Do I need one? Why should I get one? Do I need one to buy a car? Can't I just save up? I have a savings account right now. Soon I will be getting a student checking account. I think I would rather just use a debit card rather than risk being a dumbass with a credit card. Advice?
2006-06-10 18:07:54 · 11 answers · asked by Joe 5 in Business & Finance ➔ Credit
There must be a way to beat this...
2006-06-10 18:12:20 · update #1
You NEED a credit card. A debit card or a checking account does nothing for your credit history. They don't report to the bureaus.
You can just save money to buy a car, but I don't think you will be able to do that to buy a house. You'll need your credit
A credit card is the same basic principle as a debit/check card. You have a limit and you don't spend more than that. Keep track of your spending. To maintain a good FICO score you never want to carry balances over 35%.
Your credit is your greatest tool in life, if you use it wisely.
2006-06-10 20:35:02 · answer #1 · answered by Bobbie 3 · 6⤊ 1⤋
Having some credit is good, but don’t fall into the credit trap.
I like using my bank card (debit card) because after I buy, its mine
I got tired of monthly credit card bill.
But you need to have a credit history. One day you may want to buy a big dollar item such as a car or a home, and without a credit history you will be paying higher interest if you can get a loan at all.
My suggestion would be apply for 1-2 credit cards with low credit limits, maybe $300-$500- each.
To get great credit and lower interest rates never go over 50% of you credit limit. Example: if you have a $300.00 limit-$150.00 is as high as you want to go on that card.
AND ALWAYS PAY ON TIME!! DON’T EVER BE LATE WITH YOUR PAYMENT!
Before you sign the contract__Look at the interested rate and the fine print on the contract, sometimes at the bottom where you sign and accept the terms, some fly by night companies will have a large service charge, I have seen up to 50% of the credit limit. Don’t use those con companies. Look around and try to get the lowest interested rate you can.
After you have done this for about 6-12 months you have established a good credit history.
2006-06-11 03:16:27 · answer #2 · answered by Excellent Credit Service 2 · 0⤊ 0⤋
Unfortunately I found out the hard way that I should have help build up my daughters credit when she was younger. I went to help get her into college and she couldn't get any college loans on her own because she didn't have any credit.Suzy Orrman (the grue) said I should have built up her credit at 14 years old. I wasn't going to do the same thing with my son I have built up his credit so when he applies for school loans he will be all set. The down fall is finally having a credit card and then the stupid interest rate, if you get a 0% interest rate your in business just pay on time and your all set. Good luck, I hope this helps.
2006-06-10 18:31:53 · answer #3 · answered by rottenkid4560 3 · 0⤊ 0⤋
A debit card is an excellent alternative to a credit card. All the conviniences at none of the risks.
It would be nice if more students learned to manage their budgets before running off and getting credit.
2006-06-10 18:11:57 · answer #4 · answered by Dr.Know 5 · 0⤊ 0⤋
If you need to build yourself a good credit backgroud in order to finance a car, then you will need a CC to help you do that. other than that, if you have enough money to pay for everythin w/o financing then go ahead and forget about the CC. It is bad if you make using it to buy stuff a habit and you end up w/a huge bill by the end of the month and can't pay for it.
I keep one for emergencies, I had paid off all my other ones and closed that accounts... I use my debit instead and I love it.
2006-06-10 18:13:35 · answer #5 · answered by Sunny 4 · 0⤊ 0⤋
There will come a time when you'll need a credit history -- to buy a car, a home, or other large purchase. And the only way to establish a credit history is to make purchases using a credit card.
2006-06-10 18:10:51 · answer #6 · answered by Fall Down Laughing 7 · 0⤊ 0⤋
I think a debit card is wise. This looks like a credit card and functions like one if need be but it draws from your checking acct and you pay no interest and have no bill becasue it is drawing so it's like writing electronic checks you just have to keep a running talley of what you are spending. We don't write a lot of checks but we do use the check card alot. Looks just like a visa and we go online to keep up with the balance.
2006-06-10 18:10:50 · answer #7 · answered by xx_muggles_xx 6 · 0⤊ 0⤋
They can be in an emergency. when my fiance was in between jobs they helped and to fix up our house because we got 10% off and no interest. You just have to be responsible and not get carried away. If you can help it you should save up and use cash its easier that way and better in the long run.
2006-06-10 18:11:16 · answer #8 · answered by brandijolove 4 · 0⤊ 0⤋
well, i think it's better to get one in case you have to have credit. In some cases, a credit history is not optional.
2006-06-10 18:12:22 · answer #9 · answered by caltam84 3 · 0⤊ 0⤋
Nope.. you do not need a CC.
2006-06-10 18:10:18 · answer #10 · answered by Oracle 3 · 0⤊ 0⤋