Credit Cards, financial things, etc.

The 'what's bugging you today' thread commentary on credit cards got me thinking about the fact that I really don't know a damn thing about credit cards. I've have a Chase Mastercard since graduating high school, mostly because it had a 0% APR student offer for the first year. Bought some textbooks on it and paid them off very quickly, etc., had my limit upped to $1,500 rather soon. My Key bank account had a free credit card that still has 0 APR on it for a few more months, while my Chase is at around 13% now.

So, really, I don't know anything intelligent about these. I know that establishing credit before I hit the 'real world' can be terribly important, so I have them for that purpose. I never, ever charge something to the card that I would not be able to pay off immediately because I am horribly terrified of debt in any way shape or form. I've never missed a payment or had any fees incurred, nor have I lost them and had disputed charges situations, so altogether I've been responsible but clueless.

So, any good advice from you business/intelligent folk? I don't plan on making any major charges or anything, but I'd like some general advice or knowledge about the damn things. I'm really curious about that whole 'building credit' thing as I really don't know the best way to go about it, and would like to be in a good standing when I graduate if possible.

Don't fall into the trap. The trap being, maxing out your balance and then making minimum payments to avoid going over-limit on interest alone. It's insanely easy for this to happen.

Keep a modest balance, pay it on time, and it'll do good for your credit score. Don't get into a position where you need it, like paying bills with your credit, etc.

See if there's a bank near you that you can take the card to and pay it in person. If the due date is on a Sunday, pay it the Friday before (banks open on Saturday are operating on Monday's date)

Mine has online payment, so I've been doing that exclusively since having the card. I hardly ever have a major balance, usually just a few hundred after buying books each semester, and I tend to pay it off quickly. I've never made just the minimum payment, since as said, I hate having debt. Is it better for me to leave a little bit there and pay it off gradually as opposed to making large lump payments and only leaving $40 unpaid?

God we've had this conversation so many times between so many threads between biff, Ryan, and myself.

Credit cards are great if you're not stupid about them. If you're paying your bill in full every month, then you're getting interest free 4-8 week loans on your balance every month. Constantly using your credit card, paying on time every time, and using only a small percentage of your credit limit also increases your credit score which will be huge when you apply for big loans and mortgages and you get preferred rates.

Really, credit cards are awesome. Just don't be an idiot.

Don't keep a balance (i.e. pay it off every month, those ridiculous APRs, after the initial period, are killer). Which really means don't buy stuff you can't afford and build a balance.

And try not to get more than 1 or 2 credit cards.

you don't care at all about your apr if you're paying off your balances in full. (and you should be, although it's nice to have the ability to get into debt should you absolutely need it.)

personally i used my card for everything...i should really have a better "rewards" type card but i tend to get comfortable having all my accounts and expenses tied to one card. it's a hell of a lot safer than carrying around cash.

you really don't need to get worried about unauthorized use of your card. this past saturday night at best buy, my card was flagged because apparently someone in florida has been tapping it for hundreds of dollars in the past week. good news is, not my problem. i just have to get a new card, which is slight pain. but i doubt my bank would be this helpful if the funds were removed from a debit card.


CHARGE CHARGE CHARGE is my advice. just stick to one card so you make sure you take care of your balances monthly. people get tripped up when they bust out their macy's card to get an extra 10% off but forget to make payments on these secondary cards.

better yet, if you can avoid using your credit card, don't use it. Don't get me wrong, having some debt and showing your ability to meet your financial obligations is a good thing, but credit cards are evil if you don't watch your spending and live beyond your means (I did a few years ago and I'm still paying for it).

Everyone thinks they're a celebrity and gets into unnecessary debt. Live within your means and you'll be alright. I'm young, but i've got older family members who are financially well-off becuase they followed this simple little rule.

If you're the type that pays your credit card balance in full every month, then consider getting a card like American Express Blue Cash where you earn cash back for your purchases. On top of building your credit score, you get a little cash back after a year's use of the card.

I have so many damn credit cards it's ridiculous.

Right now I just use an AMEX. I change constantly because I like abusing the 0% APR for a few months deals. I'm a good note taker so I write down every card I own and keep track of it.

Quote:

---

Originally Posted by Nomi

Is it better for me to leave a little bit there and pay it off gradually as opposed to making large lump payments and only leaving $40 unpaid?

---

screw that. pay off your balance in full all the time every time if you don't have a zero apr. whatever credit benefits you get out of running a balance is not worth the cost and the chance of missing a payment.

DO NOT MISS PAYMENTS. ever. if you do not miss payments, you can be in a lot of debt and be in decent shape, and if you miss payments, you can be in none or very little and still be subprime. if you miss a payment by a few days, call, beg for the late fee to be reversed, and make sure the bank is not reporting. i believe they do not report until 30 days late.