• 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.

My CC thread *NEW QUESTION 2/20 (at end)*

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.
Originally posted by: mugs
No, you need to add your balance on each day together and divide the total by 30. Your average daily balance in that scenario would be $187.50 (assuming $110 balance on day 0, $115 on day 1, ..., $265 on day 30).
Click to expand...
I see. Add EACH DAY'S complete balance together, and divided that by 30. So my next question is, if I am charged interest on $187.50, doesn't that mean I am being charged interest for purchases I made THAT month?

 
Originally posted by: b0mbrman
Originally posted by: mugs
Be sure to get one when the credit card companies are deluging you with offers... my girlfriend is 23 and has a hard time getting cards because she never built a credit history. Get one with no annual fee from a reputable bank, and never cancel it.
Click to expand...
Yup. Carry a tiny balance (like $50 or so) and pay the minimum balance every month. Building credit can be fun 😉
Click to expand...
Now is also the time to start posting credit-building tips. I understand carrying at tiny balance, but 1) why that low? I'm sure I'd spend more than $50 in a month, and 2) why pay only the minimum payment?

 
Not hard enough. Save your money and stick to debit. If not you'll wish you did later when you are paying nearly a quarter on the dollar for everything you buy just to pay interest. I have a total of one CC with about $1800 on it, and the only reason I keep it around at all is that I got a good deal on interest... like 6.85%. It's only job is to be used on trips and such.
 
Originally posted by: archcommus87
Originally posted by: b0mbrman
Originally posted by: mugs
Be sure to get one when the credit card companies are deluging you with offers... my girlfriend is 23 and has a hard time getting cards because she never built a credit history. Get one with no annual fee from a reputable bank, and never cancel it.
Click to expand...
Yup. Carry a tiny balance (like $50 or so) and pay the minimum balance every month. Building credit can be fun 😉
Click to expand...
Now is also the time to start posting credit-building tips. I understand carrying at tiny balance, but 1) why that low? I'm sure I'd spend more than $50 in a month, and 2) why pay only the minimum payment?
Click to expand...
That's assuming you get a credit card for the sole purpose of building credit. It's that low because your balance still accumulates interest and you pay only the minimum to ensure there's always something to pay off every month.

If you're just planning on using it for normal purchases, there's no reason not to pay the complete balance every month...in theory, that would be like a 0%, interest 29-day loan every month 🙂

Still, don't forget to be responsible with it. Just because you don't have to pay it now is not a good reason to buy things you wouldn't normally buy with cash.
 
Completely agree. As I said I'm thrifty and cheap, I don't expect a CC to change that. I like my debit card, but I want fraud protection, one monthly bill for day-to-day purchases, cash back, etc. Just seems like a better idea to use the CC daily than the debit.

I still don't get how interest is only accumulated on purchases older than the current month, though. If you are charged interest on your average daily balance, that number is a mixture of last month's balance and new purchases this month. How is it picked apart so that the next statement is last month's balance + interest on last month's balance + new purchases without interest?
 
No problem at all. At least I never did. There are alot of student CC's that start off with a small limit and you can work your credit up.
 
But is it necessary or helpful at all to start off with a card like that instead of something like the Platinum Dividend? What's really the point of them besides limiting how much you can spend?
 
Originally posted by: Jfrag Teh Foul
Not hard enough. Save your money and stick to debit. If not you'll wish you did later when you are paying nearly a quarter on the dollar for everything you buy just to pay interest. I have a total of one CC with about $1800 on it, and the only reason I keep it around at all is that I got a good deal on interest... like 6.85%. It's only job is to be used on trips and such.
Click to expand...

i disagree. the advantages of credit card outweight debit card if you have self control. i had 1 credit card since i was 18 until i graduated from college and got a job. i'm now 23 and use 5 credit cards, yet i don't pay a dime in interest. if you are worried about accumulating debt, i'd suggest getting an american express green charge card. the annual fee is $65 but you aren't allowed to carry a balance monthly so it's like having a debit card that is paid off once a month. if you spend enough, the benefits from having an amex charge card is better than a comparable credit card from visa or mc.
 
Originally posted by: PhasmatisNox
I'm not even 18 and I get offers in the mail from time to time.

Don't spend money you don't have.
Don't spend money you don't have.
Don't spend money you don't have.
Don't spend money you don't have.
Don't spend money you don't have.
DO NOT SPEND MONEY YOU DO NOT HAVE.
Click to expand...

That's fine, but there are times when you need a credit history. Purchasing a car, buying a house, etc.
 
The bottom line is, getting ONE card when I turn 18, and putting all of my purchases on it, and paying it in full monthly; is this a plenty good way to start building my credit for the time being and through college?

My main reasons to want it are 1) fraud protection, 2) consolidation of purchases to one monthly statement, 3) to start building my credit, and 4) for cash back and rewards (that's not a huge reason but it is a perk).

I guess I'd go straight for the Citibank Platinum Dividend. But is that a card I would not be able to obtain without any credit?
 
Originally posted by: archcommus87
The bottom line is, getting ONE card when I turn 18, and putting all of my purchases on it, and paying it in full monthly; is this a plenty good way to start building my credit for the time being and through college?
Click to expand...

Yes. And you should not cancel that card if you get a better one, because it will be your oldest account.

My main reasons to want it are 1) fraud protection, 2) consolidation of purchases to one monthly statement, 3) to start building my credit, and 4) for cash back and rewards (that's not a huge reason but it is a perk).
Click to expand...

Those are all good reasons.

I guess I'd go straight for the Citibank Platinum Dividend. But is that a card I would not be able to obtain without any credit?
Click to expand...

They have a student version.
 
But should I go ahead and go for the normal one first? I just hate the thought of having a card MADE for teens, don't know why.
 
I'll apply for the regular Platinum Dividends first. If I get denied (hopefully I won't) I guess I'll spring for the...meh...college...card.

So with interest. How do they differentiate between this month's purchases and last month's purchases if they calculate interest based off your ADB? Or are the current month's purchases only interest-free when you have zero balance from the previous month?
 
Originally posted by: archcommus87
I'll apply for the regular Platinum Dividends first. If I get denied (hopefully I won't) I guess I'll spring for the...meh...college...card.

So with interest. How do they differentiate between this month's purchases and last month's purchases if they calculate interest based off your ADB? Or are the current month's purchases only interest-free when you have zero balance from the previous month?
Click to expand...

current month's purchases are interest free if you do not carry a balance from the previous month. otherwise, there is no such thing as grace period.
 
NOW I get it. That's what was confusing me.

Wow, so carrying a balance over, even a small one, is worse than I thought. Suddenly EVERYTHING I buy the next month is accruing interest that will appear on my next bill.
 
thats strange... i think i had my own cc when i was 16, with a 2000 limit... now i've got another one with 5000 limit... and i'm still a poor college kid(25, trying for masters degree)
 
You couldn't have had a CC when you were 16 unless it was linked with your parents. No company would give a card to a 16-year-old independently.

Perhaps I should get two cards then, because if I must purchase something expensive on the one, it instantly makes it a bad choice to use for my daily purchases next month. The one I use for my daily purchases should always be completely paid in full.
 
A disadvantage I thought of is not being able to see where my money is going so much. With MS Money and using my debit card, everything is categorized and it's very easy to see pie charts and such of where I'm spending money. If I use a CC for everything, that'll appear as one transaction under the CC category in Money.

Any way to get a good breakdown still even when using a CC?
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top