Credit cards?........

[bmxmon]

Hey, i'm thinking about getting a credit card, so i can buy parts easier/faster. I just turned 18. I know i will bealbe to "handle" the thing, as it will probably only be used for ordering parts over the net, and i will always have the cash to pay for the entire order. I'm wondering if there is anyway i can pay off the bill the second it comes up on the credit card, so i dont have to pay interest. Any difference between the companies?? Also, since i only have a savings account, and not a checking account, do you think its possible to pay it from there, or do i need checks to pay the bill?? thanks.

[Orange97GTVert]

You could probably pay online if you bank allows it, but you may need a checking account to do it.

[Mr 5 0]

As someone who is only 18 and has no established credit history you can probably expect to get a credit card with a low credit limit...probably $300. Although the credit card companies want you to stretch out your re-payments to charge you interest, you always have the option of paying off your entire credit card balance as soon as you receive the bill as this is the law. Usually, if you use the card regularly (as you intend to) and pay off the balance immediately, they will raise your credit limit after 6 months or a year, often to a few thousand dollars.

I would suggest trying Capital One @ www.capitalone.com and apply online. They are a huge bank and have every conceivable type of credit card available, including those for young people with little or no credit history, like you.

Although you can use postal money orders to pay your credit card bill, that's not really necessary today because you can obtain a checking account easily and many banks now offer checking accounts with no fees at all, except the cost of the checks (about $15. for 200 checks...all you need). Shop around (via phone) for a no-fee checking account in your area.

I encourage you to open a checking account and apply for a credit card because you'll eventually want and need both, even if you don't intend to use it right now. You won't always be 18, single and unencumbered so establishing credit is a 'must' for any serious future plans, such as buying a late-model or new car, a home or even expensive appliances or equipment. Naturally, you will want to be responsible with any credit you receive as knowing you can whip out a credit card and just say "charge it" is a big temptation to buy more 'stuff' than you can really afford and eventually getting into debt that can haunt you for years. Not fun.

Good luck.

[Ieatcamaros]

One more thing. If you get a checking account, you can apply for the visa check card and use it to pay for parts. You use it just like a credit card, only the money comes directly out of you checking account. I got one and I use the hell out of it. Mr 5.0 is right, you will eventually need both a checking account and a credit card. The credit card will help you build up your credit. So when you get ready to buy a home, you will at least have some credit.

[Jeff Chambers]

Get a debit card and use that first. At least with the debit card you can't spend more than you've got available in your checking account. Let me tell you that the 'ease' of buying parts with the credit card is a hard urge to resist. I make pretty good money working for NASA, but still manage to rack up a pretty good credit debt trying to keep a Street Warrior program going. The best bet is to find yourself a cheaper habit....like heroin or cocaine! J/K

[bmxmon]

haha, nice jeff. That visa check card seems interesting, can you use that anywhere that you can use a visa?? The credit thing is also a good point. Right now, i just have an atm card that lets me take out of my savings. Does the first bill you recieve have interest put on it, or is it just if you put it off for awhile? I think the credit thing is a really good idea, since i've also heard about building credit from others. Short term, the visa check card IeatCamaros talked about seems better, but the credit card would probably be the best in the long run. Thanks for the help!
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hey, i was just checking around, and i noticed that most credit card companies have it so you have to spend at least $.50 a month. Not a huge amount, but there could be months that i dont even use it. Anybody know anything about this??

[mustangII460]

DO NOT USE A DEBIT CARD ON THE NET! Did I mention DO NOT USE A DEBIT CARD ON THE NET?

[Fat0eknee]

Originally Posted by mustangII460

DO NOT USE A DEBIT CARD ON THE NET! Did I mention DO NOT USE A DEBIT CARD ON THE NET?

whats the big deal about not using a debit card on the net i use mine and i believe its safe

[OnMy3rdStang]

Originally Posted by mustangII460

DO NOT USE A DEBIT CARD ON THE NET! Did I mention DO NOT USE A DEBIT CARD ON THE NET?

I agree. I told my mom not to do it and she did. Low and behold she got a statement in the mail from Victoria's Secret for $400. Which she did not spend. So she had to call her credit card company and report a stolen card. She never put that info on the computer ever again. Thanks god she didnt have to pay that 400.

Make sure you can pay your cards off in a timely manner and that you dont get carried away. My friend used credit cards to buy mods for his car and now he is 20 grand in the hole.

[Mr 5 0]

Originally Posted by bmxmon

haha, nice jeff. That visa check card seems interesting, can you use that anywhere that you can use a visa?? The credit thing is also a good point. Right now, i just have an atm card that lets me take out of my savings. Does the first bill you recieve have interest put on it, or is it just if you put it off for awhile? I think the credit thing is a really good idea, since i've also heard about building credit from others. Short term, the visa check card IeatCamaros talked about seems better, but the credit card would probably be the best in the long run. Thanks for the help!

Your first credit card bill will only have the amount you have charged and a minimum payment due. If you pay the entire amount due (what you charged) then there is no interest to pay, which is the way to go. If you pay the minimum or anything less than the full amount due, you will be charged interest on whatever you still owe and that will be reflected on your next credit card bill.

I should also mention that for someone 18 and with no credit history, it's quite possible that some credit card companies will charge an annual fee for their card, which can be anywhere from $30. to $150. Shop around and try to find a 'No Annual Fee' card, if you can, for obvious reasons.

