first time credit card user tips. come on in!

[sole lovely]

i'm 18 and i'm thinking about getting my first CC to build up my credit. i have pretty good discipline when it come's to money on cards. are thereany other tips?

 

[westroxbury011]

I think as long as you have the discipline, you're ready.

Don't make any foolish purchases, and you'll be good.

 

[jrdnsrnss]

Basically don't use the card if you don't have that amount or more in your checking account. A lot of people i know that were/are in debt used there CCwhen they didn't have the money and said "i get paid later this week". As long as you have some self control you'll be straight. Also if youcan pay off all of the card on each statement. I have never missed a payment on any of my cards and always pay it in full. Learned from my parents, therecredit score is around 810.

 

[sole lovely]

oh yeah, and im tyring to only use it for gas. just straight buy gas every week and that's it since i have my own checking account. i'm hoping if i canjust buy gas every week and pay my bill off every month that i can build up my credit

 

[elboricua 6]

1. Make sure you pay on time.
2. Don't max your credit card at any time.
3. If you plan on purchasing gas, clothes, etc with cash .. Use your CC and transfer or make the payment right away (Best if you have a rewards card).
4. Dont always pay your balance in full, a lot of creditors like to see history of payment. Meaning they want to see if you are responsible enough to makepayments over a long period of time on time. If they see you paying everytime in full its not a bad thing, but its not reflecting you are able to beresponsible to make timely payments every month for a period of X amount of time.

 

[israel5ekla]

So far all those tips are good and useful.

Now NT, talk to me about the BEST cc cards out there. Best interest rates, etc.

 

[fresh2death2004]

Originally Posted by sole lovely

oh yeah, and im tyring to only use it for gas. just straight buy gas every week and that's it since i have my own checking account. i'm hoping if i can just buy gas every week and pay my bill off every month that i can build up my credit

Buying gas with your CC is the WORST thing you could do. Don't put in gas unless you have cash on hand. Simple as that.

The only other tip to live by is to not use your CC unless you have the money to pay it back immediately, or within the near future (Near future being 2-3days). Don't get into the habit of spending money you don't have, or you'll be screwed

 

[elboricua 6]

^^^ Everything I pay for is paid by CC .. from a .25 candy bar to 400 dollar shoes. I have a rewards card and I have gotten use to paying for something andimmediatly making a payment online. Thats why I said if you have the cash put it on the card and transfer right away.

CC will depend on your credit score ... Being that you are pretty young I dont think your credit score is great .. so you might be looking to not so goodinterest rates or having to do a secure CC ... Do your research and please and I repeat please do not apply to multiple CC ..

If you do and you get approve to many CC all you are doing is making revolving CC for yourself and thats not good for your credit score or future loans orneed. If you keep getting denied all you have done is put multiple credit inquiries in your credit and that also looks bad on your credit report not to mentionevery inquiry deducts point from your overall score ...

 

[sole lovely]

why shouldn't i buy gas?

 

[yarrh]

trust me. i though i had discipline too. but since i got my cc several months ago i nearly maxed it out every month. u'll be surprised how much u spend. itdoesn't compare to cash.

 

[utvol23]

BEST ADVICE: DONT USE A CREDIT CARD!

 

[unphased4]

^^^ thats an ignorant statment. You need to use one to build credit if you want to purchase a home or car later in the future even to get lower interest rates.Just buy what you need on it and pay it off all at once. Thats what im about to do. I hate the idea of using a credit card but its just something you have todo.
Edit- I was replying to UTVOL23 not you jackiechizzan

 

[jackiechizzan]

Originally Posted by UTVOL23

BEST ADVICE: DONT USE A CREDIT CARD!

You have no clue what you're talking about.

But really, the best advice is this: Use a credit card like it's your debit card. This means to use the CC to pay for things that you can pay for whenthe bill arrives.

Also, you can take advantage of a ton of offers CC companies provide. Look for credit cards with sign-up rewards and dollar-spent rewards (ie. you get 1 pointfor each dollar spent, and each point is equal to about a penny.) It doesn't seem like much, but it DOES build up. I'm about ready to trade-in mypoints for my 4th $100 check from Citi, and I've only had this card for about 1.5 years.

