credit cards...

[iagrdshaka 5,000+ posts]

CC = bad //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[04silverz 10+ year member]

dont fall into the credit card trap..credit cards and car audio addicts dont mix well.. ;(

ill second that one.

dont do it. but if you do try to get one that has like 15% or lower apr.

 

[DemonaL 10+ year member]

lol i have 4 credit cards, 1 with 10k limit, 1 with 8k, 1 with 1k, 1 with $400, im 18 and have 55k in the acct. I never use my credit cards unless its for gas.

 

[swimfreak26 10+ year member]

I got a credit card the month after I turned 18 in the hopes of building credit. As long as you use them as a supplement for money that you already have they're a very useful tool, but do not purchase things that you cannot pay for.

In that light, I don't believe looking for the lowest interest rate should affect your decision because you should never wait long enough to pay interest.

My first card was through citibank and I've been very pleased. I started with a $1200 credit limit and now have something like $7700 a little less than 2 years later.

 

[SuperJETT 10+ year member]

using credit card and not paying it off every single month = borrowing money = wasting money on interest = paying more for stuff than what you think it you do = paying $150 for a sub that costs $100

Everyone on here is always looking for the best price they can get on stuff, yet are willing to put it on a credit card and end up paying a bunch more interest.

Just save up for a month or two and pay cash/debit for it.

Building credit just means you are paying the banks interest so you can pay them more interest on bigger loans.

 

[swimfreak26 10+ year member]

Building credit is a very valuable, and necessary, piece of the pie that is american life. You do not need to pay interest in order to build credit, in fact paying your bill off in full each cycle (i.e. BEFORE interest starts to accumulate) will boost your credit score much quicker than just making payments on time.

You are rewarded via your credit rating for using credit cards responsibly, as well as by making loan payments and things of the nature on time (but that's not the topic at hand).

Under your logic, it is smarter to save up and pay cash for a subwoofer than to purchase it on a credit card because a credit rating is worthless and just makes you pay "more interest on larger loans later."

Try again buddy, and read into the "responsible" part of credit card use...NEVER buy anything that you can't afford to pay for in cash at that time. So, you save the money for you sub, buy it with a credit card, and pay off your card. Now, when you go to get that larger loan from the bank - you know, when you want to purchase something like a house (unless you're going to save cash for that too, not likely) - you are seen as a reputable borrower (a lower risk for the bank), and you get lower interest rates on your loan. Develop a recursion equation to map out your payments on a $200,000 loan with 2 different interest rates - varrying by as little as a half percent - and you'll see just how valuable a good credit score is.

 

[regal8r 5,000+ posts]

so...CC from citibank..yay or nay??

 

[SuperJETT 10+ year member]

Try reading my post before replying to it, thanks.

using credit card and not paying it off every single month

BTW, last time I checked my credit score (when we bought another house last spring) it was 785 out of 800, and we haven't had a credit card balance in over 4 years.

Building credit is a very valuable, and necessary, piece of the pie that is american life. You do not need to pay interest in order to build credit, in fact paying your bill off in full each cycle (i.e. BEFORE interest starts to accumulate) will boost your credit score much quicker than just making payments on time.
You are rewarded via your credit rating for using credit cards responsibly, as well as by making loan payments and things of the nature on time (but that's not the topic at hand).

Under your logic, it is smarter to save up and pay cash for a subwoofer than to purchase it on a credit card because a credit rating is worthless and just makes you pay "more interest on larger loans later."

Try again buddy, and read into the "responsible" part of credit card use...NEVER buy anything that you can't afford to pay for in cash at that time. So, you save the money for you sub, buy it with a credit card, and pay off your card. Now, when you go to get that larger loan from the bank - you know, when you want to purchase something like a house (unless you're going to save cash for that too, not likely) - you are seen as a reputable borrower (a lower risk for the bank), and you get lower interest rates on your loan. Develop a recursion equation to map out your payments on a $200,000 loan with 2 different interest rates - varrying by as little as a half percent - and you'll see just how valuable a good credit score is.