Credit Card Question...

[shoefreq]

If you are a student, you may want to look for a student credit card. These are a little bit easier to get if you're looking for your first card. You may see these credit card companies in a booth by your bookstore or student union, or may be available at your local bank. An added benefit to your student credit card is sometimes they give you discounts on airfare and books. A student card is a good start, it's easier to be approved for this kind of card than a regular card. Don't expect to be approved for a card with no annual fee, low interest, or high limit if you have no credit history. If you're just starting out, you may have to start on the bottom.

 

[kduncan5]

If you have bad credit or no credit, and you're not in a rush to get a card, do what I did. Open a checking account at your bank first, use it to pay your bills for at least 6 months, preferably longer. And don't overdraw! This will establish that you act responsibly with your finances. With a credit history begun, you'll have a better chance of getting a card with no annual fee. I got lucky with the Sony Citibank Platinum Select card. See reference post above.....

With it, buy ONLY things you would NORMALLY buy, keep the money you would've spent anyway, in a savings account until it's time to pay the CC bill. Then just transfer the money, write a check, and you're good to go till the next time, plus you get all those valuable Sony points:Q!!! -kd5-

 

[SackOfAllTrades]

Can you cancel your CC account anytime after you get it? I haven't used a CC in a year and I need to use one for about 2 months. Can I just sign up for one, buy what I need, and then cancel immediately after the purchases? I have no problem paying the monthly minimum...i just don't want that plastic devil alive after I don't need it.

 

[cyclistca]

I would read the fine print but I do not think that there would be a problem.

Personally I would keep it around. If you can control yourself it's a great way to build up a credit history. Always comes in handy when going to apply for that first loan.

 

[shiznut123]

i dont like using my credit card. i just use cash. i have $45,000 credit bcause my credit card is linked with my moms. its freakin complicated. i dont know how it works.

 

[SackOfAllTrades]

I had one linked with my mom's too. Now that I don't have one, I just don't understand how I spent so much money when I did have it.

Oh nevermind, I didn't have a job then and I needed to eat. Now I have a job and I eat like a madman...a fat madman.

So it's cool if I use a CC for a couple purchases and cancel afterward?

 

[xtreme2k]

One important issue

- Dont spend money you dont 'own'. Unless you are definately sure you can pay it off by the end if the month, dont buy it. Credit card sometimes give people a false sense of cash in hand. People are used to spending what is in their pocket. Now, they can spend other people's money(the credit card) they sometimes 'forget' how much they spend and end up with a outrageous bill at the end of the month.

 

[SackOfAllTrades]

for example:

I buy 300 worth of things now. I make 150+ dollars a month. Pay it off in 2, maybe 3 months...is that ok?

 

[cyclistca]

No that's not good. It best to pay your credit card off in full every month. At the worst pay the majority of it off and the balance on the next statement. If your going to carry a charge for a few months your better off as hard as it may be to go without it for a while and save up the money.

The people that keep the credit card companies in business are the ones that carry charges for a few months. Most but not all cards have very high interest rates.

Another option you can look at is a personal line of credit. Not as esy to use as a card but the interest rates are a lot cheaper.

 

[Lvis]

It's always good to remember $1000 @ 18% is $180 bucks a year. Pretty expensive way to borrow money...

 

[erub]

I'll echo the advice of the others here, don't spend $ you don't have, or won't have by the end of the month. They will rape you on interest. The annual fee cards aren't that bad, my parents have a Citibank American Airlines card that earns them 1 mile for every $1 they spend. The Sony card that some are talking about must do the same thing. The miles are valued between .01 and .02 cents each, so its like getting cash back...kinda. I would assume the Sony points have a similar value. Of course, the annual fee is $50 for this card. Figure out how much your going to charge, and determine if you would get the $50 annual fee worth out of it.

 

[SackOfAllTrades]

Ok, no CC for me then. Better being broke than in debt.