Quote:
Originally Posted by Due
I'm new to USA so I have no credit history. I had my SSN for 5 months now, I got one of those to build my credit. I pay it in full every month so I'm not charged any interest. Seems to be working nicely as now I got a score of 700+
You really can't do shit in USA without a credit score
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1) Charging $300 a month and paying it off each month before incurring interest doesn't do anything to "build" your credit. Having a card is only beneficial on how much money you have available to you. Your daily balance, payments, etc aren't individually reported to the credit agencies. So they have no way of knowing if your $300 balance is carried, charged and paid monthly, etc. They just know one number that is reported by the issuer and whether or not you are late. Your score is adjusted according to a ratio of how much credit in total is available to you and how much you are currently using. In this example having a $2000 limit and $300 balance makes you worse off than the guy that doesn't use it at all and have $2000 out of $2000 available.
2) You can do all kinds of shit with bad credit in America. It is called.... wait.... wait for it... Make a shitload of money! Then you can buy cars in cash. Or at a higher interest rate and pay it off on an accelerated payment plan to avoid actually having to pay the interest while still showing your ability to pay a loan. Rent. Done correctly it provides the same monetary advantages as owning a home in the long run. Put down a cash deposit. When I first got started on my own I had shitty credit. It didn't stop me from doing anything because I made plenty of cash. I didn't need credit.
So your statement is false...