Real life tip/rant: last year, I paid off all of my credit card debt and my credit score JUMPED… I was so happy because I felt like I was making some real strides in my life.
But a few weeks ago, my credit score dropped 30 fucking points.
I was so lost and confused because I don’t owe anybody money and I don’t have a credit card.
Little did I know, that was the problem. If you are not actively building your credit MONTHLY, that shit will dropped.
The second you build any credit history, you need to keep building on it, unless your credit score is 0 (you don’t have to worry about that shit dropping obviously but you should start building credit history, maybe starting with a secured card).
Don’t let this shit happen to you.
One more thing, if you’re poor (like I was for the longest).
Find a bank or credit card company that allows you to have a credit line of no more than 50-200 dollars (idk the minimum amount you can have but the least you have, the better)
Because I maxed out my credit card (I was desperate at the time to pay for tuition) and it took me forever to pay it off because I couldn’t afford to pay it.
You’re only supposed to use 10% of your credit line but you need to pay that off every month because these companies will charge you interest when you pay the minimum balance.
The way I intend on building my credit score is having one secured card (I’ll get one more eventually when I qualify for it) and using it to pay my monthly Netflix, Hulu and Spotify bill.
Which is only $40 a month for all of them and I intend on paying off that amount every single month.
You’re actually supposed to use 30% of your card but make sure you pay it off every month.
10% is way too low but now I know 😇
ANOTHER POINTER: your credit isn’t reported in real time. Companies send your bill to the credit reporting agencies on/around your billing date, so if you have a balance of $50 and pay it before your billing date, they’ll tell the agencies you don’t owe anything; therefore, there’s nothing to pay off. Building credit is showing you’re trustworthy owing money, so wait to be billed for your balance before paying it off.
Omfg ^^^^^ I didn’t know this!!!!!!!
Just tryna spread the wealth of knowledge. ALSO, for those just starting to build/rebuild credit and can’t get approved for a regular credit card, you should get a secured credit card. It’s pretty much a credit card that requires a down payment and I use the Capital One Secured Credit Card (not sponsored) and I had to pay $50 (if I remember right) for a down payment and every dollar extra you add, you up your limit, so I paid an extra $25 and my limit was $225 starting. If you show you’re trustworthy with your payments and are active in using it, they’ll up your limit $300.
Update: my credit score jumped by 40 points since I’ve made this post.
Don’t get it twisted. My shit is still trash but I’ll have the perfect score in no time.
This adulting shit ain’t so bad 🤑
HIT THE 800S, BOO!
But less be honest if you don’t have a good mix of credit then ur still screwed u actually need different t types of loans wether for home or a car to really hit a perfect score
Credit still can be repaired. 🤷🏿♀️
If you don’t owe people an exuberant amount of money and you only have a little bit of credit history (like myself but it’s trash), you should be fine.
This whole thread shows how flawed capitalism is
Well this isn’t a ”I love capitalism” post, however, most of us live in a capitalist society and we weren’t taught how to survive in one.
This is only supposed to be helpful.
If you’re younger like I was but have income and parents that trust you, see if they’ll put your name on one of their cards. I’ve been a registered user on 3(?) of my dad’s credit cards for at least 3+ years and a little while ago I wanted to see about getting My Own credit card. Lo and behold, thanks to my dad’s good credit score I also had a good credit score. Mid 700’s. I applied for a non-secured credit card, not really expecting to get it, or if i did get it, for it to have a decent limit, since none of my credit score was Technically my own doing. Dad even warned me to be prepared for my application to be declined and suggested a secured credit card to aim for. But guess what? I fucking got it. A proper credit card with a limit 3x higher than what I was expecting. And you better fuckin believe im following in my dads footsteps for this good score shit. Im keeping my balance between 15-25% til the bill comes when i pay it off.
I know not everyone has parents who can help them out with this, but the adult world is a cruel place so take every advantage you can.
^^^^^^^
This. All of this. When the kid gets older, we’re making sure she starts out better and more knowledgeable than us. Thanks, y'all
Just want to correct some things. You absolutely do not need to use 30% ever. The less you use the better SO LONG AS IT’S USED. Proof from my Credit Karma
Also, pay off your credit cards before you’re charged interest if possible. I know that is difficult if not impossible. I’ve been there. It took me 15+ years to repair and build my credit after a lot of troubles from 18–>22. It’s difficult but it can be done
