:0 Ok, I'm 18 now, and I've been wanting to start early building my credit so I am more able to apply for student loans in college. I have a job (minimum wage, but better than nothing), and I'm currently looking for a job that pays more. Basically, what I wanted to do was use the credit card instead of my debit card (I don't spend much at all), and at the end of the month, pay off the entire bill. I am not one of those compulsive shoppers, and I have a steady stream of money coming in weekly from my job (albeit not much, but enough to keep money in the bank). The issue is that I don't think my dad would approve of this, since he's had so many issues with credit cards and loans (my ex-stepmother ruined his credit by not paying bills, and other things), although I want to do this for my own wellbeing since the credit crunch has made it much harder to obtain student loans in college. I'm not sure what to do . Heh, my boss will probalby try to have me apply for out store credit card (she's done that before, and almost forced people to apply), but there's no damn way that's ever going to happen....18.99% interest variable going up to 24.9% is horrible lol, as well as the fact that I know I'd be denied lol.
I've had a credit card since I was 18. I've never gotten into any trouble with it so far - but I've always had a very low limit which I try to clear every month.
Credit cards are an easy way to build credit. They're also an easier way to destroy yourself financially. At first, you'll start with the greatest of intentions, like using it to buy your books for college then paying the bill right away, or only using it to buy gas then paying at the end of the month. What really happens is that when you have a credit card, you feel as though you have a buffer against emergency situations. What that translates into is you saving much less cash than you should be because you'll have the credit card "in case of emergencies." But, even if you only use the card for legitimate emergencies, the first time you actually have an emergency, you'll be saddled with a bunch of debt and difficulty paying it because you have no cash banked up. That's what happened to me. I got a credit card pretty much as soon as I started college, and I was doing ok with it for awhile. I had put my books and a few other things on it, then my car died and I had to pay for my last semester of internship on my own. I had no money, so it all went on the credit cards. Within a few weeks, I went to virtually no credit card debt to being over $5,000 in the red. Even if you get a card with a low limit, every time you get close to the limit, they'll just raise it for you. My first card, from which I still technically have the account, was a $600 credit line in 2000. In 2004, which was the last time I used it, it had a $6,000 credit line. I know they've cut the interest rate a couple of times and they still send me 0% offers all the time in order to try getting me to use it again. Personally, I would advise either not getting a card at all, or using an EXTREME amount of caution with it. It's much much easier than you'd ever believe to get yourself into trouble in real short order.
I have a credit card. I really try not to use it if I don't have to. It is a good way to build credit but It can be bad if you abuse it. I use my debit for everything, that way I don't have to remember to pay it off every month. I have the money for everything I buy so there really isn't a need to use my credit card. I've only used my credit card for big purchases like when I got my laptop mainly because I have a limit on my debit per day.
It IS very tempting to use for things other than to "build up credit". If you think your dad might have an issue with it, you might suggest that you get a card with a very low limit, and that it remain in HIS possession except when you're going to make your one or two purchases for the month. You'll also have to forgo writing the number down to use it online. But then he'll know you're not abusing it. Lex
I had a credit card for over a year now (made a thread on here when I 1st got it). I use it everywhere for everything. Almost every transaction i make i put on the card. I have never paid interest (I couldn't tell what the interest rate on my card is.) I have 3 reason for using my credit card I'm building up my rating, I get points for using my card and I can keep my money is a saving account rather than spending it now & I earn interest on the extra time i can hold on to it. Personally I find credit pretty easy to manage, I don't know how ppl get so bad in debt. I do come for a family thought that is very good at managing money. If you're smart and responsible then sure get a card, I'd recommend a card that rewards you for using it. Otherswise maybe not. PS. I dont mean to offend any1 who can't manage credit. That’s just how i feel about it.
Also, I usually spend about $10 per week lol That's why I thought it would be good for building credit....I hate spending money on anything and everything, so it's not like I would go crazy spending money.
bahaha good luck. I hit my 1000$ limit 2 months after getting the damn thing. And im still paying it off a year later xD
I'm only going to be getting a debit card when I turn 16. Not touching credit until I'm a financially stable adult.
Hmmm. I'm a firm believer in "don't spend it if you don't have it". I don't spend money unless I have it in my possession. I have a debit card... I guess a credit card isn't a bad idea as long as you don't mind paying the interest. Remember spending 100 dollars can turn into 126 dollars for someone with no credit. With such limited, fixed income you need to be careful.
You're 18,you work and you sound responsible.I'd say...go for it! Just stay on your budget and be really careful. It takes so little to screw up your credit. I had excellent credit,til I got sick. Now it's in the cellar!
