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Posted: 2/20/2006 7:04:18 PM EDT
I have a credit question for you guys. I am 19 and have had a credit card since 16. I have paid the balance in full every month. The question is if I apply for an amazon visa for 30 bucks off of an Ipod im about to buy how much will it affect my credit score. Please reply ASAP

Ps. I plan on paying the balance after month 1 and cancelling the card. How much of a hit will go to my credit score?
7 points?\

Jeff
Link Posted: 2/20/2006 7:13:20 PM EDT
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!
Link Posted: 2/20/2006 7:13:36 PM EDT
[Last Edit: 2/20/2006 7:16:33 PM EDT by Black_Talon]
I always heard to never cancel credit cards. It could effect your score negatively.
Keep the card and pay it off, keep it for big purchases you can pay off quickly. It will help your credit.
Link Posted: 2/20/2006 7:15:04 PM EDT
okay
ill take it in the nuts
Thanks guys
Jeff
Link Posted: 2/20/2006 7:16:06 PM EDT

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!




Not exactly the question he was asking - was it?

He's establishing credit. He's going to need that someday when he decided to buy a car or a home. Yes, open the account and pay the balance. Cancel it afterwards. Your credit score can be affected if you have too many cards or if the balance on your card is too high.
Link Posted: 2/20/2006 7:16:15 PM EDT
Opening and closing cc accouts will have a neg. effect on your score. When a card is cancelled just make sure you are the one doing it and not the card company. Also make sure your balance is paid off before you close.
Link Posted: 2/20/2006 7:21:12 PM EDT

Originally Posted By Black_Talon:
I always heard to never cancel credit cards. It could effect your score negatively.



Not if you close it, iirc. If they close it, it's a different deal.

Having too much unsecured credit available can end up hurting you after awhile.
Link Posted: 2/20/2006 7:23:38 PM EDT
if you pay your bills on time, all of the time it really doesn't matter how many lines of credit you have, or how frequently you open/close them. If you're a deadbeat...yes....worry about the little crap
Link Posted: 2/20/2006 7:27:04 PM EDT
[Last Edit: 2/20/2006 7:28:10 PM EDT by Engineer5]

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!




Not exactly the question he was asking - was it?

He's establishing credit. He's going to need that someday when he decided to buy a car or a home. Yes, open the account and pay the balance. Cancel it afterwards. Your credit score can be affected if you have too many cards or if the balance on your card is too high.




That is not the way to establish credit. Your credit score will be neg. effected by opening and closing too many credit card accounts. Just because the card is offering some type of discount to lure you into opening it doesn't mean you should do it. He should just keep using and paying off the card he already has.
Link Posted: 2/20/2006 7:31:41 PM EDT

Originally Posted By Engineer5:

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!




Not exactly the question he was asking - was it?

He's establishing credit. He's going to need that someday when he decided to buy a car or a home. Yes, open the account and pay the balance. Cancel it afterwards. Your credit score can be affected if you have too many cards or if the balance on your card is too high.




That is not the way to establish credit. Your credit score will be neg. effected by opening and closing too many credit card accounts. Just because the card is offering some type of discount to lure you into opening it doesn't mean you should do it. He should just keep using and paying off the card he already has.




I run credit checks as part of my business. Having two cards is not going to negatively affect your rating.

Yes, you can get in trouble with credit cards, but this isn't going to hurt him.
Link Posted: 2/20/2006 7:32:54 PM EDT
I closed out a few, I close them and get the better offers when my old offers burn out.

