Jill Sandwich
the turds of Optimus Prime
Code:
10 Do not get a credit card. That's what everyone told me, but I still got one. They were right.
20 DO NOT GET A CREDIT CARD.
30 GOTO 10
Just turned 18, time to get a credit card!
- Thread starter Nitsuj23
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I guess you have a point, as long as there's responsibility behind it. I don't know, but thinking of using a CC to buy GTA4 and other non-necessary stuff when you don't have the money to pay it all back (I think that's pretty much how the OP described his situation) doesn't strike me as responsible, hence why I would prefer a more careful approach with a debit card.XiaNaphryz said:
But hey, it's not my money.
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Oh I agree, using it for something like a game purchase just because you don't have enough money isn't something I was supporting in any of my posts. However, if you're responsible enough to use a debit or ATM card right, you could also buy the game with a credit card and then make an electronic payment the next day to pay it off - assuming you have enough spare cash to cover it of course.Pterion said:I guess you have a point, as long as there's responsibility behind it. I don't know, but thinking of using a CC to buy GTA4 and other non-necessary stuff when you don't have the money to pay it all back (I think that's pretty much how the OP described his situation) doesn't strike me as responsible, hence why I would prefer a more careful approach with a debit card.
But hey, it's not my money.
XiaNaphryz said:
I don't think many are saying never get a card. I'm sitting on one with a $12k limit. The problem is that you shouldn't be getting a card because you can't pay for something that costs about $65. Basically that means he doesn't have any income or already has issues with his spending. A credit card should not be his solution.
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
True, that's what several of the posters here mean - however, this is GAF and people would only realize that if they read the entire thread to get proper context.Ceres said:
My posts were more targeted towards general skimmers who won't really read any of the posts.
Pterion said:I guess you have a point, as long as there's responsibility behind it. I don't know, but thinking of using a CC to buy GTA4 and other non-necessary stuff when you don't have the money to pay it all back (I think that's pretty much how the OP described his situation) doesn't strike me as responsible, hence why I would prefer a more careful approach with a debit card.
But hey, it's not my money.
The guy has little or no money, with a debit card he can't buy stuff unless he has money anyways... So I don't get it. What the OP needs is a job.
Are you going to a good college? Do you have a good work ethic? Are you planning on becoming an engineer, financial professional, lawyer, doctor, etc.? If so, go right ahead and start signing up. 20k debt? Who cares? You'll be able to pay that down with the overtime you work in your first summer internship. Might as well live a little nicer now.
On the other hand, do you want to be a game designer? Journalist? Artist, actor, teach English in Japan? Going to college cause your parents think you should? Have no idea what different majors make and picked one cause it sounds interesting? Don't touch that credit card, you're already staring at bankrupcy without one.
On the other hand, do you want to be a game designer? Journalist? Artist, actor, teach English in Japan? Going to college cause your parents think you should? Have no idea what different majors make and picked one cause it sounds interesting? Don't touch that credit card, you're already staring at bankrupcy without one.
First rule of owning a credit card:
Don't spend money you don't have.
Think of a credit card as a convience that keeps you from carrying around too much cash and assists you in certain transactions (like paying online).
"Buy now, pay later" will damn you.
Don't spend money you don't have.
Think of a credit card as a convience that keeps you from carrying around too much cash and assists you in certain transactions (like paying online).
"Buy now, pay later" will damn you.
Ignore these losers.
Get 3 cards while u can (jsut incase u fuck up n ppl wont give u another one later down the line), get the GTAIV with one, xbox360 or any other system you DONT have with the other, and a new HDTV with the third one.
What these IDIOTS arent telling is the more cards u have the better your credit score will be, just dont close them down when you're done payin off your new dope shit!! yeah man! go buckwild..
you will thank me later when u are buyin a house or car and they are like, damn yo you have solid ass credit dogg.
Get 3 cards while u can (jsut incase u fuck up n ppl wont give u another one later down the line), get the GTAIV with one, xbox360 or any other system you DONT have with the other, and a new HDTV with the third one.
What these IDIOTS arent telling is the more cards u have the better your credit score will be, just dont close them down when you're done payin off your new dope shit!! yeah man! go buckwild..
you will thank me later when u are buyin a house or car and they are like, damn yo you have solid ass credit dogg.
N
NinjaFridge
Unconfirmed Member
ZealousD said:
Correction. First rule of having money.
Seriously get a debit card if you are desperate to buy GTA4. I have one which i only use to buy stuff online and always keep some money on it for emergency. Works perfectly.