While a debit card is certainly a handy thing to have (I have one) it can also expose you to rip-offs, as has been mentioned. I only use mine to take cash out of my bank's ATM. With a debit card, anyone who may illegally gain access to your card number also has access to your entire checking account balance. Not good if you have any kind of balance at all.

No matter form of credit you go with now, to establish a credit history and gain a good credit 'score' you should apply for and use a regular credit card. As always, use it carefully and don't get in over your head, financially.

hey, i was just checking around, and i noticed that most credit card companies have it so you have to spend at least $.50 a month. Not a huge amount, but there could be months that i dont even use it. Anybody know anything about this??

That fifty-cent fee is not uncommon with credit card companies. It's their 'minimum monthly fee' to pay for their expense of issuing you a card and keeping tabs on your use of it. Remember, if you don't pay an annual fee and pay off your balance immediately, the credit card company makes very little, except what they charge the vendors you buy from. Fifty cents a month is certainly not unreasonable. As the old saying goes: "There is no free lunch".

[Ieatcamaros]

Using a regular credit card on the net is no safer than using a debit card. The only difference is if someone gets ahold of the number, as ONmy3rdStang mentioned, you will have to go through a lot more stuff to get it cleared up. With a credit card, you don't actually lose any money right off hand and have to get it back. Credit card companies will just wipe the charge off your account. FWIW, I don't use my debit card online either. I pay with credit card and pay the credit card when I get the statement.

[bigred90gt]

Whatever you do, just be responsible with your card. I couldnt get a card when I was 18 because of something that should not have been on my credit report. When I was about 23, I finally got a couple. I went and racked them up, and then got into a financial bind and couldnt pay them off. When I got laid off, I had to go straight into another job with only the weekend off because I hadto spend my entire severance package to pay off my debt. Thankfully, I learned a very valuable lesson, unfortunately, in the process I have also royally screwed up my credit. They are however paid off, so at least its a start. But, let me tell you, it's miserable not being able to finance anything, and when you do, you get jabbed with an outrageous interest rate. I bought a brand new truck and the best I could muster up was a 12.5% apr. This is terrible for a new vehicle. So, trust when I say to watch yourself and dont get in over your head. I did and now I am paying for it. Of all of the credit cards, I kept one. The only reason I kept one was so I could make small purchases and pay them off to try and help rebuild my credit.

[Topless In Texas]

the best way to have a credit card is to pay all or most of your balance every month. (I never did, BIG mistake)

In time you will accrue MORE credit cards and MORE debt at 25% interest at times, and in time as you have excellent credit you find yourself not able to be able to even pay the minimum to keep up with your cards, they will eat your lunch, if you over indulge. Trust me. Credit cards are EVIL. the interest will eat you up, if you do not pay them off in a timely matter. You will be spending all your time trying to make your payments and that will not even cover your interest. If you let it stack up and pay the minimum, you will lose in the long run and send you into a financial hell. You are paying for your interest, but not your balance.
Credit Cards can be nice, but do NOT take it for granted. It took me 40 years to learn a very hard lesson. DONT let them get astray. Pay your balance, and move on .
IMO
TNT

[CobraJet428]

Amen, Topless. Treat credit cards like you would a rattlesnake. Rattlesnakes serve a pupose in nature and as long as we respect their territory, we can peacefully coexist with them. Credit Cards are like rattlers....handle them with care, build a solid credit history, and then make banks kiss your fanny when you want to borrow money. Handle credit cards foolishly and they become ratttlers coild up, ready to strike, and fill you with deadly venom of interest and other fees. Then you are at the mercy of lenders and have less bargaining power with loans on cars and houses. Handle with care. Take this advice from a "snakebite victim."

[95mustanggt]

I'm not sure how it is in the states, but here in Canada you can get a card where you give them $500 and they give you a card with a $500 credit limit. As you prove you are responsible, they'll give your deposit back and raise your credit limit.

Credit cards are a great way to build credit history. Just make sure you pay them off at the end of the month!!!!!!!! A must!! You don't want to get catch up with more payments than you can handle.

[nastyn8]

Does anyone know much about the Ebay credit cards? its mastercard. no annual fee and you get point for using it on ebay. it sounds like a pretty good idea but it could be to good to be true. https://wwwn.applyonlinenow.com/USap..._MC=A000001FJ8

[91 Mustang LX]

YEah im getting a credit card through my brothers performance catalog i think its through MB and A. Yeah im gonna play it safe on with it though, il only use it for orders online and il only use it when i have the cash on hand.

[84LX89GT]

When i was poor and in college, i would buy stuff with my card and within a couple of weeks (before the interest would add up) i would pay off the balance. In the last year i went kind of nuts and got my credit debt up to $5500, the last few months i've gotten it down to $3400 but still.....it's AMAZING how fast things add up when you've got $16,500 in credit lines (credit card companies will up your credit limits after you've established good credit). I would think to myself, there's nothing on "this" card....but there's $1,000 or so I just spent on another card for stuff. I get card offers all the time and it's hard to resist the "free" money.

The only thing good about credit debt is that it really builds credit when you get in the hole and you start paying it off in large amounts. My credit score went from a respectable 680 rating up to 740 after paying off two cards completely and paying $300 a month on two seperate cards for a few months.

The most important thing i can tell you is PAY ON TIME, also something interesting i've found out is that if you call the card company, alot of times if you tell them that another card will give you a better APR or credit limit, that card company will drop your APR and/or raise your limit. one of my cards went from 12% apr down to 7.9% because i asked them to lower it.