Post # 1
I talked to my Fiance today about opening a credit card to help pay for small wedding items, and I figured I’d ask you bee’s what you thought and to ask for advice.
I read a thread on here that some bee’s were using credit cards to help pay for their wedding, but using cards that offered travelling miles so it would cut down on their honeymoon flight and hotel costs. I’m not sure which thread it was, but it sparked my interest.
I don’t have much credit, but what I do have isn’t the hottest. I was late a few times on a bill and it decreased my credit score (being a poor college student was a huge financial strain on my life, as I’m sure most of you can relate to). I am in a financial position now that has allowed me to pay off the majority of my bills and continue to hack away at the one I have left over (only $199.00 to go! Woo hoo!). I’ve been paying almost 5 times the amount that is owed every month on my last bill in hopes that I can kick my credit score up a notch but also get it payed off. I know it takes much longer to build credit than it does to lower it!
I have been toying around with the idea of opening a very small limit credit card with 0 APR to buy something tiny for the wedding every month so I have another source of credit to build my score back up. However, this is where my problem lies…My Fiance is really leary about credit cards because he’s had to dig himself out of some credit card debt in the past. He warned me that it’s way too easy to spend, spend, spend and max out the card. I like to think I’m pretty responsible with money, so I honestly don’t think it would be a problem for me. However, it’s made me double think my choice.
Have any of you done this before? Would it even be worth my while to open a small limit credit card with no APR for 6 months in hope that it will build my credit? If so, can you offer any advice on which companies to go through or who to stay away from? Any other advice would be great too!
Post # 3
Unfortunately, I don’t think you are going to get a card with a 0% APR. Those are very difficult to come by right now, even for people with perfect credit. I think it’s a good idea to build your credit though, but I would suggest any card that you can get as long as you pay the balance off in full every month and spend less than 20% of the balance every month. We pay our credit cards off in full every month, but we have enough discipline to not just charge it up to the balance.
Post # 4
DON’T DO IT!!!!!
I could NEVER advise added to someone’s debt as their going into a marriage!
I would look for ways to DIY.. search for deals… and give yourself an egagement time that allows you to save & pay for what you need.
A much better way to build your credit as a “revolving credit” is to take out a small loan at a bank and pay that back.
Or even things like furniture.. something that is a large purchase that you have to “pay off” <— make sure they report though.
Alls I know is the last thing you want o be hit with the day you get back from the honeymoon is the cc bill you need to pay off that just paid for your wedding.
Post # 5
My suggestion is if you can pay for things without the credit card that is def the way to go!!! Once you get into credit card debt it is soooooo hard to get out of it. Even little things will really start to add up! And anything wedding def starts to add up!
Also, even with the benefits and perks any credit card is offering you you’d most likely be paying for those perks in interest fees or any other fees the credit card companies try to stick you with! I saw an episode of Bridezilla where the wedding couple was talking about putting things on credit cards to get the flights and cash back and/or all the other “benefits” of the card and the coordinator (or whoever he was) was trying his hardest to talk them out of it.
One more thing to watch with credit cards is that they charge a crazy amount for over limit and late payments… way more than I’ve ever seen them do in the past! I think right now the credit card company’s are really hurting and are trying real hard to get people’s money! My advice is stay as far away as possible!
Post # 6
@runsyellowlites: I suppose I forgot to write that I plan on paying off the small purchase every month so that I can build my credit. Not to pay for the wedding. We’re budgeting our money to pay for the wedding, so I don’t need to pay for the whole thing with a credit card, I just meant small things like a rehearsal dinner dress or craft supply for the DIY projects I’m doing. I do appreciate the advice though. I hadn’t thought of a store card. I would like some new furniture… 😉
@MrsSaltWaterTaffy: I did some research online and found a Chase card that offered 0% APR for 6 months with a $250 limit. I’m not sure if they require excellent credit for the 0% APR, I didn’t look all that closely at the details because I was at work (haha…shhh!). I’ll definitely look closer at it if I decide to go that route.
Post # 7
Yeah, to be honest, even if you had amazing credit you’d have a hard time finding a company that would approve you for a 0% APR card right now. Since you said your credit isn’t fantastic, I just don’t think you’d get one. Something that not a lot of people are aware of is that your credit is negatively affected if you apply for too many cards in a short period of time. So if, in your search for a 0% card you applied for 3 cards, it would hurt your credit, and you probably would end up cardless. Also, I too think it’s a bad idea to go into debt to pay for your wedding. So, unless you can pay a new card off in full at the end of every month, I don’t think it’s a good idea. However, if you can do that, you don’t really need another card.
