Just got my first credit card... tips?

1,643
544
Joined Aug 8, 2005
[h1]Bank of America[sup][emoji]174[/emoji][/sup] Student Platinum Plus[sup][emoji]174[/emoji][/sup] Visa[sup][emoji]174[/emoji][/sup] Credit Card[/h1]

14.24% variable APR

No annual fee

No rewards

21, just got my first credit card.  surprisingly, they gave me $1500 credit limit  (no income except for financial aid reported) 


basically...just use it to pay off my monthly expenses and pay the balance in full every month?  or is that not beneficial for building credit?

also, does this mean if I use all of the $1500 credit limit and pay just the minimum, the interest charge on the balance would be the full 14.24%...adding about 200 in interest charged onto the balance for the next bill?

if not, can someone explain the APR for me?
 
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Joined Jun 7, 2006
I would just use it for gas and food. Then pay it off every month. Keep it there for ergaencies too.
I use my cc for small bills like Netflix, Hulu, etc..
 
958
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Joined Aug 2, 2008
Be Smart. 1500 thats wow.
Like you said 'No income' then I wouldn't touch this card unless its an emergency. Don't spend money, you don't have.
 
10,760
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Joined Apr 30, 2011
Originally Posted by NikeAirForce1


[h1]Bank of America[sup][emoji]174[/emoji][/sup] Student Platinum Plus[sup][emoji]174[/emoji][/sup] Visa[sup][emoji]174[/emoji][/sup] Credit Card[/h1]

14.24% variable APR

No annual fee

No rewards

21, just got my first credit card.  surprisingly, they gave me $1500 credit limit  (no income except for financial aid reported) 


basically...just use it to pay off my monthly expenses and pay the balance in full every month?  or is that not beneficial for building credit?

also, does this mean if I use all of the $1500 credit limit and pay just the minimum, the interest charge on the balance would be the full 14.24%...adding about 200 in interest charged onto the balance for the next bill?

if not, can someone explain the APR for me?
son......14.24% APR.  google what the A in APR is. 
 
860
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Joined Jun 5, 2010
Originally Posted by MHT214

Cut it up and throw it away.
srsly this is the best advice.  u won't understand it tho.. so if you must.. ask the banks to keep your limit low ($500 and less).
 
1,643
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Joined Aug 8, 2005
Originally Posted by Based Mod

Originally Posted by NikeAirForce1


[h1]Bank of America[sup][emoji]174[/emoji][/sup] Student Platinum Plus[sup][emoji]174[/emoji][/sup] Visa[sup][emoji]174[/emoji][/sup] Credit Card[/h1]

14.24% variable APR

No annual fee

No rewards

21, just got my first credit card.  surprisingly, they gave me $1500 credit limit  (no income except for financial aid reported) 


basically...just use it to pay off my monthly expenses and pay the balance in full every month?  or is that not beneficial for building credit?

also, does this mean if I use all of the $1500 credit limit and pay just the minimum, the interest charge on the balance would be the full 14.24%...adding about 200 in interest charged onto the balance for the next bill?

if not, can someone explain the APR for me?
son......14.24% APR.  google what the A in APR is. 
did it after I made the post..
so 3.9% of my average daily balance... not bad I guess.

and no.. I will not be cutting up the card.  I'm trying build my credit.
 
16,539
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Joined Jul 29, 2001
Like someone said earlier, if you can be disciplined enough to buy essentials (food, gas, etc.) and pay it off every month, then you're fine. That's a high limit for a first time card holder. I'd ask the bank to cap it at $500.
 
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Joined Jan 25, 2004
Just make sure to never miss a payment deadline. You can get effed in the A if you're late just once.
 
38,162
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Joined Jan 30, 2002
Yep if you are responsible enough it's not a bad thing. You have to build credit somehow, in turn you can mess up your credit if you don't make the payments. I trust you have your head on straight OP.
 
