does getting a credit card lower your credit score?

Deal Score0

its my 18th bday and i have a few questions about credit cards and credit scores. A- how can i find out my credit score? B- If i apply for and get a victorias secret or other stores credit card does just having the card lower my score or is it only if i dont pay it or get behind on payments? and lastly do i need to do something to raise my credit score before i can apply for a credit card?

4 Comments
  1. Reply
    FOR PONY
    July 17, 2011 at 8:40 pm

    1. The application for a credit card will LOWER your credit score. Each time the credit card company ‘shops’ for a bank, it will ‘ding’ your credit report (which is bad).

    2. Credit cards are NOT a good way to raise your credit score. They don’t hurt either though, if you don’t use them improperly. Seriously, use it to fill up your gas tank once a month, pay the bill the minute it comes. Or just get the card and never use it – EVEN BETTER!

    3. Your credit score – if you’ve never had a bank loan, credit card, home loan, or any other ‘loan’ in your name – you have “no credit”. That’s worse than “bad credit”, sort of. It means no one will chance giving you credit without a co-signer.

    4. To raise your credit, get a co-signer (a parent) on something like a car loan, but make sure you are the PRIMARY on the loan. Step 2, pay off the loan. If you made all the payments online, request that the bank submit that record to the 3 major credit agencies (Trans Union, Equifax, and I forget the other).

    Credit cards are little financial hand grenades with hair pins. Handle with care, please.

  2. Reply
    anon
    July 17, 2011 at 9:18 pm

    better apply Before Feb 2010 as you need need a co signer, such as you mum or dad
    or age 21

    GET A SECURED CARD AS YOU WILL WANT TO PAY because YOU will have something TO LOSE

    Wells Fargo has Secured card from $ 300 Minimum deposit ( you will also need $ 18 for the yearly fee ) lowest FEE I found from the Major banks

    they gave me a good rate of 19.99% with No Credit History on my $ 900 unsecured rewards card ( was banking with them for a good year or so with NO over drafts)
    just was lucky to get a unsecured card as they rarely give them with NO credit history

    so far of paying in FULL every month I made $ 20
    for FREE without paying a CENT OF Interest

  3. Reply
    bdancer222
    July 17, 2011 at 9:47 pm

    This site has some good info on credit cards: http://www.federalreserve.gov/Pubs/shop/

    You do not have a credit history and your score is 0. If you try to pull your credit report (AnnualCreditReport.com), you’ll get a response that there’s nothing. Even if you do get that credit card, you will have to use it for at least 6 months before it will be included in your FICO score calculations. Your score still might not make it above the 300 mark (anything less than 300 defaults to 0).

    A credit inquiry due to a credit application will ding your score a couple points. Making mulitple credit applications in a short period will take a big bite out of your score.

    You will have problems getting approved for any credit card, especially with the new law that requires anyone under 21 provide proof of income or get a parent to co-sign. You may have to get a secured card — you pay a deposit which is held as collateral against the line of credit. When you get the credit card, use it for small purchases and pay in full every month. In about a year, you will actually have a credit history and score and should be able to convert the secured account to a regular one.

  4. Reply
    Quicken Loans
    July 17, 2011 at 10:22 pm

    I remember getting my credit card at 18. If you make your payments on time, and only charge what you can pay off in full at the end of the month – this is a great way to build your credit score.

    Currently you have no credit history – which is not bad credit, it just means they don’t have any proof you are good or bad with credit yet.

    Get a credit card, and charge small things to improve your credit. This way, by the time you’re ready for a real loan (car or house) you’ll have an excellent score which will get you a good interest rate in the future. Just don’t overcharge or spend what you can’t pay back. Good luck šŸ™‚

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