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Credit cards. I should know, but I don't.

I am 27 and dh and I have been working on our credit. It's bad. 4-500 bad. But I'm not mad. I didn't know what I was doing. Uneducated to the process. Now that I'm older, I'm ready to learn.


We talked to someone a while back who said we were in both a good and bad place with our credit. Although the number was low. We had nothing showing up on our record. As far as owing anyone. We basically had NO credit. Now we need to GET credit.


We've decided that a secured credit card is where we will start. From what we read about this particular card, we will need to pay the 99 dollars for a 200 dollar limit.

Here is where all my questions pop up. Number one being, " How does your limit work?"

I know ladies, I'm sorry.

But really. If it is the end of the month and I pay my light bill. 150. I have a 50 dollar balance left. When the next month starts does my balance go back to 200 or does it go back after I pay the 150? Does the 50 balance roll over?

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4xsthetrouble

Asked by 4xsthetrouble at 6:05 PM on Dec. 12, 2012 in Money & Work

11375 Level 21
Answers (7)
  • I would think you'd have to pay back the $150 you spent plus interest. I've never done a secured credit card before, but if you spend $150 of a $200 limit, then you have to pay that down to get back to having a $200 available credit.
    mrsmom110

    Answer by mrsmom110 at 6:11 PM on Dec. 12, 2012

    Credits: 163994 Level 43 1 star1 star Money & Work Minor
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  • That's what I was thinking but it's one of those things you want to know FOR SURE before hand. No surprises. I know how much time I have to pay the 150 back and other things. but I want to walk into this covered.

    Thank you mrsmom110
    4xsthetrouble

    Comment by 4xsthetrouble (original poster) at 6:14 PM on Dec. 12, 2012

    Credits: 11375 Level 21
  • I have not had one of those- so not sure if any interest is involved- but if you have 200 and use 150 of it then you need to pay that off (plus possible interest) to be back at 200 again
    charlotsomtimes

    Answer by charlotsomtimes at 6:22 PM on Dec. 12, 2012

    Credits: 147823 Level 42 1 star1 star Money & Work Minor
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  • Have you alreay signed up for the card and used it? I would suggest you get a card through your banking institution. I have never had a secured credit so I am not sure how that works, but it sounds odd that you would first have to pay $99 to get the $200, unless I am misunderstanding you.
    cassie_kellison

    Answer by cassie_kellison at 6:39 PM on Dec. 12, 2012

    Credits: 47947 Level 31 1 star Money & Work 101
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  • My understanding would be you don't get the whole thing back at the beginning of the month. I'd think of it more like a bank account. You put $200 in, you spent $150. So you have $50 left. You make a deposit of $150 (by paying off the charge you made), and now you have $200 again.
    wendythewriter

    Answer by wendythewriter at 6:47 PM on Dec. 12, 2012

    Credits: 41888 Level 29 1 star1 star Money & Work Minor
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  • silverthreads

    Answer by silverthreads at 7:08 PM on Dec. 12, 2012

    Credits: 2723 Level 16 1 star Money & Work 101
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  • the best way to deal with credit is slowly. not min payment slow. take out a "loan " for 200, min payment will be 25 monthly. Pay 50 a month. you have to give it three full months to show up at all on a cred report inquiry.
    Fingerhut, believe it or not, was one of the ones they watch. Pay it in 4 or 5 monthly payments, and tada, your credit score will go up.
    My only advice is to only borrow what you already have in the bank, and are prepared to spend.
    but, you will have to spend it in 4 pmts.
    romanceparty4u

    Answer by romanceparty4u at 11:13 PM on Dec. 16, 2012

    Credits: 1827 Level 14 1 star1 star Money & Work Minor
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