74 replies to this topic

[Syntax]

I shy away from credit cards mostly cause I don't need it and if I get a credit card I'll automatically get a smaller loan when I want to buy a flat. Debit has worked for me. I guess the main danger with credit is you can easily overspend. If you have installments on the card it's easy to forget about it and spend more than you meant to.

[Elindoril]

I have a credit card and had a good enough job to easily pay it back.

Of course as soon as I paid to fly Turnip in I got my hours cut at my job and trying to get a job that has more hours than my current one isn't working out.

I'm still easily making payments, but it feels like I'm not making any progress.

Just be careful. You never know what might come up and ruins things for you.

[Adam]

I've had a credit card since I was 18, and have put a lot of items on it and racked up a balance which I've paid off; however, in my experience it is not necessary to pay it off at the end of the month in order to maintain a good credit score; mine is near perfect at just over 800. Last year I bought myself a PS4 with all the trimmings, and it came to roughly $600. I paid that off in 4 payments and saw no drop in my credit score. Credit card companies want to see payments being made on time and that are above the minimum payment. My PS4 example is just from this last year -- in previous years I've bought a $2-3k item and made regular payments on it, which again had no negative affect on my credit score. What WILL  mess you up is not being able to pay your bill off in a timely fashion, not paying it at all and maintaining over a 33% in a fiscal year. 

 

Example

 

If you have a total credit allowance of $1000 and you owe more than $333.33 -- do not let that carry over to the next fiscal year as that will hurt your score.

Edited by Adam, 12 May 2014 - 09:58 AM.

[NapisaurusRex]

Also, I don't have a credit card and probably never will. I'm fortunate enough to be a hoarder though... I paid cash for my (used) car and my house was a repo that I only had to pay taxes on (plus repairs, which were easily more than what I paid in taxes plus the car combined.)

 

If you have a hard time determining the difference between 'wants' and 'needs', you should probably work on fixing that before worrying about credit cards.

[Sweeney]

I've had a credit card since I was 18, and have put a lot of items on it and racked up a balance which I've paid off; however, in my experience it is not necessary to pay it off at the end of the month in order to maintain a good credit score; mine is near perfect at just over 800. Last year I bought myself a PS4 with all the trimmings, and it came to roughly $600. I paid that off in 4 payments and saw no drop in my credit score. Credit card companies want to see payments being made on time and that are above the minimum payment. My PS4 example is just from this last year -- in previous years I've bought a $2-3k item and made regular payments on it, which again had no negative affect on my credit score. What WILL  mess you up is not being able to pay your bill off in a timely fashion, not paying it at all and maintaining over a 33% in a fiscal year. 
 
Example
 
If you have a total credit allowance of $1000 and you owe more than $333.33 -- do not let that carry over to the next fiscal year as that will hurt your score.

Nobody said that not paying off the full balance each month would hurt your score.

[Adam]

Nobody said that not paying off the full balance each month would hurt your score.

No one in this thread has said it, but I've heard it many other places. It's just a common misconception that I despise hearing.

[Sweeney]

No one in this thread has said it, but I've heard it many other places. It's just a common misconception that I despise hearing.

Good for you.

[Adam]

Good for you.

Yes.

[Trichomes]

I was reluctant to get credit cards because I was worried I'd be tempted to spend money I don't have, but I got a student credit card a few years ago to start building credit and I rarely use it. I have to make a conscious effort to charge small purchases instead of using my debit card, and then I find myself stressing over whether I even used my card in the last month, and if I remembered to pay the bill. I don't think I've ever spent even 10% of my credit limit in any given month, so I've never had any problem paying off my full balance, but I doubt my inactivity is helping my credit score either.

Edited by Trichomes, 12 May 2014 - 11:07 AM.

[Frizzle]

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.

Well it will improve your credit rating and depends on the interest rating. Most offer 0% interest for the first 12-24 months.

[Maha]

Lots of helpfull information. Thanks guys.

[NapisaurusRex]

You shouldn't really buy new mattresses anyway. They have chemicals like formaldehyde, boric acid, and flame retardents that aren't healthy for you to breathe in 8 hours a day every day.

[Padme]

Oh my. 0% interest is the number one way to suck people into getting credit cards. Companies who offer their own credit card (i.e. Home Depot) usually have much higher interest rates than one you would get from your bank. No interest also means if you don't pay off the interest in the allotted period of time they can charge you their high interest afterwards. Therefore, unless you can pay off the item in the allotted period you shouldn't get it. I would also take into account any savings and rainy day money you may have. Bare minimum you should be able to provide for yourself for 3 months, ideally longer off of your savings. That includes making minimum payments. 

 

If you lost your job and couldn't make the credit card payment. Don't do it. I would also suggest setting up automatic payment from your debit. 

 

My Dad is a financial planner for people and he's taught me a lot. I don't know USA specific rules but I know a lot crossover with Canada. 

[Frizzle]

Not always true with banks. I got a £10,000/$15000 dollar loan out and my bank wanted to charge me 24% interest yet Tescos offered me 9.4%. (Tescos is kinda like a Walmart. Which is ASDA over here...)

[Norava]

Look into Mint.com for managing your finances.

 

Also, with your credit card :

 

I have had a credit card since I was 16. (Student Card) I would run it up and pay the minimum every month, and then about twice a year I would pay it off completely. Granted, this is NOT the best money management post, but I have a decent credit score now.

[Maha]

I think I'd rather breathe in those things than sleep on someone else's dead skin and perspiration..

 

OMG @Kate that's gross and makes me feel sick xD

[Trichomes]

I think I'd rather breathe in those things than sleep on someone else's dead skin and perspiration..

 

And god only knows what other bodily fluids...

 

I don't think I'd ever be okay with using someone else's used mattress.

 

Ninja'd again, I see

[Maha]

It's true though.
In addition to potential bodily fluids, bed bugs, and other nasties. 
 

 

Go away! You're making me feel really sick ._. 

 

lol... I don't want my mothers mattress now! EWww ewww 

[Ali]

It's true though.
In addition to potential bodily fluids, bed bugs, and other nasties.

Bed bugs are devil creatures. My friend's house during uni had them, they had to destroy so much stuff...

[Maha]

Bed bugs are devil creatures. My friend's house during uni had them, they had to destroy so much stuff...

 

yeah... you think bed bugs are bad? try living with an infestation of bird mites.....

 

[NapisaurusRex]

Bed bugs are devil creatures. My friend's house during uni had them, they had to destroy so much stuff...

You can get those from brand new mattresses too though.

I think I'd rather breathe in those things than sleep on someone else's dead skin and perspiration..

It must be a personal thing. I've never owned a new mattress. I don't like the way they smell.

[Maha]

You can get those from brand new mattresses too though.


It must be a personal thing. I've never owned a new mattress. I don't like the way they smell.

 

I've owned second hand and a new mattress, both seemed to smell 'normal' like not stinky or any weird smell to me... 

Though we're going to have to get 1 which is better for my back and my partners upper back...