Credit Cards

[mike01]

What credit cards do you guys have? I know there was a thread on rewards cards, but I'm not looking for that.

I'm a college student really just looking for an easy credit card to use.

What do I need to know about cards? Interest rates, etc.

I want to purchase little things ($100-$200) with a credit card and pay them off over two or three months. Whats a good starting point?

[ExtremeGamer]

Re: Credit Cards

None...Don't get credit cards as a student. Not the answer you wanted, but you'll thank me in 10 years.

[pfunk880]

Re: Credit Cards

I just got a card that you can put up to $250 on with no interest. However, I plan on only using it to build credit, and I will be paying off my purchases right away.

I wouldn't recommend paying off purchases over several months if you have the money to avoid it.

[mjb2124]

Re: Credit Cards

I wouldn't recommend paying off purchases over several months if you have the money to avoid it.

Bingo.

The only things people should purchase with a credit care are things they could get by paying with cash. IMO a credit card is only good for ease of use so that one doesn't have to carry a lot of money on them. It should always be paid off at the end of the month.

There are always exceptions to this rule (ie: someone is out of a job and needs to survive) so I'm just referring to those situations that aren't necessary.

[funky_chicken]

Re: Credit Cards

I have a few; Juniper, Washington Mutual, Discover, Orchard Bank and Capital One. I transferred all my balances to Washington Mutual last October because I don't pay any interest unitl January 2008. The card WILL be paid off before then.

[TheLetterZ]

Re: Credit Cards

None...Don't get credit cards as a student. Not the answer you wanted, but you'll thank me in 10 years.

You don't think it's important to build credit?

[ExtremeGamer]

Re: Credit Cards

You don't think it's important to build credit?

Not in college I don't. It goes from only using $100, to "ooh, I like that, and I have this card" Suddenly you're $5000 in debt.

You want a credit card, get one with secured debt.

[Scottdau]

Re: Credit Cards

Not in college I don't. It goes from only using $100, to "ooh, I like that, and I have this card" Suddenly you're $5000 in debt.

You want a credit card, get one with secured debt.

Yeah I agree, but if you can used it and play it right away, it is a good way to built up your credit history and have a good rate down the road.

[TheLetterZ]

Re: Credit Cards

Not in college I don't. It goes from only using $100, to "ooh, I like that, and I have this card" Suddenly you're $5000 in debt.

You want a credit card, get one with secured debt.

What about for someone who isn't ... ********?

[Altimus]

Re: Credit Cards

Not in college I don't. It goes from only using $100, to "ooh, I like that, and I have this card" Suddenly you're $5000 in debt.

You want a credit card, get one with secured debt.

I have friends that said the same thing EG.

I have three. Amex, Discover, and Visa. Amex and Discover are used only for my business expenses since I get certain discounts/points from those two cards. And they save me time when it comes to doing taxes for my company.

Visa is for my personal use.

I think it is pretty important to build credit while in college but have good self control skills is a must.

Get just ONE card, and only spend what your limit allows. Don't think you can just pay it later because that is when the trouble starts and banks just live for that.

[DaveDQ]

Re: Credit Cards

As a college student, the moment you get one card, you'll get a million other offers. You may already be getting them.

I'm 35 years old, and I can tell you from experience, the thinking that says, "I want to buy a few things around $100-$200 and then pay them off over a few months" is very unhealthy.

Just do your best to pay for the things you need and try and put off the things you want.

[y2dan]

Re: Credit Cards

As long as you're disciplined, I can't see why a college student shouldn't have a credit card. Don't spend what you can't pay back immediately, keep a low limit and really just use it for online purchases, when you don't have cash "on you", etc.

It helps build credit, but you obviously need some self-control. My best advice would be to maintain a low limit on your credit card, like say $500. This way you ensure you don't overspend.

[mike01]

Re: Credit Cards

Thanks for the input guys. I had a $500 credit card from Guitar Center that I payed off in 4 months but thats the extent of my credit.

Why do you suggest that its not a good idea to pay for some things on credit when you have cash? Just because it could lead to bad things?

I make about $800 a month, and just hate to spend $150 or so on one thing all at once. I can afford it I suppose but it makes me feel better if I could pay $75 a month because of course I have probably $350 of expenses a month also.

Basically I need some new clothes, but feel slightly nervous about dropping the money at once, even though I do have the money, it would just leave me with no emergency money really.

[ESPNdeportes]

Re: Credit Cards

if you have the discipline, credit cards are fine and it will be a nice start to building credit.

My rule is that unless it is for school tuition, car, or home, I don't buy it unless I can comfortably afford to pay for it completely. I'll put it on my credit card and pay my bill in full. I've never paid a dime in interest.

If you go ahead and get one, you should set strict guidelines for yourself. If you ever have to make a late payment, I'd stop using it and cancel the card once you pay off the balance.

[y2dan]

Re: Credit Cards

Thanks for the input guys. I had a $500 credit card from Guitar Center that I payed off in 4 months but thats the extent of my credit.

Why do you suggest that its not a good idea to pay for some things on credit when you have cash? Just because it could lead to bad things?

I make about $800 a month, and just hate to spend $150 or so on one thing all at once. I can afford it I suppose but it makes me feel better if I could pay $75 a month because of course I have probably $350 of expenses a month also.

Basically I need some new clothes, but feel slightly nervous about dropping the money at once, even though I do have the money, it would just leave me with no emergency money really.

That's pretty much it. Some people just get carried away buying items, mainly because they don't have to pay for it immediately. You have to keep in mind that the interest rates on credit cards are quite high, so if you have a large outstanding balance, it can get out of control quickly. That's why people say it's better to pay for something in cash if you have the money. If you use your credit card to pay, there's always a chance that you spend that cash you had saved up as well. That's where the vicious cycle begins...

But if you feel you're disciplined enough, and know better than to spend excessively, credit cards can be convenient and helpful in emergency situations.