Credit Card Options

[cmac]

I need a credit card.
I know very little about what I want.
It's important that it will collect airline miles and I'd like for it to have some sort of reward points too.
I obviously would like a low interest rate.
I don't mind a small annual fee.
I bank at Wells Fargo if it helps.
Any suggestions?

[impala454]

best way to build credit is to keep a balance. i know everyone thinks that's terrible but you build credit by making payments. buy a car or big tv or something you need to finance and make payments. just don't miss em or be late on em.

[Spectatrix]

best way to build credit is to keep a balance. i know everyone thinks that's terrible but you build credit by making payments. buy a car or big tv or something you need to finance and make payments. just don't miss em or be late on em.

Um, no? Getting and paying off an installment debt (such as a car loan) can build your credit, but keeping revolving debt isn't really a good thing. The only way it might help your credit history is by prompting your credit card company to increase your credit limit, thus making your debt balance a smaller percentage of your available credit.

Basics for building credit:

1) Pay off your bills on time (duh)
2) Ideally keep your balance below 30% of your credit limit. Using a high percentage of what's available can limit your credit score.
3) Hold off on closing old accounts, as the average age of your accounts is figured into your score and your total credit available is used to figure your % used.
4) Even on accounts you aren't really actively using, make a small purchase every 6 months or so and pay it off. If you don't, you run the risk of the credit card company closing your account for inactivity.

Breakdown of the FICO score:

35% Payment history
30% Outstanding debt
15% Length of your credit history
10% Recent inquiries on your credit report
10% Types of credit in use

[impala454]

Um, no? Getting and paying off an installment debt (such as a car loan) can build your credit, but keeping revolving debt isn't really a good thing. The only way it might help your credit history is by prompting your credit card company to increase your credit limit, thus making your debt balance a smaller percentage of your available credit.

I'm sorry but you're just wrong. If you have held credit cards, make purchases, and pay the full balance every month, your credit will be shit. You have to carry a balance at one point or another if you want a halfway decent interest rate on a car or house later. My guess is you've never purchased a house or car before? The whole idea is they want to see that you've proven you can make large, recurring payments over a long period of time. It may not be financially responsible to carry a large credit card balance all the time, but carrying a decent balance will help your credit. So will buying a car or other large, financed item.

and I dunno where this "closing accounts is bad" is coming from. if you go to buy a car and have $10-20k in available revolving credit, you're not gettin a good rate.

[dauss]

I'm sorry but you're just wrong. If you have held credit cards, make purchases, and pay the full balance every month, your credit will be shit.

Weird, I have very good credit, and I've paid the full balance every month on both my credit cards. I've never had a loan or mortgage.

I always carry a balance on my card though, even though I pay it in full every month.