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Credit Cards - Word of advice for you younger posters


bgwfreak

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I honestly don't know what I'm writing this to you guys, but I feel like if I can at least warn one person to avoid what I got myself into then it will be worth it.

 

I just really want to warn the younger posters out there the danger of credit cards. There's nothing wrong with having one, but when you max out one and then get a second and a third, etc pretty soon you can't pay your bills.

 

The reason I'm even saying anything is that I'm amazed the lack of talk about this at all with youth today.

 

It can literally screw up your life, but yet noone talks about it.

 

Many people head off to college and then they get credit card offers thrown at them left and right. Before you know it you've got thousands of dollars in debt from credit cards AND school loans.

 

I don't want to sound like a parent, but I really do want you guys to think twice before getting into consumer debt.

 

I've got a long way to get out of mine that I got in and I wouldn't wish this on my worst enemy, ok maybe Saddam or someone.

 

But you get my point. Maybe this can start a good discussion on this subject, because it really does need to be addressed in the US. It really has become a huge problem.

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In fact, the best thing you can do is to get a debit card. Debit cards have a bigger responsibility factor, as you can see an amount of money get spent, and once you're out, you're out.

 

Credit cards, however, don't really feel like you're spending- and that's the problem.

 

Debit cards = better.

 

That's my advice.

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When I opened my bank account when I started University, my parents were smart by telling me about credit cards. The bank gave me a standard VISA, which I should "pay off when I use it" and a debit check-card (a debit card with a VISA logo)

 

For credit cards, use when

-You know you have the money to pay it off

-You need the extra security (if someone steals your credit card, you can get reimbursed. If someone steals your debit card, you might be in trouble)

-You're at the front of the line at the supermarket and your debit card doesn't work (in which case, call your bank)

-You want to build credit history (which will help with buying a car, house, etc.)

-You want to keep track of your transactions (and allow stores to keep your transactions on record, making it easier to return merchandise), although a debit card can do the same thing.

 

Don't open many accounts. Keep one or two accounts. If you have an account you don't use, pay it off and close it, as it will hurt your credit score. Also, don't give your credit card to Robb. I did that once.

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I got my first credit card 2 years ago and am very careful with it. I use it a lot but I don't buy things I can't afford and pay the full balance off every month. I figure it's good to have and a way to build up credit. I then got the reward card last year since it has rewards and also pay the balance on that card each month (student card so it has a very low limit). It encourages me to use the card rather than cash so I get reward points but I still am careful with that card as well and also pay off the balance each month. I agree with your post though. I know people who buy a stack of DVD's at a time, or buy a TV like it's nothing and think because they don't have to pay for it now they can get it.

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I'm only 17, but I've known that credit cards are bad for years. I just don't understand the concept of paying for things with money that simply doesn't exist. I will get a credit card to build up my credit score, but only for purchases in the $50-$200 range. Below I'll just pay in cash and above I'm going to have the money in my coffers before I even consider how I'm going to purchase it.

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WOOHOO, we actually paid off ALL our Cerdit Card debt when we left California, And we DESTROYED all of our cards

 

We have gotten along great without them, and the money you save not paying intrest is pretty amazing

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I honestly don't know what I'm writing this to you guys, but I feel like if I can at least warn one person to avoid what I got myself into then it will be worth it.

 

I just really want to warn the younger posters out there the danger of credit cards. There's nothing wrong with having one, but when you max out one and then get a second and a third, etc pretty soon you can't pay your bills.

 

The reason I'm even saying anything is that I'm amazed the lack of talk about this at all with youth today.

 

It can literally screw up your life, but yet noone talks about it.

 

Many people head off to college and then they get credit card offers thrown at them left and right. Before you know it you've got thousands of dollars in debt from credit cards AND school loans.

 

I don't want to sound like a parent, but I really do want you guys to think twice before getting into consumer debt.

 

I've got a long way to get out of mine that I got in and I wouldn't wish this on my worst enemy, ok maybe Saddam or someone.

