Credit Card.

[Inspired2.2]

Okay it's like my first time having a credit card & I was approval for $700. For an example just say I brought something for $200, do I have to pay it full? I dont really get out a credit card works.

[PointBlank]

You don't have to pay it off in full, but you should. Making the minimum payment will take you longer to pay it off and cost you more in the long run.

Why would you get a credit card if you don't know how they work? I'd do some research if I was you before using it.

[Law Grandeur]

if you wanna build credit, then pay above the minimum monthly. lets say they say you owe 50 bucks for that month, send them 80 instead. im pretty sure your interest rate is like 25%+ which really does hurt you. dont miss payments. rule of thumb, if you know its too much for you then dont bother getting it. ie: you found some advans for 800 and you know it takes you a few months to get that much, then dont bother. well thats how i do it anyways. credit cards are the devil's cash! lol

[kantkillkeenan]

as much as i hate to say it...you need credit cards now...its all a scam really. for example why the the fuck do i need a credit report now to get a quote on my insurence? simple...if you have good credit and i have bad credit..but we both have the same driving record, guess whos gonna get the best quote?

you

fuck this corprate bullshit man

[1990Ex]

Okay it's like my first time having a credit card & I was approval for $700. For an example just say I brought something for $200, do I have to pay it full? I dont really get out a credit card works.

if i was you i would start with small buys here an there, so you can pay em off quick an it looks good on your part. credit cards are not bad, but like anything else when you misuse them it can cost you ALOT. so be smart an pick an choose what you put on the cc homie

[DJ metadelic]

It's simple really.

While some creditors lure you in with low interest rates, they can jack up APR like no tomorrow, especially after the low interest trial period is over. Say you start @ 9%, after the first three months or whatever it is for you--it can go up to 25%.

That, will kill you in interest fees and charges. Think about it differently from say a smaller, secured or personal loan. It will take you as long as you want to pay it off or down. And, when you do miss a payment, or are late on a payment, the reprocussions are deliquency, and added service fees in some cases.

If you need it for emergency purposes say, "oh shit, I forgot to stop by the bank today to get cash out, and there's no ATM here but I need gas, I'm on E" that is a good time to have a CC, just in case.

If you're looking to make bigger purchases, and all at one time, I'd recommend saving up for them and buying them outright. That way, you don't owe anyone anything for them.

Just do some further research if you're still iffy. There are lots of community forums that focus mainly on credit, cards, and questions related to yours.

[Masamune]

If you're looking to make bigger purchases, and all at one time, I'd recommend saving up for them and buying them outright. That way, you don't owe anyone anything for them.

Good advice here. Alternately you can make the big purchase and then as soon as the cost is posted to your CC statement online, pay it all off. I've been maintaining a record like that for years now and the result is my bank being WAY more willing to work with me on intrest rates.

Another bit of knowledge for ya, your credit score is also based on how long you maintain good credit with different companies. If, for instance, you keep this CC account open and in good standing for 15 years and then after that time you close the account because the intrest rate is so bad, in effect you're hurting yourself. So make sure this is a CC with a bank, company, etc. that you're going to stay with for awhile.

On a slightly seperate, but equally important note, paying off loans can be a tricky proposition for building credit. While it's not hard to make monthly payments it is way easier to just pay off the loan in one or two lump sums. For example, I was one of the fortunate few who made it out of college with minimal loans to pay off (~$7k). After commissioning and bonuses I was able to pay off my loan in one lump sum...only to find out that I gained no credit points by doing so. There's a certain period for paying off a loan after which you start generating good credit. Clearly I didn't get those because the loan was payed off before I accrued any intrest at all. That's what I get for being responsible

Read consumerist articles about credit. There's ALOT of good information there.

[luckyflip]

i have a couple. sucks being in debt but i know people out there are in way worst situations.i remember watching yesterday on tv where they said something about the average balance on credit cards is like 3k or something to that effect

[DJ metadelic]

The best advice I can give anyone?

Use it as little as possible, and if you are going to use it often--

Pay it all off.

Never be late, and if you are give them fair notice and only make it by a day or two.

