Is a credit card with a small credit limit useless?

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shoptalk01
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Is a credit card with a small credit limit useless?

Postby shoptalk01 » Sun Aug 12, 2012 8:40 pm

What can you really use a credit card for that has a low limit say $200 to $300? I always thought of credit cards more for major purchases and a debit card for the small things, but most debit cards with a $300 to $500 daily spend limit put this credit card to shame.

Spending $75 per month with a $200 Credit Limit is really pushing it as far a credit utilization goes. I always thought it was funny someone would pull out their plastic at the quick shop for a doughnut and soda. I've seen people use plastic for things under $1, but have no clue if they use debit or credit cards.

I really just wanted a couple of cards to get some credit built up, but I had hoped for a bit more credit.

on the same note, is there any difference using a debit card or credit card when paying at say Burger King? Give me a whopper, a shake and put it on my plastic??? I was always told never to use credit like that, but with only $50 to play with, what else am I going to do?


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Postby Money card » Sun Aug 12, 2012 9:17 pm

Let's see if I can answer this correctly, you live in Nebraska if your looking for suggestions for 200 a month

you can eat out at a chain restaurant like Ruby Tuesdays, Fridays or Buffalo wild wings.
you can go to your department stores like JC Penny or Sears and you can buy some clothes or wallets.

Bed bath and beyond has some nice picture frames don't know if you need any but they should cost anywhere from 14.00 to 21.00

any family member celebrating a birthday if so you can get a Barnes and nobles gift card, if nobody is celebrating a birthday to use your credit card you can purchase a Barnes and nobles gift card for yourself.

let's say somebody went to Burger King if they use a credit card they get points all Debit cards except for special ones don't earn points or miles. so if some body went in with a capital1 debit card they would get no points , if somebody uses a capital1 venture card they get 1.25 miles per dollar spent gold version 2 on the Blue and every credit card has different points and rewards .
with the debit card it comes directly out of your checking account, with a credit card purchase at Burger King when your statement gets sent to your home depending upon the closing date and the date you purchased a meal is when you will get that charge.

if you don't pay your credit card in full and your 0% interest intro is over you would pay interest , with a Debit card there's no interest and no points/miles.

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FastSRT8
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Postby FastSRT8 » Sun Aug 12, 2012 10:04 pm

you have to remember... you need to start from somewhere. Granted you are on the 'ground' floor BUT keep maxing it out and paying it in full each month. That will build credit history and with that a higher limit.

So go ahead, pay for the burger with plastic.
Carpe diem quam minimum credula postero!

DavidNY
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Postby DavidNY » Sun Aug 12, 2012 10:32 pm

If you want a boost for your credit, get a secured Bank of America card which they'll likely convert to an unsecured card after a while.

432521
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Postby 432521 » Sun Aug 12, 2012 11:01 pm

shoptalk01 wrote:What can you really use a credit card for that has a low limit say $200 to $300? I always thought of credit cards more for major purchases and a debit card for the small things, but most debit cards with a $300 to $500 daily spend limit put this credit card to shame.

Spending $75 per month with a $200 Credit Limit is really pushing it as far a credit utilisation goes. I always thought it was funny someone would pull out their plastic at the quick shop for a doughnut and soda. I've seen people use plastic for things under $1, but have no clue if they use debit or credit cards.

I really just wanted a couple of cards to get some credit built up, but I had hoped for a bit more credit.

on the same note, is there any difference using a debit card or credit card when paying at say Burger King? Give me a whopper, a shake and put it on my plastic????? I was always told never to use credit like that, but with only $50 to play with, what else am I going to do?


I pull my credit card out donut shops all the times for charges that are 3-5 dollars because I never have cash on me, and as you can see my credit limits are decent. Sometimes I even use my card even if I have cash because i HATE loose change, I HATE it with a passion.

Also all of my cards beside my Discover is a standard 1% cash back, I know its only about 3-5 cents but hey its better than saving nothing by using cash.
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday

Crashem
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Postby Crashem » Sun Aug 12, 2012 11:36 pm

People aren't understanding how utilization works. You can spend as much as you want on a card and have no impact on utilization. Cards report balance to credit bureaus once a month. Usually it reports what the statement balance is. So if you pay outstanding balance so it hits before statement date, it will report whatever balance you want.
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432521
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Postby 432521 » Sun Aug 12, 2012 11:45 pm

+1 to what Crashem said. Shoptalk01 so what you can do it max your card as many times as you want just pay it off before your statement closes. For example if I have a CC with a 300 limit I can use like 2000 in one month by just paying off my card everytime I get to the 300 limit or everytime I use it. It is just when your statement closes you want to make sure your balance it at or around 0.
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shoptalk01
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Postby shoptalk01 » Mon Aug 13, 2012 4:18 am

This all makes more sense now. I guess these financial guys don't know everything......what I was just told was NEVER to use more than 25% of my available credit for any reason, then wait until the statement comes, pay it, wait for it to post, then use the card again. In my case that meant charge no more than $50. Makes it kind of useless when I can use my bank debit card for $300/day.

I was going to use it for a motel bill, but when I asked about if they put any hold on the card, the hold would have put my utilization at almost 75%, so I decided to use a prepaid debit card, it doesn't always work, but sometimes I can pass it off as a credit card and they can't seem to tell the difference -- only one gas station caught that it was a debit card. The card is kind of a silver color and the word "debit" is in white letters, so you have to hold it just right in bright light to see it. Anyhow, had I known I could charge $150 then send payment immediately I would have done so.



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