<p>i've been working the whole summer, and i have enough money to buy $1000+ laptop. Should i apply for a credit card and buy the laptop on the credit card...especially if i already have the money to pay it off...in the end, i want to establish some credit. The things i'm wondering is whether it's worth it to wait for the credit card?</p>
<p>If it's Best Buy or some other store similar it would be wise to apply for their credit while making the purchase and pay one half cash and one half on credit. Then pay it off in a few installments. Then the next time you need it you'll have the credit available. If it is a major credit card you are referring to then you probably don't have enough time to wait on an application because they generally take 30 days or so.</p>
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If it is a major credit card you are referring to then you probably don't have enough time to wait on an application because they generally take 30 days or so.
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<p>naw...many CC companies do it much quicker. Unless they need to verify information like address or income. Many onlince applications give you instant approval, and you usually have the card within 5-7 business days.</p>
<p>galaal2005 - look into student credit cards like AMEX blue for students, or Citi Platinum for student. Just make sure you pay in full each month ;)</p>
<p>good luck!</p>
<p>hm…a 1000+ LapTop may be hard to pay if its your 1st Credit Card</p>
<p>most Card companies won’t start you at such a Credit High Limit (its usually anywhere between 250-500)</p>
<p>check out <a href="http://www.bankrate.com%5B/url%5D">www.bankrate.com</a> on various Cards</p>
<p>since it looks like you’ll be paying in full, look for a Points cards, Rebate cards have better incentives but usually you have to carry over a Balance every month and it build only based on New Purchase</p>
<p>the In-Store Car is most likely your Best Option…your 1st Credit Card should be the one you keep for a very long time as it should have the highest limit over the years based on usage</p>
<p>last piece of advice, check Intro. APR’s…if you plan to carry a Balance</p>
<p>A lot of credit card companies will refuse you if you have no credit, no steady job, no bank account etc. You should fill out a couple of applications and don't count on any particular one. You should also probably pay half cash half credit card for your laptop if you can.</p>
<p>My twin brother and a freind of mine, both applied for the Citi Platinum Visa card (student credit card) and both of them recieved a $3000 credit limit. Keep in mind, this is the first major credit card they've applied for. I'm also applying for the same card and I am relatively confident i will be approved. But time is running out and i am very anxious about having my computer. I could probably have my account have in two weeks. I mean isn't a good idea to go ahead and make a purchase that big with credit than simply cash?</p>
<p>I applied for the Citi MTVU student card and it took about 3 weeks from application to receiving the card in the mail. However, I got a $1000 credit line. And all this after no credit, no job (yet), and well I didn't have a bank account at the time of the application, although I do now.</p>
<p>Even if you get your card in time with a high credit line, I wouldn't make such a major purchase yet.</p>
<p>I have a credit card, and I would say pay it off in cash. It's deffinetly a good idea to get a credit card though, but if you have the cash now, just ask yourself if the interest is higher being payed to you while your money sits in an account, or is the interest your being charged to not pay it off in full higher? </p>
<p>for the $3000 limit, did your parents co-sign for it or is entirley under the student's name? that can make a big difference.</p>
<p>I have about $25,000 total in available credit lines :D</p>
<p>But having a credit card is oftentimes too tempting for some, which is why so many people are swimming in credit card debt.</p>
<p>That is true. My parents gave me a credit card (it's on their account but I have to pay them back the money when the bill comes) and now I am spending SO much more money than I used to. Even all those $5 starbucks charges add up... :o</p>
<p>thing that sucks though i can't even get approved for simple, store credit cards like American Eagle for example...and i work there! I figure buying a computer on will give me some start in credit.</p>
<p>Those store credit cards aren't that useful bc you can only use them in that one store...plus, a lot of them require that you have a major credit card first.</p>
<p>but if you order something on those cards you typically get no interest financing.. which can be helpful if you are buying something large such as a computer... although i wouldn't charge anything i didn't have enough money to pay it all off in full with.</p>
