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Did I make the right move?


TheMaximumHornetSting

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Well today has been eventful..... 

Ok... my credit score is currently 717.... I want to get it higher for future purposes.... and To do so.... I thought that getting an Amazon Credit Card would be a good idea.  

Im a bit nervous though.... Ive been making sure that I didnt do something stupid.... 

My biggest fear is monthly payments.... 

But from my understanding Credit Cards dont charge you fees unless You actually use money off of it. 

If you dont purchase things with it then you're ok...  

But in order to build Credit I will have to use it and Pay it off....  

Perhaps I shouldve left things as is....

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11 hours ago, TheMaximumHornetSting said:

Well today has been eventful..... 

Ok... my credit score is currently 717.... I want to get it higher for future purposes.... and To do so.... I thought that getting an Amazon Credit Card would be a good idea.  

Im a bit nervous though.... Ive been making sure that I didnt do something stupid.... 

My biggest fear is monthly payments.... 

But from my understanding Credit Cards dont charge you fees unless You actually use money off of it. 

If you dont purchase things with it then you're ok...  

But in order to build Credit I will have to use it and Pay it off....  

Perhaps I shouldve left things as is....

Get a Amex charge card

 

Never carry a balance. I pay everything in full, a week early, each month. 

I recommended charge card because it forces you to pay it off monthly, and you'll only spend what you have. 

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You build  credit by using credit. Use the card spending every month for stuff you would normally pay cash for. Take that cash and pay the card off each month. YOU MUST PAY THE CARD OFF EACH MONTH!!!  This will show you a responsible user of credit.  If you start carrying a balance you will start paying fees and getting behind. If you never use it, it won't really help your credit score.

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I agree with the other's advice. Don't use more of the available credit than you can pay back. You can never tell when your situation may change due to things outside of your control, so carrying a large amount of credit that you could get stuck being unable to pay could be devastating to an otherwise nice credit score. 

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3 hours ago, HawgGoneIt said:

P.S. I wouldn't post things like my credit score online and/or my recent credit moves on a message board where the general public can browse. Just another piece of advice.

Yes. But maybe we can just get your social security number, date of birth and full name and we can help you monitor things?

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Hoss....it's like I told my son...Little Alphonze.  get a Chase Visa...only charge your gas purchases on it....and pay it in full (3) days before it's due.

EVERY MONTH.

The penalty from deviating from the Plan...is that I will send his MOTHER to live him.  I'm pretty sure he's staying dedicated to the schedule.  Lime Sink's Rule No.17...Never Never Frigging Ever....charge more than you can pay in total when the bill comes in.  

NEVER !!!!

 

Rufus>>

 

EDIT:  There are exceptions to most rules.  Medical, food, mobility and shelter needs could supersede the rule.  Especially MEDICAL.

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The avg. American household carries approx. $16,000 in credit card debt. That's what happens when you're concentrating on paying the minimum monthly payment, instead of paying a smaller balance off on time. That and constantly adding to your balance because you think that the minimum monthly payment is WELL within your budget. That's a very good way to reach that $16,000 credit card debt. Don't fall into that trap. 

Average Credit Card Debt in America
Period Outstanding Revolving Debt (Billions) Avg. Indebted Household Credit Card Debt
Dec. 2015 $936 $15,779
Jan. 2016 $938 $15,812
Feb. 2016 $941 $15,863
Mar. 2016 $952 $16,048
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To see the impact of paying off a credit card with minimum payments only, consider a credit card balance of $5,000, with a 14% APR, and minimum payment as 2% of your credit card balance. Making minimum payments only, it would take you 22 years and $5,887 in finance charges to pay off this debt, not including any fees you incur over the life of the credit card balance.

 

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55 minutes ago, LeftOnBase said:

To see the impact of paying off a credit card with minimum payments only, consider a credit card balance of $5,000, with a 14% APR, and minimum payment as 2% of your credit card balance. Making minimum payments only, it would take you 22 years and $5,887 in finance charges to pay off this debt, not including any fees you incur over the life of the credit card balance.

 

Boy 16,000$ debt....  dear god.... thats a scary number to owe....

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21 minutes ago, TheMaximumHornetSting said:

Boy 16,000$ debt....  dear god.... thats a scary number to owe....

Things can happen as others have said.  I generally pay mine off every month.  Occasionally I will buy something that I know going into it I am going to take 2 or 3 months to pay off and I do it but I have the discipline to do so.  My life took a sudden turn close to 30 years ago and the result was I had more debt than the current average.  Once I got it paid off I swore that would never happen again.  The feeling of relief when I sent that last payment in was indescribable.  Even during that time thought, I always made sure I paid at least the minimum to keep the accounts current.  I had no money but I had a killer credit score because of that!  :-) 

Credit in and of itself is just a tool.  It all depends on how you use it.  Use it wisely and it will be there in case you need it.  Use it poorly and it will make your poorer.

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