EPTThe power of credit cards
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Wasabi
United States3085 Posts
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perLi is 2down
United States533 Posts
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NewbSaibot
3849 Posts
Scams? Your own credit card company isn't going to scam you. If they tell you that you can earn referral points and get a free laptop, im sure it's probably true. But good luck finding 20 people who feel like opening a new credit account. You probably have $20,000 because your mom cosigned on it, so the credit really reflects against her history. Dont piss her off by racking up a huge debt. Nothing has changed, no new doors are opened. You dont need that new pc for schoolwork, you dont need an 06 car for commute, you dont need a whole new wardrobe to attend class with your new classmates, etc etc. | ||
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perLi is 2down
United States533 Posts
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Mora
Canada5235 Posts
I just have it to build credit. I don't spend more money on it than i will make up in the next paycheck. it's never done me wrong. I don't like paying interest  | ||
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Wasabi
United States3085 Posts
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Cambium
United States16368 Posts
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skyglow1
New Zealand3962 Posts
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The Storyteller
Singapore2486 Posts
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Wasabi
United States3085 Posts
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NoNameLoser
United States1508 Posts
Credit cards were meant for the banks to make money of you, the interest they charge is just crazy. If you want to buy something you dont have money for, just get a loan, itll be much cheaper. The only good use off credit cards is that if you pay it all out monthly, you can, in such way, post pone payments on your purchases up to ~20 days, and if you keep you cash in bank money market account (especially those internet only ones), you earn extra interest that you otherwise would not have. | ||
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Physician
United States4146 Posts
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gLyo
United States2410 Posts
On December 23 2006 00:20 Wasabi wrote: NewbSaibot, that example I put is like the one you always see in random websites as popups. Something like "FREE PSP/WII/PS3/VAIO LAPTOP CLICK HERE" And then, you go on about putting your credit card number and singing up for random online subscriptions. So far good info. Thanks to you grown ups in the real world www.freeipods.com will actually give you a free iPod if you get 5 other people to sign up for the various trials they offer. I don't recommend doing it, though, unless you have a lot of free time. It's very hard to actually get five people to do it, and it all has to be done just right. Even then, it can take months for the iPod to actually get to you. | ||
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Wasabi
United States3085 Posts
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oneofthem
Cayman Islands24199 Posts
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OhThatDang
United States4685 Posts
you would more likely want to use it to build credit and not use it cause u dont got money | ||
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azndsh
United States4447 Posts
Compounded interest is not good. Just spend less than you make and you'll be fine | ||
ManaBlue
Canada10458 Posts
Contrary to what some might say, you should never spend more on a credit card than you will have at the end of the month to pay. Paying the insane interest that a credit card changes in completely unacceptable and only the most financially irresponsible people will do it. There are 3 reasons for you to have a credit card right now: -To build a credit rating, as mora said -To have flexibility when paying things (ex. internet purchasing, or situations where cash is a pain in the ass like restaurants) -So your mom can keep track of your purchases and spending habits The last one may not apply to you, but trust me, many parents do this with low limit credit cards (not like yours) and joint bank accounts, so they know their kids aren't fucking around and being wasteful. | ||
Bockit
Sydney2287 Posts
Method 1) You use your credit card as a financing tool. You make purchases with it knowing you do not have enough money available at the time of purchase to pay otherwise. If mismanaged this can lead into serious problems. I would only use a credit card in this manner in an emergency. Method 2) You use your credit card to pay for everything that you would normally buy. If you didn't have the credit card you would still be able to make your purchases. You get your bill at the end of the month and pay it all off before any interest hits you (Most, not all, credit cards have the interest-free period something you need to check). Some advantages to Method 2: - You have less shit in your wallet. All transactions that can use a card you put on your credit card. You still need some cash for places that don't accept cards. - (This might not apply to you but it's the main reason for following Method 2) By purchasing with a credit card, you have 'spent' your money, yet your money is still in your bank account. Purely by being in your bank account it's earning interest, meaning you are getting returns on money that you have 'spent' (Assuming that you will be paying the bill in full for your credit card at the end of the month). This mainly applies to people who make large purchases or invest a considerable amount of money, otherwise the gains are small (but still gains). Another advantage is that you can easily keep track of everything that you are purchasing and any problems that occur. Method 3) Many websites now accept other method of payment, but the universal one is the credit card. Whether or not you have the money to pay for what you are buying, this is the one reason I would get a credit card at this stage in my life (similar age to you). I just read manablue's post in mid-post of mine, he raises a good point about the credit rating. EDIT: Usually people following method 2 have their bank account linked to their credit card statement to pay it off as soon as the bill comes in so that they don't forget. This further removes hassle, but you have to be 100% sure that you'll have the money to do this. | ||
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DarkYoDA
United States1347 Posts
Rationale: Most credit card companies allows you to make payment to the bills the following month. Your bill is due the next month. You are still required to make payment. Why pay interest to purchase something you can truly afford in 1 months' time? If you can make the bill payment in a months' time, then buy it next month. Else you really can't afford it. This is the reason why many people get into lawsuits and trouble with the banks because buy on credit an amount they are not able to fulfill the next month. The real advantage is only one months advantage or in some cases a little more grace period. Too many people take it that credit card means don't have to think how to repay it a month later. Debit card ensures you spend what you can earn and no troubles with the law or banks. | ||
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