Posted: 6/7/2008 8:12:22 AM EDT
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Before my question, and before your knees start jerking directly into my chin, let me give you some background. I wish to apply for my ever first credit card. I am 41 years old, own a struggling business, and am single. I own land (almost paid off) and had a FICO of 681 a few months ago. Fico might be a little lower now since I had two 1 month lates on a bank loan when gas went up. I have no income to show and live bill to bill and some months I don't know how to pay everything coming in. I have survived on less than $900 gross some months. I could use some investment capitol to buy fresh inventory (www dot mikestrucksalvage dot com to give you the scoop on what I do) and I am thinking the correct credit card is my only option. I don't think a bank will touch me with no income to show. Maybe credit card companies won't either? That is why I'm here asking advise before I pick a company and apply. What type of card should I try for and what are some of the pitfalls to finding and applying to a company? (I'm not asking what are pitfalls of credit cards. I have an iron will when it comes to spending borrowed money, I know and fear the credit trap) I'm just looking to have the freedome to buy inventory when it presents itself and turn and burn the parts I buy thru the credit card and have it paid back each 30 days, but have a forgiving account in case I have to stretch into 60 days on occasion. Does a card like that exist for someone living tight to the bark like me? |
| Credit cards are not your answer, no matter how many incentives, rebates, or free trips to the circus. I would sell whatever you can (business or personal) to build capitol. To be honest, it sounds like to me you either need to A) expand your business into other markets or B)completely sell off and get into another business. |
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Get a 0 interest card from HSBC or one of the others offering 0 interest on new purchases. Charge what you need, pay the min payment, and let the remainder sit in savings. When the 0 interest is about to end, transfer the balance to another 0 interest card and repeat. This works great if you have the self control to actually keep the money in savings. If you have to go 60 days you won't be paying interest this way, and you will make money in savings. |
I wouldnt do that. Transfering balances between cards is not good. Also, BT are considered cash advances so when that 0% is up you will be at 25%+ interest. Check out Creditboards.com, the ARFCOM of credit. (I am Shane over there, dont ask me why I used my first name) II cant tell you which card to get as I have always had to state my income on apps. I put down what I make, not what is left over after paying everthing. I am sure that you would only be able to get a $500 or less credit line since its your first card. Look for a local credit union too. CUs are your friend! |