Credit cards.

[crazymikey]

I've got a $5k limit on mine. About $4000 of it was racked up as moving expenses, being unemployed and using it for food/gas, and emergency vehicle repairs.

I make my minimum payments on it and I don't use it, but it sucks having that burden know you owe all that money and you're not doing much to pay it off other than making the minimum which will never pay it off.

[h22sparkle]

I personally would keep it and use it only just for an emergency. I was 30k in debt and I managed to pay all of it off. Now when you think about it credit cards have rules. If you dont read in between the lines you can actually cause more harm to injury then insult to that injury.

With credit cards they each have their own rules and with certain interest rates on every purchase. Interest rates before the month to be paid off and whatnot extra credit protection and alerts that costs extra. All of these little things that can potentially trip you up and hold a black cloud over your head to potentially ruin you on future large purchases.

[Leung]

I just wanted a card that i can use at the gas pump but i always get denied. I figured with a gas card, i could pay that off every month because i only pump like twice a month, three tops.

[zmanwit90accord]

Is it really that hard to get approved for a credit card?

I'm an 18 year old student and I was thinking of getting one for the sole purpose of establishing/building a credit score so I can get a sweet car when I graduate.

I was hoping to get a really low maximum limit and use it for gas. I would have no trouble paying that since I have the work study at school, sober driving, 2 small jobs back home and hopefully an internship next summer.

Also, what is a preferred interest rate? What should I expect vs. what I would want.

[deevergote]

I had no trouble getting a credit card when I was 18. I got a "student card", but I didn't even have to provide proof that I was a student, or proof that I was employed (technically, I wasn't... delivering pizza under the table, no legit proof of that!)
www.studentcreditcards.com I believe is what I went through. I forget, but I THINK it was a BoA card.

Granted, that was in 1998. The economy was quite different back then!


The lowest interest rate you can get is ideal. I'd say anything higher than 20% is crap. However, it really doesn't matter what the interest rate is if you pay it off every month. Interest only accrues when you maintain a balance.
If you want to build credit, get a card, use it sparingly each month, and pay it off every time you get the bill. Never maintain a balance, and you'll never pay a dime in interest. Never miss a payment, and your credit score will go up.

[cloudasc]

When it comes to credit cards, you definately want to pay the balances on time, or even better, before the due date. Alot of cards will charge you interest per day that a balance is held if you don't pay things on time. Compound interest is what will screw you over.

The best way to start off using your credit card is to cash your paycheck, and for every dollar you spend on the card, set aside the money to pay it right after the purchase, that way you can get the best realization of how it works. You really never want to borrow/use your card for more then you have money for, as its very easy to buy too much stuff. If you do plan on using it when you have no money on hand, make sure you have a guaranteed source of income to cover whatever you spend.

Also since your young, be mindful of how much you use your card, as you could be out of a job in the blink of an eye, and owe more money then you've earned when they cut you your final check.

^^ This scenario has screwed me several times, whether it be credit card, cash advance through the bank, etc.

Oh and never use it for any "money making" scheme we all come up with, 9 out of 10 times it usually ends up in disappointment. Also don't ever lend money to a friend unless you KNOW FOR DAM SURE their good for it.

Trust me you don't want the bill collectors / debt collectors calling and harrassing you / friends / family until the end of time, or the debt is paid/settled.