 

But you get my point. Maybe this can start a good discussion on this subject, because it really does need to be addressed in the US. It really has become a huge problem.

 

I'd like to second what bgwfreak said. My first day at college I had three credit card applications in the dorm-room welcome pack.

 

As I was without a decent means of financial support, I lived off credit cards for over two years. This has come back to bite me in the arse. I'm no longer in any debt (was up to $20,000 at one point...), but even though I now have plenty of money I had to do things like get a cosigner just to buy a car. My credit for at least the next 5 years in ruined, and this is quite devasting as my wife and I want to do things like buy a house/townhome and another car some time in the near future.

 

Matt

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Damn credit cards!!! They sure did screw me over, but I'm in the clear now.

 

When you do get one though you younger people, only use it for things you can afford. If you have a $500 limit, don't max it out in one day, or even the whole month.

 

With mine, I just use it for gas, and pay it off each month. Its good to try and get your credit line up, but don't go crazy with it..

 

.. Ofcourse, the best idea is to get a debit check card, like stated before. They help your credit as well.

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^ The only reason you would ever need one is to rent a car.

 

 

^^ I hear ya.

 

Thankfully I never defaulted on anything, but at one time I probably had 8-10 credit cards (between regular cards and store cards).

 

Store cards are the worst. They offer you 10% off one purchase to get one and then charge you 29% interest. Makes a lot of sense!

 

I'm down to only 2 cards now, but both have a balances and between a mortgage and other bills it gets tight.

 

Thankfully my car is paid off or I would be in steep trouble because the banks just doubled the minimum payment required. That about killed me. lol

 

Anyway, I hope this will help out someone. My advice if you don't have the money to buy something. Don't. Save up the money or just wait until you can afford it.

 

As long as you've got the basics in life, you can live without the rest.

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This is definitely a good topic. Credit card debt has a way of "sneaking up on you" and it is very easy to get in over your head. Having good credit becomes very important as you approach the home/car buying ages. I know that I partied like a "rock star" through college and beyond, and have spent the first half of my 30's digging myself out of the hole that I dug myself into.

 

I now use credit responsably and have almost paid off all of the screwy things I did.

 

Remember, defaulting and late payments can really tube your credit report for years to come. It can make it impossible for you to buy a house, and make you pay incredibly high interest rates on things like car loans. It is important to use discretion and to be careful whenever purchasing items on credit.

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I did the same thing through college. Wasn't told of the dangers of missing payments and opening multiple lines of credit. Took me 8 years to pay it all off.

 

I also just did a credit check since we're looking into purchasing a home. Everyone, please check your credit history!!!! One of the credit bureaus had so much incorrect info on me, I had a credit score with them of 250. Someone with the same name, different state, had multiple mortgages and gas cards. A seven page letter and a lot of sleepless nights, it's all fixed. Unfortunately, in this world we all have to watch our backs more closely.

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I my visa check card. And my mom's credit card

 

I hate carrying cash, I've had too much of the stuff stolen over the years... and most places accept credit, so I can avoid it for the most part.

 

I do have a card I use for travle purchases just so I can earn free flights a little quicker... Ive had no problems with it yet.

 

Didn't this topic come up recently?

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Not really trying to plug my employer, but Bank of America also offers a program where the change from each debit transaction will roll to your savings.

 

So not only do you not go into debt, you save a little bit each time and the bank will match some of it as well.

 

It's called "Keep the change". I signed up a couple months ago and have saved a little bit so far.

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I've had a credit card for five years and have always refused to spend more than I have. The card has come in very handy, especially since I hate carrying a lot of cash around, and it's good to have on trips in case of emergencies..that's actually why I got it in the first place. As long as you pay attention to what you're spending and are careful about it, credit cards can be a good thing to have.

 

I have a debit card, but I rarely use it since the fees on it are so high. The credit card works out to be much cheaper for me.

