I just got a credit card?

Question

I just got a platinum credit card, with a 10,000 dollar spending limit. If i spend all the money in one day will i have to pay back 10,000 in one payment or will i have to pay payments like 500 a month.

Answer 1

CUT UP THE CREDIT CARD!!!!!

Answer 2

#1. I wouldn't spend all the money in one day. Matter of fact, I wouldn't spend anything that I didn't have the cash for right on the spot to pay for it. You can max it out, but expect to pay outrageous interest.

#2. if you did pay $500 month, that's more than some people's rent and car payments! I could not explain to anyone let alone myself on why I'm paying a $500/month credit card bill.

#3. What would you need to buy that you would need to max out the card for? A car? If your credit's strong enough to get you a platinum card like that, then you should be able to get financed for a car for 3-7% instead of the crazy interest that's charged when you carry a high balance.

#4. Most importantly, don't live outside of your means. Just becuase you got a $10,000 credit card today doesn't mean that you'll be able to pay it off tomorrow if something unfortunate happens to you let's say that you get extremely sick,disabled, unemployed, (I hope that you get my drift by now) and you're not able to pay it, then what? Not only you're rehabbing physically, but financially as well. Nothing sucks worse to not only receive a hospital bill for the remainder that your insurance co-pay won't cover (that's if you even have insurance) and get that platinum card bill in the mail.

I'll leave you with a parting thought. All that glitters isn't always diamonds...

Sometimes it's broken GLASS

Answer 3

You will have to make at least the minimum payment listed on your statement. But that minimum payment may only cover the finance charges, and you will never pay off the balance that way and the interest will pile up and make you go over your limit and then you will have over limit fees and it will continute to grow and grow and you will be in debt the rest of your life. If you only spend on a credit card what you can afford to pay off in full each month, you will never pay any interest. Be careful, credit cards can get you in so much trouble, you won't know what hit you.

Answer 4

Your payments will be about 350- 500 a month-- but it will be 95% interest. So for each payment you might take $50 off the amount you owe. Forever. It would take like 20 years to pay off.

Also, using any more than 25% of your limit dings your credit score.

Answer 5

If it is a American Express of Discover card you do because theya re not real credit cards they are charge cards and youdo have to pay back what every you spend in one payment. but true credit cards provided by your credit provider can be broken down into payments. You shouldn't get close to your spendng limit because the less the gap between what you owe and how much you can spend really does bring your credit score down. And that can hurt you in the future. Also make sure you are cautious as to who has access to your information and don't whop online with this card use a debit card to do you online shopping or letting your friends do that stuff because you info can be stolen and that is not good. You can pay your bills with this card but other than that don't do it. Hope that this information is usful to you. Later

Answer 6

Throw it away, save yourself the stress! I owe $15,000 right now and it started of at around $7000 because of interest. I lost my job and can't paid. My credit now ruined and I cannot rent an apartment, buy a car or even get certain jobs! And they won't stop calling and harassing me! I can't afford a lawyer to declare bankruptcy. To answer your question, you can make payments but they will be high and depending on your credit score, possibly high interest. Also, just because it is platinum it doesn't mean that you have great credit and will be charged low interest. They all call their cards platinum now to make you feel special! The only card that is for people who make tons of money and have excellent credit is American Express. Visa, Discover, and any others anyone can get. Save yourself the stress and grief and only buy what you can afford to pay for with cash!

Answer 7

You will have to make payments.

But realize that if you make minimum payments you will not have it paid off for about 10 years and you will have paid many times the original amount. $50,000 or in worst cases a whole lot more just to pay off a $10,000 purchase.

The best use of credit cards is to use in case of emergencies, or to use for monthly expenses that get paid off at the end of each month. Using them for conveniences or extravagances usually ends in so much misery that you can't enjoy whatever it is that you are getting.

Answer 8

It depends on a) how much you charge to the card, and b) what interest rate you have.

Short answer, no you will not have to pay it back in one sitting. Based on the debt + your interest rate, a monthly minimum payment will be formulated.

My advice: DON'T GO SPEND CRAZY. Spend what you need, and if you can, pay it off immediately. This will help your credit score.

Answer 9

It depends on the type and terms of the card. Since you have a limit, I assume it's probably a revolving credit card, meaning you'd just have to make the minimum payment. American Express cards (aside from their Blue card) require that you pay the balance in full each month, but they don't really have a "limit".

Answer 10

If you want to have the full amount, I suggest you put in a Swiss account and earn 3 or more percent a day then you can afford your payment plus have extra money without touching the 10,000.00 at the end of each month. Don't be stupid with the money it will be all gone next year and you have nothing but some sparkle to show for it that you can't afford to keep.

Answer 11

500 a month!

But don't do it. Use the card only for things that you have the cash for. Pay it off every month and you'll have A1 credit which will result in a much larger limit down the road!