Advice For Young Men: Credit Cards

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  • Trevytrev11
    MVP
    • Nov 2006
    • 3259

    #16
    Re: Advice For Young Men: Credit Cards

    Originally posted by mjb2124
    Credit Cards are good if the person using it is financially responsible and thinks before using it. Use the knowledge that my parent's taught me when I got a credit card in high school - "Credit Cards are only to be used for ease of use (ie: instead of carrying around money). If you want to buy something, but don't have the money in the bank to purchase it, don't use the credit card because you can't afford that purchase". Using that theory, I'm 33 now and have never had a balance on my credit card...it's paid off every month. So, if you're the type of person that's financially responsible and will say "I can't afford that", then get a credit card. If you can't do that, stay away.
    Exactly. We've put almost $50K on our credit card already this year and have never carried a balance.

    We have a rewards card and we use our card strictly out of convenience. We use it to pay every bill that we can and use it on every purchase we can. At the end of the month, we pay it off. I consider a credit card transaction the same as paying with a check or ATM card and instantly deduct that amount of my check book (yes I still balance a check book).

    At the end of November, I will cash in my points, probably about $55K in points and get a nice check for $550 to put towards Christmas. This along with the money we put away every month for Christmas will mean almost no out of pocked expenses for the holidays.

    So for me, my credit card does 2 things. 1) It pays me 1% on all my purchases and 5% on certain ones and 2) It makes paying my bills so much easier. Everything is set to direct withdrawl from my credit card and I just make one payment at the end of the month (the only thing I can't pay are my mortgage and my car payment).

    Also, if you have not established a solid credit history, it's a good idea to sign up for a card and make a few regular purchases every month on it and if you get a low rate card, it will actually help your score to carry a small balance and make regular payments on it (a solid payment history is the most important part of your credit score).

    If you are an impulse buyer, I would shy away or at least ask for a small credit line (like $500-$1,000) to start with to prevent yourself from getting in to too much trouble. And then as you get the hang of making purchases and paying off your card and you start to make more money and incurr more expenses then increase that limit.

    Building a credit history will get you a solid credit score, which will save you tons of money in the long run. A high score = low rates, which will save you thousands of dollars when you go to buy a house or a car.

    As far as what card to use, it's tough to say. There are rewards for almost everything these days, so if you travel a lot of go to sporting events, etc. there are all sort of cards that are geared toward those things.

    My advice, get the one with the best cash back rewards program. All the free flights and crap you get are way over priced and you'd likely be better off getting cash back and booking the flight by yourself and would probably have some cash left over.

    We just got switched to the Chase Freedom card. It's 1% back on all purchases, but every quarter they offer 5% back on certain categories. So in Q4, we get 5% back on all grocery stores, department strores and movie theatres.

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    • NDAlum
      ND
      • Jun 2010
      • 11453

      #17
      Re: Advice For Young Men: Credit Cards

      Great post, I was thinking about switching to that card as well.
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      • Fresh Tendrils
        Strike Hard and Fade Away
        • Jul 2002
        • 36131

        #18
        Re: Advice For Young Men: Credit Cards

        I mainly use my CC for Amazon, gas, and food since I get points on my card. Credit cards are not the only way to build credit, but they can be equally helpful and dangerous.



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        • cardsfan2222
          Pro
          • Apr 2009
          • 872

          #19
          Re: Advice For Young Men: Credit Cards

          If you do get a rewards card, make sure it doesn't have an annual fee. You can lose all your reward money on the annual fee, especially if you don't use the card much. And like others have said, don't buy things you don't already have the money for. It doesn't take much to end up thousands of dollars in debt, especially with the interest rates credit card companies charge.

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          • Knight165
            *ll St*r
            • Feb 2003
            • 24964

            #20
            Re: Advice For Young Men: Credit Cards

            Some good points and suggestions in this thread.
            While points cards are usually good...like someone stated, watch for the annual fee.
            Don't carry a balance....and my own personal rule. ......if I can't pay for an item at least twice(at the time of purchase)....with straight funds in excess of all my regularly incurred bills PLUS my 1 year reserve(for EVERY one of my bills)....I just do not purchase it. NEVER.
            Having a CC is "important"(I put it in quotations because quite simply....reserving rooms for vacations.....car rentals...etc...is nearly impossible to get along without one as everything is set up nowadays), but I also see that way too many people who might be having financial difficulties will rely on them before actually scaling back their spending habits.

