I want to get credit cards but i neeed to know every thing about them like stuff like if you spend 20 dollars how much would you have to pay for your credit card i just need to know every thing. HELP
2006-06-26 05:40:09 · 10 answers · asked by pink_cheerleader92 1 in Business & Finance ➔ Credit
First off, each credit card is different. Many have a higher minimum amount you need to pay each month. They all have completely different interest rates. My advice is not to put anything on a credit card that you can't immediately pay off. Otherwise you'll get bombarded with interest rates. There's really no reason to put $20 on a credit card. Why not get a debit card instead. It's linked to your checking/savings accounts and will only let you spend what you have available.
2006-06-26 05:44:17 · answer #1 · answered by jshepard17 5 · 2⤊ 0⤋
When you get a credit card, they are loaning the money, so you have to pay back more than you borrowed. If your credit is good 10% a year or so is a good rate. But if you don't pay the credit card company on time then they will jack your rate way up so you end up paying back a lot more than you borrowed. The longer you borrow the money (don't pay off your card completely) the more interest you have to pay. Best thing is always pay it completely off every month. If you only make the minimum payment you will never pay it off. They are very dangerous. If you spend 20 dollars and pay it right when the bill gets there and pay the whole thing off you will only pay 20 dollars but if you don't pay it off when the bill comes, or only pay part then you will end up paying interest. 10% of $20 is $2. But if you are late with payments or go over your limit they will charge you penalties. THat is what the fine print is all about. Please don't ruin your credit. It is very bad on your life. YOu will need credit later to buy a car, house, etc. Even employers are checking credit ratings now.
2006-06-26 05:47:04 · answer #2 · answered by BonesofaTeacher 7 · 0⤊ 0⤋
depends on the rate you will get it.
If you use $100 dollars from your credit card at a 20% you have to pay 100/.20 = $20 dollars in that year or (1.67 dollars) a month.
Interest payment will decrease as you pay montly.
Also, some of the have a annual fee (get away from this), and others have a variable rate (Also keep away from this). You want a flat rate fee. If you get another with lower rate, get rid of the old one. the trick is as you build up credit score, better offers you will get....
This sounds little money, but try it with $2,000 dollars.....
2006-06-26 05:45:26 · answer #3 · answered by Piantini 2 · 0⤊ 0⤋
First I'd like to say CAREFUL - When you get credit cards it is tempting to charge on them and while that is ok if you are paying them off every month, the balance can really add up fast if you don't. Go back and pose the question - How long did it take you to charge up your credit card AND how long did it take you to pay it off? The answers might surprise you. Good Luck
2006-06-26 08:04:35 · answer #4 · answered by PoolRoomPaintings.com 2 · 0⤊ 0⤋
Credit cards? Sounds like you are young.... at least under 25. May be a teenager?
Just avoid it like plague. It will get you into heap of trouble. Get the card only when you have income from your job. They will lure you into credit, get you hooked and you will find it difficult to get out of.
Why use your credit card when you cannot afford? This is road to disaster. I know a lot of people who were caught in this spiral and sink so deep. It is good that you do not know a lot about CCs.
You have plenty of years ahead to learn all about it.
Ignorance is a blessing in this case.
2006-06-26 06:43:24 · answer #5 · answered by Nightrider 7 · 0⤊ 0⤋
If you spend with your card, you pay the finance charge if you do not pay your bill in full. That finance charge is a percentage of your balance. The percentage will vary by card and by person.
NEVER pay your bill late or go over your credit limit. It will hurt your credit score (FICO).
Read DAVID BACH, he writes a lot about credit cards.
2006-06-26 05:45:37 · answer #6 · answered by truthyness 7 · 0⤊ 0⤋
i am not old enough to get a credit card but my sister got one and got into a lot of s**t it means that you can spend money you don't have and it doesn't have to paid off straight away, you also can just make minimum payments meaning that you have a hard time paying it off, my advice avoid the hassle and don't get one.
2006-06-26 05:45:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋
IF YOU NEED TO ASK THESE QUESTIONS, YOU ARE TOO YOUNG FOR A CREDIT CARD. YOUR BEST BET DON'T GET THEM, THEY LEAD TO THOUSANDS OF DOLLARS OF DEBT.
2006-06-26 05:44:12 · answer #8 · answered by Anonymous · 0⤊ 0⤋
they are bad and are a trap stay away from them you are better off paying cash for what you will end up paying out of pocket for member fees and interest.
2006-06-26 06:12:29 · answer #9 · answered by mimismom 4 · 0⤊ 0⤋
There is a lot of good info on this subject right here.
2006-06-26 06:12:58 · answer #10 · answered by Anonymous · 0⤊ 0⤋