I have 3 credit cards (Mastercard, Discover, Amex). I usually put all my bills on Discover (to get the cashback rewards) and either use Discover or one of the others (when Discover starts to get near ~450) for regular purchases. I get paid at the end of the month normally, and pay off all my credit card debt immediately - and I recommend if you get one, you do the same. Not only do you avoid EVER paying finance charges or late fees, but you also build solid credit. I called up Discover last year for a credit limit increase (for the heck of it) and they doubled my limit without a credit check simply because I was never late or carried a balance.
Its actually a subject pretty dear to my heart, as my Dad (a salesman) sees people in debt up to their eyeballs every day. Stories that you wouldn't believe - people who have 3rd mortgages and own less than 1% of their house. People who have declared bankruptcy 3 times and wonder why no one will give them credit.
Paying Minimums sets people on a slippery slope down to a lot of debt. If you have 3,000 of debt at age 26, at 20% APR and paying 2% minimums, you'll pay $16,000 to get rid of that debt, and you'll finally pay it all off at age 80. The National Consumer Council has more info if you care to read: www.thencc.org.
Sorry for the soapbox this turned into!
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I only get credit cards that have rewards programs AND no monthly fee. I ignore the interest rate, as I don't carry a balance. And I NEVER get a card that has an annual fee.
I have a couple cash-back cards (used for different purposes), as well as a gift certificate type rewards card.
Nah - you make some very good points. I agree with all of yours and Kati's. The first thing I look at whenever I get a CC offer is whether or not there's an annual fee...
So here's my question.. do you use buy your gadgets using any kind of credit? If so, how quickly do you pay it off? If not, why not?
Since most of my gadget purchases are done online, I always use my Amex for added security. Like many people here, I never carry a balance. Buying stuff online without a credit card is a risk proposition (even if the seller is legit, reliable, etc.).
Having a credit card is really a necessity in our society. It's an easy way to demonstrate to creditors and lenders that you are a responsible person. You just have to be careful about instant gratification and buying stuff you really can't afford.
Wow, thanks for that advice. My parents are the same exact way. They only have 2 credit cards and pay the entire thing off every month. It's very solid advice.
I think it's too early for me to get a credit card, honestly, as I'm only a Junior in college. However, a lot of my friends have one, and they're able to manage the thing responsibly. I think I'd treat the credit limit as equivalent to my checking account balance, so that way I'd easily be able to pay the thing off every month.
If you ever hear of a local church offering a program called Good Sense, do yourself the favour of taking the course. It's 95% secular (ie: non God stuff) and focuses on money management issues that anyone can benefit from - I went through it with my wife a few months ago, and while I'm thankfully mostly debt free, I learned some good lessons from it.
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I am also in the pay it off in full school, I was tired when i first posted, but being able to pay for something, includes buying on credit but not carring a balance.
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I think it's too early for me to get a credit card, honestly, as I'm only a Junior in college.
Actually, it's not too early. That's precisely the point at which you want to start building up a positive credit history, so that you can go out and apply for credit when you graduate. I got my first credit card when I was a freshman or sophomore. Just be careful that you're responsible.
I think it's too early for me to get a credit card, honestly, as I'm only a Junior in college.
Actually, it's not too early. That's precisely the point at which you want to start building up a positive credit history, so that you can go out and apply for credit when you graduate. I got my first credit card when I was a freshman or sophomore. Just be careful that you're responsible.
--janak
i think credit card comp. really like giving cards to college students. theres always those tables on the sidewalks of campuses. i think they count on college students to be irresponsible. "should i pay my bill?" "no, i have a keg"
Re: Do you buy your gadgets on credit?
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