Should I get a credit card? [Archive]

SpockthePuffer

07-09-2008, 4:13 PM

I'm in college and I haven't had a credit card other than one for Kohls (a clothing store if you haven't heard of it) So I've been thinking about getting a credit card, not to use often or be crazy with it, just to use once in awhile and hopefully make my credit look good.

I just got an ad in mail from capital one that is No Annual Fee, 0% APR on purchases until January 2009 and 0$ fraud liability.

After January 2009 its a variable APR as low as 8.9%, does that suck?

I'm new to this credit card stuff, I don't know what all that means.

I won't be one of those college students that go crazy and buy a ton of stuff and then not have any money to pay it off. I definitely know all the dangers in that.

Anyway, just looking for some advice from the more "experienced" in life users :D

krytan

07-09-2008, 4:15 PM

Noooo, don't do it!

H3D

07-09-2008, 4:17 PM

There are better way to build credit than a credit card IMO. If you want to get it for emergencies that's a different story, but i would only use it for emergencies.

groovitudedude

07-09-2008, 4:18 PM

I think it would be a good idea for convenience as long as you are a very responsible spender and are aware of those dangers.

Neervana

07-09-2008, 4:18 PM

i have a credit card from HSBC and they're really good! but sometimes i just use it then pay it off in one go a couple days later so probably why i haven't had any problems yet. if you really need the cash and you think you can handle repayments then i say yes go for it!

DontPetTheWater

07-09-2008, 4:24 PM

one missed/late payment and say bubye to any reasonable interest rate. Since you like aquariums and fish I would say you should refrain from getting a credit card for as long as possible. My first credit card was a capital one about 6 years ago, the credit limit was $200 for emergencies. $7500 later and only able to make my minimum payments is not what I expected.

Tongue33

07-09-2008, 4:27 PM

If you want to get it for emergencies that's a different story, but i would only use it for emergencies.

It never works that way unless you make twice the amount of your monthly bills including gas :D

Tongue33

07-09-2008, 4:30 PM

duke33

07-09-2008, 4:35 PM

NO!

Catpicklesdog

07-09-2008, 5:12 PM

Credit card meets LFS - DON'T DO IT!!!

johnlarson66

07-09-2008, 5:22 PM

I would get the card, make one purchase and cut the card up.

I would then pay the purchase off when the bill comes.

In case of an emergency, you can call the credit card company and they can issue you another card.

Having a revolving credit acount besides your department store will help you build credit. So will purchasing a car. When it comes time to buy a home of some sort, you will be glad you had some sort of credit history.

The keys with credit cards: Pay as much as you can afford on the bill (normally pay in full unless you were planning on making payments) and pay your bill early. Do not wait until it is due, a late payment is costly and defeats the whole purpose of building credit. The day the bill arrives is the day you should pay it. Treat the card as cash.

Bitsy

07-09-2008, 5:24 PM

I really don't see any problem with credit cards as long as you are responsible. I have a credit card for emergencies only, anything else I charge I pay off immediately. I use it to pay my bills and then just go transfer the money from my checking account to my credit card, no interest and I still get the mileage, works out good for me. You just need to be responsible and mature enough to handle the responsibility.

As for the 0%, that's a pretty good deal if you want to play the credit card game. After your year is up it will go to a variable rate which can get quite high. If you want the 0% I would recommend using the card for a year, then switching companies to a new 0% and transfer any balance you may have, thus not having to deal with a variable rate. Or you can deal with your local bank or credit union and generally get a card with a low limit and a fixed rate around 9.99%. Just remember, whichever you do, be smart and don't spend more than you can afford. Credit card debt is a major "epidemic" in this country right now, it's scary and not a hole you want to dig.

Coler

07-09-2008, 5:57 PM

Get it, use it, clear it every month. Its not a loan, its for when you have no cash on you and/or emergencies.

Hooked Newbie

07-09-2008, 7:41 PM

The best thing you can do for a FICO score is to get a card, use it monthly, and pay it off monthly. Even better if you get a "rewards" card. It does require discipline though. If you can control yourself and be logical, get it. If not, stay away. I use my CC instead of my debit card to get the rewards and pay it twice monthly. I'm at 750, but am struggling to raise it higher than that.

SpockthePuffer

07-10-2008, 6:28 PM

I think I will get one and make sure to pay it off monthly. I'll just have to make a rule with myself to never bring it to the LFS!

msjinkzd

07-10-2008, 6:49 PM

beware the 0% interest rate...bill is one day late and it jacks it up to a super high rate.

Mgamer20o0

07-10-2008, 7:23 PM

it depends do you have self control. the first thing i did was get a credit card i used it and paid it off until they gave me a 2% for the life of the loan. i maxed it and pay monthly now. they keep upping my limits and everything i dont often use my credit cards but when i do i pay it off. its great for trips or buying things online.

Slappy*McFish

07-10-2008, 8:17 PM

I you ever go above 50% of your limit, stop using your card and pay it down asap. Even if you make your payments on time every month, just having a 'debt' to 'available credit' ratio above 50% will hurt your credit, as well. Maxed out cards kill credit scores.