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Joined May 21, 2009
Just got mine earlier this week, different bank with a SLIGHTLY lower max. I have a plan already in place for it. My only question is, would it hurt my credit if I closed my account a year in after making regular payments and no remaining balances?
 
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Joined Apr 30, 2005
make sure you don't go over 30 percent of your limit.
but since you have no income you have no way to even pay the limit.

find a source of regular income first.
 

oh you mad

Supporter
12,774
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Joined Oct 28, 2007
Damn first CC? I'm the same age as you and have a Plat Amex

My advice, If you cant pay cash don't buy it. Carry a low balance and pay in full at the end of month.
 
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Joined Jul 10, 2005
You got a credit card without understanding APR???
 
 
 
Originally Posted by MHT214

Cut it up and throw it away.
Kid's gonna need to build a credit score sooner or later. Can't be relying on school loans and phone bills to do that.
 
 
1,643
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Joined Aug 8, 2005
Originally Posted by throwback1718

make sure you don't go over 30 percent of your limit.
but since you have no income you have no way to even pay the limit.

find a source of regular income first.
why shouldn't I go over 30% of the limit?

Originally Posted by dmbrhs

Like someone said earlier, if you can be disciplined enough to buy essentials (food, gas, etc.) and pay it off every month, then you're fine. That's a high limit for a first time card holder. I'd ask the bank to cap it at $500.
Why would I want a cap?
 
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Joined Apr 30, 2004
Maaaaannnn... you're not going to listen to anyone who has either A) been in that situation and screwed theirself over, or B) watched other people get in your exact situation and screw theirself over.

Just like so many of us didn't listen.

Cut it up, my dude. I wouldn't tell you anything I won't tell my son when he's your age (he's 4 now).

Yes, credit cards can help you build up your credit... BUT THE ODDS ARE THAT THEY WILL HURT YOU. Odds are you'll be right in line with everyone else calling credit counseling services 10 years from now, filing for bankruptcy because your school loans + credit card minimum payments are WAY more than your income.

"Damn... no gas, and I only got a couple bucks. OH SNAP... I just got that credit card! Chea!!" TURNS INTO "Damn... transmission went out. What the hell, man?! I don't have $1500 to get this fixed.
OH WAIT... yeah I do!!!
They just upped my limit to $5k!" TURNS INTO "Man, eff the damn laundromat and doing laundry at my mom's place. I just got approved for that new card with a $10k limit. I'm getting washer & dryer."

 
14,259
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Joined Aug 20, 2003
jus buy gas, groceries, shoes

things you can pay right off

closely monitor your interest rate
 
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i've had credit cards for years and have yet to pay a cent of interest. honestly i only use them so the companies don't close them on me.

you have to make sure to only put things on it that you can pay for when you make the purchase. the last thing you want to do is ruin your credit because it will cost you tons of money in excessive interest on larger purchases like a car, a house, etc. (assuming you even get approved). bad credit can also hurt you if applying for a job that has a lot of responsibility because it shows you can't be trusted.

credit cards are great to have for actual emergencies, but they aren't something to be taken lightly. if you don't have money but you really want food, that's not an emergency...its bad budgeting.
 
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Work on getting a source of income so you can pay the balance back and carry a low balance.

I wouldnt even use that card if i didnt have a way to pay it back
 
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Watch the movie "Maxed Out" before you use your card. And if you say it won't be me, trust me we all have.
 
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Waste money and make sure you can pay it off. Thats the only way to earn credit. Buy simple things. Thats all to it
 
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Credit is such a scam. I'm trying to buy a house right now, got prequalified like 3 months ago but now I found a house and can't even get one now because since then all my accounts (which were paid and in good standing, no negative whatsoever) have become more thsn 2 yrs old and thusly fallen off my report and I now have what's called a "0" score.

I got a Capital One just so they can report, but they failed to in the last 2 months so it's further holding me up.

But anyways, just stay on top of your credit card debt. Being that it's your first card though, you probably don't have high enough of a limit to get yourself into too much trouble. Best I could get was a $300 limit with 1% cash rewards and still have a $19 fee.
 
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