My credit score is 630 which is not horrible but I am only 19 so I don%26#039;t have much credit anyways. I really do not want to get a credit card. I find everything about them tricky, and I know they can get people in a lot of trouble. I don%26#039;t know if I would even be able to pay the whole thing off every month. Is there a minimum on how much you use your credit card? Can you have one and then maybe charge 100 on it and then not use it for a while??
I want to establish more credit, and I pay my bills on time. IS there any other way to establish my credit....w/out getting on an joint account with someone??
Are credit cards bad?
If you can pay in cash, do so. You don%26#039;t want to start relying on credit cards to pay for daily expenses. You may just want to put a tank of gas per month on it, and pay it off every month so you can establish more of a credit history.
If you do use your credit card just make sure not to spend what you can%26#039;t afford and to pay it off by the due date. Have a low credit-used-to-credit available ratio if you do need to carry a balance.
You just need to give it time and your credit score will eventually rise without having to co-sign a loan with someone else.
Are credit cards bad?
OMG THEY ARE AWESUME 閳?br>Are credit cards bad?
Credit cards are not bad they are a part of todays life and you need them to travel. Without them renting a car, a hotel room, etc. is difficult. There are two basic things to know about them one what is the annual fee and two what is the interest rate - you can get a rate that is a teaser, low at first but rises. In your case it sounds like you want one for convenience and to start to establish credit. Pick one with no annual few, Capital One has several. However not paying off the balance each month when due will cost you in interest so try to avoid that. If you get one and don%26#039;t use it at all for a while they might cancel it. If you are going to have one keep it active, even if it%26#039;s charging dinner one night and then pay it off when the bill comes in. The credit card company will more than likely raise your credit limit as time goes by so be careful that you don%26#039;t reaise your balance with it.
Are credit cards bad?
yes, and you are wise to avoid credit cards if you think they will be hard to handle.
If you want to improve your credit rating without risking getting yourself in too deep, look for a loan where you are allowed to automatically pay from your regular checking account every month. That way you never have to remember to write checks and mail in payments etc. Try to wait until its something you need and the store or business is offering a 0% interest rate or a very low rate. It might take a while to find both the low interest rate and the automatic payment option, since as you say, they are tricky and what they really want is for you to pay minimum balance every month and end up paying finance charges when the promotional period is over.
If you can stand to wait for things, the absolute greatest financial advice I can offer to a young person is to pay cash for things that go down in value and finance things that go up in value, provided that what you pay in finance charges is less than you earn on money invested in something that you will actually invest in.
I recommend that you get a credit card with a limit that is sufficient to meet your emergency needs, but not so large as its tempting to use for something expensive. then once in a while, use the card to buy things you have to buy, like ordinary household items at walmart and then pay it off in full every time. that keeps the card in good standing and keeps a decent interest rate on the card in case you ever do need it for an emergency
Then look for the 0% financing deals to boost your credit rating provided you are allowed to set up an automatic payment from your checking account to pay it off before the rate jumps.
Good luck and congrats for thinking about this at your age.
Are credit cards bad?
Credit cards are bad when you don%26#039;t have money. People think Credit cards are a substitute for times when you don%26#039;t have money and I say that when you should avoid them at all cost. Just because you can pay off the minimum balance doesn%26#039;t mean you can afford to have a credit card. Your limit should be less than what you%26#039;re making. If you are making $0, you shouldn%26#039;t have a credit... you get the point.
Are credit cards bad?
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Are credit cards bad?
Credit cards are not evil if you know how to use them. It%26#039;s all about discipline. I have a $25,000 credit line but that doesn%26#039;t mean I%26#039;ll go out and blow it. For instance:
1- Don%26#039;t use credit card to buy something that you don%26#039;t need.
2- If you buy anything, make sure you have the money to pay when the bill comes.
3- Make payment on time.
4- Not all credit cards are created equal. Find credit cards with the lowest rates as possible in case you need to carry a balance.
5- The benefit of having a credit card is that when you buy something that you need to return, chances are you can dispute with the credit card company a lot easier than paying cash or debit card. The merchant already has your money, they%26#039;ll give you a hard time to return (experienced) to get your money back.