Sorry, the first post did seem a little immature. I was joking about the GTA thing, and my job is average for a teenager I guess, I make $8.00 an hour. I want to know if it's a smart thing to start building credit. I don't plan to make many purchases with it, just things to get my credit going. I really have no clue how this works. Like what APR would be considered good, etc.
voodoojohn
Banned
I'm entering my last year of college and have had a credit card from the start. I use it for basically everything I can and pay off my statement in full every single month. If this is your plan and you can stick with it, then having a CC will definitely make things easier on you and be beneficial in the long run.
Don't worry about APR as it won't matter given you stick to that plan. My Wells Fargo card started out at 25% APR with a $700 credit line and since I've been making my payments in full, they bumped the limit up four separate times and it currently sits at $2700. My APR has been slashed to 10%.
I only partially agree with the "don't spend money you don't have" rule. It kinda obliterates the flexibility a credit card gives you and makes it a glorified debit card. If you keep a constant job and know about what you'll be making and when you'll be getting it, you can work the system pretty well:
Say your billing statement is issued on May 2nd. That essentially means everything you bought on your CC in April is tallied into a bill that you have to pay off about one month after the bill is issued. So let's say in this scenario, you have to pay off this bill by June 2nd. That means everything you buy on your credit card after May 2nd will be included in next month's bill, which won't have to be paid off until July 2nd.
If you find yourself strapped for cash at the beginning of the semester because of books or whatever, a credit card will really relieve a lot of stress as long as you have a job and know the money's coming in soon. Using the system above, I'd go without books of my own for about a week or two (until the next billing statement was issued), then buy all my books on my CC... basically giving myself two months to come up with the cash. I do the same thing with big purchases like computers and consoles.
Don't worry about APR as it won't matter given you stick to that plan. My Wells Fargo card started out at 25% APR with a $700 credit line and since I've been making my payments in full, they bumped the limit up four separate times and it currently sits at $2700. My APR has been slashed to 10%.
I only partially agree with the "don't spend money you don't have" rule. It kinda obliterates the flexibility a credit card gives you and makes it a glorified debit card. If you keep a constant job and know about what you'll be making and when you'll be getting it, you can work the system pretty well:
Say your billing statement is issued on May 2nd. That essentially means everything you bought on your CC in April is tallied into a bill that you have to pay off about one month after the bill is issued. So let's say in this scenario, you have to pay off this bill by June 2nd. That means everything you buy on your credit card after May 2nd will be included in next month's bill, which won't have to be paid off until July 2nd.
If you find yourself strapped for cash at the beginning of the semester because of books or whatever, a credit card will really relieve a lot of stress as long as you have a job and know the money's coming in soon. Using the system above, I'd go without books of my own for about a week or two (until the next billing statement was issued), then buy all my books on my CC... basically giving myself two months to come up with the cash. I do the same thing with big purchases like computers and consoles.
voodoojohn said:
That really helped me. When I move to college in August I'm going to have to find a new job, but I don't think that will be too hard with campus jobs, or local stores. So of course I would have to slow down spending when I move in and get settled, but after that I know I can be responsible with money. I rarely buy anything as it is, it just seems if I can carry around a credit card for the small things I do purchase, and better my credit while doing it, there's no reason not to give it a try. I would never ruin my credit for the rest of my life because of making irresponsible money decisions when I'm 18.
voodoojohn
Banned
I would advise you not get a credit card until you have found a job in college. You should also open a high APY savings account like ING's or if you qualify for it, a rewards checking account like Charter's and put 1/5 of each of your checks into the account. It's a safe way to basically get free money and leaves you with a safety net in case you do fuck up with your credit/lose your job/transfer to another college, etc...Nitsuj23 said:
The one thing I would tell you to compare when looking at credit cards is their rewards programs. My Wells Fargo card gives me enough rewards points so that I can get a free $100 gift certificate to Amazon every year. See if you get cash or points and if it's points, make sure to check out what their rewards catalog offers. If you go to college further away from home, I'd suggest getting a Southwest Airlines Visa or something.
voodoojohn said:
Hmm, I've never heard of those things you suggested. I'll have to look more into it. This is a lot of info, I hope my mom knows what she's talking about. Maybe she can tell me more about what you're talking about. Right now I have nothing in terms of a bank accout/checking account, I don't even know if those are the same thing. I sound like an idiot...
VPhys said:
The entire purpose of having credit is to spend money you don't have. People say: Oh, get a credit card to build credit but pay it off every month! So why are you building credit? Thats right, to spend money you don't have (ie Mortgage, Car Loan, etc). If you are afraid of spending money you don't have, there is absolutely no point to building credit.
