Question about a credit card offer I just received.

[blurredvision]

Hey guys. I had a question that one of you should be able to answer for me about a credit card offer I just received. Just last month, I was able to pay off an $800 debt, as I've been trying to get my credit looking better for the years ahead (I'm 23). I still owe approximately $300-$400 dollars to other sources, but that's it.

Upon paying off my largest debt first, I've gotten a couple of credit card offers in the mail lately, and I'm really interested in getting a credit card with a low limit. Being much smarter now, I know I can effectively use a credit card to my benefit. One of these ways is to always pay off the balance within 30 days, therefore not having any interest to pay back.

I just received an offer today which looks pretty good for where I stand. I do not like the $10 monthly fee, but I realize I have to start somewhere, beggers can't be choosers, and I don't mind to "pay" to help better my credit. But the one thing that I do not like is in the section of the terms and conditions. For "Grace Period for Repayment of Balances for Purchases", it says none. Doesn't this mean that I will not get that 30 days to pay back, and interest will be applied to any purchase I make immediately? The APR I'm offered is 23.99%, which I wasn't too worried about at first, as I planned never to have any balances carry over 30 days. But if I will get charged 23.99% on anything I purchase automatically, there's no way in hell I'll even consider this offer anymore.

So I guess what I'm asking is, am I reading this correct? Or is this referring to something else, and all credit cards offer a 30-day grace period without interest on all purchases? Thanks.

 

[George P Burdell]

Originally posted by: blurredvision
I just received an offer today which looks pretty good for where I stand. I do not like the $10 monthly fee, but I realize I have to start somewhere, beggers can't be choosers, and I don't mind to "pay" to help better my credit. But the one thing that I do not like is in the section of the terms and conditions. For "Grace Period for Repayment of Balances for Purchases", it says none. Doesn't this mean that I will not get that 30 days to pay back, and interest will be applied to any purchase I make immediately? The APR I'm offered is 23.99%, which I wasn't too worried about at first, as I planned never to have any balances carry over 30 days. But if I will get charged 23.99% on anything I purchase automatically, there's no way in hell I'll even consider this offer anymore.

So I guess what I'm asking is, am I reading this correct? Or is this referring to something else, and all credit cards offer a 30-day grace period without interest on all purchases? Thanks.

oh man, i don't this is a good deal. poll please

 

[blurredvision]

Originally posted by: hotchilisauceoh man, i don't this is a good deal. poll please

Say what? No poll needed here. And if you're saying the credit card offer is not a good deal, I know this. But I have to take what I can get for a few months, build up my credit a bit, and then I'll be able to get something better if I want it.

 

[StageLeft]

Don't pay $10/month. Go with a secure card through capital one or something (the only time I'll ever reco that useless pissant company).

 

[Coquito]

Originally posted by: Skoorb
Don't pay $10/month. Go with a secure card through capital one or something (the only time I'll ever reco that useless pissant company).

Yes, even the worst of cards, given to people with the worst credit out there, can be had without a monthly charge.

 

[Ausm]

:thumbsdown::thumbsdown:

Ausm

 

[kranky]

No grace period means you pay interest from the date of purchase until it's paid for. You do not want a card like that.

Nor should you ever pay $10 a month for a credit card.

 

[RossMAN]

Originally posted by: kranky
No grace period means you pay interest from the date of purchase until it's paid for. You do not want a card like that.

Nor should you ever pay $10 a month for a credit card.

Agreed on both accounts.

This is just like taking a cash advance. You buy something for $20 today, starting today 10/9 you are charged interest.

Most respectable credit cards offer a 25 day grace period. So you CAN establish your credit and not pay any interest.

Get a secured credit card or find a co-signer.

 

[blurredvision]

Thanks guys. I won't be signing up for this one either. I got another offer in a couple of weeks ago, in which was offered a 9.9% APR, with the grace period, and only a $6 monthly fee. However, with all the up-front charges and such, it said my credit limit of $250 would only initially be $72 after charging all the fees. Of course, they expect me to not be able to pay all of that, and then charge interest . Needless to say, I'm not doing that one.

I don't like the idea of a secured card, nor do I want a co-signer. I guess I'll just rough it out for the time being, and concetrate on paying the last $400 of debt I owe.

 

[RossMAN]

Why exactly don't you like a secured credit card (unless you are terrible at saving the initial deposit)?

It's a win-win situation for you and your bank will approve you since there is no risk to them.

 

[randomlinh]

apply for a capital one card.... i think everyone has had one in their lifetime.. heh. If you're paying your debt in full every month, the APR won't really matter for now, but just use it for a year or two to build up some credit.

coworker of mine somehow has some nice sub 5% apr's on some of his cards. I don't know how.. of all my cards, only bankone has lowered my rate on my request, and told me to do so every 6 months, heh. the others (fleet and providian) said they will not lower my rates. But I keep them because I have relatively high limits on them and they can just sit there for now

or, as stated, get a secured card

 

[Mark R]

Do you really have to settle for such a poor deal?

I got my first CC when I was 23. I was saddled with student debts, had changed my address 5 times in the last 3 years and wasn't registered to vote. I had no other credit except student loans which I hadn't started repayments on.

I chose the card with the best reviews and applied. I got 9% APR, 1.5% cashback, no annual fees and a 5k limit - no questions asked. Oh and they have online banking and can take payments by monthly standing order (so no late payment fees, no writing cheques, etc.)

 

[Yossarian]

do not pay any kind of fee for your credit card. even the thought of it turns my stomach.

 

[Fingers]

In my experience any offers that come in the mail go strait to the trash. You can probably find something much better if you look for it.