How to apply for a credit card and how is it used?

Question

When they send me a statement do I pay with a check? am i charged anything extra? Does the credit card withdraw directly from my bank account or do i pay after i receive my statement.

please explain clearly because I am only 16 and will be getting a credit card for the first time.

Answer 1

People stating it's illegal to have a credit card under the age of 18 are either fully mistaken, or quoting what they believe to be their state laws. In most cases, no problem, especially with a co-signer.

Your agreement with the specific credit card company determines extra fees, finance charges, annual fees, late fees, and account protection. It varies from credit card company to credit card company.

Typically you are sent a bill in the mail once a month, and most people pay it by sending in a check by the due date on the bill.

Answer 2

You can pay by check or money order. You can also pay online with a debit card. You are charged extra for interest or late fees if you do not pay on-time. They credit card does not make automatic withdraws from your account, you pay when you receive the statement. If you are wanting a card that automatically withdraws, you will want a debit, not credit, card. With a debit card, you have to have the money in your bank at the time of the purchase though. Being only 16, you won't be able to get a card since you are a minor. My advice would be to start with a debit card for your checking account.

Answer 3

The first thing you should do is have your Parent of Guardian either apply for a card and add you as an Authorized user or if they already have one, add you as an Authorized user. You will get a card in your name and work out a plan to pay for whatever you charge in full each month on the credit card by the due date. If you can do this for a year or two without a problem, then consider getting one in your own name.

Also, make sure you read ALL of the Terms and Conditions, know your due dates and how you can make your payments, know about introductory rates, promotional rates, how convenience check promotions work, know about interest charges and how payments are applied as well. Be sure to call customer service for the company and ask a lot of questions too.

Many people just do not read the fine print and end up feeling "screwed" as many of them have stated to me when all they have to do is read all the materials sent and know how to do a little math.

This way you can learn some responsiblity "before" getting a credit card in your own name as the primary account holder.

I recommend this because I work in the credit card industry and see many young ones getting credit, not owning up to their responsibility and ending up with their credit ruined because of it which will effect them for many years to come. Credit card companies know how to get paid believe me and the best thing to do would be to "see" if you can take on this responsiblity before diving in.

Trust me on this one, credit cards are great but cash is a whole lot easier. But if you MUST have a credit card now, learn the ropes and go into it with your head ABOVE water. Start with a low credit line of $500 because the more credit you are given the more you'll spend.

If you apply and get approved for $5,000 remember it is a LOAN, not your own money. You can call the company and ask for a credit limit decrease, see if you can handle it and go from there. Most credit card companies allow a credit limit increase every 6 months.

Be wise, be warned.

Answer 4

Dear, dear Damien,
Number one it is ILLEGAL for you to have a credit card before you are 18. Number two, when you ARE 18, don't get one, because credit cards are for extremely mature people who already have a clear understanding of the rules involved with them. Talk to your parent's about this PLEASE!

Answer 5

my daughter did this @16 also. she is now 37 and still that has followed her. be careful with this

Answer 6

if you can pull it off at 16 why are you worried about a bill