a house or car or something I need to have good credit, so I need a card.

So what is the most painless risk-free way of finding my way to good credit?

I spend very little money. Groceries and the phone bill would be 90% of what I imagine I'd be putting on the card. So I don't need any frills.

Is there a way to have your credit card bill automatically deducted from your checking account each month? Cause that would really be the only way I'd pay my bill on time.

[SlowwHand]

You can pay online.

Get an introductory o% interest. If anything accumulates, transfer the balance to another 0% card.

Or go Sears.

[OzzyKP]

I don't want anything that complicated. I just want one card that won't cost me any money.

Paying online isn't the same as automatically paying. Does it happen automatically? Cause if I have to remember to go to the website to pay I'll **** it up.

[Lord Avalon]

Go to your bank and see if they have credit cards with autopay?

Use Google? (Wells Fargo came up)

[MRT144]

Bank of America has linked cards to chequing accounts.

[OzzyKP]

Ok, I'm with Bank of America anyhow.

[Jon Miller]

Your bank often has a credit card associated with them, even if they don't do it themselves. They will often take you...

jm

[pchang]

Originally posted by OzzyKP
I don't want anything that complicated. I just want one card that won't cost me any money.

Paying online isn't the same as automatically paying. Does it happen automatically? Cause if I have to remember to go to the website to pay I'll **** it up.

That is utterly pathetic.

[Jon Miller]

You can generally set up automatic payments. I prefer the ones I have to do myself, but I generally log on once a week to pay my bills.

I have almost been late a couple times though.

JM
(has great credit generally)

[atawa]

Why would a mortgage provider care if you ever owned a creditcard?

[Jon Miller]

Because there is this thing known as credit. It goes up and down based upon numerous factors, and is basically a way lending institutions (including mortgage places) determine if you are likely to pay them back.

My credit rating is usually in the high 700s (been above 800 even), it has recently dropped to ~700 because I have a lot of money on my credit cards, and don't make much. Therefore it is a sign (and true) that I shouldn't be given more loans because I would have a hard time repaying them.

Not paying things on time, or other such things, are also big factors.

JM

[atawa]

Ah ok, then things work differently in the states, over here the bank only wants to see proof of steady income and other debts to calculate your max mortgage, only if your name shows up at BKR (the central credit registration, database of deadbeats) you might have a problem getting one.

And since people with CC's are usualy more in debt then people without them I wouldnt expect this to be an issue with them

[Spec]

Originally posted by SlowwHand
You can pay online.

Get an introductory o% interest. If anything accumulates, transfer the balance to another 0% card.

Or go Sears.

Never go Sears. 28.8% interest with no good advantage since Sears is not cheap.

Best thing you can do is calculate the amount of money you spend for your daily activities (restaurant, shopping, Games and such) and come to an amount for the month.
Then when you ask for a credit card, demande that amount in credit.
This way, all you need to use is your credit card, so no debit-card fees, garantees on all merchandise bought and a "limited" budget for your monthly expenses so that you dont over spend.
At the end of the month, you transfer the money from your bank account to the credit card, pay no interest and use really well your credit, which gives you a lot of points on your beacon score at the bank when you try to get out a loan.

Spec.

[Spec]

Banks dont lend you loans if your debt ratio is above 40% of your gross income. And your beacon score must not be under 635 if it hasen't changed.
Beacon score is based on how you use your credit, on the amount of credit you have, on the % of your credit available and used, on how long you had credit, on how long you have been customer of the said bank and on your late/on time payments.
These days, we almost dont have any loan-officers in banks anymore, they are more like app takers and the computer says yes or no. If they want to reverse the decision, they have to send the app to a credit expert.

Spec.

[Flubber]

Originally posted by OzzyKP
.

Paying online isn't the same as automatically paying. Does it happen automatically? Cause if I have to remember to go to the website to pay I'll **** it up.

I can't believe the irresponsibility of younger adults in statements like this.