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Thread: Build credit

  1. #61
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    Quote Originally Posted by wob View Post
    My son is 17, and we'll be looking at doing something similar soon. I'm thinking that I'll get him a credit card with a low limit to use only for gas and put it on autopay every month tied to his checking account. I'll also tie his checking account to an automatic overdraft LOC. That way, the credit card bill will always get paid, and if he does get into trouble and OD his checking account, I'll know, since I can see his account on my app.

    He works and doesn't spend a lot, so I'm not super concerned about him. My daughter, on the other hand...
    This is an excellent way to do it. The key, as noted, is to pay off the entire balance EVERY MONTH. As long as you control your spending so that you are able to do this, you can build credit faster by charging more.

    I had my wife set up her own accounts and cards, etc, when we got married, so we're listed separately in the credit systems, and have a couple of different cards, but over the past 20 years I don't recall any time that either of our credit rates dropped below about 820, and they're usually a bit higher.

    If your kids want to be able to buy anything on credit, e.g. house, insurance, auto, etc, they really need to get to a credit rating of at least 720 or better to get the better rates.
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  2. #62
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    Whatever card you get. Never cancel it. That’s the start of his credit history. His score will take a major hit if his line is to disappear… ask me how I know

  3. #63
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    And I now see where cufish basically said the same thing…

  4. #64
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    Make him get student loans in his name. When he graduates with a dad-approved diploma then you pay off his loans. Otherwise, it's up to him how he pays for them...
    Ephesians 2 : 8-9



    Charles Barkley: Nobody doesn't like meat.

  5. #65
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    Quote Originally Posted by BuckyTownsend View Post
    Whatever card you get. Never cancel it. That’s the start of his credit history. His score will take a major hit if his line is to disappear… ask me how I know
    This. Also, don’t accept the new, shiny card they send in a year or two. They shut down the old account and open a new account. Your credit will suffer because of the account termination.
    Quote Originally Posted by ecu1984 View Post
    Go Tigers!

  6. #66
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    Quote Originally Posted by Jozie & Me View Post
    The problem is, he paid it all back. That is what penalizes you. I have an excellent history of paying what I owe. Problem is I don't owe enough people RIGHT NOW. You would think that my income to debt ratio would play into this somewhere, but no.
    It’s not how much you actually owe, as it is the amount of revolving credit you have AVAILABLE. I have 4 cc’s and a line of credit at my CU. No balance in any of them, but over 50,000 in AVAILABLE credit. I use them occasionally, but never carry a balance month to month.
    When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home. -Tecumseh-

    Quote Originally Posted by Griffin View Post
    You're also one of select few clemings with sense.

  7. #67
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    Quote Originally Posted by Rubberhead* View Post
    Make him get student loans in his name. When he graduates with a dad-approved diploma then you pay off his loans. Otherwise, it's up to him how he pays for them...
    When I graduated from grad school I had a (to me) mountain of student loans, that was my only debt/credit. I made payments for the first few months and decided student loan payments weren’t my thing. We hustled for 9 months and paid them in full. My credit dropped about 100 points because of it.
    Quote Originally Posted by ecu1984 View Post
    Go Tigers!

  8. #68
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    Quote Originally Posted by Rubberhead* View Post
    Make him get student loans in his name. When he graduates with a dad-approved diploma then you pay off his loans. Otherwise, it's up to him how he pays for them...

    I had a friend in college whose parents did this. It's great motivation not to quit school if you get tired of it.

  9. #69
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    Quote Originally Posted by SaltMuck View Post
    When I graduated from grad school I had a (to me) mountain of student loans, that was my only debt/credit. I made payments for the first few months and decided student loan payments weren’t my thing. We hustled for 9 months and paid them in full. My credit dropped about 100 points because of it.
    Sorry - I thought he said "build character" not "build credit"...my bad...
    Ephesians 2 : 8-9



    Charles Barkley: Nobody doesn't like meat.

  10. #70
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    I/we have a great credit score and we couldn’t get a loan because we didn’t have enough debt. It’s all about debt.

  11. #71
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    When I was a mortgage loan officer 50 years ago, no credit was good credit.

    Times have changed. I think it's probably a good idea since you think he's a responsible kid.