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I just don't get it. Millions of Americans want to live the "American" lifestyle, you know, big house with a yard, SUV, etc., but not a single person can afford it. I hate to be mean, but when you're making $55,000 a year with a family of 4, you just can't do it. So what do you do? You get 4 or 5 credit cards and max them out. Sure, you've got a lot of debt, but hey, you've got a brand new car, big house, and everything you've always wanted.

 

Except now, you owe tons of money to the banks, have 2 or more mortgages, and have to pay interest rates on your credit cards (which are super high just so people won't do exactly what you've done). Eventually, the bank is going to take everything from you-why don't people understand that. This is why you see all of these new credit counseling companies-it's ridiculous how irresponsible people are with money.

 

This may just be because my dad is a financial consultant, but I could never understand why you would spend more money than you have. Instead of saving for something expensive, you just buy it on the spot, and it ends up costing you more anyway (with interest and finance charges). Get 1 or 2 cards (one with mileage rewards, one with hotel rewards) and pay them in full when you get the bill. Don't pay the minimum or anything like that, because that's when the interest charges come in. If you just pay the darn thing off, it shouldn't cost you anything. If there are special charges for the mileage rewards, switch to a card that gives them for free.

 

And that's about all I know in terms of credit cards.

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My Visa debit card does all the things a credit card can do, without having to pay any interest on it.

 

Exactly.

 

I can only recall two instances in which I had to use my debit card [and I got that back in June]. I only use it when I'm out or low on paper money. I barely spend my money since I'm saving for the midwest trip and airfare for it.

 

Other than that, I still use old fashioned paper money mostly.

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I personally think credit cards are a great thing for a teenager if used properly. Right now I have four. Two I use to pay for food/other small purchases, one I use as my card for any trip expenses, and one I rarely use (don't even keep it in my wallet) as a backup.

 

The trick is, like others have said, is just make sure you can pay them off every month. I usually charge about $100-200 on each of my two main cards, so I am sure I can pay them off.

 

You do need open lines of credit to build up your credit when it comes time to buy a car/house/other major purchases (I just bought a brand new Jetta in March and had the option of financing on my own if I wanted to...but it was cheaper if I co-signed with my parents), and getting a few credit cards that you use sparingly is a great way to do that.

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. Its good to try and get your credit line up, but don't go crazy with it..

 

.. Ofcourse, the best idea is to get a debit check card, like stated before. They help your credit as well.

 

What? I've had a check card for 4 years now. I use it for a lot of things, mainly concert tickets, hotel rooms and such. A few months ago, I couldn't even get a freaking Target card (just the card, not a Visa) because apparently I have no credit.

 

So do you have to have the debit card for a long freaking time, or what? 'Cause I do really need to improve my credit.

 

EDIT: #444. Spooky, in a way.

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When I was in high school, I couldn't get a credit card. So I went to the bank and opened up a secured credit line. I gave them $300, and they gave me a credit card with a $300 limit. That's one option.

 

So I used the credit card for a couple years, charging gas and then paying it all off every month, and then applied for a regular credit card. I got approved for a regular card, and then closed out my secured line and got my $300 back.

 

Correct me if I'm wrong, but I don't thing a debit card does anything for your credit history.

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Correct me if I'm wrong, but I don't thing a debit card does anything for your credit history.

 

No, it doesn't. Credit History is effected by things like loans, student loans (in your name), paying bills on time, etc. Pretty much everything under the sun that you charge and have to pay back later on.

 

As for me, I got both a debit card and credit card. I got a debit card when I turned 18, and that's when I opened a checking account at my credit union. Fast foward to when I was 20, my parents recommended to me when we were at the cambridge house for dinner, that I get a credit card. They said I should get a Discover Card and they trust me in being very responsible with it. And I have been. Except this month sucks because when I was down in Virgina I hit the limit (I got a credit limit of 1,000, but the discover locked me at around 800) so all this month I've just been paying it off piece by piece, and I figured out that I just need to put in 200 for the next couple of weeks and I can get that zeroed out.

 

Sometimes I wish i was working full time because I need to worry about my car loan bills plus the credit card bills on top.

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