6-If you have a student loan with the low interest, you%26#039;re not in a hurry to pay it off and that%26#039;s experts call %26quot;good debt%26quot;. You can build your credit by paying on time with a low interest and a low minimum payment.
7- You can get credit on your own without joining with anyone. Co-applicant means you%26#039;re responsible as the primary card holder. If one of you default on the loan, they will go after the other one.
Building your credit means using credit cards or loan. The key here is CREDIT. If you use cash to pay for everything, you will feel good that you don%26#039;t have any debts but it won%26#039;t help you to build your credit.
Are credit cards bad?
Finally, a smart person who%26#039;s actually thinking, thank you! I wrote my college thesis on this subject. Credit cards are the number two biggest rip off of the 21st century outdone only by the cellular/wireless scam. They are the only financial institution, and it is the only financial instrument, where the bank can change the rules at any time for any reason, and there is not a thing you can do about it except pay them off and close the account. Many times by the time they start playing their games, people are too far in debt with them to pay the account off and close it, trapped like rats just as the bank had hoped. Granted, you can build credit with a credit card, but very prudent use is required. The best way to go if your wanting to build credit is the path your already on, paying your bills on time. Credit cards are actually a bad mark more times than not, as they are unsecured debt and work against your credit score in the long run depending on how much unsecured debt you have. Your best bet is if you decide to purchase a larger item like a stereo or a PC is to go to a bank and get a regular loan. You are guaranteed a fixed rate, and you know exactly what the payment amount each month is going to be, and you know when it will all end (last payment date). You will also avoid the temptation to use the credit you%26#039;ve paid back repeatedly thus keeping you in debt, which is what the banks are counting on. Credit card companies play many games. As mentioned before, they can change the rates and terms at will, and you have no recourse. So much for the four corners rule of contract law. They use ALL excuses they can think up to raise your rates. Your young, you bought a car, you were late on another loan payment, your too close to your credit limit, your sick, your out of work, they know, and they use these lifestyle events against you. They play games with the amount of time you have to pay. Current industry standard is 30 days, credit card companies move this number around to as low as 24 days, many are 26 days in a payment cycle. All of this is a big game to make you be late so they can use that against you. Charges are another thing. Many small credit limit cards carry an annual fee. So my suggesting you get a card from a reputable bank or credit union with a small $500 credit limit is of no use. No fee cards can be found, but they will probably want you to have a 760 credit score and a long clean credit history to qualify. Many will charge an inactivity fee, especially if they carry a small credit limit. You can charge just one tank of gas on it each month and pay it off in full each month. That will keep the card showing active, and build credit, but it takes a lot of dicipline to budget the full payment each month and hold yourself back from using the card for anything else. My advice, stay away from the credit cards at all costs. Use cash, and for big items, get a regular loan.
Are credit cards bad?
I think you have missunderstood creditcards, or maybee i missunderstand you. Yes You can with a creditcard go to an ATM machine and withdraw 100 dollars. Then you%26#039;ll have the cash and spend it when you wish. If you have a limit wich is 1000$ then you are free to spend them as you wish.... you do not have to use it ever or you can use it alot. The money you spend will be registered and once a month you%26#039;ll recieve a bill. How much you want to pay you decide yourself. There is usually a minimum of for instance 10% so if you had charged 100 dollars to it then you would have to pay 10 dollars but you could choose to pay 40, 70, 100 or anything you wanted to :)
Hope this was a ok answer. Credit cards are best to avoid. You will never be able to be as carefull As you tell yourself..... you will always have the card and its sooo easy to use, so one will always end up spending more than one really have to hehe. But its not dangerous so if you want one, then just apply for one. BUT do not get one and spend it to the limit and then get another one to pay the first one etc..... please have MAX 1 card! Honestly I do not think you will get one because of your age..... but i have no idea how it is where you live so just try to apply via the internet. Then you%26#039;ll either get a yes or no and you do not have to talk to anyone and aswer emberrasing questions :)
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