Credit Card?

[jimmy40]

What is a good credit card for a newbie like myself to start out with?

I'd say one of mine.

 

[Biggems]

if you really want a credit card.....get a gas card and an ATM card. leave all other credit cards alone.....they are nothing but trouble.

However, if you feel you must have a credit card, get one of those that offer 0% APR for a certain period of time. Get like a $500 limit. Max it out right away and pay it off within 6 months. Make sure to make each payment on time. One way to make sure is to go online and set up automatic withdrawals from your checking account each month. This way all you have to do is make sure there is ample money in your account for that transaction.

This should start you off on the right track credit wise.

but once again credit cards can be dangerous. If you are not financially responsible, they can have you sinking in the quicksands of debt.

 

[YosemiteSam]

And I disagree with this. You may want a credit history but you do not need one.

While true that you don't need credit history, you would be absolutely dumb to not build it. It defines how much you pay for things when you make major purchases. Cars, houses, etc. Your credit matters even if you don't use a credit card.

Completely 100% disagree. I NEVER worry about APR or any fees and love the rewards. If you're smart and pay your cards off in full every month then you don't have any interest to worry about, so all the rewards are 100% free. Most of my Blu-ray collection has been free because of the rewards from my main credit card.

I say find one that has rewards that would benefit your interests and pay it off in full every month. And the only time it's ok to not pay a card off in full is if you have 0% interest (This is usually at places like Best Buy) but you must be sure to not be late on your payments. Use the computer, set it up automatically so you can't forget.

You can disagree all you want. 99.9% of people don't pay off their credit card every month, so APRs DO matter. We do on most purchases. Large purchases we spread out over a couple months. (ie vacations)

 

[StanleySpadowski]

While true that you don't need credit history, you would be absolutely dumb to not build it. It defines how much you pay for things when you make major purchases. Cars, houses, etc. Your credit matters even if you don't use a credit card.


You can disagree all you want. 99.9% of people don't pay off their credit card every month, so APRs DO matter. We do on most purchases. Large purchases we spread out over a couple months. (ie vacations)

A credit history only effects the price if you plan on purchasing something on credit. If you really want a great deal, sit at the bargaining table with cash in your pocket. Compound interest works both ways so to say someone is absolutely dumb not to build a credit history is assinine. Never assuming debt is never dumb.


I do agree with you about the fact that most don't pay off their cards. Every time I see a credit card thread on any site, everyone pays off their balance every month. Everyone walks out of the casino either breaking even or slightly ahead also.

 

[YosemiteSam]

A credit history only effects the price if you plan on purchasing something on credit. If you really want a great deal, sit at the bargaining table with cash in your pocket. Compound interest works both ways so to say someone is absolutely dumb not to build a credit history is assinine. Never assuming debt is never dumb.

I want to see you purchase a house in my town with cash in your pocket. There are very few people on the entire planet that can purchase any house (or new car for that matter) with cash. Far fewer who can do it in the NYC area where houses in the ghetto start at $450k.

You attempt to buy a house without credit history and you are going to overpay so badly that you will get half the house you can actually afford. The only people that would finance you are those looking to screw you over.

It is completely asinine for you to claim it is not dumb to not build your credit. I think you should find another subject to talk about. You obviously don't know what you're talking about.

 

[JohnnyHopkins]

You obviously don't know what you're talking about.

Well if you ever watched his show you would already have known that!

 

[YosemiteSam]

Well if you ever watched his show you would already have known that!

I haven't. :laugh2:

 

[CoCo]

I'm very much towards the conservative end of the spectrum when it comes to money.

The only debt I have is a $57k mortgage on my $275k house.

I own a credit card, the rate is about 16% last I checked but it has no annual fee and in the roughly 20+ years I've had it I have paid less than $10 of interest due to overlooking a payment due date once. I have a couple auto-pays that are set-up to hit my card and use it whenever I need a couple weeks of float in my cash flow or when I want to more easily gather the costs of a particular project (like a vacation or back to school shopping). Otherwise, I don't use it. And again, its always paid off.

Since getting married (25 years this past week ) I have borrowed money 5 times. Original home purchase. Twice for used cars which I paid off within 12 months, once to invest in my employer (probably 2 years to pay that one off) and once when we took 15k out of home equity to finish our basement for our growing family.

Though I'm conservative, in each case I felt the borrowings were the appropriate balance to current situations. I am not an absolutist.

I am big into delaying gratification. The cars I borrowed for were to accomodate our growing family. One was a 1989 used van purchased in 1991. Its the only mini-van our family of 6 has ever owned. I drive it still today (both proud & embarrassed ). The 4 cars we've added since were all used cars paid with cash (8k, 5k, 12k, & 9k). I shopped forever it seems to find the right vehicles & deals since I knew they'd be long term purchases to equip my teen drivers.

We have always given 10% minimum of our income to our church in accordance with our beliefs. We sent our 1st 3 kids to private school for several years until we felt a transition was in order. We lived on one income for 18 years so my wife could be at home for our kids. Our family vacations have always been local but we have always been able to appropriately support the interests of our kids as they grew.

