Author Topic: Credit cards? (Read 4888 times)

Scrub206 · « **on:** August 22, 2011, 09:53:44 AM »

When looking for a credit card.. what should i be looking for? like whats a decent APR these days? and does annual fee mean a price you pay to use the credit card service?

god i dont konw anything about credit cards. but i need to get myself some credit....

bosk1 · « **Reply #1 on:** August 22, 2011, 09:55:43 AM »

Quote from: Scrub206 on August 22, 2011, 09:53:44 AM

and does annual fee mean a price you pay to use the credit card service?

Yes. Avoid them. My advice is to NOT use your card for anything you cannot fully pay off at the end of the billing cycle. If you pay your full balance each month instead of making payments, you don't have to worry about what the interest rate is on the card because you are never paying any interest.

zxlkho · « **Reply #2 on:** August 22, 2011, 09:57:44 AM »

I should probably look into getting a credit card as well since I'm not making any payments to student loans. I can't come out of school with no credit...

Hyperplex · « **Reply #3 on:** August 22, 2011, 09:57:48 AM »

Stay away from cards with annual fees. It means they charge you a yearly amount, usually between $399 and $599 depending on the card you have, in order to remain a member/card user.

Personally, I pay my credit cards off every month; I just don't buy more than I can afford to pay at the end of the month. I recommend trying to stay away from revolving debt that only builds if possible. Look for cards with good rewards: cash back, reward points, etc. I have an AMEX Blue Cash card that gives me between 1.5% and 5% back on purchases. I get a yearly credit to my statement and it helps me build good credit. However, AMEX isn't accepted everywhere, so Visa and MasterCard are other good choices that just about everyone takes.

I basically second bosk on this one, since he ninja'd me.

Scrub206 · « **Reply #4 on:** August 22, 2011, 09:59:29 AM »

I have the money for a new pc, i was going to get a card so i can put the purchase on that, and then hide the card untill the pc is done beig paid off. but yeah

apr is the interest rate? (dont laugh ;o; )

Dr. DTVT · « **Reply #5 on:** August 22, 2011, 10:36:33 AM »

No fee rewards cards are good as well. I use my Best Buy CC for grocery, restaurant, and Best Buy purchases to rack up rewards certificates for Best Buy.

Scrub206 · « **Reply #6 on:** August 22, 2011, 10:50:08 AM »

There are so many different plans and like cards and what not ;o;

EDIT: also if you pay more than the min payment each month.. does it take away from next months bill?

TL · « **Reply #7 on:** August 22, 2011, 10:57:33 AM »

At least with Mastercard, if you pay off more than your outstanding balance, they just put the difference toward your next bill.
So if you owe $100, and you give them $120, then the next month you charge another $100, you'll only owe them $80 at that point.

yorost · « **Reply #8 on:** August 22, 2011, 10:58:53 AM »

The APR means nothing, if you can't pay for it on the first bill it shows up on you shouldn't be using a credit card for it.

Annual fee cards aren't completely bad if you know the bonus they give you covers that cost. My wife and I both have annual fee cards that give us free baggage, collects air miles, and nets free air tickets for a specific airline, one we use regularly. It more than pays for the fee, plus if you ask they occasionally reduce or waive the annual fee.

For a first card the easiest thing to do is just go through a place you bank regularly.

TL · « **Reply #9 on:** August 22, 2011, 11:04:50 AM »

I currently have a card with no annual/monthly fee, and get a modest number of airmiles (I think it's 1 airmile for every $20). I also have the option of a very modest cashback program instead (I think it's something like 0.5% cashback, which is still better than nothing).

Obviously there are cards with annual/monthly fees that give you more back. It all depends on the dollar figures you're going to be spending regularly, and how it all balances out for you.

KevShmev · « **Reply #10 on:** August 22, 2011, 11:06:37 AM »

I haven't not paid off my entire balance on my credit card every month in almost 15 years. /bragging

lordxizor · « **Reply #11 on:** August 22, 2011, 11:07:06 AM »

Quote from: bosk1 on August 22, 2011, 09:55:43 AM

My advice is to NOT use your card for anything you cannot fully pay off at the end of the billing cycle.

100% this

Don't sweat the APR too much and avoid annual fees. Since this is your first card, I wouldn't go crazy with a good rewards card that has a fee. They can be a good deal if you know what you're doing, but for this first one I'd avoid fees if you can.

I have a Chase Freedom Visa card which gives me 1% cash back on all purchases and 5% back in specific categories. I charge everything, but pay it off twice a month. I make probably $500 a year in rewards that go into my vacation fund. There are good airline miles rewards cards out there too if you travel a lot. I figure cash back is more versatile.

