I want to get a Macy's card but i dont know how it works! Do i have to pay something for it? I mean, it say's this: "APR: 21.6% or 24.9%" and "Minimum Finance Chanrge: $1" and "Annual Fee: None". So what do i do?
2006-11-06 14:37:57 · 11 answers · asked by Jennifer 2 in Business & Finance ➔ Credit
Oh, and how is 21.6% or 24.9%? In cash?
2006-11-06 14:47:53 · update #1
As long as there is no "annual fee" you wont pay anything unless you use it.
The APR stands for annual percentage rate, which is the interest they will charge you on purchases if you dont pay them off in one billing cycle.
Minimum finance charge means that if you carry a balance past one billing cycle they will at least charge you $1 in interest, even if the interest would only mathematically equal 79 cents.
somtimes these types of cards are good because you get advance notice of sales and extra coupons.
but they are also very tempting to use when you really cannot afford your purchase.
be careful, and be informed!
2006-11-06 14:49:38 · answer #1 · answered by Melis__A 3 · 0⤊ 0⤋
There are all sorts of credit cards... department store cards are typically a higher interest rate (makes me wonder why you want a Macy's card in the first place). They are great for the company offering the card but usually not a smart choice for the consumer.
A better idea would be a Visa offered through your bank.
You're looking at 21.6% to 24.9% interest on your purchases. That is high. The no, annual fee... a lot of cards offer this and that's how it should be. However, there are cards that will charge either an annual fee ($50 or less) or charge $6-$8 per month. Those fees (the monthly or annual) are due even if you don't use their card.
Should you get the card? Well... do you want to have to pay off your Macy's purchases with a nearly 25% interest?
2006-11-06 14:44:16 · answer #2 · answered by 27amDotCom 1 · 0⤊ 0⤋
If you apply for the macys card and are approved, they will issue you a line of credit. If you charge $200 one day, and your bill comes and you pay the entire $200, then you will not be charged any interest. If you only pay the minimum due, the balance left will be charged the interest rate in which they assign you. If your balance is $1.00, then they will charge you $1.00 for the finance charge, because they will not charge you 20 cents - they are rounding it up.
If you get the macys card and never use it, you dont pay an annual fee, because you said it is no annual fee, and you dont have a balance, so there is no finance charge, so you would not pay for something that you dont owe.
Hope this helps, and its up to you whether or not you get the card. Just be responsible with it :)
2006-11-06 14:50:24 · answer #3 · answered by designerista 4 · 0⤊ 0⤋
Please be very careful getting started with credit cards! A few hundred dollars quickly turns into thousands. When you owe $1,000 your monthly payment at 21.6% could be maybe $20-$25 in JUST INTEREST every month!
The benefits of a Macys card may be that its the first card you get. If you treat it right eventually you can get a visa or mastercard.
Back to your question! If it is No Annual Fee then you will not pay anything unless you use it. Having a credit card on your credit history without using it does not help your credit score very much. You need to show a history on all of your cards of a consistent reliable use AND payment of the debts you build up.
You really need to be careful. Ask someone you respect financially to explain to you how it works and help you look over the FINE PRINT of the credit offers!
:)
2006-11-06 15:12:06 · answer #4 · answered by catlantah 1 · 0⤊ 0⤋
You don't pay interest/finance charges on a credit card unless you carry a balance. If you do carry a balance, meaning you used the card that month and didn't pay it all off, only then would you pay interest.
A Macy's card does not have an annual fee, so you won't pay anything if you don't use it.
2006-11-06 14:43:17 · answer #5 · answered by Lisa A 7 · 0⤊ 0⤋
The only time you would have to pay for a card you don't use is if there is an "Annual Fee". Since there is no annual fee you will only pay if you use the card. Some cards have a grace period for purchases that if you pay off the balance within that period you won't have to pay any finance charges.
2006-11-06 14:41:45 · answer #6 · answered by walkerhound03 5 · 0⤊ 0⤋
If you do not carry a balance and there is no annual fee, it costs nothing to have a credit card. The interest rate is pretty high though.
2006-11-06 14:41:10 · answer #7 · answered by Robert P 2 · 0⤊ 0⤋
In my opinion, it's better not to have a credit card to avoid overspending and to help control expenses. Paying in cash is an advantage because you have to pay for additional charges
2006-11-06 14:41:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
That interest rate is outrageous. Do not get a retail credit card- that starts a chain...
2006-11-06 14:49:20 · answer #9 · answered by soberlunatic 3 · 0⤊ 0⤋
As long as there is no annual fee, you don't have to pay anything if you don't use it.
2006-11-09 17:12:33 · answer #10 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