A friend of mine just touched 18, and the first thing he wanted to do is to get a Credit card and he doesn't know how the credit system works. Please Explain.
2007-01-21 00:44:54 · 12 answers · asked by ~ask~answer 2 in Business & Finance ➔ Credit
Al right... i found where to get one... but how does it work.
2007-01-21 00:49:38 · update #1
ok, so.... credit limit is based on annual income. and I get bills after I spend with the card. But am I charged interest on those amounts? If so, what would the % likely be ?
2007-01-21 00:55:11 · update #2
You can apply for a card at any bank (probably the best way), given you have the necessary income and a good credit rating. There are credit cards available to students that have low credit limits to establish a credit rating. If the card is used responsibly, and payments are made on time, you avoid paying interest, your credit limit can go up if needed, and your credit rating improves.
A basic card charges about 18.9% interest/year.
2007-01-21 03:57:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
find best rate credit cards online, if you have no credit you may need to get a secured card by placing say 500.00 in a account and use the card against it. when you have established a credit history you can search for better options. warning this is real money and allot of people get into hot water because buying is addictive.
rates range between 8% to 24% don't make minimum payments. If you can't pay it off in 3 months you can't afford it.
2007-01-21 00:55:03 · answer #2 · answered by Eric the Great *USA* 4 · 1⤊ 0⤋
You will be able to get a credit card based on your earning's,Ask at your bank for an application form,If you get a card the bank will set you a credit limit,Say for £500,You will get a monthly statement,Telling you how much you have to pay back,And how much interest that you have been charged.
2007-01-21 00:51:17 · answer #3 · answered by Bella 7 · 1⤊ 0⤋
well basically a credit card company offers to give you one but you have to have good credit first, you can charge what you like on it up to your credit limit, then when your statement comes in the mail you have to pay the minimum balance could be as low as $10 or as high as $100, if you don't pay the creditor has the right to ask for the card back and you still have to pay the unpaid balance and if you don't your account gets sent to collections then you get a bad mark on your credit for 7yrs and then you are unable to get another card.
At 18 he should get something else aside from a credit card i have 2 and i wish the banks never gave them to me, they are a bunch of headaches.
2007-01-21 00:50:01 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I disagree with the first person, you need to establish some credit. This is for the future, when you want to apply for a car or house, etc. Just go through your bank. Do not overspend. Just use it a little every month (within your means), and pay the bill immediately. This will help build your credit rating.
2007-01-21 00:49:46 · answer #5 · answered by Anonymous · 0⤊ 2⤋
I suggest that he better dump that idea.
credit card could land you into heavy debts..
PLS try to be more sensibl coz if you have themoney, pay with cash.instead of putting it on debt.
U might also lose control of your spending.this happens always.
credit cards are not a sign of high status.they may be convenient to use , but i will not recommend it..!!!!!!
my sis is in a heavy debt coz of this, and now she is still trying to finish paying what she owes the bank...
dont be taken in by the gimmicks that bank have to offer just to have you register for a credit card, coz it's a trap..
remember, we r living in a society that is asking u to spend, spend , spend...it's Marketing, and advertisement.Dont be fooled by them.
Be more wise and sensible.
2007-01-21 00:53:48 · answer #6 · answered by rinoao 3 · 1⤊ 0⤋
Credit cards can lead to big financial trouble. Why not suggest pre paid visa gift card they work well on the net. Hope this helps.
2007-01-21 00:53:48 · answer #7 · answered by Anonymous · 0⤊ 1⤋
If you are serious about getting a credit card a good place I can suggest is http://www.ipod-vibez/credit.html they have a list of credit cards that you can get approved for I told 2 of my friends about it last week and they were approved I have one also and I was approved quickly and easily
2007-01-21 01:52:22 · answer #8 · answered by Kelly M 2 · 0⤊ 1⤋
if i can only give you one advice in my entire life, the advice will be: don't use credit card. the temptation is too strong. but if u insist, check wikipedia. the details are there
2007-01-21 00:49:51 · answer #9 · answered by alexis christian 2 · 0⤊ 2⤋
dont get a credit card they are a con
2007-01-21 00:47:22 · answer #10 · answered by creme8888 3 · 1⤊ 2⤋