[tiomka]

Do not be an ostrich, and follow the CASH ONLY rule. It doesn't make you any smarter, credit is something you should learn to control and take advantage of. Read/listen to this book: Philip Tirone - 7 Steps to a 720 Credit Score

Quick summary tips:

1. have 3 different sources of credit (amex, visa and mc)

2. use 30% of the limit (if your credit limit is 1000, and you put 900 on and pay off it every month, companies will see it as if you are using 90% of your credit, which will lower it)

3. Call every 4-6 months and ask to lower rate/increase limit

4. NEVER cancel a card, length of accounts is an average, and it will hurt your score. (If you don't want to use a card, make it pay your light bill automatically, and set up an monthly autopay)

5.

a. Quick tip to increase credit score: find someone you trust/that trusts you, ask them to put your name on their card. Don't get the actual card, if they have great credit, it will positively affect you.

b. If you cannot find anyone, go to Credit Union, open a savings account, put in 1000, take 3x300 loans out against the savings account, repay loans monthly, in 3 months your score will jump

* I am 24 and have an amex card with $25,000 limit, they send me promotions to get a cash advance for a fixed $3.99, great way to self fund ;-)

[marvin]

This is very interesting, but does having a high credit rating help you in any material way? Or to put it in other words, does it prevent problems down the road? What problems? How much money does your $25,000 credit limit save you each month, and how much time do you spend managing it?

For my own part, it feels like ass-kissing to prove to the powers that be that I am able to manage responsibilities and debt. It is not something I want to do unless it provides a considerable benefit.

[tiomka]

As far as making life easier, here is how it helps me: 1. Spending statements at year-end for tax purposes. 2. Miles for travel, I get a few trips per year 3. Lower mortgage/car rates due to good credit

Unfortunately, this is the only way to prove it (that I know of) - have credit and know how to manage it.

[RK]

Mortgage.

[teuobk]

For better or worse, the "piggybacking" loophole described in 5(a) has been (or soon will be) closed.

[goofygrin]

lets hope, because when I was in college I was an AU (authorized used) on my parents Amex and that haunted me for years (my parents have poor fiscal responsibility).