Im 18 and just got a Visa credit card, can someone explain how this works please?

Question

I have $1000.00 in my account (one thousand dollars)..The bank just gave me any visa they didn't let me pick.. they sort of did some psychology.. they told me there was an 90% chance that I wouldnt get the visa.. then they told me I could have it as long as I deposit 1000.00 in my account.. I did...they told me that the car is in the mail now and will arrive in 5 bussiness days...

How much on average will they charge me for using the credit card, monthly.. I know you dont know my interest rate, but neither do I.. one of my friends told me that I shouldnt use the credit card until my money is finished, I should stop using it when theres 100.00 dollars left in my account.

HOW DOES THE **** WORK???? HELP ME PLEASE!

When I ask the bank questions they give me short vague answers..

I need the credit card topay for my SAT online and send score reports, pay application fees, etc then Im canceling it.. Im at a boarding school so I cant use my parents.

Answer 1

Yes. you have just been scammed. They will charge you a fee to use your own money. They charge the merchant and you whenever you use it. The interest rate will be 18% to 21% possibly as high as 24%

The fact is the rate is infinity because they aren't actualy loaning you any money. They are charging you interest on your own money. Cut the thing up with a pair of sizors and cancel the account.


.Received in the mail, an approval notice from First Premier, that I had been pre-approved for a credit card. All I needed to do was send in the processing fee ($49.00), sign the short form and receive my card. I read the small print where there was an annual fee and it would be added to the card - Cool, because it was something like $59-75 - I don't remember exactly, but it was acceptable at the time.

I received the card, removed the strip and on the accompanying leaflet was how much I had been approved for ($350.00). I was excited because my daughter was making a trip out of state and I was going to be tight money-wise. So I went to charge some necessities for the trip. Got the suprise of my life to find out that my purchase was declined. I was embarrassed so I asked the cashier to please run it again, because there must be some mistake. The purchase was declined a second time, The cashier suggested that I call the company.

Went home, called First Premier and was asked if I had received the agreement in the mail. I replied that I had not. She said that it should have accompanied the card (it did not). She said it explains all the charges related to the card. I asked that she explain it to me since I had her on the phone. She then explained that from the $350.00 Credit Limit, that I had $14.00 Credit Available, that they had applied fees for this and fees for that, etc.

I told the First Premier Customer Service Person that I was sending their card back and explained to the lady, that since I had not charged anything, I did not owe them anything. She said that they would take a settlement and I could pay them $175.00 and be done with it. I said 'Lady, I have not even used your card, I will be sending it back, so take my name off your list'.

To this day, I am still receiving notices where they have reported me to the Credit Bereau's and recently noticed that they have sold the account to a collection agency and they have added some more charges to the $350.00 and now they say I owe them somewhere in the neighborhood of $800+.

If anyone knows how to get them off my back, please reply. If anyone else reads this - Don't Do It!!!!

Answer 2

Every credit card comes with paperwork that explains what the interest rate is, what the annual charges are and when payment is due. You bank should have given you this...if they didn't...don't even use the card because it could be some sort of scam.

It sounds like you have a pre-paid visa card. Basically, you have the money so you're just borrowing it from yourself when you use the card, not the actual credit company. They won't let you spend more than what you have in the account so you'll never owe them. This is actually a great way to build up a credit rating for yourself so make sure you're responsible for it.

One of the dangers of having a credit card is you never think you'll use it until you actually have it. Once you have good credit they'll give you a limit you can spend without having your own money in your account. Interest is usually about 18-20% and fees can be anywhere from 0-100 dollars a year.

Answer 3

First of all, shame on that bank for not explaining everything to you until you fully understood. I'd go talk to the manager. Other than that, when you get your card, there will be a toll-free phone number on it that you can call and ask all your questions. To build your credit, use the card, but only for the amount that you can pay off each month as soon as you receive the bill. Do not wait until the due date. By paying the balance in full each month, and on time, you should not be charged any fees. Do not cancel the card, unless there's an annual fee.

Answer 4

First, make sure you have a credit card and not a debit card.

Most credit cards have a credit limit, if you exceed your credit limit, you get to pay additional fees. When you charge something on your credit card, you should receive a bill for the items that you will have to pay before a due date that is on the statement. If you pay the entire bill off (which you should also do), then your credit line is available to you the following month.

If you pay late, then you get to pay more additional fees and the part that you did not pay off, is now charged interest. If you pay less than the total amount, they will charge you interest on the remainder.

Never charge more than you can pay off the following month. Be aware that a lot of people will use their credit cards to buy things that they have no business buying, don't let this happen to you.

Credit is a tool, it can be a great convenience or an incredible burden. Be wise.

Answer 5

I don't know what bank you are with but i also have a VISA credit card and how it works is that it is basically money you are borrowing. The bank essentially gave you 1000 dollars to use (on the side). So if you don't have the money now and will have it later its there for you to use, unless you max out your card. So what i with mine is that i will purchase something with my credit card and than i will pay it off right away through my online banking by transferring funds to it from my checking account. Otherwise if you cant pay if off you will be charged at the end of every month to the rate you have with your balance in your credit card account.

The credit card is just another account you have with potential money you are approved you borrow, and expected to pay back by end of every month or soon as you can.

Answer 6

Well it's hard to say. Someone said it was a scam, but an actual BANK will not be scamming you. It sounds like they gave you pre-paid credit card, so that they take no risk with a young person since the money is already in the account. That means you have a card with a 1000 bucks credit. You need to ask more questions, don't accept vague, but it's just sort of hard to answer with the information given.

Answer 7

It is not clear from your question if you have a DEBIT card or a CREDIT card. If the word 'check' or 'debit' appears anywhere on the card, it is a debit card. In that case, you USE the card as if it were a credit card, but the money is deducted from you checking account as if you wrote a check. If it is a credit card, take it to the bank and tell them you don't want it. It will only get you in trouble.

Answer 8

You make purchases and after about 30 days they send you the bill .
If you pay the Entire amount right away , there will be no % charge . ( for most banks , can't gaurantee yours is that way tho ) .
If you do not have enough $$$ to pay the bill ,
THEN they will start adding very high % charges and you will be on the fast track to poverty .

Only charge what you can pay off in total when the bill comes , no ifs , no buts , The Total Bill .

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Answer 9

Credit card is a great tool for financial discipline however makes sure you use it the right way...

Answer 10

$1000 on a credit card???? Party---Party--- Toga Toga.... Four day week end is upon us --- get some friends and party...