Shit, lots to reply to here.
Russ, you bought both your Miatas with cash? I only ask b/c you said your home is the first installment loan you ever got.
Dave, that loan is going to be a huge helper. It'll help you get lower interest-rate loans in the future for sure, so long as you pay it on time.
As far as a better credit card, you may wish to try this:
Stroll downstairs from your office to the credit union. Tell them what a good customer you are, and that you'd like a lower interest rate on your credit card. Let them see the proof in the computer; show them a copy of that pay stub. If they refuse, look sad about it...mention something about taking your business elsewhere.
Now, a bit of warning on that: I don't know how long you've had 1) the credit card and 2) the loan. You're 21, so the longest you could possibly have had that card is 3 years. If you've had the card less than a year, this might not work. They like to see a nice history...a year usually works.
Blowmee, I can offer no scientific proof...only my own example.
I'm 27, and opened my first credit account 8 years ago. I've carried balances on them regularly...still do. My first MasterCard had a 19% interest rate...the Discover card had a 17% interest rate.
Fast forward to November 9, 2002. The highest interest rate I have on any of my cards right now is 10.24%. They're variables, but at the height of interest rates a few years back, the biggest interest rate I had was 13%. I get fantastic offers that allow me to transfer a balance for a ridiculously low interest rate...and that interest rate stays put until I pay off the balance (and so long as I don't miss a payment, which I don't).
(Granted, this does not include store cards, i.e. department stores and gasoline cards. Those bad boys are always high interest...and you won't budge them. I rarely carry a balance on one.)
I also got a copy of my Equifax credit report in August, which was updated through the end of June. Squeaky clean...beautiful. Also got a free
copy of my credit score...it's good, but it would be better if I had less debt. Don't forget about Experian and Trans Union though...those 2 and Equifax have you and your credit under their hairy eyeballs.
Obviously, every situation (and lender) is different. Blowmee, whatever lender you went through determined that you were sound enough (financially at least
) to assume the responsibility of a large loan...which of course, is outstanding.
Of course, I don't know the details behind you obtaining your home...your down payment (if any), interest rate, points (if any). That's none of my business, but hopefully, you got a great deal on it.
Quote:
Originally posted by blowmeetheclown
1). I'm glad I'm not making the credit card companies any money. They don't deserve it. The only way they should make their money is from the 3%+ they charge retailers to use their systems.
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Don't think that I
want to make CC folks money.
But like I've said before, they're a business trying to make money. In fact, if you
don't carry some sort of balance on some cards, or if you don't use it for a certain amount of time, you're either hit with an annual fee, or it'll be canceled (now that
does sound dumb to me).
Quote:
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2). It shows that I'm respnsible enough to know my spending limitations, though. How does making payments on something you may purchase outright prove financial responsibility?
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You're right...there is no guarantee that you're financially responsible just b/c you make those payments. But it tells a credit card company "Hey, this person is making consistent payments, and paying them on time, so they must have a little bit of smarts when it comes to handling money."
Also note that I'm not talking about carrying massive balances just to build up credit...it can be done in rather small amounts.
In the end, do whatever works for you...just be responsible, and keep the future in mind.
Here's
more about FICO scores, straight from the folks that created it.