Never had a credit card before?

For just about anything you want to get off your chest about credit cards.
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Cardless
 
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Never had a credit card before?

Postby Cardless » Sun Sep 25, 2011 4:15 pm

I've been browsing but finally decided to join. I wanted to ask a few questions.

I have never had a credit card before and am not in debt. College student, but unfortunately not this semester. The bills in my name are paid on time. I keep getting all these credit card offers in the mail. I've been old enough to get a credit card for a few years but have not done so because I don't want to do anything stupid.

I'm contemplating getting a credit card with a very small limit and just using it for small but regular things, ideally the utility bill. Travel rewards and cash back on gas don't interest me at all. Cash back on groceries does.

All these horror stories make me hesitant though. I'm not sure how many cards I should have and how often to use them. I'm also unsure which card to pick.

If I had a credit card and I charged a small amount like $50 and then immediately paid it off with a debit card would that be a good idea or not? I'm not sure whether I should pay everything off in full immediately (which is what I really want to do) or whether that is a bad idea? Does anyone wait until they have enough cash to buy an expensive item, use their credit card instead, and then just pay the balance off immediately?


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Postby Money card » Mon Sep 26, 2011 8:34 pm

let's see If I can analyze the situation. since you are not in college this semester are you working anywhere? you should have only 1 for a while. I got my first card back in 89 and my 2nd in 1998 it was about 9 years between my Visa and Discover.

use them when you absolute need them if you live at home with your parents and they make you pay for your clothing. when you go to your mall a place like the gap would be ideal. when you go to the movies or the food court use cash for those places. like you were saying you don't want to do anything stupid.

The card I would suggest for you is your local bank a Visa or Mastercard. I don't mean Citibank or Bank of America. I mean Key Bank, Hudson Valley Savings, etc, or even Orchard Bank. try applying for one of these cards.

I wouldn't suggest paying off your credit card with a debit card, I would write a check. it's a great idea to pay your bill in full, i pay mine in full. I don't buy any expensive items and if I did I would use a credit card.

naomibatac
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Postby naomibatac » Tue Sep 27, 2011 5:09 am

I had my first credit card, a Mastercard which was issued by my bank, when I graduated from college. Just like you, I've heard horrible things about credit cards so I was careful in using mine. I only purchase items that I need and I know I can pay in full when the bill comes. I write a check to pay off my credit card. One advantage of using credit card is that when I need to purchase an expensive item at a certain time and I don't have the cash, I have my credit card to help me make the purchase.
[size=60]I don't have any relationship to the credit cards or companies discussed here. I am solely a regular member of this forum with no direct financial rewards from this site. My opinions are solely mine.[/size]

A mom of 3 and currently living life, and working for credit card helpline, a company dedicated to helping people get out of credit card debt.

Cardless
 
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Postby Cardless » Tue Sep 27, 2011 6:06 am

My father also suggested Orchard Bank. He seems to think it would be a better choice than Capital One. I just want to get one now so I can start building credit because apparently paying rent and utility bills on time does not improve my score.

Currently not working but trying to find a job with absolutely no success. Highly motivating to go back to school.

Two other questions. I wanted to use the a credit card to pay for a surgery for my dog which will be around $500 but am now worried that doing so would make my credit really bad. If I had a $500 limit, spent $500 on the surgery on a Monday, and then wrote a check covering the entire $500 right after would that be a good idea or a bad idea? (When I said paying by debit card what I really meant was writing an electronic check using my checking account.)

I also wanted to purchase something that would cost at least $2,000. Not now but whenever I can. I wanted to pay $1,000 down up front and then put the rest on a credit card and pay $100 or $150 a month. The problem is that it seems if I have a $1,000 limit I shouldn't be using more than $300 of it. Or maybe even somewhere around the $100 is wiser. I'm very confused about that.

I don't want to use the credit card for anything I don't already have the cash for in my pocket. If I don't use the credit card for a month or two is that bad as well? Should I be charging a minimum of $20-$50 each month?

And thank you guys!

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Postby Money card » Tue Sep 27, 2011 8:45 pm

in addition to hudson valley, Orchard TD bank is a good choice. if your dog needs surgery ask your father if he can help you out.
your not in college this semester , your having troubles finding a Job, ask if he can help out with your dog.

If he can't and theres no other solution then yes to your 500 dollar question.

If you don't use a credit card for 2 months that's ok sometimes theres a period when things are slow, It can happen at work, the grocery store, a doctors office and charging things on a credit card. some people and some places tend to be a little slow.

how much you charge a month is up to you , if you have a 500 or 1,000 dollar limit and 20 dollars is comfortable with you thats fine, if your comfortable with 50 bucks that's fine. what is not fine let's say you have a limit of 1,000 and you found a job charging 800 to 1,000 is not fine
once your credit card company sees this they wont raise your credt limit. The way you metioned is fine.



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