Voncile Slaubaugh: I do not think that is accurate
Corrinne Ruozzo: I would not try to go for a Discover Card (Wal-Mart or otherwise). Discover cards require a good credit rating and typically do not issue cards to those just starting to build credit. If you have a checking account try speaking with your bank about a secured credit card for building credit. Your banker can tell you more about this. You can try to be a joint account holder with your dads account, but there is laws that may go into effect to stop people from (piggy backing) on other people's payment history as a way of building credit so see if this is even possible. I would advise you to go with the secured card option thoughBest of Luck!...Show more
Antone Youla: I agree with Chris. Either you didn't actually attend those personal finance classes or you need to demand a refund.Your first question is confusing. Are you saying that you will charge small purchase on this new DiscoverCard, then ! pay that with your existing Sam's credit, then pay that immediately with your debit card? Paying one credit card with another results in a cash advance. Cash advances have higher interest rates which start immediately. There's also a cash advance fee of 3% to 5%. So that's a very bad idea.Or are you just saying you will make charges on this new card and immediately pay with the debit card? Some credit cards don't like you to make multiple payments and will actually limit the number of payments you can make per month. Making immediate payment does nothing extra to help your credit and could actually work against you, since your utilization won't show in the credit card updates to the credit bureaus.Besides, one of the advantages of using a credit card is the interest free grace period between the purchase date and the statement due date. Just use the card and pay the balance in full by the statement due date.If your father adds you as an authorized user (not joint --! that would make you liable for the debt), it will help your c! redit score. If you do this, it is best to get cards in your own name and build credit history. Then have your father remove you as an authorized user in about 2 years. While authorized user accounts will help, later on they can work against you as the account will be counted in debt to income ratio and could disqualify you for a home or car loan....Show more
Verena Koop: 2
Cliff Jacoby: Having your dad add you as an authorized user would almost immediately help you in your credit rating (if his rating is as good as you say; sometimes dads don't share all personal info). But beware, if anything happens to dads rating, it will affect you. But the thing is you want to build PERSONAL credit. Don't be in such a hurry. A higher credit score is attributable to the following:A continuous employment history of greater than 3-5 years A credit history of 5 years. Nothing you can do to accelerate that except to start early. A manageable debt outstanding ratio to availab! le credit (on revolving credit, such as credit cards) of less than 20%. If you have a $10,000 credit line, your outstanding balance shouldn't be more than $2000. Not withstanding the above attribute, an ability to handle a high balance. In other words, if you have credit limit of $10,000, charge $6,000 in say furniture, then pay that off within a few months, your high balance will show as $6000. That's a plus. Letting that $6000 charge drag out will affect your debt to credit ratio to the negative. Recent applications for credit. Too many applications for credit in too short a period of time can hurt you. Keep it less than 2 or 3 per year. There are some exceptions that the credit bureaus will recognize as one inquiry, such as applying for a car loan or home loan with different banks to get the best rate within a few weeks, and that usually won't work against you.Closing out credit accounts. Usually someone just starting out establishing credit will open their first acco! unts with easy merchants, such as department stores and gas cards with ! high interest rate or yearly fees. That's ok, just keep the balances low. After you've established credit with them, the temptation will be to close the accounts to lower the available credit or lower the rate by using a card with a lower rate. If you do that, you take away the reporting history from the creditor you've had the longest relationship with, and that can hurt you. Lastly, late payments and bankruptcies will hurt you the most.You should be able to get a Sam's Credit Card pretty easy on your own. Yes, you can build credit by buying the essentials you need and paying off early. But don't forget about buying a new computer or tires for your car, and paying that off over two or three month's to build your high credit. Last, when you do get a good credit history, don't get credit drunk. That means accepting every credit card offer that comes your way. They will tempt you with low rates, high credit limits, and free miles or points. Resist all temptations. If you're s! pending within your means, a higher credit limit or lower rate shouldn't really matter. Good Luck!...Show more
Kaylee Schmittou: Every time you apply for credit, the hard inquiry dings your score a couple points. The actual denial is not shown on your credit report and does not impact your credit history/score. But the hard inquiry does show. Having multiple hard inquiries for credit cards within a short period of time, can cause additional denials. It looks like you are over extending yourself. You build credit history with loans and credit cards. Installment loans build credit by making payment over time. You have to pay on an installment loan for at least 12 months for it to do much for your score. You pay interest for those 12 months as well. Paying off an installment loan early does nothing special for your score. On the other hand, you can use a credit card for regular purchases, wait for the statement, and pay the balance in full every month. This builds credit! and avoids interest. You still have to use the card for at least 12 mo! nths to do much for your score,but you don't have to pay interest. The new law that went into affect last year requires that anyone under 21 must provide proof of sufficient income to qualify for a card or have a parent co-sign. Most banks want to see 12 months of employment history to go with that income. Gas and store credit cards are no longer easy to get -- they have the same rules. You will probably have to start with a secured card -- you pay a deposit which is held as collateral against the line off credit. Check with your bank. You already have a relationship with them and they are more likely to extend credit to you....Show more
Boyce Gilhooly: Yes, getting a small limit credit card account is one way of starting a credit history. But paying off each purchase as soon as you make it is overkill. The only thing that matters is that you pay the monthly billing on time."Getting on your father's card" will only show up on your credit history if you "get on it" a! s a coborrower. Just being added as an "authorized user" will do nothing. If either of you subsequently "screw up" with that account, however, it will hurt both of you....Show more
Cletus Crotts: "i wondered if i got one of these and made small payments for like food and ETC. then put them on my Sam's credit and immediately after the transaction i would ask to pay that exact price on my credit with cash (debit). making me never have any debt"Tell your school you want your tuition back for that personal finance class. There's nothing wrong with debt. Debt is good as long as you have the ability to repay it and it doesn't cost you anything. That's what makes credit cards so appealing ... charge only what you can pay back, and let your cash sit in an interest-bearing account until the bill is due. Then pay it in full. Congratulations, you have successfully leveraged debt and made yourself a tiny amount of money. A penny here, a penny there, soon we're talking whole dol! lars.While Discover Cards issued by Discover Bank are hard to get, the ! Wal-Mart/Sam's Club Discover is issued by GEMB. It's much easier to get. Still, as a credit newbie you'd probably get denied. You might have better luck just getting a store card. For an actual bank card, you'd probably be looking at a low-limit high-fee starter card like Orchard Bank's offerings, or a secured card.Re: your dad, you want to be an authorized user, not a joint account holder. No sense in assuming responsibility for his debts!...Show more
Hollis Demasters: I love this question
Sook Hershkowitz: 1
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