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Vetteman94 on 03 September 2009
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Scoobes said:
Vetteman94 said:
Khuutra said:
Vetteman94 said:
Khuutra said:
Vetteman94 said:
Bad Idea, getting credit cards in exchange for cheaper products are a quick way to get you in trouble financially

Eh, if you're fiscally responsible it's not a bad idea. Set aside three hundred bucks, make the purchase, pay off the entire bill immediately. Then just wait for your credit, maybe buy some games cheap.

It relies on you already having the money necessary, though.

Exactly, but there arent alot of those people that are responsible.   Plus you still take a hit on the credit rating which in todays world is proving to be really important.  

I thought that using a credit card and paying it off promptly improved your credit score.

It can, but applying for a credit card is what gives you the initial hit.  Then it can take up to 6 months to get it back to where it was before you applied.  Anytime someone checks your credit rating you take a hit in your credit rating, it sucks but thats the way it goes.

This is a common misconception. Applying for credit cards and getting them actually improves your credit rating. When I checked my credit rating a while back, the most negative factor was that I hadn't applied for enough credit cards (I rarely use them anyway). I know, wtf?!

Its not a common misconception, it correct.

http://www.privacyrights.org/fs/fs6c-CreditScores.htm#4

5. Do Credit Report Inquiries Lower Your Score?

Your credit report includes more than your record of paying bills. One section of the report lists inquiries. These are records showing who has accessed your credit report. There are various purposes allowed for companies to look at your credit report.

  • Your credit card company may monitor your report to review your account with them. This type of inquiry appears on your credit report, but does not affect your credit score.
  • Creditors and insurers review your report to see if you qualify for an offer. These "preapproved" or "prescreened" offer reviews do not affect your credit score. (For information on how to stop preapproved reviews, see www.privacyrights.org/fs/fs1a-basics.htm.)
  • You apply for a job and the employer orders your report. This inquiry does not affect your credit score.
  • You check your own credit report. This will not lower your credit score.

The only credit report inquires that can lower your credit score are applications for new credit.

 

I bolded the important part for you,  and that is part of FICO guidelines