As far as raising your credit score, there are a couple things you can do with your current cards. Pay them off in full every month (obviously this is after you get that last little bit paid off–you’re almost there!). Also, you should never charge more than 20-30% of the limit before you pay it off. If you carry a balance EVER that’s above that percentage, it’s hard to bring your credit up. The more months in a row that you can keep each card below that percentage, the better your credit will get! I didn’t realize that for a long time, so even though I paid off my card every month, the low credit limit meant I was always at a high percentage. Once I upped my credit limit, I was able to keep the percentage low and my score improved!
Post # 8
If you don’t have a good credit score then you aren’t going to get a good APR. Have you checked your credit report lately. You can check them one a year for free, after that it costs to pull your report (but it doesn’t put a bad hit on your report). If you have closed any accounts you can check your report to see if they are noted as closed (if they have a zero balance and aren’t closed that could hurt your score). If you find info that isn’t updated or wrong write to the different credit report centers to get the information corrected. Have you talked to your bank about other ways you can build your credit without getting a card? Here is a website I love that has a lot of information about wealth management and being smart with your money:
Check it out and you might find some useful info on there.
Post # 9
@LindsayMaree: I’m guessing it’s probably for really good credit only. But it doesn’t really matter what the interest rate is if you pay it off in full every month, because then interest won’t accrue.
Post # 10
@lulu mae: My post must not have been clear, I don’t plan on spending to the limit on the credit cards. I also don’t plan on paying any late fees because I’m trying to build my credit, not pay for my wedding. Does your advice still stay the same knowing that I’m going to pay the card off by the end of the month?
Post # 11
I think that you’re probably not going to a get a 0% APR credit card. I have a credit score in the high 700s, and I was recently denied one. They’re really cracking down, which is a good thing, IMO.
But if you do get one, then I don’t see a problem with it. I don’t know why people automatically assume credits cards = bad. I’ve always used credit cards for miles or cash back. As long as you know you can pay it off, then there’s no problem. If you’re using it and don’t have the funds to pay it down, then that’s a problem. You just have to be responsible with it. One thing to keep in mind with a 0% APR card is that if you are ever late for a payment, then the 0% goes away, and they slam you with interest.
Post # 12
Whats wrong with the card you have now? I hear but I could be wrong, having multiple lines of credit open is bad actually. But if I am wrong someone please correct me 🙂
I do not recommend it at all. Wedding or no wedding, I do not think people should have credit cards unless they can pay the full balance due, not the minimum payment or slightly more, each month. What if something happens and you can’t pay it off? Then you tack on a huge amount of interest and it is ridiculous how it adds up. I agree, maybe hard to get a 0% interest card with less than perfect credit. But read the fine print because at times that rate only lasts a certain time and if there is a balance remaining some companys actually go back and tack on interest for the whole period.
Not being harsh, just someone who climbed her way out of debt and now has no debt just my lovely house. So I know what can happen and that things do come up and it is a never ending whole that no one needs to be in. There are other ways to build your credit. FWIW, my Darling Husband had literally no credit history till 2 yrs ago-meaning had no loans, always paid cash for things and had a credit card but never used it. If he did, paid it in full. Not “having a credit history” did nothing, when we went for our housing app his score was 785. Sometimes, no credit history or little is actually a good thing.
Post # 13
Wow, thank you mrsmdphd and Daisylynn! I REALLY appreciate the advice. I didn’t know that I could check my credit score once a year without taking a hit on my score, or mrsmdphd’s entire last paragraph. Haha Thanks so much.
@MissAsB: Thanks, I figured the same. 🙂
Post # 14
I do what you’re describing.
I actually put about 95% of my expenses/spending on my credit card, but I’ve never spent more than I actually have in the bank, waiting to pay it off. I keep track mentally of what’s on my card (I usually know, within a few dollars, how much I’ve put on in a given month, and I always know how much is in my bank account). And then I pay 100% of the bill the day it arrives in my email, every month, 3 weeks before it’s actually ‘due’, haha.
I haven’t done a credit score check in a few years, but I imagine my credit must be doing okay with how often they increase my limit (not that I ever get anywhere near that).
When I got my first card, my parents gave me the following rule of thumb, and it’s worked for me:
1. Never spend more than you could pay off RIGHT NOW if you needed to.
2. Never use more than 50% of your total credit limit.
Post # 15
@MissGreen: The little amount of debt I have is from a store credit card that I can’t use or charge on because they closed it. It’s actually what I assume the reasoning is behind my low credit score. I’ve been paying $50 per month on the bill instead of paying it in whole because I figured it would help build my credit? I guess I was completely wrong… Hmm… I suppose I’ll go make the full payment right now if that’s the case. It wasn’t taken to collections, it’s just a bill I have from buying a computer (that I really couldn’t afford at the time…stupid me).
@Boston Bee: Thanks for the advice. 🙂
Post # 16
@ddw: That’s exactly what I had planned out in my mind!