<p>If your parents have a good credit history and good FICO score, have them add your name to their credit card. You can establish credit that way, while haveing a high credit limit. This makes getting another credit card, later on, easier. </p>
<p>If you're not eighteen, the above method well get you your credit card, without the hassle. If you're eighteen, it's still a great way to establish credit.</p>
<p>And don't ever close down credit card accounts. Just cut up the credit card and leave the account open. It gives you a better debt to credit ratio, which benefits your FICO score. At the same time, don't just apply for credit cards willy nilly; too many applications leads to too many inquiries on your credit history which hurts your FICO score.</p>
<p>The debt-to-credit ratio and the number of inquiries are pretty small considerations. Many smaller institutions (i.e. if your credit is being checked by a real estate agency when applying for an apartment or a loan at a smaller car dealership) your credit score itself won't be considered. Instead, your credit history will be looked at and the judgement will be made on that. I work at a real estate agency in the summer, and part of my job is checking applications, which includes credit checks. When we order credit reports, they don't come with a credit score. Granted, I could look at a credit history and estimate the score pretty accurately. But, in general, we never pay attention to the number of inquiries, and we don't care about the debt-to-credit ratio (but we do care about how much debt the person has).</p>
<p>In other words, I wouldn't keep a credit card open just to improve my debt-to-credit ratio. The impact is somewhat small, and there is more to credit than just your score.</p>
<p>Actually, your debt to credit ratio makes up 30% of your FICO score and it does impact your FICO score significantly.</p>
<p>Most lenders use your FICO score in determining interest rate, etc.</p>
<p>You have 3 FICO scores--one from each of the 3 credit bureaus: Transunion, Experian, and Equifax. These credit bureaus not only provide the FICO score, but also have your credit history as well. Your FICO score and credit history are linked.</p>
<p>Breakdown of your FICO Score:</p>
<p>35% Your ability to pay the minimum due
30% Your debt to credit ration (you want high credit, low debt)
15% Your credit history
10% "card count"--too many equals lower FICO score
10% Right "mix" of things. Mix of credit cards, loans, etc. Not just loans or just credit cards on your name.</p>
<p>I know that, but what I was trying to say is that there are many instances where your credit is important but things such as debt-to-credit ratio and number of inquiries are not. Not all businesses use your score but instead check your credit history. Checking credit history is better because it gives a business a better idea of how the person deals with credits and making payments.</p>
<p>Like, when qualifying someone for an apartment rental, I focus mostly on if the person makes payments towards mortgages and utilities on time. Of course there are many other factors, but number of inquiries is not one of them. A credit score is only a summary of that person, and it doesn't let me focus on the areas most indicative of their likelihood to pay their rent on time. Many other smaller companies like car dealerships also focus more on history than credit score.</p>
<p>Point is: your score is not the end-all-be-all of your credit.</p>
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I know that, but what I was trying to say is that there are many instances where your credit is important but things such as debt-to-credit ratio and number of inquiries are not.
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<p>Perhaps I'm misunderstanding, but your debt-to-credit ratio is important when it comes to your FICO score, and your FICO score is used by most lenders (which is different your a real estate agency). FICO score are not the end-all-be-all of your credit (as you said) but they're a very large factor in determing your interest rate etc. FICO scores and credit history are used together in determining loans, etc. most often.</p>
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Checking credit history is better because it gives a business a better idea of how the person deals with credits and making payments.
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<p>FICO scores are numerical way to reflect that. 35% of the FICO score is if you're able to make the payment or not.</p>
<p>Again, perhaps I'm misunderstanding, but your FICO score may not be the end-all-be-all, but it's as important as credit history. It's what large financial institutions use and even car dealerships (larger ones) use both FICO score and credit history.</p>
<p>Your FICO score is a reflection of your credit history. Poor credit history often means low credit score.</p>