Guest tbutera2112 Posted October 27, 2009 Report Share Posted October 27, 2009 I was told that thanks to the economy I didnt have a choice. If you have better luck please let me know. I used to buy car mods during the year and pay it back with my bonus checks.. but with a 17%+ interest rate i'll just wait until I get my bonus to buy the parts. Tyler be very careful what you do... especially if you plan on keeping a balance. after reading this thread and what people have to say, i think im going to try and find a way around getting a card Quote Link to comment Share on other sites More sharing options...
Bam Posted October 28, 2009 Report Share Posted October 28, 2009 I'm not sure who told you guys (Aaron and Brian) that carrying a balance was necessary or hell even recommended. I also didn't say that having a credit card and credit history would help you with keeping good credit card rates. This is a new economy and banks are doing whatever they can to recoup some money. That being said. I have NEVER once carried a balance on ANY of my many cards over the past 6 years and I have a 790+ credit score, an EXCELLENT rate on my mortgage, and have always gotten the best rates/whatever when applying for things, such as cars, credit cards, etc. NEVER leave a balance on a card, its just a waste of money. Use the card frequently and just pay it off every month. Be responsible with the credit cards and they will repay you in the future. I may be lucky but not a single one of my credit card rates have increased, but even if they did I wouldn't care a bit, as they don't affect people that don't carry balances. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted October 28, 2009 Report Share Posted October 28, 2009 I read ONLY the OP. If I had to do EVERYTHING all over again, I would avoid Credit Cards like the plague. Cash or Nothing. :thumbup: KillJoy Quote Link to comment Share on other sites More sharing options...
TheHaze Posted October 28, 2009 Report Share Posted October 28, 2009 I read ONLY the OP. If I had to do EVERYTHING all over again, I would avoid Credit Cards like the plague. Cash or Nothing. :thumbup: KillJoy +1, if only I could go back... I got myself in to too much trouble in the past with damn credit cards. I have a great credit history and score, however, but it caused too much stress. Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted October 28, 2009 Report Share Posted October 28, 2009 im gonna avoid a credit card after this thread...thanks guys as for my credit, im already working on building it so im not too worried...actually...my mom is building it for me.. she financed 18k for a car, and put me as a co-financer on her loan...shes pays more than the minimum payments, and never misses a payment...so its helping my credit and hers Quote Link to comment Share on other sites More sharing options...
Total Sign Posted October 28, 2009 Report Share Posted October 28, 2009 Credit score/history aside, AMEX Platinum is the best credit card I have ever owned. Travel perks + Concierge Service > * Quote Link to comment Share on other sites More sharing options...
Cordell Posted October 28, 2009 Report Share Posted October 28, 2009 I read ONLY the OP. If I had to do EVERYTHING all over again, I would avoid Credit Cards like the plague. Cash or Nothing. :thumbup: KillJoy +1000000000 Been there done that. Credit cards are just getting worse lately I'm not sure there is anything good about them anymore. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted October 28, 2009 Report Share Posted October 28, 2009 I'm not sure who told you guys (Aaron and Brian) that carrying a balance was necessary or hell even recommended. I also didn't say that having a credit card and credit history would help you with keeping good credit card rates. This is a new economy and banks are doing whatever they can to recoup some money. That being said. I have NEVER once carried a balance on ANY of my many cards over the past 6 years and I have a 790+ credit score, an EXCELLENT rate on my mortgage, and have always gotten the best rates/whatever when applying for things, such as cars, credit cards, etc. NEVER leave a balance on a card, its just a waste of money. Use the card frequently and just pay it off every month. Be responsible with the credit cards and they will repay you in the future. I may be lucky but not a single one of my credit card rates have increased, but even if they did I wouldn't care a bit, as they don't affect people that don't carry balances. This was back in 1997 when credit counslers counselled me to carry a balance to show I could pay on time. I would do my shopping with it weekly and the interest rate was low enough to where at the end of the year I maybe paid $30 in interest. Knowing what I know now, there are way too many ways to build credit outside of credit cards to even consider them. Credit cards require too much control and not everyone can control their spending. I vote stay away. Quote Link to comment Share on other sites More sharing options...
