Thank you anyone, I've read so much info, but I'd like a real persons view and opinion, and how to start out and what to do, thank you :) I know you pay a monthly balance, and that's about it. I have good income, and can pay off the bills no problem, I don't spend much, but I might need one for larger things.
again thank you lol. ^_^
2006-12-26 19:27:55 · 5 answers · asked by Fuzz 3 in Business & Finance ➔ Credit
also, im not into buying new cars and everything and racking up debt, I would only mean like if I wanted 50 dollar shoes, and want to charge it, etc.
2006-12-29 15:14:14 · update #1
credit cards are basically like little loans. You use the card to buy something from the store with no money out of your pocket now. the credit card co. pays the store for your purchase and then you owe the money to the credit card. you can pay it all at once or pay a little each month plus interest. You should try to pay off your purchases each month.
You should definitely get a credit card to start establishing your credit history. the way you handle your credit now will affect your ablility to get a car or home loan in the future. make sure to use your card and pay it off on time. This will show you have the ability to manage your finances responsibly. So many things later in life revolve around your credit score, it's important to start smart and stay smart about it.
2006-12-26 20:14:50 · answer #1 · answered by QandA 3 · 1⤊ 0⤋
My parents always suggested a way to build up your credit. Each month buy something you know you can pay off the next month, they always said underwear or socks. Really you could use anything as long as you can pay it off completely. If you do that each month, after some time your credit score will go up. Just don't buy a bunch of stuff you can't afford. My opinion is if you can't pay cash, then you can't afford it.
I don't have a credit card. I've seen way too many people just think "oh I can pay it off next month." After a few times of saying that they are in debt. I'd be careful if I were you, but you seem smart so you may be ok.
2006-12-26 19:38:24 · answer #2 · answered by Dee P 3 · 1⤊ 0⤋
First of all, never sign up for a credit card plan through the mail.
What I did was go to my bank and ask them if they were associated with a particular credit card carrier. My bank offers Visa cards through their own member service, so that's what I signed up for.
I chose a credit limit that does not automatically increase because that's how a lot of young people get in debt--their credit goes up more and more without their realizing it, and then they can no longer pay off the balance.
It's also convenient because I can pay my bill right at the teller window, and because my bank will cover me (+ a small service fee) if I miss a payment.
2006-12-26 19:35:17 · answer #3 · answered by Iris 4 · 1⤊ 0⤋
Pretty simple actually...
Your credit rating is calculated based on how much you've spent on your credit card (when you buy stuff) in relation how much credit you have left remaining. If you pay off your balance in full every month (like you already seem to know), the amount you've spent will always be zero against how much you have remaining (for example $1000, if thats your limit). The longer you keep that up, the better it will be. You will always keep building good credit.
Don't mess up your credit cause its way harder to fix than maintain control. If you find yourself spending too much, put it away for a couple of months and catch up (I did it and it really helps).
Hope that wasnt confusing.
2006-12-26 19:34:09 · answer #4 · answered by brightesteye2004 2 · 2⤊ 0⤋
If you pay them everything you owe every month, there is no interest; if not, the interest on what you do not pay runs about 15%?yr in my country. Good credit is built by paying your bills on time
p.s. the more interest you pay, the less money you have left to buy things
2006-12-26 19:53:56 · answer #5 · answered by tobabill 2 · 1⤊ 0⤋