SchizotypalVamp

07-10-2008, 8:43 PM

I'm in college and I have a student credit card linked to my father. I make small purchases off the internet of $20 or so every month. I also use it for AC purchases through paypal.

excuzzzeme

07-10-2008, 11:12 PM

. . . . . . . . . . .

I won't be one of those college students that go crazy and buy a ton of stuff and then not have any money to pay it off. I definitely know all the dangers in that.
. . . . . . . . .

If I had a nickle for every time I have heard that............. You know if you are disciplined enough or not for the responsibility of having one. Don't ask a forum, talk to your parents. Learn from their success' and failures. Most of all don't lie to yourself about your self-control over spending.

8.9 is a "teaser rate". They then adjust your due date w/o notice so that you can be charged a service charge. It may be an adjustment of 1 day or 2 hrs but anything to add a service charge. Also when you are "late" with a payment you are booted to high-risk APR. Not to mention you also may be charged application fee, processing fee, credit check fee, and the list goes on when you initially apply. Just be very careful!

wataugachicken

07-11-2008, 7:45 AM

i would say don't get it.

if you do get one anyway, keep in mind you don't have to wait for the bill to come in the mail before paying. i do all my bill paying online (credit cards, student loans, insurance), and that makes it much more convenient as far as keeping track of spending and paying when it is sensible for me (i.e. the day i get paid) instead of having to wait for the bill to arrive.

1oooop

07-11-2008, 8:41 AM

I would say, get it ONLY for emergencies, otherwise don't spend any money form it, O wait what company? anyway just keep cash in a wallet chained to your pants, you just need to remember to refill your wallet when you get home, also get a high interest bank account, 3% is good, 6% great, 9% is unreal, but if you find one that's 9% tell me

Draal5

07-11-2008, 8:56 AM

The answer is NOoo you have plenty of time to build credit. you are still in collage wait till you are out of school and have a full time job.

Here is the one thing you need to know credit card co will trash your credit at the simplest mistake on your part they don't care and it will take years to repair. The cost is higher rates when you want to buy that car or house down the road.

Cheech

07-11-2008, 9:31 AM

if you're responsible with your money, go for it. It's convinient.

That being said, I wish I could go back in time, I would have never signed up for these stupid cards!!!!

susantroy1

07-11-2008, 10:27 AM

Do I own them yea,
Pretty safe to say we all do to some extent.... I have 3 grown and gone girls, 2 out of 3 are in debt consolidation (I won't bail out my kids stupidity) they have been in it for a few years due to CCs... Best advice... ask some of your classmates and see how their doing with them. Your parents advice is just "white noise" when your at this age.... listen to your classmates stories about how the big bad CC companies did them wrong and look at what they have for their troubles... If your smart, you will self insure for "emergencies" and open a money market acct. for a better interest rate to park your hard earned cash. Ever wonder why we are at an all time high personal debt ratio in the good olé' USA? If you look to government for an example....:headshake2: they spend more of our money than they take in so they simply print more.... And we wonder why oil is $145 a barrel... those mean olé' middle east countries..... always someone else's fault... we are all just victims.... I'm getting light headed on this soap box :lipssealedsmilie: I'm going over to the classifieds.... there are a few things I gotta have...hope they take CC paypal.

Troy

Agent_Scully

07-11-2008, 10:31 AM

I agree with H3D you might want to have one and keep it for emergencies ONLY. Using cash will really make things easier for you later in your life and you won't have to deal with the stress of credit card debt.

robbob2112

07-11-2008, 10:58 AM

My 2 cents.. and it is worth exactly that....

1. do you have a job? having a credit card without a means of paying it off is financial suicide.

If you are responsible with money and have a checking account already that you keep under control and never bounce a check, then go for it. Never to early to build good credit.

If you have never had a checking account, or if you have one and you bounce checks from time to time, you probably ought to think about it real hard.

It is really easy to buy stuff on a card, I use my discover almost exclusivly...food, gas, fish, supplies :D... but then I pay it off every month. I got my first card when I was 19 and have never had a problem with them. But then I got my first checking account when I was 16 and never bounced a check either.... both my sisters have been through bankruptcy from massive abuse of cards, so it really depends on you.

My 2 cents.

SchizotypalVamp

07-11-2008, 11:02 AM

Keep in mind it is a three year credit check to rent an apartment and such things. It used to be that you didn't need credit, but now you do!

j_chicago

07-11-2008, 2:26 PM

The best way to improve your credit score with a credit card is to maintain a balance and still make payments on it. If you pay it off every month it will do almost nothing for your credit score.

Also crediting history now will help build your score.
So I say do, got mine when I was 18.

Another way is to have a parent or relative add you to one of thier cards. My longest line of credit is 23 years and I'm only 30 due to I hold a card for my mothers BP account. But even if they don't actually give you a card it works. Just make sure you trust them to make the payments on-time.