El Barto · « **Reply #12 on:** August 22, 2011, 11:18:23 AM »

I'm a big fan of my Aadvantage card, but the thing with that is to only apply for one when you know you have a very big ticket purchase coming up. To get the uber-bonus, you've got to spend quite a bit in the first six months. I waited for years to apply for one, and then met the purchase requirement in the first week paying for a trip to Europe.

Another crafty way to go about things is to get a reward card and set it aside for recurring bill pays. My mobile, electric, auto insurance, and internet all get charged to a Citi Dividends card automatically, so I only need to make one payment each month, and I get 3-5% back at the end of the year. I'd put my rent on it if I could. The tricky part of that is that you still need to monitor things pretty closely.

yeshaberto · « **Reply #13 on:** August 22, 2011, 11:27:14 AM »

credit cards are like a chain saw...

they are great for cutting down trees, but one slip and your missing an arm

YtseBitsySpider · « **Reply #14 on:** August 22, 2011, 05:54:57 PM »

bosk's point is critically important.

on the somewhat fun side...get a card that offers you points, especially for something you buy a lot of.

For instance.
I have a Costco Amex. 2% cash back on all gas purchases. Mrs. Spider and I fill our vehicles once every two weeks. Points points points. That same card gives us 3% on most restaurant purchases and 1% on everything else. It's not huge, but getting a couple extra 90$ checks a year out of the blue is nice.

orcus116 · « **Reply #15 on:** August 22, 2011, 05:58:45 PM »

I'll echo the people saying don't max your card out beyond your reach. I got a bit greedy last summer and I'm still paying it off but I'm hoping to kill it very soon.

MasterShakezula · « **Reply #16 on:** August 22, 2011, 06:08:04 PM »

I have no intentions of ever using a credit card. Sounds far too risky.

Adami · « **Reply #17 on:** August 22, 2011, 06:08:48 PM »

Quote from: MasterShakezula on August 22, 2011, 06:08:04 PM

I have no intentions of ever using a credit card. Sounds far too risky.

Wait till you get older.

orcus116 · « **Reply #18 on:** August 22, 2011, 06:11:23 PM »

Quote from: MasterShakezula on August 22, 2011, 06:08:04 PM

I have no intentions of ever using a credit card. Sounds far too risky.

Having no credit will hurt you eventually.

yorost · « **Reply #19 on:** August 22, 2011, 06:20:30 PM »

Quote from: MasterShakezula on August 22, 2011, 06:08:04 PM

I have no intentions of ever using a credit card. Sounds far too risky.

Not building your credit rating in North America makes it harder to rent or get any loan as you get older. It might be stupid, but not using a credit card enough leaves you with a black mark of sorts because you've never proven you're trustworthy enough to repay your debt.

MasterShakezula · « **Reply #20 on:** August 22, 2011, 06:23:38 PM »

Wait, so not getting into any debt at all by not using a credit card is considered just as bad as getting into endless debt through using credit cards to pay of credit cards to pay of credit cards used for innumerable dumbass impulse purchases that you can't afford?

That's fucking bullshit.

YtseBitsySpider · « **Reply #21 on:** August 22, 2011, 06:23:50 PM »

True story.
Early 20's mrs.spidey and I go to bank to get loan, to buy house.
The bank says..."why..look here mr.spider, you've been carrying a 1500.00 balance on your visa for over 2 years...because of this..........you're approved!"

Mrs.Spider said........."but but I have no credit cards..AND i have 20K saved from every job I ever worked"

The Bank said......"who are you?"

She was pissed.
But, having a card, and paying it off shows the bank you have had credit, and maintained it.
important.

MasterShakezula · « **Reply #22 on:** August 22, 2011, 06:25:37 PM »

What the fuck kind of problem does fucking society have with saving up money and then paying for things that you can afford up-front with actual cash that you have?

YtseBitsySpider · « **Reply #23 on:** August 22, 2011, 06:26:46 PM »

you still can...........but...not really.
eventually if you want a loan, you have to prove you can pay it back.

MasterShakezula · « **Reply #24 on:** August 22, 2011, 06:28:57 PM »

I think I'll just purchase things that I can actually afford with money I have.

It's probably not that difficult to properly use a credit card or properly use loans, I realize, but I would much prefer to play it safe and just make purchases within my actual tangible means today as opposed to money I hopefully have tomorrow.

orcus116 · « **Reply #25 on:** August 22, 2011, 06:30:22 PM »

Quote from: MasterShakezula on August 22, 2011, 06:23:38 PM

Wait, so not getting into any debt at all by not using a credit card is considered just as bad as getting into endless debt through using credit cards to pay of credit cards to pay of credit cards used for innumerable dumbass impulse purchases that you can't afford?

