Quick rundown Mid 20s Has a Target Visa Not in any debt and has never been Pays off any balance within a week of charging anything to my Target Visa I am looking for something with a great rewards system, but I feel I won't reap the benefits since I am on top of paying off any balances so quickly. Some have told me that having a Store credit card doesn't help me out much but that never made sense to me since it was still a credit card in my eyes. Do I need to get a "real" credit card or should my Target Visa be enough? I just want a Godly credit score to be honest and get something in return from one of these issuers. WHat shall I do?
It sounds like you know how to responsibly handle credit, so yes- you need to begin adding a nice mix of credit to your profile in order to maximize your credit scores. A few more credit cards, maybe a modest auto loan in the future, and a mortgage will help prove that you can handle a variety of credit. This so-called "credit mix" counts for about 10% of your FICO scores. I'm not a big fan of retail credit cards, so I would recommend starting out by applying for a no annual fee rewards card from a major credit issuer. Cash back cards are always a great way to go and the Amex Blue Cash is an excellent card you should check out. You can also take a look at a bunch of other options and read reviews in our credit card section. Oh, and don't worry about missing out on rewards because you like to pay your bill off right away. That's perfectly fine. You'll still bank rewards points for every dollar that you spend.
If you've got a grace period, why not take advantage of that too? It's probably as close to an interest-fee loan as you'll ever get, so there's really no reason to always pay off your balance within a week. Of course, if that's what you need to do to make sure you're never late on payments, then stick with whatever routine works best for you.
IN regards to credit cards, they are all rated the same when it comes to your credit scores. You are not given more points for different types of credit cards. They are coded as revolving accounts weather it is a secured, unsecured, store, credit or charge account. What you do need to watch is your balances vs. Your limits. Try to stay under 30% of your limit. It is also important to remember that the size of your limit is irrelevant too. The scoring models do not reward you more points for a 10,000 credit limit than for a 1,000 credit line, just remember, keep those balances under 30% of the limit. I will say however that you do want to have more than just one Revolving account. You should have at least 3 and upto 5 revolving accounts and the older they get the better they are for your credit. You will not be rewarded with higher credit score for new accounts. they have to be at least 6 months old before you stop getting hit neggativly for them. You won;t be rewarded on accounts you have not proven yourself on yet so make sure you are aware that accounts take a while to get to a point where they help you.
I think I will get a Visa that gives me the best rewards. That why I can A. Build my credit even more B. Track my spending by using my card for practically everything.
Good idea. Use OPM (Other People's Money) as much as you can, as long as it doesn't cost you. Get the rewards and be able to keep your money in your account for a little longer. Just make sure you pay it off and don't start racking up the debt.
