<p>"Depending on when they pull your credit score, it could vary from day to day, based on what your current balance is at that point."</p>
<p>The balances on your credit report do not change from day to day. Rather, they change every month when your credit card companies report your new statement balance. If you always pay your credit card off one day before your statement date, your credit card will always have a zero balance on your credit report.</p>
<p>I wouldn't worry too much about when you pay your card off (assuming you do it eventually) UNLESS you have something important that you plan on applying for in the near future. Otherwise, temporary fluctuations do not adversely impact your score in the future (as your score will jump up again at your next statement date if you pay your card off and don't charge much), unlike late payments, new card applications or going over your limit.</p>
<p>Generally, it is recommended that you do not go over 50% of your available credit (25% is better if that is possible).</p>
<p>"And unless that steady income is pretty darn big, you're going to need established credit to get those items."</p>
<p>I think that this is key. The biggest negative in most students' (or recent graduates') credit reports is that the average age of their debt is less than three years (which can really hurt your score).</p>
<p>I think it is very important to get a very low limit credit card to begin a credit history. My son was turned down for student loans because he had no credit history, which I think is ridiculous. we also took out a car loan with him to also add to the credit history. he cannot run up a high bill becaue the credit card cuts off if he is over his limit, it doesn't just keep running up and charge an overlimit fee like some of mine. unfortunately we're in a time when people need credit ratings.</p>
<p>One thing I learned here on cc - and found it hard to believe until I verified it - is an "easy" way to establish credit for a young person. If you add your S/D to one of your own credit card accounts - giving them their own card with their own name on it, but not their own account - it begins to establish a credit history for them.</p>
<p>We had no idea this would happen when we gave DS such a card at about age 15. He has always used it very responsibly - checking with us before doing so and/or reimbursing us for something he charged on-line; so no worries re the kid charging up a storm (you wouldn't want to do this if you have a shopoholic kid).</p>
<p>To our utter amazement, he now has a very good credit score based on having had this card for 3-4 years. I do not believe you can do this with American Express until age 17 or 18; but you can do it with VISA.</p>
<p>I've been trying to figure out everything stated on the policies for these cards but I'm still a bit unclear about some of the terms:</p>
<p>minimum finance charge: (Is this just stating that if you spend like $1 you would be billed for that dollar plus whatever the minimum finance charge is given that $1 is too small to compensate for "iteself"?)</p>
<p>APR (I thought this was the "percent" extra you had to pay every month on "your debt".. but I'm confused since some websites state that this is actually an "annual" rate...).</p>
<p>Minimum finance charge is just the absolute minimum you will be charged if you carry a balance. I wouldn't worry too much about that.</p>
<p>APR itself is a meaningless number. The only reason that it is used is because it is required by law. It is a close approximation of what your annual rate is (so, no--it is not what you pay per month).</p>
<p>Somewhere in the terms, it states how often the interest is compounded. Take the APR (as a percent) and divide it by how many times interest is compounded a year (most likely daily, or 365 times...monthly would be 12, annually would be 1). Add 1 to that number. Raise that number to the power of the number of times compounded. Subtract one. That is your true annual rate.</p>
<p>In other words: Effective Annual Rate= {[1+(APR/p)]^n -1}</p>
<p>where p=number of periods in a year, n=number of times compounded (same as p in this case)</p>
<p>If you want to know how much you will be charged per month, use the same formula, but make n=30 (if it is daily compounding).</p>