You have to go pretty far overboard to really screw yourself with credit card debt. Sure, there is a price to pay for carrying a balance so it obviously makes for a terrible move financially but its not the end of the world. I'm sure you make tons of terrible financial moves on a daily basis.
I'm not saying credit cards are for everyone. You can destroy your credit and owe people money for a long time if you're stupid and irresponsible. But carrying a balance every now and then doesn't make you any more stupid and irresponsible than someone buying a PS3 at launch for $599 instead of waiting 6 months for a price drop.
If you always keep around enough cash to cover the minimum payments (should be easy -- if you can't do this definitely stay away), the worst damage you can do is costing yourself some extra money in interest (since minimum payment means you're only paying interest and not reducing principle at all) which can be a small price to pay to get through a rough period.
voodoojohn
Banned
Right now, just get a student checking account with Wells Fargo or Washington Mutual (I avoid Bank of America). Whatever bank has the most ATMs around is the best. A basic checking account won't let your money earn interest, it's just somewhere to deposit your money. When you use your debit card, it will be drawing from that account. Just use that you until you start college.Nitsuj23 said:
During the first couple weeks of college, there will be reps from banks setting up stands to lure students. If you open a checking account with a big bank, chances are one of their reps will be there. You can tell them you have an account with them and that you're interested in getting a credit card. You'll be approved for a student card pretty easily.
Now I suggest that once you get a job in college, you should set aside 1/5 of each of your checks, deposit that into a savings account (which lets your money grow), and just don't touch that money unless an emergency comes up. The banks I mentioned earlier offer services with interest rates far higher than conventional savings accounts, because everything is done online. You don't deal with a physical bank. Now, earning 3 or even 6% interest when you're making a few hundred bucks a month won't mean that much, but it's free to open one of those accounts... so why not?
If you're responsible and no emergencies appear, you can dip into that savings account and buy yourself a nice TV in a couple of years
Credit cards should be called debt cards because using them creates a debt which increases the longer you don't pay. I agree with everyone who says not to get a credit card because I had many, bought lots of stuff with them then was miserable for years trying to pay them off. Now that I have zero credit card debt I no longer live pay check to pay check and have spare money each month to buy what I want AND deposit some into savings to build my equity.
Consider this: If someone gave you $50,000 in cash to use as you like and never pay back for the rest of your life, would you take it or throw it away? Getting a credit card at 18 is like throwing it away because you'll spend much more than that in interest over your lifetime.
Consider this: If someone gave you $50,000 in cash to use as you like and never pay back for the rest of your life, would you take it or throw it away? Getting a credit card at 18 is like throwing it away because you'll spend much more than that in interest over your lifetime.
Cauliflower of Love
Banned
It's free money.
FREE MOTHERFUCKING MONEY!
FREE MOTHERFUCKING MONEY!
jmdajr said:
I disagree.. the price of everything is probably going to just continue to go up. I bought myself a German piano for $14,000 because the wholesale price for a comparable instrument was about to go up to $19,000.
But GTA.. well.. that'll be $20 in about a year or so.
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Not quite. While I agreed this is a good routine to follow in my previous posts, it's primarily when you're starting out. Once you're confident in being responsible with your finances and have a steady income, you can start planning on bigger purchases beyond your current cashflow...that's the point of having a larger credit limit. Buying things like a new refrigerator isn't something you can necessarily save cash for easily.VPhys said:
It's okay to blow $1500 on a large purchase if you plan ahead on how to pay it off in a reasonable amount of time and accounting for recurring bills, savings, and possible emergencies. For example, if you figure that you can afford to pay off a $2500 HDTV in 6 months including your other regular expenses while putting a little away in your savings as well as a little bit of extra on the side for emergencies, go for it. Just remember to not pile up more charges on your account on impulse purchases until you pay it all off. If you're thinking of paying it off in 6 months without taking all that extra stuff into account, forget it - you might end up only able to afford the minimum monthly payment if something comes up.
The key to everything in finances is being responsible and planning ahead. If your college offers a personal finance course, take it. It'll be one of the few courses you'll actually end up drawing knowledge from long after you graduate.
If you don't get credit cards you're kind of dumb. People who advice you to not get them are smart and dumb at the same time. Once someone gets it, they can't control themselves; free money. Those who choose to get them are afraid to be like them.
