should I get a credit card?

Question

I am a full adult, just have never been very credit savy.
I have been the last couple of years building up my score due to paid off loans etc.
I would like to get a credit card so I can go shopping and pay it off a little at a time. Or to use on larger purchases that I dont have the imidiate funds for.
I think of a credit card as like a loan that I get to pay off.
Is that the wrong way of seeing it.
If you are supposed to pay off the balance every month I just dont see the point in having one at all. Just to build credit.
They charge fees for these cards and interest, I dont want to fork out the money for those, just for the sole purpose of building a higher credit score.
Im sorry I am so ignorant about this, If someone can lend advise, would be appriciated.

Answer 1

You got the whole concept wrong!

You do NOT want to borrow on your credit card. Interest rates charged on credit card balances are so much higher than any other consumer loans. By paying "little bit at a time," you'll never pay them off in reasonable amount of time. If you keep spending like this, soon, you will have far more debt then you can manage.

The beauty of the credit card is, you don't have to carry cash, worry about having enough cash in pockete, no change to worry about.... You pay it off every month IN FULL.

If you don't have enough money in bank to pay your credit card charges off at the end of the month, DO NOT buy the item. If you have a necessity that you must buy but don't have an immediate cash, get a consumer loan from elsewhere such as banks and credit unions. DO NOT borrow from credit card companies.

Answer 2

Yes a Credit Card techically could be considered a very high interest loan. There's are a couple of ways to look at if you should get one or not.

If you have not needed one now and are doing just fine there is no reason you should get one unless -
You are going to get a major purchase in the near future such as a car or house. Building up your credit now will get you better interest rate down the road. Start with a Store Credit Card or one that has no annual fee. Once you have it there is nothing that says you can't pay it off each month, and really this is the smart thing to do. This will save any interest charges. While you do this you are building a positive history.

Just do not get into the trap of impulse purchases, this is where most people get into trouble. If it is something you can not pay cash for, you should not put it on the credit card.

Answer 3

Banks are money making institutions. When you deposit money in your savings or checking account at the bank, the bank does not hold on to your money for you until you come to take it out. Instead, they keep a little of it around in case you and the other depositors want to take some out, but most of it they rent out to borrowers.
A credit card is a pre-approved bank loan. You use the card to purchase something at the store and the bank sends the store the money (minus a fee they charge the store). You now have a loan from the bank for the amount of your purchase. You pay back the bank over time for the amount of the purchase plus the rent for the money you rented from the bank. They call this rent 'interest'.
Banks also charge annual fees for their cards so they can at least make a little bit of money even if you never use the card or always pay off the card before any interest (rent) is due.
Check out the resouces . . .

Answer 4

A credit card is a great way to build and improve your credit score! People that recommend against them-- obviously don't (or can't) use them correctly.

Since you've already taken out (and paid off) loans before, you've gathered experience and established some good credit history. GREAT JOB! Rather than apply for a credit card for poor / no credit, you should be able to apply for a 'standard' credit card with a lower APR and less fees. I would recommend the Chase Platinum Card here:

http://www.asapcreditcard.com/0-apr.html

** I'm recommending the Chase Platinum because it has the 'loosest' approval guidelines...

The best way to use a credit card to improve your credit score, is to carry a small balance from month to month-- and continue to make regular, on-time payments. Don't ever miss a payment-- or be late! This will drop your credit score drastically.

Also, try not to let the balance on your credit card exceed 50%-60% of your total credit limit. If you use up all your available credit-- it will look like you're in a 'crunch'. This will look bad and increase your debt / income ratio-- which lowers your credit score.

Obviously, you should compare credit cards yourself-- before you choose. You can find a complete list of credit cards (with comparison charts) here:

http://www.asapcreditcard.com

Hope this helps. GOOD LUCK!

Answer 5

credit card should only be used if it is convienent instead of carring cash around. It is not a good way for getting a loan. They are setup to make the issuer money. Unless you think you will pay it off every month it will probably mess you up. The issue is can you keep in budget or are you going to spend more than you earn. A credit card will let you spend beyond your means but you will pay for it.

Answer 6

NO!!!!!! The interest rates will eat you up. The only way that it is not so bad is if you pay your balance in full each month, which will be more than what you actually spent. Read up on it before you make a decision. Look for a site that will give you pros and cons.

Answer 7

nooooooooooooooooooooooooooo please
do yourself a huge favor and don't get stuck with these creditors. no body told me and i did it . now i messed up and you don't even wanna look at my credit history.
pay off your loans and that is good enough for your score
you are not building your credits with these cards . they get you in and then you shop and shop and one day you see you can't afford those payments and those bills every damn month and ...............
good luck
use your cash money better than these cards.
no intrest and no bills.

Answer 8

No credit card is not like loan but i think you can findout some cards which suits you best.
To know more visit
http://onlinepaymentoption.blogspot.com
and
http://creditcardbiz.blogspot.com

Answer 9

Yes, get it one.