Aaron Posted October 28, 2009 Report Share Posted October 28, 2009 I'm not sure who told you guys (Aaron and Brian) that carrying a balance was necessary or hell even recommended. I also didn't say that having a credit card and credit history would help you with keeping good credit card rates. This is a new economy and banks are doing whatever they can to recoup some money. That being said. I have NEVER once carried a balance on ANY of my many cards over the past 6 years and I have a 790+ credit score, an EXCELLENT rate on my mortgage, and have always gotten the best rates/whatever when applying for things, such as cars, credit cards, etc. NEVER leave a balance on a card, its just a waste of money. Use the card frequently and just pay it off every month. Be responsible with the credit cards and they will repay you in the future. I may be lucky but not a single one of my credit card rates have increased, but even if they did I wouldn't care a bit, as they don't affect people that don't carry balances. I never said it was recommended to carry a balance. I did say that to build credit, carrying a balance is better than lump sum payments. I understand that what I said might have been misunderstood though. We are digging ourself out of a giant hole we put ourselves in over the last 4 years. For the last 6 months we haven't put anything on our credit cards, only used cash, and have been averaging 1k/month debt payment. This was back in 1997 when credit counslers counselled me to carry a balance to show I could pay on time. I would do my shopping with it weekly and the interest rate was low enough to where at the end of the year I maybe paid $30 in interest. Knowing what I know now, there are way too many ways to build credit outside of credit cards to even consider them. Credit cards require too much control and not everyone can control their spending. I vote stay away. Agreed, it is a very simplistic explanation and way to build credit. This is kind of like finance/credit card 101 type info. Not to be taken as all you need to know, but it is true when taken by itself. Quote Link to comment Share on other sites More sharing options...
Aaron Posted October 28, 2009 Report Share Posted October 28, 2009 I think we are all saying the same thing in different ways. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted October 28, 2009 Report Share Posted October 28, 2009 if your mom has such perfect credit, and is making more than the minimum due on the car payment, why is it she cant help you out with $200? doesnt she have a credit card you can use and pay it off? i would say dont be scared of credit cards, and dont be an idiot. i got my 1st credit card when i was like 19, and a couple more over the next few years. taking advantage of 0% offers (not balance transfers, but like when i bought my TV, 0% for 36 months = free money), at 23 i was able to score a 5.000% rate on my mortgage. i got mine same reason as you, little hard time, and just wanted to have it incase i needed...well, by the time i got the card, i had gotten my next check and was ok. i still held onto it, and reaped the rewards points, and it was nice to have when emergencies came up. and i know you think you're doing good by being a cosigner, and creditors do have to take that into consideration, but theres going to be a point you dont want to be attached to mommy any more, and itll be nice to apply for credit knowing this is YOUR history, not someone elses you got grouped into. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted October 28, 2009 Report Share Posted October 28, 2009 I take that back.. Tyler get a card. Keep the total available credit at a point to where you can always pay it off (if maxed) within 3 months. The more income you bring in the higher you can allow the limit to be. Also keep that amount or higher in your savings account at all time. Quote Link to comment Share on other sites More sharing options...
copperhead Posted October 28, 2009 Report Share Posted October 28, 2009 If you are going to get a card, get one with a stupid low limit, like $500, so it can't get out of control. If you can get a 0% card for any amount of time, that's great, but at a young age with limited/no credit history, look at the fine print and make sure there aren't any fees or any other bullshit charges, like for non use or a yearly fee or anything like that. And as for building credit - the rules of the game aren't what they were. They want to throw cards at anyone that will take them, and are cranking up everyone's rates, regardless of how good their credit is. I'm to the point where I'd like to get a fixed loan to pay off my CC and my student loan just so I have a single payment, and know what it will be every month without having to worry about the next month's payment being way more for no reason. And I've got a zero percent card, too. I hate to say this, but you may also want to think about a change in priorities. Considering you are trying to work and go to school and what not, it may be best to get down to one vehicle that's reliable, whether its the mustang (and not mod it) or something else that's cheaper to keep on the road. Sometimes a newer vehicle with payments is a better idea than a car you paid cash for, but needs a $200 - $500 part every month, as downtime can cost you too. It's hard to argue with some of the new car warranties out there these days. Quote Link to comment Share on other sites More sharing options...