I for one have them but I use it to build credit. When I purchase with a credit card, it's just like paying with cash or debit card. As soon as I buy something with it, I make sure I have the money for it at the moment or will have it for sure and can pay off the entire bill when it arrives. It's a simple way to build easy credit.
The only reason you would not get one is because you are afraid of getting in debt not that you are smart to not be in debt. Because if you were smart to not be in debt, you would have one.
I have a monthly budget, I've been working with credit cards for five years and not once have I not paid the full amount right away. It takes a lot of practice.
I for one have them but I use it to build credit. When I purchase with a credit card, it's just like paying with cash or debit card. As soon as I buy something with it, I make sure I have the money for it at the moment or will have it for sure and can pay off the entire bill when it arrives. It's a simple way to build easy credit.
The only reason you would not get one is because you are afraid of getting in debt not that you are smart to not be in debt. Because if you were smart to not be in debt, you would have one.
I have a monthly budget, I've been working with credit cards for five years and not once have I not paid the full amount right away. It takes a lot of practice.
JzeroT1437
Member
Don't fucking do it. Just don't.
Seriously.
Don't.
Seriously.
Don't.
Captain Sparrow
Banned
I don't care what ANYONE says. The first thing everyone should do at age 18 is get a credit card.
Everyone is quick to push the blame onto someone else no matter what the issue. Credit cards don't cause debt, the stupid consumer causes debt. I don't care if it's credit, cash, rupees, or fur. Don't spend more than you have.
The reason you want to start early is to build a history. You'd be suprised how much money you would save on a home loan because you started to build credit earlier.
I never ever use cash or check. I don't have to carry around money thats irreplaceable and EXTREMELY DIRTY. I have extended warranty, purchase protection, rewards, as much money as I need, etc.
Everyone is quick to push the blame onto someone else no matter what the issue. Credit cards don't cause debt, the stupid consumer causes debt. I don't care if it's credit, cash, rupees, or fur. Don't spend more than you have.
The reason you want to start early is to build a history. You'd be suprised how much money you would save on a home loan because you started to build credit earlier.
I never ever use cash or check. I don't have to carry around money thats irreplaceable and EXTREMELY DIRTY. I have extended warranty, purchase protection, rewards, as much money as I need, etc.
Blackace
if you see me in a fight with a bear, don't help me fool, help the bear!
DeathNote said:
nothing wrong with establishing credit. But you don't need to do from 18. It is nice that you are so young and did it. But I would suggest getting a full time job and learning your means before giving yourself the ability to live outside of them
I buy absolutely everything on my credit card, and I pay it off in full every month. 55 days of free credit is great. That is how you're supposed to use a credit card. The company hates me, they keep expanding my line of credit to try and tempt me beyond my means, but it's been ten years now and they haven't succeeded.
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
It can go either way - you can either go with what I suggested or go the other way and put away money for 6 months and then buy it. The only difference is that you're not building any more credit with the saving route.Cyan said:
Again, my crucial assumption is you have a steady income - that implies your position is in some sort of stability. If you're unsure of a stable job for the next 6 months, you should obviously not plan a major credit card purchase you can't pay off right away.
Which is why I avoided that suggestion for first-time credit card owners. That suggestion was only for those that have matured in managing their finances and have a solid income, and was primarily a counter-point to "credit cards should only be used like cash."
Nitsuj23 said:
If there's one thing I'm certain of in this damned world, it's that GTA4 isn't going ANYWHERE. Wait 'til you have the money, and the first rule of credit cards is "Don't buy it unless you can pay for it, right now, with cash." Exclusions to that rule come very far and few between and are usually one time things, like you just got an apartment and need furniture.
Anyway, I'm with the others. You don't seem to be too clear on the concept quite yet.
Zefah said:
It's actually better for your credit score to NOT pay it off in full every month. You want to always have part of your credit being used, but you should only do 10% or less of what you can afford. It's weird, but true. Your credit score is based off the available amount of credit you have and the amount that you are using up. If they see that you always have a small amount of credit in use, but you pay on time everytime, your credit score will be faaaaaaantastic.
That's not to say payig in full is BAD, it's good! It'll just hurt your score, slightly.
way more
Member
I don't know if I'm qualified to give advice. I got a credit card when I turned 18 and I paid that mother off every month until I turned 22. Then I fucked up and suddenly was one grand in the whole with no income. I think the proper thing to do is wait until you have a real job and reliable income as weill as the drive to want good credit.
XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Some credit cards only charge interest if your balance is over a certain amount, but in most of these cases the max balance for that is pretty low.okno said:
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