Never had an issue
Link Posted: 2/20/2006 7:34:52 PM EDT
Hey guys... I need a visa card anyway cuz i have an AMEX plat right now and am paying fees in the ass... I chose that card because of the concierge service. Prob is not all places take the AMEX. Should I still do it. Also, I do not let credit companies close on me. I am not a deadbeat but I am a daytrader (some may think they are one in the same. ) Lemme know what you think.
Jeff
Link Posted: 2/20/2006 7:34:53 PM EDT
In the long run, $30 off is no big deal. Use your current card as if it were cash and pay it off right away. This will at least keep your score even, the real points come into play when you finance a vehicle and or house. You definately don't want multiple lines of credit in your name open when you want to get a house.
Link Posted: 2/20/2006 7:35:02 PM EDT
[Last Edit: 2/20/2006 7:35:32 PM EDT by Yossarian]
Just don't be stupid about things. That is all it takes.

If you have a credit card, pay off the balance every month.

If you do a 90-100-1 year buy it today same as cash...pay it off by the deadline.

Keep a balance (positive balance) in your checking acounts and savings accounts.

If you have a car, make the payment everymonth on time.

That is all.

Don't try to be tricky and do things to boost your credit. If you are responsible with your money your credit will be just fine.
Link Posted: 2/20/2006 7:35:13 PM EDT

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!




Not exactly the question he was asking - was it?

He's establishing credit. He's going to need that someday when he decided to buy a car or a home. Yes, open the account and pay the balance. Cancel it afterwards. Your credit score can be affected if you have too many cards or if the balance on your card is too high.




That is not the way to establish credit. Your credit score will be neg. effected by opening and closing too many credit card accounts. Just because the card is offering some type of discount to lure you into opening it doesn't mean you should do it. He should just keep using and paying off the card he already has.




I run credit checks as part of my business. Having two cards is not going to negatively affect your rating.

Yes, you can get in trouble with credit cards, but this isn't going to hurt him.





I guess I'm just trying to discourage him from falling into the trap that so many of us have. (don't ask me how I know)
Link Posted: 2/20/2006 7:38:15 PM EDT

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!



Credit Cards are only evil to those who do not have the Scrotal filling to use them properly. They are just a tool, like a gun, only causing damage if the owner/operator allows it.
Link Posted: 2/20/2006 7:38:44 PM EDT

Originally Posted By Engineer5:

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:

Originally Posted By Johnny_Reno:

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!




Not exactly the question he was asking - was it?

He's establishing credit. He's going to need that someday when he decided to buy a car or a home. Yes, open the account and pay the balance. Cancel it afterwards. Your credit score can be affected if you have too many cards or if the balance on your card is too high.




That is not the way to establish credit. Your credit score will be neg. effected by opening and closing too many credit card accounts. Just because the card is offering some type of discount to lure you into opening it doesn't mean you should do it. He should just keep using and paying off the card he already has.




I run credit checks as part of my business. Having two cards is not going to negatively affect your rating.

Yes, you can get in trouble with credit cards, but this isn't going to hurt him.





I guess I'm just trying to discourage him from falling into the trap that so many of us have. (don't ask me how I know)




Credit is like Twinkies. If you have the occasional one, you'll be just fine.

If you eat them by the case, well - you're going to have issues.
Link Posted: 2/20/2006 7:44:43 PM EDT

Originally Posted By Wraith:

Originally Posted By Engineer5:
PAY IN CASH! If I were you I wouldn't be opening credit card accounts just to save a few bucks. You are still young enough to start out right (which it sounds like you are) by not getting caught in the credit card trap. Credits cards are an evil, black hole!



Credit Cards are only evil to those who do not have the Scrotal filling to use them properly. They are just a tool, like a gun, only causing damage if the owner/operator allows it.



completey agree with the statement above.
I welcome the challenge from credit card companies. Im 22 and have had credit since 18, I run that balance up real high, and pay it off every month. I have never had a late fee nor a finance charge. My APRs are so low now because the credit card company never makes any money off of me...
Link Posted: 2/20/2006 8:03:24 PM EDT
credit can be your friend...IF you know how to use it. i have cards out the ying-yang and still maintain a MONSTER credit score. take advantage of 0% when you can and anytime you get to use someone else's money, don't hesitate.
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