I Have not had a Credit Card for 10 Plus years now and have 3 coming in the mail just to use for repairing my credit I have a Good Job Now.. I do not want to become a victim of the Credit Card Crunch in Interest charges that has Crippled America
2007-10-06 12:06:10 · 11 answers · asked by discgolfer6950 1 in Business & Finance ➔ Personal Finance
The best advice I ever heard on this topic was, "Use credit cards for convenience, not credit."
I think I know what you are trying to do. Charge something only when you have the money to pay off the card immediately. Write and mail the check to the credit card (or transfer on-line) the same day you make the charge.
2007-10-06 12:11:54 · answer #1 · answered by lou_kur 2 · 0⤊ 0⤋
I don't quiet understand your question and your situation. But I think you meant how to "avoid" or not to have too interests accrued on your new credit cards. Since your new credit cards are on the way, there must be no balance accrued yet. So just use it wisely by not spending more than you usually do for daily necessities, like food, gas, and etc. when the bills or statements comes, pay in full and don't be late. This would also help you repair your credit.
2007-10-06 12:25:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Don't use the cards, and continue to pay cash for everything. Alternatively, don't charge more than you can pay off at the end of every month. You won't pay any interest at all with either of these two methods.
You don't have to go into debt to repair your credit! That's what ruined your credit in the first place.
2007-10-06 12:42:32 · answer #3 · answered by Lisa A 7 · 1⤊ 0⤋
The BEST way to limit interest is DON'T borrow money. If you have no NEGATIVE information on your credit report for 10 year, your credit does not need repaired. If you have lived without credit for 10 years, you don't need credit at all. You CAN get a mortgage with NO credit history. Just find a lender that still knows what MANUAL UNDERWRITING is. That is the pre-FICO method of actually LOOKING at your credit history, income, and debt and MAKING A DECISION.
2007-10-06 14:48:58 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
The key is simply to understand that the purpose of a credit card is NOT for it to be used as a tool to buy things you can't otherwise afford. If you can't afford to buy the new 975 dollar couch out of your checking account, then you also cannot afford to simply put it on a credit card. You use a credit card for convenience, there is nothing wrong with using it, but you put on it only what you will pay off at the end of the month. Of course, if everyone did that there would be no credit cards for anyone because there would be no profit for these companies, but make that their problem, not yours. You limit the interest by paying ZERO interest because you don't carry a balance, you pay it off every month. In that way it is just a tool, not a debt enabler. It improves your credit because one key factor is the ratio of debt you have to total credit you have.
2007-10-06 13:36:15 · answer #5 · answered by The Scorpion 6 · 1⤊ 1⤋
Do not use them unless you have to. And if you do, make your payments earlier than the due date and in full if you can. Always pay more than the minimum. Do not run them up to the limit. If there are membership fees, you may get a bill even if you have not charged anything to the card. Pay the fees on time and don't feel that you might as well use the card if you are paying membership fees. Keep the cards for the rainy day and always charge only up to the amount that you are sure will be able to pay back.
Good luck,
Barry
2007-10-06 12:26:31 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Credit cards are a great way to build credit. What you need to do is pay your balance off in full on a monthly basis. If you do that then you will never pay any interest.
Be careful never to max the cards even if you can pay them off as it increases your debt ratio.
2007-10-06 13:08:18 · answer #7 · answered by Blind Dragon 3 · 1⤊ 1⤋
I don't think you need more than 1 credit card for starters!
Also don't spend more than you can pay off within a month.
2007-10-06 14:54:41 · answer #8 · answered by Chad C 1 · 0⤊ 0⤋
Have only 1 credit card.
Pay cash for all purchases.
If you notice the bank has increased the credit limit on you credit card call and request that they lower it.
2007-10-06 12:14:27 · answer #9 · answered by Anthony M 6 · 1⤊ 1⤋
Only buy things you normally pay chase for (like groceries) keep charges to a minimum (I suggest less than $100) and pay off every month.
Good luck
2007-10-06 12:11:56 · answer #10 · answered by Gem 7 · 0⤊ 0⤋