hey someone explain to me how credit cards work because I just got like approved for two credit cards and they're my first ever
I like!
No thanks!
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56 commentsReplies
Hena said, (37 days ago)
I don't really have a need for them besides the fact that I want a credit file
and an iPhone.
Combustible Monkey said, (37 days ago)
And once you screw up your credit, it's screwed for a long, long, long, long time.
more pepper! said, (37 days ago)
i agree with combustie.
use them sparingly.
the best use i know of: use as auto-payments for any bills (phone, car, etc- or gas, since that's not a huge payment) and then pay off in entirety monthly. this will establish regular payments and thus good credit.
mizsarah said, (37 days ago)
Run don't walk, go rent/netflix the movie Maxed Out. Yes, it's good to have one credit card so that you can establish a history, but do not use it for things you can't pay off immediately, like the Monkey said. Also, read the small print. There may be yearly charges, overage charges, late payment charges, and they don't have to warn you before raising your rates. Remember, they get paid when you're in debt.
Combustible Monkey said, (37 days ago)
That said, Hena, your plan seems pretty solid.
If only I'd been that sensible when I got MY first cards.
Machined said, (37 days ago)
what monkey said. credit cards are great but you have to be on top of things. Fees and high APR's are what will kill you if you get in trouble.
Machined said, (37 days ago)
what's fun though is after a while when you have access to a ton of credit and they let you write checks to yourself at 0% interest. then if you want you can actually make money off your credit cards instead of vice versa
Stereotest said, (37 days ago)
There was a commercial that I saw some time ago, with a guy who goes:
"My life is great - I have a big family and a nice house! How did I do it? I'm in debt up to my eyeballs! Somebody help me!" (and he still looks happy when he's saying those last words)
You know.
Hena said, (37 days ago)
YOU GUYS I have a good job and because of that I have money! Do not worry about me because I will pay off these things like asap!!!
H55 said, (37 days ago)
Yeah, what everyone said. I'd also check the interest rates on your credit cards, and the fees for latel payments. One reason credit companies are so willing to give out cards to 20somethings with no credit but gainful employment is that they figure they won't default, but they'll be late with payments. Late payments = free money for credit card companies.
Also, you're going to want to keep the amount you charge on each card relatively steady from month to month. Credit agencies like it when people are boring. Boring is predictable, and boring means no bad scores.
ilikedginger said, (37 days ago)
Honestly, if you want to improve your credit for loans and stuff in the future, we look at installment credit a lot more than revolving. Go finance some furniture or something.
IceOwl said, (37 days ago)
Also also also what CM said. If you don't have it real monies, don't spend it in credit monies unless you are absolutely sure that you can pay it off before the next payment date. If you rack up debt, the credit card company makes money, and that's bad.
In order to prevent massively bad spending habits, only sign up for a small credit limit of say $500. If you're taking out more than this in credit, you might want to consider a bank microloan anyway.
One more tip: apparently, if you call the 1-800 number on the back of the card and ask for a rate reduction, it's pretty likely they'll give you one as long as your credit rating is good.
the way i get by said, (37 days ago)
use them in
a.) emergencies
b.) paying for shit online
and pay them in full right away
Hena said, (37 days ago)
I ONLY GOT THESE CARDS BECAUSE I WANT A FUCKING IPHONE SHEESH
They're the student American Express and that Facebook Chase+1 cards
the way i get by said, (37 days ago)
also if you can avoid temptation and you earn some sort of rewards like points or cash back or something use it for any sort of constant payment like bills or gas and pay them back right away to reap the benefits
Hena said, (37 days ago)
There's this group on Facebook called Chase+1, I don't know how I found it years ago but I did and I just recently applied and bam
Hena said, (37 days ago)
I got a free Facebook card holder a few years ago 'cause I joined that group
more pepper! said, (37 days ago)
i started out with a $500 limit, and now my credit limit (total, between two cards) is about $35,000.
i currently have $1400 on my discover card (since they give me cash back bonuses!) and that's it.
Centropomus said, (37 days ago)
If you want to establish good credit, you should pay off your full balance at least half the time, but whenever you make a big purchase, leave half of it until the next month. This way they decide that they can make money on you if you borrow more, so they raise your credit limit. Your credit score is based in part on your balance/limit ratio, so you're better off with a small number of cards that you progressively get higher limits on, than a bunch of cards with low limits.
Carlo said, (37 days ago)
Oh, ok. That's not too far at all. I can train it there.
As for when is another matter.
artschooled said, (37 days ago)
Have you thought about going to the bank and asking for a direct debit type credit card? I have one and it's perfect, because it's just like a credit card but I only use the money I actually have in my account, so I never have to worry about paying things off immediately.
Hena said, (37 days ago)
what the eff is that
I have plenty of money in my bank account and I just want to have a credit card, that's all
Centropomus said, (37 days ago)
Debit cards don't do shit for your credit rating. Of course, that can be a good thing for some people.
Hena said, (37 days ago)
What's more important is the fact that apparently "Cecil" is pronounced "sessil" and not "seesil"
H55 said, (37 days ago)
I just beat IV advance and started VI again. I canNOT do IV again just because it is a pretty remake.
Hena said, (37 days ago)
But WHYYYYYYYYYYYY is it pronounced weirdly? I don't want to play this game anymore
H55 said, (37 days ago)
Makes me almost happy they are not "upgrading" the Trigger. Because if they mess that one up, H55 is gonna have to choke a bitch.
H55 said, (37 days ago)
I burned through it pretty quickly until I got the Lunar Whale. Then it was a grindfest that took me forever to finish.
Use with great care. Purchase only that which you are confident you will be able to pay for. Pay down your balances as quickly as you can. Above all: NEVER EVER EVER PAY LATE.