            M.K.
            Knight165
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            • vernond
              MVP
              • Feb 2008
              • 1272

              #21
              Re: Advice For Young Men: Credit Cards

              Pay off your balance every single month!!!! I can't stress this enough. I had substantial credit card debt (about 15k) that i just recently got out of and never would have gotten out of it without a couple lucky breaks. I was foolish with some things (PS3, bars, and tv mainly) but most of it was spent on rent, food, bills, etc. when I was in college and didn't have the cash to pay. If you have to get a 2nd job, donate plasma, or a 3rd job to pay the bills do it. If you have those cards it's an easy way out when you run short on cash. Use them with extreme caution.

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              • JBH3
                Marvel's Finest
                • Jan 2007
                • 13506

                #22
                Re: Advice For Young Men: Credit Cards

                Originally posted by ~LiverpoolRed~
                I'm not sure if all the credit card companies do it but the two cards I have they continually send me blank cheques to use to draw from my credit card. I shred them EVERYTIME! This is where people can get carried away.
                Capital One does that. My wife had a Capital One card and they would send those checks.

                Originally posted by NDAlum
                I disagree. I have zero in credit card debt. They give you free money. Just pay it off every month and you're golden.

                You can use a credit card for routine purchases. Never live beyond your means, never.
                Lets face it, people primarily get credit cards to buy what ther ordinarily can't have given their income. My first sentence I stated: If you have the means to pay for things you want NOW then don't get a credit card.

                So you just disagreed w/ the thought of living beyond your means? So did I. But if one is going to do it, might as well do it w/o paying out the nose on APR.

                Another reason to not get a credit card: Identity theft.
                Last edited by JBH3; 11-04-2010, 07:46 PM.
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                • countryboy
                  Growing pains
                  • Sep 2003
                  • 52813

                  #23
                  Re: Advice For Young Men: Credit Cards

                  A credit card is good to have for emergency purchases. Sometimes **** happens and its good to be able to take care of things right then, without having to save up. Also, credit cards are a good place for people to promote good credit, but at the same time can fall down a slippery slope.

                  The key to credit cards is the individual. You can give advice and such until you're blue in the face, but anyone who is terrible with money will quickly become debt ridden with a credit car. Financially sound people will be able to live with a credit card and experience no problems.

                  Having said that, one piece of advice I will give to those who may be getting credit cards for the first time. There is a reason the minimum payments are low, its called revolving credit. Credit card companies want you to pay just the min, especially if the interest rate is high and they have an annual fee. They are hoping to catch you close to your credit limit, and then tack on the interest rate, finance charges, and annual fee(or other fees) and put you over the limit, in which the game begins.
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                  • Jonesy
                    All Star
                    • Feb 2003
                    • 5382

                    #24
                    Re: Advice For Young Men: Credit Cards

                    For most young people i agree that steering clear is the way to go.

                    Like Trev and NDAlum My wife and I on the other hand buy literally everything on our credit card and pay it off every month so we never pay interest. I don't know about in the US but here in Australia the credit card companies have rewards programs that accrue with each dollar spent on your card and we have gotten a bunch of free stuff over the years (2 tv's, a ps3, a carton of champagne etc) for nothing. You have to be smart about it and diciplined but it can be very rewarding if you can do it. Helps that my wife is an accountant as well.

                    RE indentity theft the security is such that the end user (ie the card holder) rarely even gets ripped off anymore. My boss had his card details ripped off while on holiday and while the theives did manage to get away with nearly 20k worth of purchases the bank simply wiped the fee's to my boss as it was obvious CC fraud so he didn't pay a cent and they investigated the theft etc. I have been out shopping and bought 4 or 5 things in quick succession and the bank has actually called me to confirm i was making the purchases to check it wasn't CC fraud.
                    Last edited by Jonesy; 11-04-2010, 08:15 PM.

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                    • wsu_gb23
                      Banned
                      • Feb 2008
                      • 1641

                      #25
                      Re: Advice For Young Men: Credit Cards

                      DON'T DO IT! I have way too many credit cards that are all maxed out and am pretty much screwed now. If you can't afford something with the money you have you don't need it. Save up real cash and buy something that way.

