4 ms·

How do you build credit history? Also, isn't it easy to dispute credit card transactions as opposed to debit card because with a debit card money is immediately

How do you build credit history? Also, isn't it easy to dispute credit card transactions as opposed to debit card because with a debit card money is immediately removed from your account.

craigds 10y ago
Why would you need a credit history if you don't use credit?
- nommm-nommm 10y ago
  Credit score effects your insurance rates (in the majority of states) and your ability to rent an apartment.
- cowsandmilk 10y ago
  Getting a mortgage is the big one. That said, I think people worry too much about credit histories. And every foreigner I've met who moved to the US as a pharma scientist with a 6 figure salary has been able to get a mortgage despite not having a credit history in the US. A good credit history (vs. having none) generally seems to matter when you are getting a mortgage close to the limit given your salary.
- criddell 10y ago
  Some employers will run credit checks on prospective hires.
  - nfriedly 10y ago
    Hasn't been an issue in my case.
  - pacaro 10y ago
    I've had my credit checked as part of background checks the last two times I've changed jobs. AFAICT they aren't interested in my (abysmally low) credit score, but are rather using it as a signal that I am who I claim to be - which is essentially what the background check is for in the first place. A very low credit score doesn't stop me renting an apartment either, probably for similar reasons. Although it did mean I couldn't rent in the presidio
nfriedly 10y ago
These days we don't worry about it much. We pay all of our bills on time (including the mortgage that usually gets some extra to principal) and we do occasionally use credit cards, so I expect that there's some good history there. But I don't plan to ever need it again. In my experience, I've had to cancel one credit card and one debit card due to fraudulent charges. With the debit card, you're right, some money did disappear for a few days, but the bank put it back as soon as we signed and notarized a form. For the credit card, they dropped the charges right away without me ever paying for it, but the merchant (ebay) sent my info to a collections agency, so it ended up being more of a hassle then the stolen debit card. They traced the debit card theft back to a string of thefts at a department store we had shopped at (presumably one particular employee), but we now use cash for essentially all shopping, so that isn't a risk anymore. (Although I do try to watch out for card skimmers on ATMs.)
awqrre 10y ago
Having a larger percentage of your total credit unused gives you a better score... and the older your credit accounts are also improves your score... I don't think that using your credit cards increases your score (check out creditkarma.com, they give lots of insight as to how your credit score is calculated)

How do you build credit history? Also, isn't it easy to dispute credit card transactions as opposed to debit card because with a debit card money is immediately removed from your account.

craigds 10y ago

Why would you need a credit history if you don't use credit?

nommm-nommm 10y ago
Credit score effects your insurance rates (in the majority of states) and your ability to rent an apartment.
cowsandmilk 10y ago
Getting a mortgage is the big one. That said, I think people worry too much about credit histories. And every foreigner I've met who moved to the US as a pharma scientist with a 6 figure salary has been able to get a mortgage despite not having a credit history in the US. A good credit history (vs. having none) generally seems to matter when you are getting a mortgage close to the limit given your salary.
criddell 10y ago
Some employers will run credit checks on prospective hires.
- nfriedly 10y ago
  Hasn't been an issue in my case.
- pacaro 10y ago
  I've had my credit checked as part of background checks the last two times I've changed jobs. AFAICT they aren't interested in my (abysmally low) credit score, but are rather using it as a signal that I am who I claim to be - which is essentially what the background check is for in the first place. A very low credit score doesn't stop me renting an apartment either, probably for similar reasons. Although it did mean I couldn't rent in the presidio

nfriedly 10y ago

These days we don't worry about it much. We pay all of our bills on time (including the mortgage that usually gets some extra to principal) and we do occasionally use credit cards, so I expect that there's some good history there. But I don't plan to ever need it again. In my experience, I've had to cancel one credit card and one debit card due to fraudulent charges. With the debit card, you're right, some money did disappear for a few days, but the bank put it back as soon as we signed and notarized a form. For the credit card, they dropped the charges right away without me ever paying for it, but the merchant (ebay) sent my info to a collections agency, so it ended up being more of a hassle then the stolen debit card. They traced the debit card theft back to a string of thefts at a department store we had shopped at (presumably one particular employee), but we now use cash for essentially all shopping, so that isn't a risk anymore. (Although I do try to watch out for card skimmers on ATMs.)

awqrre 10y ago

Having a larger percentage of your total credit unused gives you a better score... and the older your credit accounts are also improves your score... I don't think that using your credit cards increases your score (check out creditkarma.com, they give lots of insight as to how your credit score is calculated)