credit cards

D_BenJo_Ahanakokolele

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Why do adults make things so complicated.

I'm applying for my first real credit card and this is just so confusing.

like wtf is apr

So I'm getting 0% Apr for the first six months then it jumps to 12.99% What does that mean?

like the hell is a cash advance?


Like i ready don't want to get it but i need it since the apartment i found did a credit check and i didn't have credit.


Like i can't move out unless i have credit. wtf


does anyone have some wisdom or advice?
 

Kotchanski

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APR is basically the interest you pay on the credit you spend and don't pay back in full before your monthly statement.

Cash advance is a sneaky way of making you spend more money on interest. Taking cash out, rather than using your credit card to pay for a product directly, usually has a higher interest rate, so when you apply for a credit card, companies are hoping you've got the credit score to obtain the card, and that you're in dire need of the money right now, so they offer you a "cash advance" meaning they'll give you cash up front and take it off the credit limit on the card at the higher rate.

If you only need a card so that your credit history shows you have had and can manage credit, my best advice would be to get a credit card, no cash advance and use that card for maybe one or two of your usual purchases that you make each month (food shopping for example)

If your wages come in on the 1st, and you do your shopping on the 3rd, put that on the credit card, and on the 4th, pay the money straight on to your card. That means you have credit, you're using it responsibly and your credit history looks nice and pretty.
 

D_BenJo_Ahanakokolele

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APR is basically the interest you pay on the credit you spend and don't pay back in full before your monthly statement.

Cash advance is a sneaky way of making you spend more money on interest. Taking cash out, rather than using your credit card to pay for a product directly, usually has a higher interest rate, so when you apply for a credit card, companies are hoping you've got the credit score to obtain the card, and that you're in dire need of the money right now, so they offer you a "cash advance" meaning they'll give you cash up front and take it off the credit limit on the card at the higher rate.

If you only need a card so that your credit history shows you have had and can manage credit, my best advice would be to get a credit card, no cash advance and use that card for maybe one or two of your usual purchases that you make each month (food shopping for example)

If your wages come in on the 1st, and you do your shopping on the 3rd, put that on the credit card, and on the 4th, pay the money straight on to your card. That means you have credit, you're using it responsibly and your credit history looks nice and pretty.


perfect. thank you. I've been up and down google and getting just more confused.
 

DavidXL

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Nyan - pay your credit card off every month and DO NOT let yourself carry a balance. If you have to buy something you can't pay for by the end of the month, you can't afford it. I know smart people (and some not-so smart ones) who got themselves in all sorts of serious financial hot water because small balances pretty quickly turned into larger and larger ones. Pay it off EVERY month, and you will be much better off (and the APR won't matter).

Good luck!
 

bigboy9239

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OK...I agree with the posts so far...Kotchanski...spot on....

APR is annual percentage rate. It's the added money (interest) you pay for using the banks money. It's the money THEY make off of you. 12.99% is not bad. so if you borrow 100 dollars...you would actually pay back $112.99 at the end of the loan.

0% is just that...you pay NO INTEREST for the first 6 months..but be carefull spending money on a credit card is very easy....It is easy to get more and more in debt because its NOT like spending REAL money. That is, UNTIL you get that bill the next month. What they are saying is...they will not charge you interest the first 6 months. However, they MAY charge you "transaction fees", like $3-5 dollars each for cash advances, etc at ATM machines.

What is a cash advance? Most credit cards have two interest rates...one for purchase of services or goods on using the credit card......in other words, you paid for whtever it is using the credit left on the card. BUT they also have a CASH component....you can withdraw cash from them like a loan from the bank. BUT it's almost all ways more expensive....I have NEVER used the cash advance side of my cards.

Once again be careful. Debt is no joke.

Can I give you some advice? Don't go with a credit card.....Unless you REALLY need one. What I did to establish credit.....Go to your bank....and borrow a small amount...say $500 or 1000.00. Now put that money away (dont spend it!!!!!) and use it to pay your loan bill off every month. YES, you will pay slightly more that what you borrowed. BUT you will develop credit....at the end of 6 month or a year...you will have prestine credit,...and therefore, you will get a much better interest rate than you could before. Let me know how you made out.

p
 

nudeyorker

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I agree with everything everyone has said especially regarding repaying bank loans to establish excellent credit. Believe it or not it actually effected my credit rating that I paid cash for my house (who would have thought) I ended up taking out a one year loan on my equity to fix it. (I simply repaid it monthly with the money I borrowed) As far as credit cards go, I have an American Express that I pay monthly and a Visa that I use for bigger ticket items that I revolve as 30/60 or 30/60/90 by that I mean If I buy something I pay half the balance in 30 days and the other half the balance in 60 days or 30/60/90 for bigger purchases. I agree that carrying no balance is the best option but managing high balances is sometimes the best option (when we were renovating our house it was impossible not to carry a balance forward for about six months)
 
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D_BenJo_Ahanakokolele

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well i have a credit card form American Eagle and Kay jewelers that I used this past holiday season. i payed off everything on time. I used less than $100 on each card so i know that was good but now i still can't apply for an actual credit card because apparently i have no credit and I really do need credit because the flat that i want to rent by the water front requires a credit check... which i don't have so i can't move out.
 

