• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Credit Card Question...

M

mztykal

Diamond Member
...can someone explain how credit cards work? I mean yah. Like how do you pay off a balance, etc. Thanks. Just by reading the title you know I'm new to this. I wanna get a credit card. But I got a few questions. Thanks for all your help.


-Sean
 
You use the card, near the end of the month, you get a bill, and you either write a check to pay off that bill or do what I do, since I have Citibank Visa and Mastercard's, I go to the bank itself and pay them off (they give you a certain amount of time to pay the monthly bill). Get a card that doesn't charge you an annual fee, not sure which actually do anymore. By the way, you don't have to pay off everything, you just have to pay the minimum they have stated, but anything that you don't pay off gets charged interest...

edit: Yeah, you write a check and send it to them through the mail.
 
Many cards also let you pay them off online, or possibly through automatic deduction from your checking account (online payment would also probably be coming from your checking account, or a debit card). If your card is issued by your bank, and they have online banking, you probably can just go online to transfer the money between accounts, or do it with an automated phone system.
 
I'm starting to understand this a little. Damn world, why does it have to be soo complicated! Us idiots need simple instructions...
 
I like Discover, cuz of the cash back bonus. There are also other cards that have the same feature. Some people like low rate cards more, all depends.
 
I prefer no-fee cards more than low rates. I usually can pay off the full balance, so I don't get any interest. When I do, I consider that the interest rate will make me pay it off sooner rather than procrastinating.

Your own rates will all depend on your credit rating, no matter what card you get.
 
not really, I got very different rates from 2 of my cards. one at 8.9, one at 13.9
and I got them about the same time.
Can't hardly see any cards that still have annual fees now, but if you see one...they are most likely to be ignored anyway
 
One last question...if I don't use the card, do I get charged anything? Thanks for all the help. You guys rule.
 
If you got a card with no annual fee, then you will not be charged for anything if you don't use it. Cards with annual fees will ask you to pay a fee once a year to just keep the card, so don't get cards with fees.
 
Nah you won't get charged anything if you don't use the card... unless there's an annual fee. The Blue card from American Express is nice. I've been rejected twice because I don't have an income... (parent's pay... I'm a lucky bastard)... they'll give you money if you show them a product that you bought dropped in price within a certain time period. For pc purchasers, that feature would do wonders... better than a pricematch.

I personally use Citibank cards. The Sony card is a nice one, I have the Visa for that one, you earn points for Sony products. I also have a Citi Mastercard one, that gives you 1% cash back... both let you pay off and check the status online. And the starting limit is $1500 I think, but could be different for each person. I used to have a Nextcard Visa, what a POS...
 
Ok, thanks everyone for your answers. I think you covered all my questions rather nicely. Thanks again. 🙂
 
Remember though everything you do with your credit card will go towards your credit history, which means it will directly affect you when you wanna get a loan or something in the future... so dont overuse it... if possible, only spend what you can pay off at the end of the month...
 
My big problem with getting an initial credit card, was the fact that I had no credit history. There are a few places that will give you one, but be prepared to pay an annual fee (mine was $20, which is about the norm). I do suggest paying off the balance each month. My first card had an initial limit of $500, which is all I really wanted. Just got a letter from them last week saying they're raising it, so I'll be cancling that one 🙂. $1500 is almost enough to buy the parts for a new syste...
 
Discover may not be the best choice, in any case. Fewer retailers are accepting it these days. The reason you get cash back with it? Because Discover charges the retailers a higher percentage for transactions with those cards. So the retailer loses my money by accepting Discover instead of making you pay with Visa or Mastercard (AmEx also charges somewhat higher fees for the retailers), however they also have to consider that if they don't accept Discover, they may not make the sale at all if the buyer doesn't want to or can't use anything else.
 
If your having trouble getting a card because of a lac of a credit history you can do a few things

- Go to the bank that you do your banking at. Since they know you they may be more likly to issue you a card.
- If going to University see if your University has an affiliation card. That's how I got my first cards.
- Some banks have student oriented accounts that may have student oriented cards.

Another wise move
- Get one card. Two at the most. There is no reason to have more then that. I have two cards. One personal one and one that I use only for work.
 
A couple of minor points to add.

Most cards don't charge you interest if you pay your balance in full when you get the bill. But there are some that charge interest from the day of purchase. That's bad, and you want to avoid it. Make sure your card has a grace period so you aren't charged from the day of purchase.

And if you take a cash advance, there won't be any grace period. Card issuers will often send you blank checks that you can use ("use them for anything you want, just like a regular check&quot😉. Using those checks is taking a cash advance, even if you use them for buying something.
 
There are always the secured credit cards for folks with lousy credit hisrtories or no credit. That's how I established my credit.. put $500 in an account that earns interest and get a credit card with a $500 credit limit. Before long you will start getting offers in the mail..

Secured Credit Cards
 
Credit Cards can be a dangerous thing.... be sure you don't spend madly just cause you have the credit card.

Ask yourself: Do I want it or need it when you are buying stuff.
 
If you get a credit card, I would highly reccommend paying it off every month, or a least the majority of it. You can get yourself into some serious debt.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top