Sunday, November 14, 2010

Credit card info 101 PLEASE!?

Hello everybody. I would just like to start off by saying that this is series of questions (not just one) that have to deal with credit, and credit cards.

Right now I檓 in the process of getting my first ever credit card being that her in a few months (possibly) I檓 planning on moving out and starting my own life and everything. I檓 taking online classes for PC Repair, which here in 2 more months I should be done with, that檚 one reason why I檓 planning this and there檚 also other reason as well. My question檚 are that I檓 asking about credit are as fallow.

#1: I檝e already asked this question a few days ago being that I was some what curious on the answer I might get, and I檓 still leant on it being that I believe there are ways of doing it without the use of credit, but once again Il ask. Do you absolutely need credit for everything? I mean do you actually need credit to rent apartment, or can you in some way pay in cash at all? I know it makes you look better if you do have some from of credit, but still I believe there are ways.

#2: So far I檝e been doing some research on finding the right credit card for me being that I檝e never had one in my life, but I檓 only 22 years old so I can檛 really say much lol. But anyways if what I found out is that what I should do is find a card that the standard APR is will enough for me, and possibly get one that has no Annual fee at all. So far I檓 now to 2 cards that I like, but each one differs; there both Bank of America credit cards being that I檓 a customer with them, I have both a checking/savings account so that檚 all good there.

Links to each of the cards:

Platinum Plus Visa Credit Card

Secured Visa Credit Card

Now the questions that I have for these are as fallow.

#1 of 2: With each one of the cards that you look at, which one should I go for being the best possible outcome in the long run?

#2 of 2: With the APR, which I檓 clueless with, how does that work out? I mean by this is that with each card it give me a different APR. The Platinum Plus Visa Credit Card tells me this: Prime Plus 2.99% variable APR for Platinum Plus (Prime Plus 12.99% APR for Preferred), and the Secured Visa Credit Card tells me this: Prime Plus 10.99% Variable APR; now what is the deal with all of that? How dose this work out?

Ohh and finally one more question (last one I promise) is with the monthly payments. Now knowing that there are going to be people who already have credit, and know how things work out on this I just like to know how payments would work out over time? I mean by this is that when you go out and buy something (say a video game), how do you make the payments on such a thing with the minimum payment, and the full payment? What would the payments be on each?

Ok everyone that檚 all I would like to know for the time being, more then likely Il be back with more questions but in tell then this shall do. Thanks :)Credit card info 101 PLEASE!?
Do yourself a favor and don't get any credit cards. Just use cash. It is easier and you don't run the risk of ruining your life by going into debt. It is just as easy to find people to do business with who don't require a credit check. And do you realize what you are saying? You are saying that you are going to establish good credit in order to do business with people. So in order for you to give money to a business, ie, landlord, you must first prove your worthiness to this person by handing over your Social Security number (exposing yourself to identity theft) and then allowing them to dig around in your past so they can decide if they want your money?!?! Are you kidding?!? The logic behind this is faulty at best.

The credit card companies are nothing to mess around with, they are ruthless. They are the worst examples of business misbehavior in the United States. They spend billions of dollars every year in soliciting business and then another few billion dollars a year lobbying the government in an effort to gain leverage over their customers. Using a credit card to establish credit is like playing with snakes.

You don't need a credit card to establish credit. You can establish credit by maintaining good relations with a local bank.

All a credit score does is prove that you are able to have and maintain debt indefinitely. This is nothing but an exercise in futility. No one has ever become wealthy by establishing and or maintaining a credit score.

Yea, that's really smart IHSCOUTLUVR, it's a ';cold, cruel world out there'; so your solution to that is to get in bed with a credit card company for the rest of your life? Why not rely on yourself and stockpile cash that you can earn interest on rather that paying that interest to a credit card company?Credit card info 101 PLEASE!?
Only if you live in a small town the rest of your life where everyone knows and they know your word is your bond, you would you be able to get by without establishing a credit history.

As you have been living under the umbrella of your parents, you may not realize what a cold, cruel world it is out there.

Yes, you need to establish credit in order to ever get more credit and get a good credit rating. It is great if you can pay cash for everything, but you at least need a card or two (which you already have) which show you COULD have run up a huge debt and not been responsible enough to make the minimum payments, but did not do so.

If you have the money, use the charge cards and pay the balance in full every month and you avoid or mitigate any interest fees and establish credit.

Unless your parents are wealthy and can bail you out if necessary, if you run into unemployment due to layoff, huge car repairs expenses, huge legal expenses, huge medical bills, child support payments during a period of unemployment or even advanced education, you may need to use a credit card to survive sometime in the future.

From my personal experience, I have to say Bank of America is a bad choice in a credit holder period - I have found they lure you in with low interest rates, then after about 6 months find a way to say your payment didn't get there on time, assess you $40 late fees and jack your interest rate up to the maximum allowed, which is usually 25% or more in most states. American Express also has a history of ';not getting payments on time'; even when sent out 20 days in advance - recommend you avoid them both.

Discover card is probably the best national option. Not always the best interest rates, but they offer cash back rewards for purchases and are more customer service oriented if there is a problem and payments have always been posted accurately and timely.

Another option, especially if you have a Kroger in your area, is a Kroger 123 rewards card, or a Upromise one if you are considering additional schooling.

Other than that, try to find a credit card with a FIXED rate; if you get one with a variable rate, it will vary depending on the fed rate - as the fed rate is low right now, it is a deal; however, I am older and was around during the 80's when the fed rate was sky high and no one could afford to even finance a home outright and had to resort to a short term finance with a balloon in hopes the rate would go down when the time come that they needed to refinance.

Minimum payments vary on the credit card company, the terms and conditions, interest rate and the amount outstanding. The minimum payment I have ever had on a charge card is $10. I have one with a balance over $10,000 and the minimum payment is around $200 a month (I was out of work and not able to find a job for 5 mos and lived off my credit cards from rent, insurance and food is the reason why it is so high).
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