Enjoy the responsibility, and remember it's not a right. Too many abuse their credit cards, end up in the hole, and it takes them sometimes 3 times as long to get themselves out of that hole, than it did to get there in the first place. Learn from million's of other american's mistakes

[keep6]

With all my CC's, no matter what the limit is, I'd drop in an extra $200.
The reason is so, technically you're using your own money. After you spend that $200 or more, pay off the closing balance and replenish that $200.
Another example is if you only spend $50, they will automatically take the payment from the extra funds that you have put in giving you the assurance that it has been paid off at the end of the month.

Like I said, I've been doing this with all my CC's, and I've been doing it for years. And it also helps you establish and build a higher credit rating.

Since you're new to CC's, do more research on them and basically use it for gas only.

That's just my advise. But you don't have to take my word for it.


EDIT: If you want to see how often you're using the CC, get a prepaid card and treat it exactly how you would use your CC. If you find that you are using it more often then you should. Reconsider about keeping the CC.

[bcjammerx]

before you ever use a credit card, you need to be able to show me how much you will be paid, spend, and have extra for no less than three months.

I have an excel file I custom did with a calender and I can look right now and see a VERY good estimate of how much I'll have extra 6 months from now in my account.

Why? cause I was very stupid at one point in my life and ended up owing the bank $500...merchandise plus the $30 return check fee the stores charge PLUS THE RETURN CHECK FEE THE BANK CHARGED...plus...the insufficient funds fee the banks charge on top of those other two. The total amount of product I bought...under 200...fee and penalties...over 200.


So, what you do is take all your pay checks...find the LOWEST pay check, and unless you've gotten a raise, use that lowest one as your "base" pay...why? For pay round LOW...more...for bills round high. but not rounding in the literal since. If a bill is 53, I make it 60. If my pay check is 245 I say it's 200. Why? Cause surprises in the form of income you DON'T have but thought you did...is like surprise (un-lubed) butt sex.

next add up all your routine bills, cell phone should be the same every month, if not then you're wasting money on stuff, gas should be about the same...you know what kind of gas mileage you get and how many miles you drive a week right...figure it out...etc etc.

Now you have a very basic income vs spending formula...next take a look at what you waste...I mean spend on fast food, resteraunts, snacks, dvds, music cds, games etc etc. This will show you what you really don't need to spend or...the most you COULD spend

Food outside of home is where I waste most of my money, I eat at home or make my food...it tastes better, is healthier, and makes my wallet fatter.


So you have your lowest pay check...or if you are attentive enough you could use an average...through out the highest check when averaging leave in the lowest though...play it safe. And you have your routine average bills...recurring is another way of looking at it. AND the play money...cause going out to eat is not necissary, so it's entertainment...hell everything but food, utilities, gas, and rent is entertainment money...including clothes.

With this in hand you now know what you make and spend and what you have free. Now that you do that...you are ready for a credit card...why all that?

Because you shouldn't spend what you do not have, otherwise you will end up in debt to credit card companies, you have $5000 dollars on one, you'll pay IF YOUR LUCKY $50 a month in interest alone in addition to the minimal payment. i know from experience...and that was with a decent card.

I use my credit card like an atm machine, if I spend something, I account for it in my excel file...I basically reduce it from my available money, so when the AUTOMATIC FULL PAYMENT (that's another thing...get your card to automatically fully pay off each month) hits...i'm covered.

Don't pay the minimum...pay it ALL off when it's due...don't pay early...but pay it ALL

[keep6]

before you ever use a credit card, you need to be able to show me how much you will be paid, spend, and have extra for no less than three months.

I have an excel file I custom did with a calender and I can look right now and see a VERY good estimate of how much I'll have extra 6 months from now in my account.

Why? cause I was very stupid at one point in my life and ended up owing the bank $500...merchandise plus the $30 return check fee the stores charge PLUS THE RETURN CHECK FEE THE BANK CHARGED...plus...the insufficient funds fee the banks charge on top of those other two. The total amount of product I bought...under 200...fee and penalties...over 200.


