#1
So I'm 18 years old and I'm interested in building my credit , why should I or should I not get a card? and what are pros to having one?
#2
Depends how much you're going to use it. Interest rates can be pretty high on them and you always have to make sure you have the money to pay for the bill at the end of the month, or you won't be credited you'll just have a bad credit rating.
Imo, nah man. Don't bother. Get a debit card and pay for stuff with money that is actually yours.
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#4
If you are responsible you can enjoy the benefits of having a credit card such as using points to get free stuff. Also, starting your credit history early can help you establish strong credit.
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#5
See what I'm tired of hearing is that " don't mess with credit cards" but in our society it is almost an inevitability to get one. What my initial plan is ( as im sure many peoples have been ) is to apply for a bank credit card and use it for my monthly purchases and the end of the month pay it off with my debit card thus instead of using my debit card to pay and never building credit I build credit using my debit card , in theory.

I mean do I have anything wrong?
#6
Get it, and spend up to about 40%, then make double the minimum payment until you have completed the balance, start over.

Only do this, use it for nothing else, and 6 months later get a new card, and do the same on both. This will give you multiple lines of credit. You could qualify for a 100k mortgage before 20.
#8
Bleh, I only have one card and it's a debit. So far I've been fine with just that.
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#9
If you're planning on living in an apartment or something like that, you need to have a credit history.

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#10
I got a credit card when I was 18. The truth is, if you have no self control and don't understand the concept that you shouldn't use your credit card to pay for something you obviously have no money to pay for, then you shouldn't get one. But if you are level headed and know how to swipe within your financial bounds, then by all means, get a credit card and keep a modest balance on it and pay it off every month. It's really quite simple; some people just go crazy and buy stupid shit they can't afford. (Obviously there are exceptions for emergencies and stuff.)

edit: I don't worry about interest because if you can pay your entire balance at the end of the month, then there's obviously no interest. Again, don't be a dumbass and you'll be fine.
Last edited by burndttoast at Nov 23, 2009,
#11
If you dont spend what you cant afford then fine, but if you spend like an idiot like the people who collectively cause problems in th economy then do not use one.
#12
Quote by captaincrunk
Get it, and spend up to about 40%, then make double the minimum payment until you have completed the balance, start over.

Only do this, use it for nothing else, and 6 months later get a new card, and do the same on both. This will give you multiple lines of credit. You could qualify for a 100k mortgage before 20.


Cool cool , now my other question is I couldnt find anywhere exactly how it works if I don't use the card. So say I get the card and on the first day make a 500 dollar purchase , and I make the double monthly payment but I DONT use my card for the next 6 months that is fine right?
#13
Quote by Donny
Pros:
Internet porn.

Cons:
Interest.

I can think of more pros than just internet porn, but yeah, interest will come back to bite you.
#14
Quote by Nirvana_RATM2
Cool cool , now my other question is I couldnt find anywhere exactly how it works if I don't use the card. So say I get the card and on the first day make a 500 dollar purchase , and I make the double monthly payment but I DONT use my card for the next 6 months that is fine right?

It's fine.

EDIT: You will also likely pay it off completely before interest comes in. Most companies give you a year or so in order to try to snag you on the interest later.

You might also try having your own phone bill (cell phone). That adds credit too. Car insurance, etc. as well.
Last edited by captaincrunk at Nov 23, 2009,
#15
Quote by captaincrunk
It's fine.

EDIT: You will also likely pay it off completely before interest comes in. Most companies give you a year or so in order to try to snag you on the interest later.

You might also try having your own phone bill (cell phone). That adds credit too. Car insurance, etc. as well.


I figured so just making sure , now as far as APR I don't understand that? Which is the MAIN reason I haven't applied for one. I have never gotten a clear understanding on how it works?
#16
Quote by Nirvana_RATM2
I figured so just making sure , now as far as APR I don't understand that? Which is the MAIN reason I haven't applied for one. I have never gotten a clear understanding on how it works?

At the end of each month before you make a payment, interest is applied to your outstanding debt. Pretty simple!
#17
Quote by Nirvana_RATM2
Cool cool , now my other question is I couldnt find anywhere exactly how it works if I don't use the card. So say I get the card and on the first day make a 500 dollar purchase , and I make the double monthly payment but I DONT use my card for the next 6 months that is fine right?

Actually, I think it's 30%. Optimally you should not use more than 10% of your available credit. Also, getting approved for more cards hurts your score. I don't get it either but that is the truth. However, if you are responsible, your credit will recover and probably be even higher because more credit cards gives you a larger capacity.
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#18
Quote by SRX700
Actually, I think it's 30%. Optimally you should not use more than 10% of your available credit. Also, getting approved for more cards hurts your score. I don't get it either but that is the truth. However, if you are responsible, your credit will recover and probably be even higher because more credit cards gives you a larger capacity.

Only hurts your score if you do more than one card in 6 months or so. It shows that you want money now.
#19
Quote by Nirvana_RATM2
I figured so just making sure , now as far as APR I don't understand that? Which is the MAIN reason I haven't applied for one. I have never gotten a clear understanding on how it works?



I always thought APR meant the price you had to pay every April...?
#21
I'd just get one and only spend reasonable amounts of money with it being sure to pay it off fully at the end of the month
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#23
My idea for credit cards: I would only use them to buy things I know I have the money to pay back on the first bill. Small stuff, like groceries. That way, you can build good credit and won't be anally raped by interest rates
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#25
Quote by captaincrunk
No, because this doesn't show the ability to make consistent payments.

So if you are consistently paying off what you owe, this doesn't show you have the ability to consistently make payments? Doesn't make since to me, but I don't have a credit card and barely have a credit history at all so I'm not the most knowledgeable on this.
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#26
Quote by justinb904
So if you are consistently paying off what you owe, this doesn't show you have the ability to consistently make payments? Doesn't make since to me, but I don't have a credit card and barely have a credit history at all so I'm not the most knowledgeable on this.

You don't have a consistent "What you owe". If you pay it off to 0, that means very little. What you should do is keep a modest amount of debt relatively constant but shrinking, until you build enough credit to have a credit score, and just hold onto it until you're in the 650-800 range.