 

[r33p04s]

Simply start out with one buy whatever but make sure you have the CASH to pay it off every once in a while leave a balance and pay it the next week....overtime they will raise your limit but DON'T raise your spending...I have 2 and a debit card and would never get any more than that...good luck

 

[r33p04s]

Originally Posted by UTVOL23

BEST ADVICE: DONT USE A CREDIT CARD!

swimming in credit card debit???

 

[crimsoncloudattire]

^^^ Everything I pay for is paid by CC .. from a .25 candy bar to 400 dollar shoes. I have a rewards card and I have gotten use to paying for something and immediatly making a payment online. Thats why I said if you have the cash put it on the card and transfer right away.
word. I do the same except I pay mine twice a month. American Express Blue Cash....5% cash back at grocery/gas/drug and 1% cash back oneverything else (after you spend $6500). (on pace to get a $500 check back at the end of the year).

People who are telling you never to use a credit card are either irresponsible, scared, or swimming in debt. I feel like with really good cash back rewardscard out there, why would I pay with anything other than a credit card. That's just leaving money on the table.

 

[grizzlyboy]

I work for Bank of America and if you go into a branch and open an account you can get 0% interest for 12 months. This will give you time to get use to it andbuild credit without getting hit with interest.

 

[utvol23]

Originally Posted by r33p04s

Originally Posted by UTVOL23

BEST ADVICE: DONT USE A CREDIT CARD!

swimming in credit card debit???

Nope and thats why I'm not because I dont borrow money except for very few things those being education or possibly a mortgage. Lots of other ways tobuild your credit if you really feel you need to besides using credit cards.

You guys really feel most 18 yr olds are financially responsible enough not to get him or herself into trouble?
Also studies have shown that by using credit you are likely to spend as much as 18% more on a purchase due to not having any emotional connection to thetransaction. Also you think that the companies are offering you rewards because it is in your interest? No its because they more than make up for it in feesinterest etc.

The average credit card debt in America is 10k and 60% of those using credit cards dont pay it off each month that means you are paying interest and a lot morefor your original purchase than you should

 

[1212theory]

CrimsonCloudAttire wrote: ..........

People who are telling you never to use a credit card are either irresponsible, scared, or swimming in debt. I feel like with really good cash back rewards card out there, why would I pay with anything other than a credit card. That's just leaving money on the table.


exactly. just dont overindulge. also, a good question to ask yourself when buying large price tag items is, "if i had cash, would i buy it?" thewhole point of that is to basically avoid spending what you don't have.

 

[la213espg]

Originally Posted by sole lovely

why shouldn't i buy gas?

You'll get charged more for gas if you use a cc, I just pay cash for it

 

[lilpro4u]

Everyone else gave pretty good advise.

But at the age of 18 it is going to be pretty hard to find a credit card issuer that would take the risk.

You said you already have a checking account (which means you belong to a bank or CU) Go to them first and ask if they have any student cc's, or"secured" credit cards. I was initially denied for my first credit card, but the branch manager override the underwriters decision and got meapproved. (This was in 04' so due to the current credit crunch im not sure if they still have the authority)

Warning I don't care how many "pre-approved" offers you get in the mail do not be tempted to apply for those cards. Do not waste a inquiry onthose credit card companies!

Visit creditcard.com, and theres a great message board out there called creditboards.com Join!

If you have any specific questions my inbox is open.

 

[retrochik]

Don't spend over 1/3 of your available credit.

 

[ucbearcats27]

I started off with a preapproved "student" card but it wasn't a secured one like lilpro is talking about. Just a basic CC with a $500 limit butI paid it in full every month. Still have it and the limit is now $2500. Got a card from my bank a while ago when the other limit was still $500, Ididn't want to put over $100 on it so I needed another one. Then American Express Gold so as of now I have 3 cards, and have never carried a balance onany of them.

I care about my credit score and all, but not enough to make payments vs. paying in full. I don't want to get behind and I like to start clean everymonth.

 

[wawaweewa]

If you're not a weak minded person than go ahead. You should have no problems.

 

[sole lovely]

Originally Posted by LA213ESPG

Originally Posted by sole lovely

why shouldn't i buy gas?

You'll get charged more for gas if you use a cc, I just pay cash for it

oh. i didn't know that

well i have a joint account with mom with my bank so i think i'll be ok with that. with my bank they said they're offering me 0% interest for 6months. so idk if not now then when?