So, what you do is take all your pay checks...find the LOWEST pay check, and unless you've gotten a raise, use that lowest one as your "base" pay...why? For pay round LOW...more...for bills round high. but not rounding in the literal since. If a bill is 53, I make it 60. If my pay check is 245 I say it's 200. Why? Cause surprises in the form of income you DON'T have but thought you did...is like surprise (un-lubed) butt sex.

next add up all your routine bills, cell phone should be the same every month, if not then you're wasting money on stuff, gas should be about the same...you know what kind of gas mileage you get and how many miles you drive a week right...figure it out...etc etc.

Now you have a very basic income vs spending formula...next take a look at what you waste...I mean spend on fast food, resteraunts, snacks, dvds, music cds, games etc etc. This will show you what you really don't need to spend or...the most you COULD spend

Food outside of home is where I waste most of my money, I eat at home or make my food...it tastes better, is healthier, and makes my wallet fatter.


So you have your lowest pay check...or if you are attentive enough you could use an average...through out the highest check when averaging leave in the lowest though...play it safe. And you have your routine average bills...recurring is another way of looking at it. AND the play money...cause going out to eat is not necissary, so it's entertainment...hell everything but food, utilities, gas, and rent is entertainment money...including clothes.

With this in hand you now know what you make and spend and what you have free. Now that you do that...you are ready for a credit card...why all that?

Because you shouldn't spend what you do not have, otherwise you will end up in debt to credit card companies, you have $5000 dollars on one, you'll pay IF YOUR LUCKY $50 a month in interest alone in addition to the minimal payment. i know from experience...and that was with a decent card.

I use my credit card like an atm machine, if I spend something, I account for it in my excel file...I basically reduce it from my available money, so when the AUTOMATIC FULL PAYMENT (that's another thing...get your card to automatically fully pay off each month) hits...i'm covered.

Don't pay the minimum...pay it ALL off when it's due...don't pay early...but pay it ALL

This sounds very interesting. Can you show an example of the excel spreadsheet? And did you apply certain formulas to the cells? If it's too private to show an example, it's no big deal. Just thought I'd ask.

[crazymikey]

Credit cards are evil.

I have a $5000 limit on mine, which started out as a $1000 limit. Always kept a low balance,mostly no balance.

Then I wanted to move from Ontario to Alberta. My plan was to use my credit card as I travelled through the states.

Well, before I moved, my truck required nearly $4000 worth of maintenance in a 6 month period. Well, there's $4000 on a $5000 limit. I might also mention I have the "low" rate at 11.9%.

It's been tough trying to knock it down.

My parents agreed to pay $1000 tuiton for a commercial driving course for me, but after I enrolled they backed out and made me pay. Great. $1000 more on my credit card. If you do the math, that means I'm at $5000 on a $5000 limit.

When I moved out here, I ended up working for a couple guys who were slow to pay,so I was out of cash a couple times. Had to rely on credit to buy gas and food. So I went over limit a couple hundred bucks.

I ended up selling that truck for $3000,so I got almost all my money back, and I put $1500 of that $3000 towards my Visa and used the other $1500 to buy another vehicle.

Currently, I have a balance of over $5700 on a $5000 limit. I made my minimum payment last month,but couldnt afford any more.

Every month I get charged for being over limit and extra interest and stuff. It sucks. Going to take forever to get it back down,and trying to build the CB in the meantime doesn't help matters.

[Inspired2.2]

Thanks everyone! I kinda get the credit card work now, I went to the bank and spoke to the bank spokeperson.

[bcjammerx]

This sounds very interesting. Can you show an example of the excel spreadsheet? And did you apply certain formulas to the cells? If it's too private to show an example, it's no big deal. Just thought I'd ask.

oh man does it ever. It's not very user friendly though, I mean for me it is but I know what the bugs are...here's an example of one of the cells, I love if then functions...I applied some c++ exp. as much as I could.

=IF(BILLS!G8=$B$3,IF(BILLS!F8=0,BILLS!D8,IF(BILLS! F8=1,BILLS!D8," "))," ")

I haven't tested pit too many for programs because they all cost a shit load to even try and i wasn't gonna drop cash just to not be able to use something...I tried using quicken but it wouldn't do what I wanted, close but not nearly good enough.

So i just made my own...I'll try to send you a copy of it though later tonight when I go to work...gotta sleep right now (night shift )