getting my first credit card

[thekunk07]

^that is not a very good idea

 

[unjung]

Originally Posted by Threak

This thread just gave me a really good idea.

Get a card with a 30+% APR.

That way, you'll make sure you always pay it in full, but if it's really an emergency, you can still carry a balance over until you can pay it off.

I suck at economics but I'm pretty sure that's a terrible idea.

 

[cchen]

Originally Posted by rjakapeanut

i'm not ignoring their advice. i intend on paying the entire bill off each and every month.

my next question (the one i asked several posts ago) is: what should i look for in a card if i am interested in sometimes floating a balance?

it's your first card. you're going to get a terrible rate no matter what

 

[Ludeykrus]

You're going to have a ridiculous rate no matter what. People with good, extensive credit history are getting screwed right now. A student getting any credit easily is a godsend.

That said, look for no annual fees. You're going to get a **** interest rate, but get the best you can. ALWAYS pay in full every month.

But keep in mind, there are two main advantages of having a credit line: building a credit history, and being able to float a balance when bad times come. The first is paramount. You simply don't understand how much a good credit history will help you in the future, so take the advice of a few strangers and sacrifice your firstborn to keep this good. The second benefit is great when something comes up or bad times hit. When you have a decent full-time job and they suddenly cut your benefits and hours down to 10-20 hours a week, you may have to depend on a credit card or two to carry you till you can find better. If you can make it work, then credit cards may be the saving grace to your lifestyle.

Then again, if you're an immature prick, they could put you where you deserve. Be wary.

 

[Kempt]

I'm not in banking, but a friend that works at a regional bank told me that carrying a balance on a credit card that shows a history of paying down the principal and not just the interest can actually be a positive when it comes to loan approval. Within reason of course, your credit-to-debt ratio on the card(s) are also a factor among other things. I've also heard it can actually improve your credit score, albeit you are essentially throwing money away in the process.

 

[willpower]

Originally Posted by thekunk07

don;t do it. is the devil. pay cash.


kunk speaketh truth

It destroys your chance for a better future. Don't float a balance. Don't.

 

[BeeZee]

Apply for a cc at a reputable local bank. Try looking for one with rewards that you can advantage of. It's usually best to use about 20-30% of your credit limit. Pay the balance in full every month. There's just no need to pay any more then you need to. About every 6 months you can call the cc company to raise/lower you credit limit and decrease your apr.

I've been doing this since I first got my cc and my credit score is very good. GL.

 

[dtmt]

I don't get all the hat0rz. On my card I get 5% cash back on groceries and 1% back on everything else, I don't need to worry if I forgot to go to the ATM or whatever, and if my wallet ever gets lost/stolen it's just a quick phone call and I'm out nothing.

Just treat it as you would cash and you'll be fine, pay the bill on time every month and you'll build good credit.

 

[CrocsRock]

As long as you pay it off every month, credit cards are great and the interest rate shouldn't matter.

I'm still on my first credit card. No annual fee, 1% back, $500 initial limit. Within about two months, I called my bank and bumped it up to $4000 (enough for normal monthly spending plus adequate room for emergencies). I use my credit card on every purchase because of that all important 1% back. I make sure to pay the card by the end of every month (I prefer not to test the 21-days you have to pay, and simply pay it regularly every four weeks).

At the end of the year, it's nice to get that 1% back to take a little sting out of the Christmas bills.


Regardless of which card you get, just pay it off. Don't carry a balance.

 

[slycedbred]

there are some pretty close minded responses in this thread -- "don't EVER float a balance"...What? You kidding?

 

[TylerDurden]

Pay off in full every month. Treat it like its cash, don't spend it if you don't got it.

 

[HgaleK]

Look for benefits that will mean the most to you. As long as you pay it off every month, a credit card is a much better way to go than cash. Cash doesn't get you bonuses or airline miles, and does absolutely nothing for your credit score.

Also, don't consider floating a balance as an option. If **** happens, it does, and it can be dealt with then. But thinking that it's fine to float a balance is how you end up in the same position that much of the rest of the younger population with credit cards is in.

 

[dsbkoko]

If you care at all about your credit score, don't ever carry a balance. And get a card you can keep for a long time, each time you open a new card, or cancel a card, your credit score takes a hit. Each time you get your credit score checked, it takes a hit. So don't apply for those BB Cards that get you 15% off, or any of that crap. That could cost you a point or two on your mortgage, which over the life of your mortgage will be like $50,000. Think about it.

 

[DJ MAC]

Originally Posted by turboman808

Sure don't use it ever. If you cannot afford something then don't buy it.

I know so many young kids who get credit cards in college and by the time they get out they have 5-10 grand in debt. Then they need furniture or a car to get their life started. By the time they are 25 they have 30 grand in credit card debt.

Any slip ups and the ARP is bumped to 20 or 30%. You could end up paying 10 grand in interest a year.

You may miss a trip or 2 to Cancun but not owing any money to anyone is one of the best feelings in the world.

I hit a rough slump in my life and am still a student so I've added myself to the group who find themselves in debt...hopefully I'll be able to pay them all off by the end of the year if not sooner but wiser words have never been spoken

 

[DJ MAC]

Originally Posted by Threak

This thread just gave me a really good idea.

Get a card with a 30+% APR.

That way, you'll make sure you always pay it in full, but if it's really an emergency, you can still carry a balance over until you can pay it off.

I'll be the next person to disagree with this genius idea