74 replies to this topic

[Maha]

Been thinking for the last year we should get 1 but I sorta don't want to bother...

What are your thoughts on them?

Do you have one?

What do you use it for?

Do you think they're good? Bad?

 

We've mainly been thinking of getting a card that offers 0% interest on purchases over a price such as $300~ or something. But I really have no idea, we need a Whipper Snipper for the yard, I need a car and to be able to pay for my licence I have yet to get before its close to $200 just to go for my test and get my licence. We need a new bed since springs are nearly coming straight through on ours. I'm also wanting 1 of those all in one sorta exercise things.

 

But I just dunno and don't wanna put ourselves in debt, if places would just have an offer where you would own and get to take home stuff and pay it off later, that'd remove all our ideas for wanting a credit card xD Sadly that's not how it works I think xD

[Sweeney]

Don't get one unless you plan to (and can) pay it off completely every single month without fail.

That's literally the only criterion you need to consider.

[Maha]

Don't get one unless you plan to (and can) pay it off completely every single month without fail.

That's literally the only criterion you need to consider.

 

So unless we can pay off the entirety of each purchase each month, don't bother? So if we got a 6 month 0% interest free card and bought a $300 uhm... clothes dryer, we should pay it off within the month?

@Sweeney I've never been very good with money stuff, my parents never taught me how to really do anything and school here was just a pathetic excuse for people to get paid and call themselves a teacher most of the time...

[Rocket]

I got two credit cards when I was 18, and I maxed them out and never paid them off. It ruined my credit score. They are finally going to disappear next year.

 

Do not get a credit card unless you can pay it off and have the funds to do so every month.

 

My sister(who has amazing credit) has a credit card that she shares with me in my name to help build my credit back up, and I only use it for emergencies.

 

Other than that, if you can't afford it and you don't need it right this minute it can wait until pay day. That's my tidbit on the subject.

[Waser Lave]

Don't get one unless you plan to (and can) pay it off completely every single month without fail.

That's literally the only criterion you need to consider.

 

Indeed. Unfortunately they're pretty much a necessity when building up a good credit history if you want to get a mortgage or car finance etc in the future.

[Maha]

I got two credit cards when I was 18, and I maxed them out and never paid them off. It ruined my credit score. They are finally going to disappear next year.

 

Do not get a credit card unless you can pay it off and have the funds to do so every month.

 

My sister(who has amazing credit) has a credit card that she shares with me in my name to help build my credit back up, and I only use it for emergencies.

 

Other than that, if you can't afford it and you don't need it right this minute it can wait until pay day. That's my tidbit on the subject.

 

Sounds like a bit of a nightmare. My grandmother keeps her credit card in a slab of ice in her freezer because she used to max them out all the time.

There are a few things we just need to get soon but we're not going to without some form of help, like a chest of drawers for example -_- I can't stand having to get my clothes out of a bunch of suitcases anymore, i've been doing it for years because we've never been able to afford a good chest of drawers, even locally on weekends when people do garage sales they always want tons of money or they don't have any =\


I just wanna make sure I can get informed properly before we really make any decisions anyway, and this is the best place I know to ask questions. 

[Sweeney]

So unless we can pay off the entirety of each purchase each month, don't bother? So if we got a 6 month 0% interest free card and bought a $300 uhm... clothes dryer, we should pay it off within the month?

@Sweeney I've never been very good with money stuff, my parents never taught me how to really do anything and school here was just a pathetic excuse for people to get paid and call themselves a teacher most of the time...

Exactly. The only reason you should use a credit card is to buy something today, that you need today, that you will be able to afford before your billing date.

If you need financing to make a big purchase, do it through the retailer.

Indeed. Unfortunately they're pretty much a necessity when building up a good credit history if you want to get a mortgage or car finance etc in the future.

Yeah, or they don't get paid off and ruin your credit rating for years.
Some banks over here offer small loans that are designed purely to (re)build your rating - you apply for a small loan, and then you just pay that money right back month by month. The idea is not to spend it at all

[Maha]

Exactly. The only reason you should use a credit card is to buy something today, that you need today, that you will be able to afford before your billing date.

If you need financing to make a big purchase, do it through the retailer.

 

The retailers only financing offers are offered through their credit cards though...

The cheapest place in town has the offers but they're only offered via their credit card service. 

We don't often get retailers who offer in house financing here

[Sweeney]

The retailers only financing offers are offered through their credit cards though...

The cheapest place in town has the offers but they're only offered via their credit card service. 

We don't often get retailers who offer in house financing here

Then save.

[Maha]

Then save.

 

A bit hard to save up the amounts we need quickly enough, we're in need of a new mattress that is for sure and there isn't any such thing as cheap around here -_-

[NapisaurusRex]

A bit hard to save up the amounts we need quickly enough, we're in need of a new mattress that is for sure and there isn't any such thing as cheap around here -_-

So don't buy the $200 fitbit?

[Maha]

So don't buy the $200 fitbit?

 

I'm not buying 1 ._.

