I'm gonna apply for a credit card

[Dimebag_Darrell]

So, what should I look out for?

Overall I need some advice on whether I should and if I do what do I need to look for?

 

[Bible_Belt]

Are you 18 yet?

 

[Dimebag_Darrell]

yeah

 

[Bible_Belt]

Income is good, too.

I worked as a mortgage loan officer and counseled a lot of people about their credit. Before that, I racked up 18 grand in credit card debt and had it charged off in a Chapter 7 bankruptcy, so I know about credit cards...

The exact formula that the three credit scoring agencies use to compute your credit score is a trade secret, and there is some variance between the three companies. One MC/Visa, used responsibly, can build a credit history. Store credit cards are not as good for your credit score. They actually drop it a little just for having them. Your credit score will also drop a couple of points every time you fill out an application for credit. Those "free applications" aren't really free. So choose wisely the one or two MC/Visa cards that you want. The best way to use the card is to run the balance up to near the limit, carry the balance for a month or two, then pay it all off. Then, ask for a higher credit limit, which you will probably get, and repeat the process. It takes discipline to save the cash to pay the bill, and most people can't do it, which is why most people are drowning in credit card debt.

Most people will eventually get into the trap of maxing out all the credit they can get and only making the minimum payments each month. It is easier to hand someone a card than to hand them money. On a Carnival cruise, they won't let you buy drinks with cash; they give you a ship credit card, because they know it will make people spend more.

 

[Levex]

http://money.cnn.com/2005/11/29/pf/debt/cards_1205/index.htm

 

[Bible_Belt]

http://www.bankrate.com/

http://www.bankrate.com/brm/archiveCreditCard.asp

 

[STR8UP]

Your pm box is full, btw.

I thought they handed out credit cards to college students like candy on Halloween?

 

[Nocturnal]

Originally posted by STR8UP
I thought they handed out credit cards to college students like candy on Halloween?

Don't they... I get probably 5-10 offers every month for new credit cards. I can now see why people hate junk mail so much.

 

[Abbott]

At the very least, make sure it doesn't have an annual fee. With so many options that don't have an annual fee, there's no point in getting a credit card that does have one.

An annual fee is like paying money so you can spend more money. The only thing you'll have to show for it is that you can have the credit card. This is silly when so many credit cards these days don't have the annual fee.

With interest at least, you buy the capability of paying it off later.

Oh yeah, and try not to carry a large balance, because the interest is a killer.

Why not ask your bank? I did when I got mine, and the credit limit, while not "ginormous," was better than the limits I've heard that some college students get on their cards. At least I was able to get a fourth digit on my limit that way, which is better than the measly $500 limits I've heard of.

Plus, if it's not a Visa or a Mastercard, don't bother. I've seen many places that accept those two, but no others. I'd try to get a Visa if I were you, since A) it's the largest company, and B) I've heard that there are instances where you can use Visa but not Mastercard (though honestly I've yet to see one in person).

American Express (AMEX) is okay, but Visa is more widespread. Discover, don't bother. Just get a Visa.


Ben

 

[OzyBoy]

I hate credit cards, i have 2 and i owe 3 grand it sucks. Don't ever get one more than $500 limit. I don't know if it is the same where you are but i think they are a rip when you actually see all the fees and charges they charge you.

 

[OzyBoy]

I hate credit cards, i have 2 and i owe 3 grand it sucks. Don't ever get one more than $500 limit. I don't know if it is the same where you are but i think they are a rip off when you actually see all the fees and charges they charge you.

 

[Dimebag_Darrell]

They didnt approve me anyways so who gives a damn

 

[The Bad Ass Canadian]

Instead of getting a credit card, anyone who qualifies should try for a line of credit. the interest rate is under half of what you'd pay for a VISA or Mastercard and there's no fees and other dues.

I just payed off over 5k$ on my credit card and the interest was another 1000$ it's utter B.S.

Also, come to find out, I was paying 50$ per month balance protection stuff and other rediculous dues. I payed it off, got myself a line of credit for 15k$ and now I use the line of credit to pay off my visa purchases. This way i still get my airmiles but don't get stuck paying interest up the wazoo.

Now, I pay 7$ per month interest on every thousand dollars owed to the line of credit.

And there's no extra fees and penalties for paying the loan off.

It's way ahead.

 

[Nocturnal]

Originally posted by The Bad Ass Canadian
Also, come to find out, I was paying 50$ per month balance protection stuff and other rediculous dues.

"Come to find out?" That's why you read the fine print before you sign the contract.

Credit cards are not bad if you use them responsibly. Usually you don't have to pay the interest if you pay the balance off soon enough, and it's not hard to find a card with no annual fee.