RangerTurbo Posted October 28, 2009 Report Share Posted October 28, 2009 I was told that thanks to the economy I didnt have a choice. I was under the impression the recent rate hikes are in anticipation of an upcoming credit card bill that takes effect this coming year. Where as the company's are going to be limited to how they can change and make their variable rates. So I'm under the impression they are hiking them now so they are grandfathered in with the higher rates already established. I haven't read into or researched this. Just heard it from word of mouth, so it could be completely false. As far as the economy goes, I just received a pre-disqualified credit card offer in the mail. Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted October 28, 2009 Report Share Posted October 28, 2009 if your mom has such perfect credit, and is making more than the minimum due on the car payment, why is it she cant help you out with $200? doesnt she have a credit card you can use and pay it off? my mom doesnt have any credit cards, she hasnt for a long long time....the payments she makes on her car are automatically drawn from her account, it would be a pain to have them changed and then rechanged I hate to say this, but you may also want to think about a change in priorities. Considering you are trying to work and go to school and what not, it may be best to get down to one vehicle that's reliable, whether its the mustang (and not mod it) or something else that's cheaper to keep on the road. Sometimes a newer vehicle with payments is a better idea than a car you paid cash for, but needs a $200 - $500 part every month, as downtime can cost you too. It's hard to argue with some of the new car warranties out there these days. yea i get what youre saying...i already got rid of my truck to try and cut back a little bit...im saving a TON in gas..i drive about 500 miles a week and now im getting 30mpg instead of 12mpg...the car im in now isnt too old, and has fairly low miles...theres a short list of common issues on these cars, and im slowly tackling each issue that needs fixed, and some preventative....i need to install a new belt tensioner, and change out the power steering pump...then i should be good to go... as for sticking to one car, i havent spent a dime on my mustang since mid summer...rob is completely paid off for all the money i owed him, and i havent been buying parts...the car is so far from being completed that im not really rushing to find the rest of my stuff...its pretty much on hold until early next year (aside from chassis work that rob is working on, but the parts and labor for that are already paid for) i usually have about a grand in my savings account that i use as emergency money, and i bought my girl part of her engagement ring with it thinking UPS would be paying it right back to me...they approved me for my reimbursement and everything, so i was banking on that money coming in, then the last second they rejected me saying something about a technicality ...ive learned my lesson to not bank on having money until you physically have it....learned that one the hard way, so until early january im gonna be cutting it close...by then i should be back on my feet without any more issues...just struggling to get by for a couple months now because of bad planning and a shady company Quote Link to comment Share on other sites More sharing options...
Sparky Posted October 28, 2009 Report Share Posted October 28, 2009 I have a card through Kemba its a variable rate 9-12% not too shabby. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted October 29, 2009 Report Share Posted October 29, 2009 my mom doesnt have any credit cards, she hasnt for a long long time....the payments she makes on her car are automatically drawn from her account, it would be a pain to have them changed and then rechanged yea i get what youre saying...i already got rid of my truck to try and cut back a little bit...im saving a TON in gas..i drive about 500 miles a week and now im getting 30mpg instead of 12mpg...the car im in now isnt too old, and has fairly low miles...theres a short list of common issues on these cars, and im slowly tackling each issue that needs fixed, and some preventative....i need to install a new belt tensioner, and change out the power steering pump...then i should be good to go... as for sticking to one car, i havent spent a dime on my mustang since mid summer...rob is completely paid off for all the money i owed him, and i havent been buying parts...the car is so far from being completed that im not really rushing to find the rest of my stuff...its pretty much on hold until early next year (aside from chassis work that rob is working on, but the parts and labor for that are already paid for) i usually have about a grand in my savings account that i use as emergency money, and i bought my girl part of her engagement ring with it thinking UPS would be paying it right back to me...they approved me for my reimbursement and everything, so i was banking on that money coming in, then the last second they rejected me saying something about a technicality ...ive learned my lesson to not bank on having money until you physically have it....learned that one the hard way, so until early january im gonna be cutting it close...by then i should be back on my feet without any more issues...just struggling to get by for a couple months now because of bad planning and a shady company why would UPS reimburse you for buying an engagement ring for your girlfriend?? Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted October 29, 2009 Report Share Posted October 29, 2009 why would UPS reimburse you for buying an engagement ring for your girlfriend?? tuition reimbursement from school, UPS pays me for going to school Quote Link to comment Share on other sites More sharing options...
