Question : Credit card?
I'm getting a credit card soon and I don't know anything about them. Please tell me all you know about credit cards, how they work, which has brought you the best of luck, your experiences. I'm really nervous about it.Serious anwers please.
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All Answers:
Answer #1
A credit card can be a really good thing to have,or it can be a nightmare. Try to find one thatcharges no annual fee and that gives you some kindof reward...airline miles, cash back, something. Then...and listen closely...PAY IT OFF IN FULLEVERY MONTH!! You do that, no problem. you startmissing payments, then you can quickly get in overyour head.They may occassionally send you the mostboring looking documents you have ever seen in themail. Read them. The credit cards can change theterms of your agreement, and these boring lookingnotices are the only way they tell you. If youuse the card after theyhave sent out the change ofterms, you have accepted the new terms.Good luck.
- answered by BosCFA
Answer #2
first of all, do not do crazy with your card. itcould cause financil ruin. if you use your cardsmartly and pay it off every month they can helpyou get good credit. i try to find one with arewards program that you can earn points forthings you would use anyway or discover gives cashback. just always try to be able to pay it offevery month. the interest adds up so fast thatyou are in over your head before you know it.
- answered by donovan t
Answer #3
All I can say is, use it wisely. Don't max yourcredit card and use it only when necessary. Thinkof it as borrowing money from a relative thatyou'll have to pay back with interest. If you'retrying to build up credit, do not use more than50% of your credit limit. Pay more than yourminimum payment when your payment is due and NEVERpay late. Most of the times you have a decentlylow apr but if you make one late payment, or goover your limit, your interest will skyrock. Myfirst credit card I had 9% interest, I made onelate payment and they immediate changed my apr to28% interest. Be wise when dealing with yourcredit. Good luck!
- answered by krazyfordoggies
Answer #4
Here's the best way I have found to manage yourcredit card. Whenever you make a purchase takethat amount out of you checking account balanceregister, that way when the bill comes you justwrite check of the amount and will never getbehind. Easier said than done thats for sure. Get a card that offer some type of reward forusing it, cash back or points to trade. I thinkone of the best is the CITI premier pass, that onethat I use. Just remember, try your best never tocarry a balance it will eat you up and spit youout. If you have to carry a balance get a cardthat has a 0% for 12 months intro rate. Also Iwill impart a trick you can use if you get introuble. Take advantage of 0% balance transfers. Always try to avoid paying interest. Whew I startto ramble there. Anyway hope this helps.
- answered by stank88
Answer #5
Oh, don't be nervous hun, just send it over to me!... lolRule no one: NEVER use entirecreditlineTwo: Use frequently but do not spoilyourselfThree: Think B4 spend! ask yourself that RU sure that U will pay the FULL amount when itsdue?FOUR: NEVER NEVER NEVER stay on minimumpayments. Always pay balance in FULL.FIVE: Useonly 40% of the limit.Six: Look for hidden fees. Ihave about 25 cards all with some benefit and NONEwith annual fee.This will give you peace of mindand will improve your score rapidly.
- answered by Ted
Answer #6
If used responsibly, it's a great way to startbuilding a lengthy and solid history. The trick isto not get in over your head. A credit card shouldbe used for emergency purposes, or if you're ableto pay off small purchases. If you're not able topay it on time, or at all, then it's not a goodidea. The benefits like being able to rent a car,make hotel reservations, establish credit ingeneral may not compare to the disadvantages ofharassing calls of collectors when you don't payon time, not to mention hurting your chances ofbeing able to get bigger things like, buying acar, a house, or even a job. Normally when you usea credit card, you have x amount of days beforethey start charging more money, or interest towhat you already charged. That's called a graceperiod. After a certain date, you'll receive anitemized statement in the mail detailing what youcharged, how much you owe, and how much additionalmoney (finance charges) were added on. The key tousing a credit card is to not to max it out, orcharge it to the limit. That's where they'll getyou. It's bad enough to borrow money that youcan't pay all at once, but it's even worse whenmore money is added on every month for borrowingit in the first place!. Like I mentioned earlier,use the card for emergencies, charge only what youknow that you can pay off every month. I'll evengo as far to say that if you have the money to payfor something in cash and you use the card, putthat cash that you would've used to buy it in ajar, cigar box, it doesn't matter, put it and usethat money to pay the bill when the statementcomes in. Another thing. Don't charge a lot tofast food. It's a common trap that me myself fallvictim to from time to time. That Big Mac orWhopper or whatever your favorite burger iswouldn't taste so good when you're paying dailyinterest on it when you charge it. Keep that inmind. I would probably get one more and that's it.1 in 7 Americans carry up to 10 credit cards, andthe average American has 4. Me, myself I have 3which I keep low balances and I pay off on-time,if not early every month.Another thing is that youcan report your monthly payments on practicallyeverything that you pay every month. There's awebsite (click this link)
http://www.prbc.com/consumers that you can enrollin a program, that verifies, reports historicalpayments, and also has a bill-pay service thatreports the current and future payments. Thebeauty of this is that this shows what thetraditional credit reports do not: an accuratepayment history. You can have things like rent,utilities, day care, storage, insurance, phone,cell phone, anything that you pay a month that youreceive a statement for. The information reportedis compiled in what's call a Bill Payment Score,or BPS. Under the FCRA (Fair Credit Reporting Act)you can have this taken into consideration whenlenders are reviewing your credit to give anaccurate picture of what your credit is reallylike.
- answered by Smoovy Loco
Answer #7
First, never use more than 30% of your limit. Itseems like if you have a $1,000 card you should beable to go charge up $700-900 no problem, but thiswreaks havoc on you. Your credit score is partlybased on utilization ratio, and you want to stayunder 30%. Second, you'd be suprised how much itcan throw you off when they tack on the interst atthe end of a billing period. Your cushion candisapear and you end up paying an overlimit feeeven though it was THEIR interest that put youover..... just keep the balance low!!Only chargewhat you can pay in full at the end of the cycle--dont go into debt so you can go out for dinner orgo to the movies-- it adds up SO fast and you havenothing to show for your debt.
- answered by Amanda H
Answer #8
u should on use the card for things u really need,other than that pay with cash.. U don't want to bein debt and pay your bill on time.. GOOD LUCk
- answered by B.B
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