74 replies to this topic

[nelsontan]

i using cashback credit card for bulk purchase. mahattan card from stand chart . around 3% rebate. at least its better than money.

[Choconilla]

I don't have a credit card yet butttt. My family has a line of golden rules for cards since, I'm already kind of in debt (student loans, hospital bills, etc) and don't want too much more to have to deal with.

 

• Get a reputable one with not sky-high interest rates to assist your credit.
• Make small purchases (like candy bars at the gas station or cheapie things you need at Walmart and such anndd my gf wanted to add gas to this)
• If you have to make larger purchases, keep in mind that the money you receive will need to go back at the end of the month, it isn't a permanent solution.
• If you do get into a situation where you need to pay it off, the sooner you can pay, usually the better. If you know you can let it sit without consequence cause of low interest rates be careful cause you might forget it in favor of more urgent expenses. (This is happensin my family, so so so much with bills and other things guh.)

[Karla]

I have a credit card, but my folks have strict rules on how I should use it because they're afraid I'll overspend with it, when the truth is I don't spend very much money at all.

[Mandie]

Just finished filing for bankruptcy. Credit cards are the devil. Young and dumb really held true for me.

[acrossthesky]

I only have one. I maxed it out while I was in college and never really made a dent in it for a little while after.

 

Finally got a job a couple years ago though and paid it all off in three months. I've been good about paying it off each month since then and feel I've learned my lesson (finally). Thinking about getting another, but I'm not sure which. I don't even care really about reward points. Cash back is nice, but I'll take good customer service and lower interest rates first.

[ShadowLink64]

 

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

 

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.

 

I agree with Waser's comment. It sounds like you aren't keeping your monthly spending in check, or you are living beyond your means. Are there any areas where you can cut down spending? (such as cooking at home instead of eating out, cutting unnecessary monthly bills, entertainment costs, etc?). 

 

As many others have said, the number one rule of being responsible with credit cards is to be able to pay off the entire balance every month. This requires having the savings (or the monthly income) to do it.

[Maha]

I think we will be getting a no annual fee card through our bank soon. 55 days interest free which will be used for small purchases. We're also going to be looking at a few things like A Chest of Drawers and the like which we are going to get through the in-store financing from their credit company. Dicksmith has a lombard credit card, they offer 12 months interest free on $300+ or 24 months on 600+. Harveynorman offers up to 50 months on a min purchase of $490 with the total amount payable within 50 equal monthly payments or they have another 3 different payment plan options available.

We've sat down and organized costs and we should be able to save at least $300+ a week on our good weeks and around $150-$250 on our bad week. Though they are rough amounts at the moment.

 

Luckily some of out bills will be less soon which will help

[Cupcakes]

I have 2 credit cards. I'm pretty responsible with them, and mostly put large purchases (plane tickets etc) on them unless there's an emergency. 

 

They both have pretty high interest rates, but mine are low limit (under 3000 USD each). As long as you're responsible with them and don't max them out you'll be pretty safe! It's a great way to help build your credit.

[Tailwind]

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

 

My boyfriend and I are doing that actually. Every year we take out a $1,000 loan and leave the money in the account, then use the money from the loan itself to slowly pay it back every month. With the interest involved we effectively pay nothing to increase our credit score depending on whether or not the bank offers us one of those "pay it back by x date and have 0 interest" type deals.

[planeswalker]

Nope. Don't wanna talk about it.

[Maha]

Well we've been approved for out card. The limit I set at $1500 and the card allows 0% interest for 60 days on every purchase. Purchases over 300 we get 6 months, over 600 we get 1 year and sometimes if the store allows it, 18 months.

We're buying a new 50 inch android 3d tv Hisense brand at close to 1200 which will be about $7 a week - $28~ a month roughly including monthly account keeping fee for 50 months. 

Their deal is for items of $490 + you pay 50 equal monthly payments at 0% interest, so 3 years and 10 months and we will probably be selling out old TV too. BUT I might use it as my monitor and sell my monitor xD

 

What would you do?

Sell your old tv or use it? 

They still sell for nearly $700 brand new and ours is still under a year old (we got it on a no interest loan through a low income loan scheme through the community last year) 

Not sure how much we'd manage to sell it for though, its only 32 inch.

 

[redlion]

We're buying a new 50 inch android 3d tv Hisense brand at close to 1200 which will be about $7 a week - $28~ a month roughly including monthly account keeping fee for 50 months.

No, Maha, no.

Get a mattress and your furniture and stuff, not new TVs. Get outta here with that shit.

[Elindoril]

No, Maha, no.

Get a mattress and your furniture and stuff, not new TVs. Get outta here with that shit.

But the pixel density!

[Maha]

No, Maha, no.

Get a mattress and your furniture and stuff, not new TVs. Get outta here with that shit.

 

We've nearly managed to get all of our furniture. @redlion

[jonis]

Do you really need a 32" monitor? Is it really a must? If the answer is no or "it would be kinda nice" then sell the old TV. Heck, if I had been able to get $500 even for my old TV I'd have sold it immediately.