That's fucking bullshit.

You're looking at two extremes. It's very useful to have a credit card to make small purchases that you can pay back in order to, like Ytse is saying, prove that you can pay back. I mean would you loan money to someone based on their word alone? Plus I'm getting the impression you don't really understand how they work. Merely having a card does not make you some high risk person and instantly means fucking your financial side up. It's incredibly easy to smartly operate and maintain a card, it's just the consumer culture that has ruined the perception of having one.

glaurung · « **Reply #26 on:** August 22, 2011, 06:30:29 PM »

Quote from: MasterShakezula on August 22, 2011, 06:28:57 PM

I think I'll just purchase things that I can actually afford with money I have.

It's probably not that difficult to properly use a credit card or properly use loans, I realize, but I would much prefer to play it safe and just make purchases within my actual tangible means today as opposed to money I hopefully have tomorrow.

Then just buy things you can afford with your credit card and then pay it off the next day. I got a credit card with a limit of $600 to do just that and work on my credit.

MasterShakezula · « **Reply #27 on:** August 22, 2011, 06:31:41 PM »

But couldn't I just buy things I can afford with cash I have, and not have to pay a company for doing so.

zxlkho · « **Reply #28 on:** August 22, 2011, 06:32:32 PM »

Quote from: MasterShakezula on August 22, 2011, 06:28:57 PM

I think I'll just purchase things that I can actually afford with money I have.

It's probably not that difficult to properly use a credit card or properly use loans, I realize, but I would much prefer to play it safe and just make purchases within my actual tangible means today as opposed to money I hopefully have tomorrow.

Good luck buying a house.

MasterShakezula · « **Reply #29 on:** August 22, 2011, 06:33:57 PM »

So you mean that if I have the amount of money, in cash, to pay for the house, and proceed to bring the cash straight up to them to buy it at the spot, they'll say no, even though the cash is clearly right there for them to see?

Dr. DTVT · « **Reply #30 on:** August 22, 2011, 06:34:06 PM »

Quote from: MasterShakezula on August 22, 2011, 06:28:57 PM

I think I'll just purchase things that I can actually afford with money I have.

It's probably not that difficult to properly use a credit card or properly use loans, I realize, but I would much prefer to play it safe and just make purchases within my actual tangible means today as opposed to money I hopefully have tomorrow.

Just another case of MasterShake having to post in EVERY SINGLE THREAD, even if he has no clue.

Also this:

Quote from: zxlkho on August 22, 2011, 06:32:32 PM

Good luck buying a house.

Dr. DTVT · « **Reply #31 on:** August 22, 2011, 06:35:19 PM »

Quote from: MasterShakezula on August 22, 2011, 06:33:57 PM

So you mean that if I have the amount of money, in cash, to pay for the house, and proceed to bring the cash straight up to them to buy it at the spot, they'll say no, even though the cash is clearly right there for them to see?

Dude...do you realize how much a house costs? There is a reason 30 year mortgage (adult word for "loan") is the standard.

orcus116 · « **Reply #32 on:** August 22, 2011, 06:35:41 PM »

Quote from: MasterShakezula on August 22, 2011, 06:33:57 PM

So you mean that if I have the amount of money, in cash, to pay for the house, and proceed to bring the cash straight up to them to buy it at the spot, they'll say no, even though the cash is clearly right there for them to see?

I know I'm going to come off as an asshole, but if you don't understand the point of using a credit card smartly then I highly doubt you're going to possess enough cold hard cash at one point to buy a house straight up.

MasterShakezula · « **Reply #33 on:** August 22, 2011, 06:37:29 PM »

Honestly, this all makes it sound to me like the credit card companies have a scheme to force everyone to use their services.

Also,

Quote from: orcus116 on August 22, 2011, 06:35:41 PM

I know I'm going to come off as an asshole, but if you don't understand the point of using a credit card smartly then I highly doubt you're going to possess enough cold hard cash at one point to buy a house straight up.

It's called saving your money in a bank account, as opposed to spending it on unnecessary luxuries. It's not a sin to be cheap.

glaurung · « **Reply #34 on:** August 22, 2011, 06:39:18 PM »

So your going to save up for 30 years in order to be able to buy a house up front on top of paying rent at wherever you currently live?

News: Welcome back, Mike Portnoy!

Author Topic: Credit cards? (Read 4888 times)