    Sent from my moto z4 using Tapatalk
    Last edited by Catdaddy; 12-01-2021 at 09:12 PM.

  12. #72
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    Quote Originally Posted by Catdaddy View Post
    When I was a mortgage loan officer 50 years ago, no credit was good credit.
    For older folks, that's the way I look at it.

  13. #73
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    i agree wob and cat....but this kid did a little homework and hes probably right. if he wants to borrow money some day soon, he will need some "credit".

    his college is free...so I cant tag him with some loans. I wish he could pay for his own apartment, though. that sure would be nice. he eats at the football facility most days and he's not one to need a lot of beer on weekends. once he gets a card, I expect him to use it within his means, like I did. Contrary to dickhead, I paid all my own bills all my life and rarely carried a credit card debt more than a month during tougher times. That led to good credit. Go figure.

    fwiw, i grew up in a family where we had jobs every summer. I went to school a lot. I delivered pizza for pizza hut while I was in dental school bc my dad paid for school and rent. that's it. my classmates were partying or going out to dinner and I didnt have enough money. silver spoon this, dickhead.

    If my kids were on welfare, I'll be honest, I would be disappointed in myself for not showing them a better path. Work ethic and desire are an incredible combo. Sometimes I wish I had more of each.

    I will pass along the pertinent info from this thread and let my son make his own decision. I'm an anti-helicopter parent if there ever was one...
    Last edited by 2thDoc; 12-02-2021 at 07:26 AM.
    Ugh. Stupid people piss me off.

  14. #74
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    I went to buy a new truck years back, like two trucks ago, and turn it into a company truck. So I was a grown up, my company is 60ish years old, decent sized.. I never had a reason for a credit card, neither has my business, it had written a check for everything. My credit was about perfect because I had taken out and repaid some bank notes.. Traders wasn't, and I had to put it in my name. With the interest rates as low as they were, it's better for my money to work for me. I went out and got a card basically for that reason, and so I could pay at the pump when my gas station went to selling lottery tickets.

  15. #75
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    exactly. keeps you away from the unwashed masses.
    Ugh. Stupid people piss me off.

  16. #76
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    I still have to walk in to get my final cup of coffee for the day, but it's early enough that no ones messing with that. We had operated off of paper tickets before. I liked it, but this just simplified things.. plus I use it for amazon needs now.

  17. #77
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    " I went out and got a card basically for that reason, and so I could pay at the pump when my gas station went to selling lottery tickets."

    Solid reason to have a credit card. I'm usually a calm, patient guy but something about the ticket buyers holding up the line pushes my damn buttons.
    Plus it's an advantage for folks that always fill their tank.

  18. #78
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    The horse has been beaten to death but yes, credit cards can help young folks build credit. I have seen it go great, I have seen it go bad. Like everything in life it is up to the individual, I have mentored hundreds of young adults that are just starting and most of them come from nothing. A credit card and a cell phone bill is often times their only way to build credit.

    Myself? I largely only pay with credit cards....for anything. I spent $1300 on diesel during my midwest trip, $968 of that I had in reward dollars because I buy groceries every month. It is free money, you have to buy the stuff (gas and groceries) anyway. Reap the rewards. I have 4-5 free plane tickets right now waiting on two other cards.

  19. #79
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    Quote Originally Posted by scatter shot View Post
    " I went out and got a card basically for that reason, and so I could pay at the pump when my gas station went to selling lottery tickets."

    Solid reason to have a credit card. I'm usually a calm, patient guy but something about the ticket buyers holding up the line pushes my damn buttons.
    Plus it's an advantage for folks that always fill their tank.
    Yep

    I strongly detest 50mls, mini bottles, I only have a couple few behind my counters for that same reason. I refuse to hold up decent customers while someone is fumbling through a selection of dollar minis.
    Last edited by Highstrung; 12-02-2021 at 08:27 AM. Reason: Damnation

  20. #80
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    Had to do a fraternity fundraiser back in the day. Discover was just getting started and would give you $1.00 for every completed application that was turned in. A lot of people got Discover cards that semester, and most probably embellished a little on the application to get theirs. That was back when very few places actually accepted Discover which kept most of us out of financial trouble. Fun times though. Still have that card.
    Last edited by wbrown609; 12-02-2021 at 08:45 AM.

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