If you don't want to buy stuff, invest in gold and lose money.
Good credit is about paying an obligation, as agreed, over time. It you want
$500 worth of stereo equipment and you put it on a credit card and pay it off
over 12 months, making 12 equal payments, you'll be seen as a better risk
than someone who has zero card history or one who pays it off in 2 months.If you have a credit card for incidentals, pay it off fully every month,
so that means not charging more than you can pay. If you get any benefits from
owning the card, they become yours for no monthly fees. While there may be an
annual fee, many are waived the first year. And if you quit buying anything on
credit, after two years of inactivity your credit history is lost and you start
over.Never accept a card you haven't asked for. And keep the
number of them to an absolute minimum.Always pay on every card every
month, even if it is just the minimum. Don't let one go to pay more on
another, ever. Extra funds go towards those with the highest rates.
I think you benefit with good credit, even if it's to keep your insurance
low, get a job, or have low interest on a lone. Personally, I prefer using cash,
when its gone its gone, unless I travel. Still I have to wright every penny
down. I have to stay with on bounds, Dirty Harry said; A person has to know his
I have had credit card companies raise my limit several times without being
asked, without seeking my consent, and without me having shown any inclination
to use a significant fraction of the credit limit I already had. Why do they
keep doing that?
I understand that it is a bad reflection on your credit score to get rid of a
card. I don't understand why, but that is what I've been told. Also,
it seems that the fastest way to lower your score is to miss a payment. On
anything. Plus, paying in advance can come back to bite. You may pay two
months worth in one month, and then not pay anything the next month. That
doesn't work. It will be seen by computers as you missed a payment. Also,
check to make sure that your payments go through and to the right accounts.
I've had a bank take a payment and then incorrectly imput a number and the
payment goes to the wrong account or just into cyberspace. Takes a long time, a
lot of phone calls, and helpful bankers to get the credit bureau to correct what
was the banks mistake. Monitor you credit every month to watch for errors which
happen more than you might think. Especially if you are getting close to buying
something big like a car or house.
I think credit for anything other than a home is hogwash. If you want to buy
something, save up the money and buy it out right. Stop giving these cracker
wealth mongers power over you and your life. Make credit a thing of the past.
Don't bow down to their system of control. If enough people do this their
system will collapse, and good riddance!