Question about Credit Cards

[aolsuxs]

I am currently a 19 year old college student and I am interested in obtaining a credit card to build some credit, I tried getting the AMEX Cash back but it said I needed two years of credit card history or something of that sort. Anyways I was planning on getting the AMEX Blue for students and just had a few questions. It states that

Fixed 8.90% APR for purchases for 6 months; Then as low as 16.49% APR

How are those rates?

Also I am under the impression if I make a purchase with my credit card and pay it in full when it is due then there are no interest rates correct?

I've had an ATM/Debit for several years now with no problems, again I just want something to build up my credit.


Thanks

 

[minendo]

Rates are alright for your situation. If you pay it off each month, no interest will be added on unless you take a cash advance on the card.

 

[KarenMarie]

Most cards give you a certain amount of time (25 days?) to pay in full and get no interest. BE SURE that your card is like that or you will find interest on whatever the balance is from the day you used your card.

If you pay in full before the due date, there should be no interest. Some cards charge up to $40.00 late fee if you miss a payment. That is on top of interest.

Your interest rate posted here are about average. Some are better introductory, but hammer you later.

Just read the fine print.

Also, NEVER put more on the card that you can afford to pay off in one shot and NEVER have a balance on more than two credit cards at the same time.

🙂 KarenMarie

 

[FeathersMcGraw]

A better strategy is to look at fees and worry about the rates less, particularly if you're only looking to establish credit. Use the card regularly, pay it off within the grace period, the rates are irrelevant, and you'll establish a fine, upstanding credit rating.

 

[StageLeft]

In my arrogant opinion you should not be caring about rates. Afterall they are meaningless unless you intend to keep a balance. Don't be like most people who can't handle their own finances. Keep no balance and an interest rate of 500% is a moot consideration.

 

[RossMAN]

Originally posted by: Skoorb
In my arrogant opinion you should not be caring about rates. Afterall they are meaningless unless you intend to keep a balance. Don't be like most people who can't handle their own finances. Keep no balance and an interest rate of 500% is a moot consideration.

Agreed. Don't worry about interest rates since you SHOULD ALWAYS payoff your balance in full at the end of every month. As minendo stated, unless you take a cash advance (from ATM for instance) you will not be charged any interest as long as you pay off your balance in full every month.

If you're declined again, I would suggest getting a co-signer or applying for a secured credit card which is an excellent way to establish your credit all by yourself.

 

[Zombie]

let me get this right, You got declined for not enough history yet you want lowest interest rate?

Your first concern should be getting approved and then build a good credit history and then look for better deals in future.


Don't mean to hijack the thread but I see people stressing "payment in full" each month, but what if there is 0% APR for certain number of months ??

 

[dullard]

Originally posted by: Zombie
Don't mean to hijack the thread but I see people stressing "payment in full" each month, but what if there is 0% APR for certain number of months ??

Still a stupid idea. You then get in the habit of thinking, oh I don' t have to worry about paying for this for 6 months, I might as well buy it. Then when that 6 months comes if you miss by one day or by one penny you are SOL. Plus you are probably 6 months in debt and cannot afford to pay it off since you bought things you couldn't afford for those 6 months.

Yes if you have really good control of your spending and bill paying you can use the 0%. But be very careful. Frequently people try jumping from card to card at 0% - which just delays the problems and lets them grow out of control. Plus many people don't see the "3% fee for transferring in/out" or something similar. So they think they are transferring for free to another 0% card and get hit with a wammy of a charge.

No to use a CC the proper way, pay it off every month no matter what. That gets you into the habit of only buying things you can afford, and you never have to worry about interest rates on a card - ever. Aolsuxs, use the CC just like your ATM/Debit card. If you don't have money in the bank, you don't buy something. Plain and simple. Then when you learn that self control stop using your ATM/debit card. Why? The CC is much safer, can earn you much more money back, builds your credit, and costs the businesses less so that in the long run your purchases should be cheaper.

Originally posted by: Aolsuxs
Also I am under the impression if I make a purchase with my credit card and pay it in full when it is due then there are no interest rates correct?

That is correct for most cards (well a minor grammer issue, there is an interest rate, but it isn't charged). But like KarenMarie said, some don't follow this rule. American Express used to be one of them (I think they changed though) - I didn't get an American Express card years ago for that reason.