My suggestion? This is what I do. I have one credit card. It's cheap, and interest rate didn't matter. Every month I go buy a pack of gum, then pay it off at the end of the month. This shows you can consistantly pay off bills on time and don't abuse the card. It will also give you a near perfect credit score if you do this all through college. The thing credit card companies don't tell you is the hidden fees. Make sure you look into it. Also, credit scores are NOT based on how much you spend, only the fact that you pay it off on time. Take that to heart, don't spend too much...EVER! Just my two cents...
The thing with credit is some people can handle it, and some people can't. And it's really hard to tell where anyone else would fall in that regard. I got a credit card when I was 18. It was a university branded one that they were handing out like candy. I used it for a few months, making my regular purchases on it and paying it off in full. Then when I had a few months credit history, I applied for a better credit card. Now I have a no-fee card that pays me back 1% of my purchases as free groceries. I, like yourself, am not really spend crazy, but I funnel most of my purchases through the card for the points. It really does add up... especially when you pay tuition using a credit card. I also find it very convenient to have a credit card the few times I've bought things online. I also have it automatically topping up my prepaid phone account every month. Some people think it's easier to lose track of your spending with a credit card. For me it's the opposite. I could spend a bunch of cash, but not know where it went. With a credit card I sit down with the bill at the end of the month, and I can see where all my money's going. -It's a lot easier to get a credit card when you're a student than later on in life. Even if you get it and don't use it, it's worth getting to start building your credit history. -Make sure you fully understand how and when they will try to charge you fees, and avoid at all costs. -If you don't get something useful out of the card (money back, or points for something useful), you're getting ripped off. With the exception of course if you need to get a basic card to start. -If you pay an annual fee for a credit card you're getting ripped off. I've never seen any "benefits" of a fee card make it worth the cost, including higher point paybacks. Even with no credit history you should be able to get a no-fee card. If you pay off the balance in full each month, you do not pay interest. And myself I don't spend money I don't have. For every dollar I spend on my credit card, I have a dollar in the bank to be able to cover the purchase.
My suggestions as a business man and a person who has had a credit card, don't do it. Interest rates on credit cards are outrageous, not to mention that if you, for what ever reason miss a payment or one is late they tack on huge fees and so forth. My suggestion, buy a car, find a local credit union, they have the best interest rates because most often they are not-for-profit, and they are fairly easy to work with, also get your parents to cosign the car. Not only will you build credit but you'll get a car in the process.
I don't think my kids asked me if they could get a credit card. They just did it. My middle daughter has an American Express. I remember applying for that several times when I was young and was denied everytime. lol She is very good about paying it off every month and she puts everything on her credit card because she gets cash back on it. She is highly disciplined when it comes to money. I do not know where she got that from. My other two kids are more like me. They live and learn.
My mother's like you're middle daughter. She's so financially responsible it's amazing. Her wallet is made up of more plastic than Pamela Anderson, but every time she uses a card she pays it off right away and on time. It's out of control. I don't even ask for one though cause I'm a financial disaster. I'm a bit of a reckless spender I'll admit so it's safer that I don't get one just yet.
I have a debit card, and this summer I got a Kohl's card. That way I can build up my credit, and there's no interest as long as I pay 1/2 or $50 (whichever's greater) every month. So I mentally put that money aside and pay it off gradually.
The only good ones I can find are from Bank of America and Capital One . I'm not worried about the interest rate since I'm going to pay off everything monthly; I'm just going to put like $10 on it per month. EDIT: "You have been approved for a Capital One® credit card. You should receive your card, welcome materials and an email within 7–10 business days. The email will provide information on how to personalize your credit card using Capital One Image Card." I have a $500 credit limit xD
I just got a credit card in September, and I knew that saying it was only for emergencies would be a bad thing. The mind set I've set for myself is this: Purchase things when the cash is not available/can't be used...and cash is often available. This means: -I often leave my credit card home unless I travel or stay somewhere overnight. -I use it for online orders, and online orders only. There is no reason for me to use it to purchase things in my everyday life. I have my savings accounts, one with an ATM card. I also have a checking account. I have access to my funds at all times. If there ever is a month where I have purchased nothing online (which may be soon), I'll probably buy a pair of socks and pay it off. I've had it for almost 2 months...it's been used once for a transfer application.
ive always been the type of person who wouldnt buy something unless i had the money for it, i now have a credit card, just for buying things online... i have 55days interest free, so as soon as i buy something, i transfer the money straight across... and i have a low credit limit.... if you know you arent going to abuse it, then i say go for it... but just remember everything that you swipe for...