[Magical]

Put all of your assets in someone elses name. Change your name. Get a credit card. Spend all the money. Dissapear. Yay! Free money!!

 

Disclaimer: You may get fucked...

[Maha]

Put all of your assets in someone elses name. Change your name. Get a credit card. Spend all the money. Dissapear. Yay! Free money!!

 

Disclaimer: You may get fucked...

 

lol No thanks. 

[Nymh]

Does your partner work?

[Rocket]

If it's something you absolutely need, then apply for a low limit card and look around before you get one for the lowest interest rate possible.

 

You have to make sure you can make the monthly payments. I'd suggest making your monthly payment much higher than the minimum, but within reason of what you can afford each month, to try and pay it off as soon as possible. Once it's paid off stick it in a block of ice for emergencies only

[Waser Lave]

It sounds like you need to sit down and have a good look at your finances in detail to see where you can possibly make some savings from any unnecessary spending.

[Speedracer]

There are a few things we just need to get soon but we're not going to without some form of help, like a chest of drawers for example -_- I can't stand having to get my clothes out of a bunch of suitcases anymore, i've been doing it for years because we've never been able to afford a good chest of drawers, even locally on weekends when people do garage sales they always want tons of money or they don't have any =\

Buy used its much cheaper. Are there not places like Rent-A-Center around you that you could rent from? I use to work for Habitat for Humanity and we sold furniture and appliances, that had been donated, to the public for funding at greatly reduced prices. There is probably some sort of charity or non-profit that does something similar near you though I don't remember where your from. Try looking on craigslist I paid like $15 for my dresser and $30 for my couch.

In general if you can't afford it and it isn't a necessity wait until you have saved up for it.  

[Boggart]

I've had 1 for 5 years since I was 18. One of the first things I did so I could build my credit score

 

My first rule was that I never bought anything I couldn't afford; I mean I had literal liquid assets that I could pay it off before I used it.

 

I have $250 in my account? Something I really really want costs $251? Then I don't buy it.

 

There are tons of apps and online banking available and you can always check your balance to make sure you don't "accidentally" over spend.

[Sweeney]

A bit hard to save up the amounts we need quickly enough, we're in need of a new mattress that is for sure and there isn't any such thing as cheap around here -_-

Then go without a mattress.

Do not buy what you cannot afford.

[Rocket]

@Maha futon's are cheaper than mattresses, just buy a futon mattress and use that instead. Also saving money you can just buy the mattress and put it on the floor and not even need box spring or frame.

Edited by Rocket, 12 May 2014 - 08:23 AM.

[Frizzle]

As long as you pay off the minimum repayments each month your credit rating won't be affected. If you miss even one payment, it will.

Talk to your bank, I set up a direct debit with my bank to pay off the minimum every month, yet one month it didn't go in. So much hassle for them to sort that out.

[Waser Lave]

As long as you pay off the minimum repayments each month your credit rating won't be affected. If you miss even one payment, it will.

Talk to your bank, I set up a direct debit with my bank to pay off the minimum every month, yet one month it didn't go in. So much hassle for them to sort that out.

 

If you're only paying off the minimum it won't affect your credit rating but you'll end up paying more in interest than the debt was to start with though.

[Ali]

We have a couple but like a lot of people have said, they're largely treated as debit cards - we're only ever spending money we actually have. For my personal account I only ever use the debit card to be on the safe side because I'm ridiculously cautious about money. The joint account we both use the credit card, mostly because we want the Avios points to pay for flights.......

 

The times we definitely use them:

- Big purchases. Not because we don't have the money but because of the protection you get by using a credit card.

- Travelling. Just easier to have the cards accepted abroad. Also the reason we have a couple of cards.

- Emergencies. For if the car dies or the house falls down or something. But actually we have a savings buffer to cover most things so we've never had to rely on the cards. (Touch wood).

 

I find it's too easy to get into a cycle of never paying it off because there's always something else that you "need". When I was about 19, we went through a phase of always paying things off in full a couple of months later so we never actually had any money and to get out of that we had a very boring frugal few months...If you can't pay the money off straight away, I'd really recommend it only being for purchases that you truly need,e.g...you won't eat that week if you don't put it on the credit card sort of need. Not that you're sick of not having a chest of drawers - that's very much want over need. But if your finances get to that bad a position, then you really need to consider your whole financial position because racking up debt won't help and it's such a nightmare to get out of.

[Dan]

Talk to your bank, I set up a direct debit with my bank to pay off the minimum every month, yet one month it didn't go in. So much hassle for them to sort that out.

 

Getting any credit score changes reversed (even if it was in error) is always such a ballache.

 

--

 

I have to agree with what everyone else is saying. Personally I have 3 credit cards (1 company) that I use frequently for most of my purchases, which are generally repaid in full by the time I pay myself. I've mainly used these over the past 3 years to build a good credit rating, and have at times left an outstanding balance for a few months.

 

If you had a higher credit score you could apply for credit cards with lower interest rates and rewards - it's pretty common to get air miles through credit card rewards. In some scenarios you may actually benefit more from not repaying it straight away