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Credit Cards...Help me!

Posted by on Aug. 17, 2011 at 7:51 PM
  • 9 Replies

 Ok, so we are thinking about opening a credit card to be able to build up our credit. I have NO clue about how they work. I mean I know I buy stuff on a card, and I have to pay it off the month after or by the due date. What I dont understand are the minimum payments, or fees, or anything. My understanding is there is always a balance you have to pay off, and that is the minimum, but the more you pay off is better. IDK.

And I would also like to know which is best? Please help me here!

by on Aug. 17, 2011 at 7:51 PM
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Replies (1-9):
SuperPickle
by Ruby Member on Aug. 17, 2011 at 7:53 PM

IMO it is best to pay it off in full each month if you can, BUT you CAN pay the minimum payment, or more but not the entire balance, and the remaining money will be charged interest.

None of my cards have fees , just interest if we leave a balance. 

MommyFlood
by on Aug. 17, 2011 at 7:54 PM
You can either a) pay the balance in full each month or b) make a minimum payment (set by the companu) and what you don't pay is subject to any interest (if you have interest). There are some companies that charge a fee but personally, I'd never sign up with a company that had a yearly fee. It's best to pay the balance of each month, when you don't, and interes acrues that's when you get into trouble
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LStambaugh
by on Aug. 17, 2011 at 7:56 PM
I would give the card a purpose like purchasing groceries or something. That way you aren't spending over your budget and can pay it off each month.
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sugareemommee
by on Aug. 17, 2011 at 7:57 PM

listen to the ladies above.  But if you're just starting out with your credit a gas card would be a good bet.  Use it only for gas and pay it off at the end of each month.  It will help build your credit while extending your line of credit.  good luck!!

we don't use credit cards in my house anymore - if you don't have the cash in hand you can't afford it.  that's our motto.  ;)  we have no debt.

roxymama2three
by on Aug. 17, 2011 at 7:58 PM

Find a card that does not charge a yearly fee... Almost all cards will charge you interest, but some card have a no interest for a year (or so). You can pay the whole thing off every month or the minimum or just a portion. Lets say your minimum is $15. You can pay $20 or $100 any amount you want as long as you pay the minimum. If you dont pay at least the minimum they can charge you a late fee. and paying late on a credit card looks really bad on your credit.

SarahSue87
by on Aug. 17, 2011 at 8:05 PM

 Ok, Thank you girls, we just applied for the one at our bank, no annual fee, but there is interest. We want to use it just for groceries. We decided to do this now because DH is leaving soon for a deployment, so we will have extra money coming in, so just in case, we will have that extra to fall back on. JUST IN CASE. lol fingers crossed DH doesnt think "oh well now we have a credit card, why not just charge it?"

fingers crossed

elle7777
by Gold Member on Aug. 17, 2011 at 8:09 PM

There are tons of different cards, but the main "types" are visa, mastercard, american express, and discover card. I would probably go for a visa or mastercard (accepted more places) and find one with no annual fee, and hopefully rewards. I would also get a low credit limit like $500 just in case.

Essentially if you pay off the statement balance each month there is no charge, which is what you should do. Otherwise you pay the minimum payment which is usually the greater of a dollar amount like $15 or a percentage like 1% of the balance. However if you go this route a $300 charge will end up costing you like $600 once you include interest.

LilGina
by on Aug. 17, 2011 at 8:14 PM

LOL my credit is bad I wanted to try and build it up but i can't even get approved for a CC lol  sad I know

SarahSue87
by on Aug. 17, 2011 at 8:29 PM

 its all in DHs name, though my credit score is 679, i dont work, and i have bills in my name from hospital visits that im waiting for the insurance to pay for, but thats another lonnnng story lol.

Quoting LilGina:

LOL my credit is bad I wanted to try and build it up but i can't even get approved for a CC lol  sad I know

 

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