Best credit card to use for building credit(details)?

Please understand that I am no in investment guru but from what I know about store credit cards is you build credit rating with that store alone, if you want a card that will build your overall credit rating you have to go with Visa, or something like Mastercard.
I know that if I am wrong others here will quickly point that out, but from what I said that is my understanding on how you build your overall credit rating through charge cards.

@SQUEEKY2 Oh interesting. I did not know that, if this is the case what is my next best option?

An other option would be to get a bank loan for the amount you need, and use the money you have to pay it off early , you build your credit rating and paying it off early you save on some interest.

@SQUEEKY2 That is a good idea. Would I actually need to make smaller payments towards the amount of the loan or could I just pay it all once I receive my tax return? I still don’t fully understand how that works. Does the fact I am making payments over time or paying it off at once matter to the credit score?

I have a Chase Freedom card.
For me it offers 3 distinct advantages:
1.) I can use it anywhere, anytime
2.) I get cash back bonuses on everything I buy
3.) I linked it to my checking account so that it pays itself, automatically, every month.

If you’re poor at managing money, the auto-pay might be scarey. However, if you believe you can use the card only for the $1,200 in computer purchases, it’s perfect.

I use my card for all my everyday purchases and it keeps the balance paid from my checking account. I incur no fees or expenses, and the card pays me several hundred dollars annually to use it.

Edit: link added. Sorry

@LDRSHIP Discuss that with the bank, most small loans don’t have a penalty for paying them off early and it still goes towards your credit rating.

@ibstubro Is the cash back bonus worthwhile? And if don’t mind me asking how much do you take out from your checking? Is this automatically taken out equal the amount you spend on your credit card?

The money the card pays you annually to use is totally separate? Like you literally get free cash, no catches involved?

Is the Chase Freedom card the only one you currently have used?

Sorry hope I didn’t bombard you with questions.

@SQUEEKY2 Thanks, I will ask them.

Once a month the card sends me a statement, then on a set date removes the card balance (only) from my checking account, unless I intervene.

For me the cash back equals $100’s annually that is paid to me as I like. I can credit the amount to my card, they will cut me a check, or (I think) I can spend it as ‘points’. Free cash. I think the only catch may be that you have to have $20 in cash back to redeem.

I just opened my statement and last month I redeemed 46,489 points for a $464.89 cash credit. $1 =1 point. My credit expenditures are typically around $1,200, or 1,200 points a month. (All gas, grocery, household good, clothing…all but utilities.) So, theoretically every other month I could apply a $24 cash, credit.

I don’t know if I’m being clear.

Last month my bill was $1,316
I applied my -$489. cash credit.
They subtracted $847.57 from my checking account.
Bill paid in full.

Loans build your credit too.

If have little to no credit history then your chances of getting a credit card, even a store credit card, and slim. No credit is worse than bad credit it seems. The exception being if you’re around college age, then you have everyone and their brother falling over themselves to extend you credit. Barring that about the only ways to get credit that I know of are to have a co-signer (with good credit themselves) who agrees to take responsibility for the debt should you default on it. Alternately you can try a secure credit card. A secure credit card will build your credit history, but it’s only credit in a certain sense. The debt is secured by money you’ve paid to the bank in advance and the bank will not issue the card until it’s secured. so, if you want a card with a $1,000 credit line you have to pay the bank $1,000 before they’ll issue the credit line. Once you have the secured credit card your purchases are credit. It doesn’t come out of the money you’ve paid to secure it, but rather the bank already has the money to cover the debt should you default on it. Build up enough good credit with that and eventually they’ll transition you to an unsecured card.

@ibstubro That is pretty cool. Do these points expire if not used when certain time? Are they good forever?

How long did it take to get the 47k points? My math (horrible at) says 39 months at $1,200 a month.

Seems like a nice deal spend money make a little money. Any other catches to beware of?

Also interest rates, how does this work? Guessing since you pay if off quickly it doesn’t matter much?

You don’t actually have to make monthly payments on the credit card to help improve your credit score. Just charge the items to the card and then pay it off immediately. You can buy small things every month and then pay it off each month. Charge $20 in gas each month and pay it off each month and that will build your credit score.

Any card that gives you something in return will likely have an annual fee (at least after the first year). If you are not charging a lot each month, it is probably better just to find a card with no annual fee.

@Gabby101 That Chase Freedom card that @ibstubro recommend is looking pretty good. The link he gave says no annual fee.

There is no annual fee, and if you pay the balance in full every month, there is no interest charged.

Yes, the cash I got back was over 30 months worth of points, so the points do not have to be used within a certain amount of time. I shouldn’t have let it go so long because I know of other cards that have devalued their points over time, as in it might take 3,000 points to get $20 (instead of 2,000).

I’m pretty good with managing my money, so I put my cash in the bank and then charge anything that they’ll let me. I’ve even paid dentist bills with my card and had the insurance company reimburse me directly. The insurance company paid me out for hail damage on my car, then I negotiated a better price at the shop and paid with my card. $464 was probably more like 2 years for me.

We won’t even get into how this month fell into the 3 months of grocery store bonus. Anything at the stand-alone grocery (not Walmart grocery) was automatically raised to 5%. I do well on the 5% gas months!

@ibstubro Yea I was just reading that on the link you gave me. I shop at Fred Meyers so I get the rewards card already plus if I get the credit card. That is like double cash back.

I am probably going to go ahead and just get this. Seems like best option, assuming I get approved.

There’s a home improvement store quarter, too, I think. So if Menards is running that 11% cash back scam and you buy stuff there, the card might give you another 5%, even on the cash rebate.
I used to work it harder than I do now. At one time Citi had a cash back program that was even better, and I knew what card was offering what incentives each month.

@ibstubro I just checked my credit score with Experian or FICO? Says I am 714 is this good enough?

Also I might be thinking too far ahead, I’ll see how do I with this credit card first. But is closing a credit card, adding or switching a big deal?

I’d try it. There’s no annual fee. I have cards that I’ve not used in a year (or years) that are still active and don’t cost me a dime.

What card did you get? Amazon? The Chase card will do everything it’ll do and more.

@ibstubro I haven’t applied for any yet. I planning on getting the Chase card you recommend.

This is from their website

“Your due date will be a minimum of 21 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest on balance transfers, cash advances, and overdraft advances on the transaction date.”

Do I get to pick when my billing cycle date ends? I would of course prefer when I get paid or close to it.

When they say balance transfers does paying off my credit debt count? “Balance Transfers
Either $5 or 3% of the amount of each transfer, whichever is greater.”

Sorry if these are dumb questions, rather new to this stuff. I was always told to avoid credit cards like the plague, but honestly they don’t seem bad.

I don’t remember if I chose my cycle end, sorry, too long ago.

Balance transfers are when you have a balance on another credit card and you move that amount to your new card. Nothing you need to worry about (or anything I’ve ever done.)

@ibstubro Cool. I am going to apply now then.

G’luck!

@ibstubro I am going to send you PM.

Yippee!
Use it wisely and it’ll stand you in good stead!
:-D