Benefits of Credit Card?

[Rip the Jacker]

Well I got my first job last year, and I was wondering if there are any benefits to getting a credit card, since I'm still using my debit card (Suntrust).

I don't drive, nor do I have a license.. I was wondering if there are some good benefits to getting one, what are the requirements?

 

[Capt Caveman]

Helps build your credit.

 

[txrandom]

You can buy things on credit as opposed to debit.

 

[Rip the Jacker]

What are the requirements? Do they differ much between companies or is it minimal?

 

[orakle]

If you ever plan on getting a loan to pay for a house or a car, it's in your best interest to start your credit history as early as possible. Having an established credit history (as long as you have good credit) will literally save you thousands of dollars over the course of a mortgage or car loan in the way of qualifying you for lower interest rates from lenders.

It's easy to get a credit card. If you have a job, any bank will at least give you a low-end credit card, but some might offer you quite a bit of credit.

 

[Regs]

I really can't think of any.

You pay some bank 7-20% for a purchase you're too lazy to pay in full for a month.

They make most of their money from the late fees.

 

[Rip the Jacker]

Do I need a drivers license for a credit card? And how long does it normally take to get one after you've applied?

 

[JS80]

Liquidity. Cash is king.

 

[Regs]

If you ever plan on getting a loan to pay for a house or a car, it's in your best interest to start your credit history as early as possible. Having an established credit history (as long as you have good credit) will literally save you thousands of dollars over the course of a mortgage or car loan in the way of qualifying you for lower interest rates from lenders.

Well whatever site you got that from, they don't specifically mean credit cards. Maybe a car loan or a school loan you co-signed with your parent. I don't ever see good marks come from credit cards. All I ever see is negative marks.


I'd say buy some 4k-11k used car with a bank loan and have them do automatic deductions from a bank account. All those monthly payments show up on your credit report.

 

[Safeway]

No, you don't need a DL.

 

[miri]

Originally posted by: Regs
I really can't think of any.

You pay some bank 7-20% for a purchase you're too lazy to pay in full for a month.

They make most of their money from the late fees.

credit card companies make most of their money from transaction fees which range from around 2-5% of the purchase price

 

[LS20]

1) im making an extended warranty claim with mastercard right now. an electronic broke and im having them fix it because its past warranty

 

[spidey07]

Originally posted by: Regs

If you ever plan on getting a loan to pay for a house or a car, it's in your best interest to start your credit history as early as possible. Having an established credit history (as long as you have good credit) will literally save you thousands of dollars over the course of a mortgage or car loan in the way of qualifying you for lower interest rates from lenders.

Well whatever site you got that from, they don't specifically mean credit cards. Maybe a car loan or a school loan you co-signed with your parent. I don't ever see good marks come from credit cards. All I ever see is negative marks.


I'd say buy some 4k-11k used car with a bank loan and have them do automatic deductions from a bank account. All those monthly payments show up on your credit report.

Building good credit and maintaining that especially lenght of credit when starting out is important. The installment loan doesn't help as much as open/lengthy revolving credit.

OP should get a credit card and use it wisely. He'll be rewarded by saving thousands of dollars in interest later with A+ credit.

Benefits of credit card?
Build credit
Rent card
Purchase protection
Rewards
Not liable for fraudlent charges

 

[smack Down]

Originally posted by: miri

Originally posted by: Regs
I really can't think of any.

You pay some bank 7-20% for a purchase you're too lazy to pay in full for a month.

They make most of their money from the late fees.

credit card companies make most of their money from transaction fees which range from around 2-5% of the purchase price

Yeah, i'm sure they don't make any money off that 20% intereset rate.

 

[Capt Caveman]

Originally posted by: smack Down

Originally posted by: miri

Originally posted by: Regs
I really can't think of any.

You pay some bank 7-20% for a purchase you're too lazy to pay in full for a month.

They make most of their money from the late fees.

credit card companies make most of their money from transaction fees which range from around 2-5% of the purchase price

Yeah, i'm sure they don't make any money off that 20% intereset rate.

Pay your balance at the end of each month and you don't have to worry about interest.

Some cards also reward with cash back for purchases, I've made thousands over the years and always paid my balance at the end of the month.

Building your credit history will also allow you down the road to upgrade to Gold and Platinum credit cards which can provide lots of perks: free airline upgrades, doubling the warranty on products you buy, etc...

 

[imported_Imp]

Ease of use, keeping track of money flow and point collection. Oh, and if you're like me who "**thinks" he has control, you'll make one purchase after the other and rape your pay cheques.

 

[ghostman]

Outside of the one misinformed poster who probably doesn't know how to manage his money, others have stated the benefits of a credit card. I think credit cards are great, but only if you can pay off your balance IN FULL every month.

- It allows me to carry less cash around. When my gym locker was broken into, they took the cash and left the credit cards. They know it's too risky to try to use it, especially since I'll probably have it canceled within a few hours anyway.
- If someone does steal my CC or CC# to purchase things, I'm not liable. With a debit card, you may be liable for a large part of the lost $$.
- It allows me to purchase things online with comfort, knowing that if I get shipped the wrong item, I can report it to the CC company to deny payment.
- My current card gives me cash back ($50 after I spend over a certain amount). That's $50 I wouldn't have had using cash. With my older card, my rewards have "given" me a PSOne, a camera, my alarm clock, movie tickets, dvds and hundreds of photos.
- The cash I would have otherwise used stays in my savings account, earning interest.

But before I sound like I'm preaching CC's to you, I should point out that I am very strict when managing my money. I always pay the balance off every month, not just the minimum. I am also never late when paying off my bills. I have also worked at a bankruptcy law firm and have witnessed CC's plunging people into thousands upon thousands of dollars in debt. If you find yourself living from paycheck to paycheck or always low on money, then DO NOT get a credit card. The temptation to buy things with money you don't have may be too great and you could be plunging yourself into debt. Also, do not depend upon your NEXT paycheck to pay off your credit card bill... if you get fired, you could end up in a world of financial trouble.

 

[orakle]

Originally posted by: Regs

If you ever plan on getting a loan to pay for a house or a car, it's in your best interest to start your credit history as early as possible. Having an established credit history (as long as you have good credit) will literally save you thousands of dollars over the course of a mortgage or car loan in the way of qualifying you for lower interest rates from lenders.

Well whatever site you got that from, they don't specifically mean credit cards. Maybe a car loan or a school loan you co-signed with your parent. I don't ever see good marks come from credit cards. All I ever see is negative marks.


I'd say buy some 4k-11k used car with a bank loan and have them do automatic deductions from a bank account. All those monthly payments show up on your credit report.

I didn't copy that from anywhere. It's the truth. I'm not saying that credit cards are the only way to build your credit, but they're a very EASY method. All you need to do is put the stuff you would have purchased anyway on your card and pay the bill at the end of the month. Plus, many credit cards give you benefits like cash back, air miles, free extended warranties, and lots of other stuff. If you pay the bill every month the high interest rates of credit cards won't even affect you.