 

Credit cards are great. I've managed to collect three of them somehow although I only use one of them. I love the fact that I can track and cancel any purchase I do with my card. The card company most likely hates me for always paying my bill though.

[Turnip]

Maha, you really don't need a tv. If you absolutely have to watch certain things just use your computer and torrent/stream them or something. You'd be much better off getting actually important things with that credit card than dropping $500 on something you already have :x And if you don't have anything else incredibly important to buy right now, save it. Save it save it save it. You might be in a horrible situation sometime down the line where you'll be stuck thinking "gee, I sure do wish I didn't spend $#### on crap I don't need". $500 is a LOT when you're in a bad situation and need to deal with it fast

[Strategist]

Maha, you really don't need a tv. If you absolutely have to watch certain things just use your computer and torrent/stream them or something. You'd be much better off getting actually important things with that credit card than dropping $500 on something you already have :x And if you don't have anything else incredibly important to buy right now, save it. Save it save it save it. You might be in a horrible situation sometime down the line where you'll be stuck thinking "gee, I sure do wish I didn't spend $#### on crap I don't need". $500 is a LOT when you're in a bad situation and need to deal with it fast

You should listen to these wise words @Maha, couldn't have said it any better.

[Ladida]

Well we've been approved for out card. The limit I set at $1500 and the card allows 0% interest for 60 days on every purchase. Purchases over 300 we get 6 months, over 600 we get 1 year and sometimes if the store allows it, 18 months.

We're buying a new 50 inch android 3d tv Hisense brand at close to 1200 which will be about $7 a week - $28~ a month roughly including monthly account keeping fee for 50 months. 

Their deal is for items of $490 + you pay 50 equal monthly payments at 0% interest, so 3 years and 10 months and we will probably be selling out old TV too. BUT I might use it as my monitor and sell my monitor xD

 

What would you do?

Sell your old tv or use it? 

They still sell for nearly $700 brand new and ours is still under a year old (we got it on a no interest loan through a low income loan scheme through the community last year) 

Not sure how much we'd manage to sell it for though, its only 32 inch.

 

 

You need a good kick in the pants, Maha, because clearly sensible talk is not getting through to you.

 

Way to go. You didn't get a $200 Fitbit. Instead, oh hey, let's get a $1200 tv when we already have one that works!

 

Please please PLEASE stay away from purchasing ANYTHING til you pull out a dictionary and find the definitions for "Want" and "Need". And quit blaming your parents for your illogical spending. You're old enough to read things up and you have a great community here that willingly gave you helpful advice. You're the boss now, kid. Anything that goes wrong is your responsibility.

[Frizzle]

Poor people stay poor because of shit like this. Sort your life out before doing idiotic stuff. If you need a credit card for a measly $1000 dollars, you and your partner need better jobs.

[Dan]

Let's take a step back and look at the facts:

• You bought a new 32" TV last year, via a no-interest loan, and it could be worth up to $700 still
• You are now entering a deal to spend $1200 on a TV over 4 years

How long is it going to be until you want a new TV? Are you OK to wait the FOUR YEARS you'll be paying this one off? You couldn't wait even a year to replace the one you JUST bought!

 

---

 

You seriously, clearly, have no control over your spending habits and if you don't nip that in the bud, you'll just be another broke couple living off of payday loans and justifying your insane purchases with "what's wrong with treating ourselves?!?!?!"

 

[Maha]

I guess I'll cancel our application then..

 

[Tailwind]

I guess I'll cancel our application then..

 

There's nothing wrong with treating yourselves every now and then, but certainly not $1200 worth of treating yourselves. I kinda follow the guideline my mother set in place for me: If you can't pay something off all at once and keep the rest of your needs going (bills, food, a monthly addition to your emergency fund), don't even attempt to get it because you can't afford it.

 

My idea of "treating myself" is maybe going out to dinner with my boyfriend once a month. And even then sometimes we sacrifice that to get a new video game, or go to the movies instead.

 

We just bought a new TV ourselves, but it was only because 1. We had the excess funds to justify getting it. 2. Our current one was showing signs of not working, and getting it repaired would cost the same as getting a new one anyways, and 3. It was on massive discount. You can't really beat a 32 incher for $150. It even doubles as a computer monitor if we absolutely need to use it as one.

[Waser Lave]

ITT: OP asks for financial advice, ignores all advice given.

[Karla]

I guess I'll cancel our application then..

You don't need to cancel your application. Just spend your money wisely on essentials and only spend money on treats when you earn a stable income and can afford them on it.

[Frizzle]

Don't waste money on a fucking TV. It's all about being able to pay it off. I got a $25,000 loan for a car and that's my limit. I can pay that off on four years but I opted for two as I can make the payments. I could have got a $40,000 dollar car but I wouldn't be able to afford the repayments. It's just basic maths!