gillbot Posted October 29, 2009 Report Share Posted October 29, 2009 http://www.bettercreditcard.com My wife and I try not to carry a balance if we can avoid it. Three of our cards jacked up the rates so we closed them out. We only have two left and if they jack up the rates, they'll get closed too. Luckily, if you have a balance, many cards are still are offering 0% balance transfers so you don't get stuck with a balance and high rate. Quote Link to comment Share on other sites More sharing options...
Akula Posted October 29, 2009 Report Share Posted October 29, 2009 Revolving credit is good for building credit. If you don't have a card you should have one, just keep it under control. Keep a low limit, only use it in emergencies. I have a $5000 limit card sitting in a drawer at home, if someone dies and I need plane tickets or need to buy a furnace ... you get the point. I pay all my balances off each month, I use my home equity line, that way I can write off the interest. I keep my HE Line down to zero when possible. Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted October 29, 2009 Report Share Posted October 29, 2009 Revolving credit is good for building credit. If you don't have a card you should have one, just keep it under control. Keep a low limit, only use it in emergencies. I have a $5000 limit card sitting in a drawer at home, if someone dies and I need plane tickets or need to buy a furnace ... you get the point. I pay all my balances off each month, I use my home equity line, that way I can write off the interest. I keep my HE Line down to zero when possible. i think i may look into taking a person finance class at cscc sometime...i have no idea what most of the people in this thread are really talking about... Quote Link to comment Share on other sites More sharing options...
Bam Posted October 29, 2009 Report Share Posted October 29, 2009 i think i may look into taking a person finance class at cscc sometime...i have no idea what most of the people in this thread are really talking about... Definitely a good idea. I'm a fianance major and started at cscc, the intro class there is very good and even if you don't want to do anything more than better handle your money, its a good class to take. They have this budget project that runs the entire class length, definitely opens your eyes to where your money goes if you stick with it. And I agree with Akula, except about having low limits, there is nothing wrong with a higher limit. And I charge everything on my CC to get the rewards, and then if its a large purchase or unannounced or home related and I can't pay it off in cash, I use my HELOC to pay off the CC since its tax deductible and currently at 1.99%, which is cheap. Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted October 29, 2009 Report Share Posted October 29, 2009 i went to the bank today to talk to them about a student card, and she asked what i needed it for she reccomended an unsecured loan instead...lowest amount they can do is $1000, and i qualified for an 11% interest rate...had her write it up for a 3 year loan, so the monthly payments are going to be $35 a month...no penalty for early payoff....im going to take it and take the $250 or so that i need out, and then put the rest right back down on paying it off...then ill make payments on the remaining $250 over the next month or so until its paid off thanks for the advice guys Quote Link to comment Share on other sites More sharing options...
copperhead Posted October 29, 2009 Report Share Posted October 29, 2009 i think i may look into taking a person finance class at cscc sometime...i have no idea what most of the people in this thread are really talking about... Just ask. And I agree with Akula, except about having low limits, there is nothing wrong with a higher limit. That depends on too many factors. At a younger age, and having money problems to begin with, having a high limit makes it way too easy to get into long term trouble. If you are well established and using a CC to mine rewards, then the limit isn't such a big deal. Quote Link to comment Share on other sites More sharing options...
Akula Posted October 29, 2009 Report Share Posted October 29, 2009 Of course she suggested an 11% unsecured micro loan, she is going to make money off that. doesn't really help your revolving credit problem.... pay it off as soon as you can. Quote Link to comment Share on other sites More sharing options...
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