I've touched in finances in here before, but here's the story in the quickest way possible.
I used to have bad credit. Now I find myself with no credit.
I have two credit cards, but in actuality, they are debit cards tied directly to my two bank accounts, and are not true credit cards.
I recently acquired, through my bank, a secured credit card. I can use it to make purchases as I see fit, and my limit is the amount of money I have in the account I set up with my bank that is tied to it.
My plan is to pay it off completely every month. Which I can do very easily online with just a few keystrokes, as all of these accounts are with the same bank. My bank has advised me that in about a year, I can reapply for a real, unsecured credit card, and my history with the secured credit card should go a long way towards that. So I won't be letting the balance ride or paying the minimum amount, and racking up X% in fees! but as I said, paying it off every month.
My question is, what is the best way to build my credit? A few small purchases each month? Larger purchases? Keep in mind, I will not be buying anything with the secured credit card that I don't have the money for already in my other accounts. I will not overextend, or buy anything I can't pay off immediately. But I could still use any and all advice here.
For those wondering, I am not trying to build up my credit to buy a house. I have zero interest in home ownership, not just because homes here are ridiculously expensive and I don't plan on staying here, but even once I am back in Arizona, I am just too mobile a guy to ever consider buying a house. And I also like the idea that if something goes wrong with my rental, I just call the landlord/property manager, and THEY fix it.
But I would like to be a "real adult" again, and have a real credit card handy if I ever have any sudden situations or emergencies that I need to address. So I have started down the slow road towards that goal. I just need advice on the best way to do it.
I thank you now for any and all advice on this matter.
I used to have bad credit. Now I find myself with no credit.
I have two credit cards, but in actuality, they are debit cards tied directly to my two bank accounts, and are not true credit cards.
I recently acquired, through my bank, a secured credit card. I can use it to make purchases as I see fit, and my limit is the amount of money I have in the account I set up with my bank that is tied to it.
My plan is to pay it off completely every month. Which I can do very easily online with just a few keystrokes, as all of these accounts are with the same bank. My bank has advised me that in about a year, I can reapply for a real, unsecured credit card, and my history with the secured credit card should go a long way towards that. So I won't be letting the balance ride or paying the minimum amount, and racking up X% in fees! but as I said, paying it off every month.
My question is, what is the best way to build my credit? A few small purchases each month? Larger purchases? Keep in mind, I will not be buying anything with the secured credit card that I don't have the money for already in my other accounts. I will not overextend, or buy anything I can't pay off immediately. But I could still use any and all advice here.
For those wondering, I am not trying to build up my credit to buy a house. I have zero interest in home ownership, not just because homes here are ridiculously expensive and I don't plan on staying here, but even once I am back in Arizona, I am just too mobile a guy to ever consider buying a house. And I also like the idea that if something goes wrong with my rental, I just call the landlord/property manager, and THEY fix it.
But I would like to be a "real adult" again, and have a real credit card handy if I ever have any sudden situations or emergencies that I need to address. So I have started down the slow road towards that goal. I just need advice on the best way to do it.
I thank you now for any and all advice on this matter.
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