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                      • jeremym480
                        Speak it into existence
                        • Oct 2008
                        • 18198

                        #26
                        Re: Advice For Young Men: Credit Cards

                        I don't think I'll ever understand credit.

                        I had my credit raked over the coals when I went through a divorce in 2004. Up until recently I didn't have a CC and I didn't buy anything on credit. I rented apartments since then and I had the same car from 2002 to 2008. By 2008 I had saved enough money to buy myself a nice used Jeep Cherokee. A few months ago while I was looking in to buying a house my mortgage broker suggested I get a CC to help reestablish my credit. So, I got a CC with a 1000 limit, made two purchases (groceries and gas) and within a month my credit score went up by almost 25 points.
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                        • Speedy
                          #Ace
                          • Apr 2008
                          • 16143

                          #27
                          Re: Advice For Young Men: Credit Cards

                          Originally posted by NDAlum
                          I disagree. I have zero in credit card debt...Just pay it off every month and you're golden.

                          You can use a credit card for routine purchases. Never live beyond your means, never.
                          If you want to build credit this is best way to go. Pay off car payments, insurance, etc. on the credit card then when you get the statement pay it off.

                          ALTHOUGH, the best route and advice is to never get one in the first place. Save up the money to pay for items on the spot...Perhaps 9/10 people who own a credit card (or did at one time) had a seemingly insurmountable debt.

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                          • HealyMonster
                            Titans Era has begun.
                            • Aug 2002
                            • 5992

                            #28
                            Re: Advice For Young Men: Credit Cards

                            Id say like others, dont carry a balance. Truth is, young men are going to do what they are going to do, most of the time without logic. lol. we all have been there. My suggestion is that if you want to get a card, figure out which one you have, and regardless of the balance they give you, call the card company and set the credit limit to like 500 dollars. Like others have said, dont keep a balance on it. If you do get crazy and treat your bro to a bachelor party weekend, the most damage you do on your CC is 500 bucks and even if you dont make alot, you can pay that off in a few months.

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                            • Jonesy
                              All Star
                              • Feb 2003
                              • 5382

                              #29
                              Re: Advice For Young Men: Credit Cards

                              Originally posted by RiderGH
                              Id say like others, dont carry a balance. Truth is, young men are going to do what they are going to do, most of the time without logic. lol. we all have been there. My suggestion is that if you want to get a card, figure out which one you have, and regardless of the balance they give you, call the card company and set the credit limit to like 500 dollars. Like others have said, dont keep a balance on it. If you do get crazy and treat your bro to a bachelor party weekend, the most damage you do on your CC is 500 bucks and even if you dont make alot, you can pay that off in a few months.
                              That is a good idea. I mean you almost need a credit card these day with things like hotel reservations, online etc so if you are going to have one and don't think you can trust yourself then an extremely low limit is a good way to go. The interest the CC companies charge each month is ridiculously high!

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                              • Gotmadskillzson
                                Live your life
                                • Apr 2008
                                • 23441

                                #30
                                Re: Advice For Young Men: Credit Cards

                                If you going to get a credit card, make sure you have a GOOD paying job. Not some sales associate at Walmart, Target or Best Buy type of job. Or working at McDonalds or Burger King type of job either.

                                If you not making at least $3,000 a month, then use your credit card sparingly. Don't ever buy a tv or PC or laptop on a credit card. I seen way too many people sign up for Walmart and Best Buy credit cards just to buy a 52 or 55 inch LCD TV, then a year later they are still paying that credit card off.

                                You will be better off getting a debit card from your bank. That way you can only spend what you have in your checking account.

                                FYI

                                STAY AWAY FROM DISCOVER CARD AT ALL COSTS !

                                That company give away credit cards to 16 yeard olds without them even applying for it. I remember I was a sophmore in high school when I got a discover credit card in the mail with a $500 limit on it.

                                That is a TRAP.

                                Use credit cards for online stuff like amazon or etc. But with everything else in life, you want to pay in cash. If you got to rely on a credit card to buy something, then you don't need it, unless it is food of course.

                                But I am talking about gym shoes, cell phones, tv's, gaming systems, jewelry etc. Don't ever use a credit card to impress some chick either. And don't ever let a chick borrow your card either. Matter of fact don't even let family borrow your card.

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