Saved college $ for each to the point their tuition & fees are covered for our local state university. They'll have to cover housing unless they stay at home or we can help further.

Its been a ton of saying no to the enticements screamed at our population daily by advertisers. Our kids have at times thought we were poor because of what they saw friends at school experience even while they got opportunities MANY others didn't. We weren't and aren't poor. We're disciplined. But I firmly believe we have struck the right balance for our particular lives and our kids (22, 19, 17, & 9) largely feel the same way. I explain our family finances to our kids whenever

We are thankful for the road we've been able to travel. Others I'm sure have had a far more difficult road with many fewer choices available through no doing of their own. Others have shipwrecked themselves, and still others have been able to have far more than us.

No two situations are identical. There are few absolute answers as a result. There absolutely are principles (like debt-free) that are very wise and incredibly helpful when you can put them in place. But debt-free by itself is NOT the best and only way to go.

Knowledge, wisdom, judgment and balance are great guides. But they are not always black & white.

 

[YosemiteSam]

I'm very much towards the conservative end of the spectrum when it comes to money.

The only debt I have is a $57k mortgage on my $275k house.

I own a credit card, the rate is about 16% last I checked but it has no annual fee and in the roughly 20+ years I've had it I have paid less than $10 of interest due to overlooking a payment due date once. I have a couple auto-pays that are set-up to hit my card and use it whenever I need a couple weeks of float in my cash flow or when I want to more easily gather the costs of a particular project (like a vacation or back to school shopping). Otherwise, I don't use it. And again, its always paid off.

Since getting married (25 years this past week ) I have borrowed money 5 times. Original home purchase. Twice for used cars which I paid off within 12 months, once to invest in my employer (probably 2 years to pay that one off) and once when we took 15k out of home equity to finish our basement for our growing family.

Though I'm conservative, in each case I felt the borrowings were the appropriate balance to current situations. I am not an absolutist.

I am big into delaying gratification. The cars I borrowed for were to accomodate our growing family. One was a 1989 used van purchased in 1991. Its the only mini-van our family of 6 has ever owned. I drive it still today (both proud & embarrassed ). The 4 cars we've added since were all used cars paid with cash (8k, 5k, 12k, & 9k). I shopped forever it seems to find the right vehicles & deals since I knew they'd be long term purchases to equip my teen drivers.

We have always given 10% minimum of our income to our church in accordance with our beliefs. We sent our 1st 3 kids to private school for several years until we felt a transition was in order. We lived on one income for 18 years so my wife could be at home for our kids. Our family vacations have always been local but we have always been able to appropriately support the interests of our kids as they grew.

Saved college $ for each to the point their tuition & fees are covered for our local state university. They'll have to cover housing unless they stay at home or we can help further.

Its been a ton of saying no to the enticements screamed at our population daily by advertisers. Our kids have at times thought we were poor because of what they saw friends at school experience even while they got opportunities MANY others didn't. We weren't and aren't poor. We're disciplined. But I firmly believe we have struck the right balance for our particular lives and our kids (22, 19, 17, & 9) largely feel the same way. I explain our family finances to our kids whenever

We are thankful for the road we've been able to travel. Others I'm sure have had a far more difficult road with many fewer choices available through no doing of their own. Others have shipwrecked themselves, and still others have been able to have far more than us.

No two situations are identical. There are few absolute answers as a result. There absolutely are principles (like debt-free) that are very wise and incredibly helpful when you can put them in place. But debt-free by itself is NOT the best and only way to go.

Knowledge, wisdom, judgment and balance are great guides. But they are not always black & white.

What does this have to do with oranges?

j/k :laugh2:

 

[Kevinicus]

What does this have to do with oranges?

j/k :laugh2:

They're better than apples.

 

[CATCH17]

I took everything everyone said into consideration and I just went and got a credit card and maxed it out at the ATM and went to a near casino and bet all of it on the Cowboys winning the Superbowl.

Thanks for all your help guys!

 

[Tusan_Homichi]

I took everything everyone said into consideration and I just went and got a credit card and maxed it out at the ATM and went to a near casino and bet all of it on the Cowboys winning the Superbowl.

Thanks for all your help guys!

You are well on your way to fortune!

 

[VietCowboy]

When I was 16 or 17, I got a credit card from citi where I had to put money into it before I could use it (kinda like a debit card), but it citi canceled that card program a year or two later.

I bought a house last year (with my mom), and while my credit was good (740+), the history wasn't very long (less than 5 years), so we couldn't get the best rates out there. Still, we recently refinanced, and dropped the rate 1% since (although not the best rate b/c we went with no-cost refinance, but it was no hassle, closing at home, so we were fine with it)

I will have to say my favorite credit card is my Citi Forward. Great perks, no annual. Just for opening it, I got 11,000 in points (=$100 gift card to Macy's + 1000 points left over). I also get 5x points for restaurants, when I spend $300 each semester in books, or go to the movies. I pay everything off each month, so I don't take advantage of this, but they reduce your APR when you pay on time every three months or something.

I also have an American Express card for electronic or other big purchases b/c they add on an extra year of warranty, which is awesome. But, that's all I basically use it for.