Educate me on Credit Cards!!!

[AudioFonicz 10+ year member]

Credit cards have a place, but usually dont get used in that manner. I owe alot of money on one right now, thank god its a buisness card and the interest is tax deductable. They build your credit if you use them sparingly and pay the bill on time! I need to say ON TIME again. I will get long winded on this subject. Im 39 and have a 790 credit score. It got that way by borrowing money and paying it off on time every month, never a late payment, period. Make shure you can make the payment even if you loose your job, get sick, etc. That means having around 6 months salary in the bank. If you cant do that, dont risk it.

nice. never thought of it that way.

 

[bigbangtheory 5,000+ posts]

All I know is I should have paid off my debt, which I still can. Just really hate to take out from my savings for my dream home. I will never see it back in there. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif So will pay off the majority of them next tax season. Stupid wedding is draining me!

 

[bigbangtheory 5,000+ posts]

Opps, didn't comment on the credit thing. I say get one, pay it off and throw it away. If you feel you can't stick to one, then go out and get a loan and pay that off. Don't pile up the credit cards, cause that is one of the worst things you can do. Trust me on that, lol!

 

[quakerroatmeal 10+ year member]

I wish credit cards didnt exist. Which is why I paid mine off, and closed them.If I dont have the money in my bank, I dont have the money to afford what I am getting.

This is retarded, closing your credit card account is a bad idea, it's normally a good idea to keep em open to have a good credit history. What if you want to buy a 300,000 house? I'm sure you'll have the cash readily available in your bank to buy one. Todays world EVERYTHING is about credit, good credit/credit history and you can do just about anything. Just be wise, and have self control like somebody said. Keep the debt to credit ratio 30% and under for instance if you have a 1000$ limit card, leave it at around 300 balance on there. Pay immediately when the bill comes, at the very least on time! For your first credit card, you could get a student card, that's what I did. Find one with low interest or no interest for year/two.

 

[Lingerfelt 10+ year member]

Unused open accounts with no balance look bad on you credit report, last I heard. They also detract from what other lenders would allow you to have.