I know, two posts in under 24 hours. What is getting into me, right? But I had to this time. (: Yay
I used my credit card for the first time. At 0400 on June 1, 2012. I paid my $100 cell phone bill with it. Because my limit is $250, it is underneath the 50% balance limit.
My dad gave me the advice to carry a balance for three months. While carrying a balance won't sky rocket my credit score, it will not negativity impact it either. As long as I pay the minimum every month. Carrying a balance though will help me in the way that credit card companies are going to offer higher limits and such when I apply for a card. So this was my plan.
But I read tonight that is only the case if you are using a credit card from a big bank. Like Chase or American Express. Because I got a secured line from a credit union, carrying a balance will not give me those benefits. So I decided I am just going to work on building an awesome credit score and pay it all off in full every month at least 48 hours before it is due.
I must say I am slightly bummed. Because my ultimate goal is to get student loans in the fall of 2013 without a cosigner. And an increased credit limit is the same idea as approving me for more money in a student loan.
I read online that before you get a mortgage, they look for 3 lines of open credit (or currently active credit lines) for a period of at least 2 years. I only have one credit line.
My plan was to have this card for one year and then apply for a regular credit card through my bank. Which, if I understood the loan dude correctly, would cancel the one I have now. But it might be wise of me to apply for a separate card in a years time and keep this one. Because aging an account is a great way to build credit.
And then my student loan would be my third open credit line. Which I will be able to pay off, because I plan on saving enough money by the time I start in the fall of 2013 to pay for my college in cash. Seeing how Salt Lake Community College will be under $3,500 a year. It is for this fall $3,170 for tuition and student fees. And seeing how it is super cheap, I do not see it going up more that $400 a year for 2013. I would just get the loan as a way to build credit. And then pay it off after I use the money they give me.
Anyways. I am really excited about this. Also now that I have used the card to make a purchase I have taken it out of my wallet so that I won't use it again. And I can use it to pay my cell phone bill again next month. So this is actually a big thing. And a huge step in my life. And I am so excited for building amazing credit!