Phil Ayesho

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BTW - you will not compile a credit history if you pay off your credit card every month.

What people want to know is whether you are capable of making a monthly payment reliably.


Buy something you need that might be costly... like a TV or a computer... and even if you have the money to pay off the bill immediately... DON'T.

Pay it off over a few months. 3 or 6 payments.

Do this a few times in the course of a year, and you will suddenly show up as a good credit risk.


Here's some other good advice. Get credit cards with LOW lines of credit... nothing over $1,000. It helps keep you from allowing your debt to get out of hand.

Also- pay very close attention to the terms and to your due date.
MOST credit cards will suddenly shift to 29% interest or greater if your payment is even 1 hour late. And they won't shift it back until you have 6 months of on time payments on record.
This is a SCAM to charge you interest.

Also- be aware that most cards are configured such that, if you pay the Minimum due... it will take you 12 years to pay off the balance.

Even when ties are tough, always pay more than the minimum. This is especially so with Student loans. Paying an extra $25 per payment probably won't break you... but it will mean your student loan is paid off in a third of the time.

Remember... buying on credit is the same thing as paying more... sometimes a LOT more, depending on how long it takes you to pay it off.

Buy a TV and take 3 years paying off the credit card and that TV will have cost you TWICE its sale price.

You have to borrow and pay off over time to establish good credit... but Establish good credit so that you have it in an emergency, or when it really will help you ( like buying a house ) and then, try your best to NOT get into debt. Use credit cards to buy stuff and pay it off every month...
 
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D_Ida_Ho

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I agree with everything everyone has said especially regarding repaying bank loans to establish excellent credit. Believe it or not it actually effected my credit rating that I paid cash for my house (who would have thought) I ended up taking out a one year loan on my equity to fix it. (I simply repaid it monthly with the money I borrowed) As far as credit cards go, I have an American Express that I pay monthly and a Visa that I use for bigger ticket items that I revolve as 30/60 or 30/60/90 by that I mean If I buy something I pay half the balance in 30 days and the other half the balance in 60 days or 30/60/90 for bigger purchases. I agree that carrying no balance is the best option but managing high balances is sometimes the best option (when we were renovating our house it was impossible not to carry a balance forward for about six months)

Que? Really? That's a thing?
 

bobg4400

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I only have a debit card. I don't spend much money and pay for everything with cash anyway so :shrug:
 
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Phil Ayesho

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beautiful! love it! I just can't get one...

It should be fairly easy, these days.
One thing they used to check for back when it was hard to get a credit card was residence.
You needed to have the same mailing address for more than 2 years.

Another trick, back when credit was not as easy to get was to buy something like a Television or Mattress from a store that offers their own credit. These are usually pretty sucky term loans that can add a lot of money to the purchase cost... but they will finance just about anyone.

Another thing is graduating from college. Almost anyone with a BA or better can get a credit card.
 

hungandquiteproud

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beautiful! love it! I just can't get one...

Getting a major credit card might be difficult to do on your own (this was N/A for me since my college sold my contact info and all of us got our first credit card this way), but you've got options. Ask if your bank is willing to offer you a credit card with a small credit limit for starters. If you do most of your banking at a big national bank, chances are they'll do credit cards as well. If you don't, Google them (i.e., Chase, Bank of America, etc.) to see if you can apply for them online.

See if this works. Given the advice you've been told (and how cautious you seem about spending), you'll do alright with a single $500 card or so.
 

rbkwp

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debit credit card only for me, who cant handle shit these days

think you have all the info you may desire OP
Good Luck
know what your going thru,as i stubbornly refused to be a part of it all, but when i wanted to take on a Business, Credit was real necessary ..
can appreciate your need to establish some, even for accommodation ..
 

D_BenJo_Ahanakokolele

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Getting a major credit card might be difficult to do on your own (this was N/A for me since my college sold my contact info and all of us got our first credit card this way), but you've got options. Ask if your bank is willing to offer you a credit card with a small credit limit for starters. If you do most of your banking at a big national bank, chances are they'll do credit cards as well. If you don't, Google them (i.e., Chase, Bank of America, etc.) to see if you can apply for them online.

See if this works. Given the advice you've been told (and how cautious you seem about spending), you'll do alright with a single $500 card or so.


i tried my bank. it was a no go.

and i spoke with my friend at Credit Suisse and he told me the best thing to do would be to wait. I really don't want to because i will most likely loose the apartment but i'll just have to find a new one.


I'm just pissed cause i was so ready to move. I was so looking forward to it. and yea sure i can move into a some cheap $900 a month apartment that doesn't require a credit check but I don't want to settle for less than the best.