I don’t want a credit card, and do I really even need one?
Question by BeachBoarder: I don’t want a credit card, and do I really even need one?
I’m 19 and most of my friends have credit cards. I told them I had no interest in getting one and they were like “but you need to start gaining good credit”.
I don’t really even get the whole concept of the credit card. When I buy something, I make sure I have enough cash for it and pay with that. It just seems much easier and I know that I definitely have the money and don’t have to worry about a bill later. If I want to buy something big, I save up for it.
So what’s the big deal?
Best answer:
Answer by teresathegreat
You need a credit card for certain things, like reserving a rental car or plan tickets. But you can use a debit card for most of these things as well.
Your friends do have a point – establishing a good credit history is important, and will be essential to you later on in life when you are ready to apply for loans or buy a house. Your credit history looks at how much money you are trusted with, and how responsibly you handle it.
So if you handle your credit card responsibly, it can benefit you in the long run. It’s best to think of a credit card as a debit card – you simply pay for the items at the end of the month instead of at the moment of purchase. If you pay the amount in full every month, you won’t have to worry about finance charges or interest, and you will build an excellent credit history.
So your friends have a good point – but I’d be interested to know how many of them really handle their credit responsibily, and how many foolishly carry a balance from month to month.
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Do you have to wait at least 6 months to close a credit card?
Question by KitKat: Do you have to wait at least 6 months to close a credit card?
Ok. I’m easily pushed into things because I’m a quiet, good person.
I recently went to Chase and opened a new checking account to get a $ 125 incentive for opening it. I felt extremely uncomfortable when she kept asking too personal stuff. Like how much exactly I make each paycheck and exactly how much I have in my other bank accounts. There is NO reason why they need to know how much is in my bank accounts. So I refused to tell her, but got tricked into saying my paychecks, which isn’t a huge deal. She said she just wanted to know because of my rates. But she should just have asked for my rates, not my specific amount. Then she insulted me with saying my credit card from my bank is, lowest, 13% interest. When it is actually 8.99% interest. I would have to be dumb to get a card with anything above 9% interest charges.
She was being really rude and insulting. Saying that since I’m 19 my parents must pay for everything and my cell phone. That is the most insulting thing anyone could ever say to me. They haven’t even paid for my school lunches since before high school. Ever since I started baby sitting at about 13, I have paid for everything myself. And she would just keep talking and lying about my life.
Then she goes and says that I need overdraft protection. I’m not irresponsible. I NEVER use money I don’t have. So I don’t need it. And if I was a stupid retard who overdrafts, then I deserve to pay the fee! But she said “I have people come in here all the time saying it would never happen to them, but then it does. So I’ll get you signed up for it.” I told her clearly that I did NOT want that. She said it was free on the account. I said I didn’t need it. She walked away and came back and said “Ok, you are approved and will be getting your card in the mail in a few days.” I’m like “What are you talking about?” She was like “The overdraft protection is a credit card and if you go over the balance it will draft it over in increments of $ 50 to help protect you from the fees.” And I was like “But I said I didn’t want it. It will show up on my credit report as another card and I told you I didn’t want it. And it will hurt my credit score.” And she’s like “Oh, you’ll need it. And it won’t show up on your credit report.”
So I did NOT give her permission to open this credit card. I specifically told her no! And then she insults me continuously! And someone told me that if you close a credit card within 6 months of getting it, it hurts your credit score. I am trying to buy a car right now. I have a good credit score. But not “excellent” in this economy. And this will be the 3rd credit card on my report! And if you have 3 or more cards it hurts your score (or it’s more than 3, idk). My ex’s overdraft protection was that if he withdrew too much out of his checking, the amount would roll over from his savings. So that is what I thought it was and the way she explained it. But I just opened a checking, no savings. And after I told the banker NO to the overdraft, she still went ahead and opened it without my permission!!!
A- Will it hurt my credit score to close it within 6 months of opening it?
B- What can I do to get this lady in trouble for this? Write a letter to the head of the bank? I bet she just did it because she gets bonuses for opening new cards. That’s why I said no, and she still went ahead and opened it. I’m furious.
She had me sign a paper saying that I opened the Checking account and she said it was for my signature for the checking account file. Do you think she used this as the credit card she opened without my permission???
Best answer:
Answer by stephenweinstein
A. Closing a credit card within 6 months of opening it does NOT necessarily hurt your score, ESPECIALLY if you already have older credit card accounts. Closing a newer account and leaving an older one open can actually HELP your score.
Having 3 cards is not too many.
B. Yes, you can write a letter. No, I do not think that she will get in trouble, especially if you leave the account open, which is what they want. If you really want to hurt them and demonstrate to them that her actions are hurting them, then wait until you receive the $ 125 incentive and THEN close BOTH the credit card account AND the checking account, and send them a letter telling them that you closed both accounts because of what she did.
Give your answer to this question below!
Q&A: my first credit card tips?
Question by Sick MOFO: my first credit card tips?
What’s the best way to raise the so called “credit score”? Paying the minumum every month vs paying the balance off immediately? Does the amount you charge matter? And any other tips you may have. Thank you.
Best answer:
Answer by Jenyfer C
Keep a low balance that you make payments on, every month on time. Your credit score looks at timely payments, but also debt to credit ratio. Try to stay well below the limit. Most credit card companies review accounts once a year and may increase your limit.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: Card, Credit, first, Tips
How does declined credit card applications affect your score?
Question by Project EX: How does declined credit card applications affect your score?
Hello, i applied for 2 credit card applications within a week and got declined. This is because, i am 18, and only have 2 bank accounts with no credit on file. When i paid $ 15 yesterday to see my credit score, it reported as having “no score”. So i guess my declined accounts don’t count, expect for the inquiry right?
And say i do have credit, how much does a decline account do for a credit card.
Also 1 more question: What is the easiest card to get, ive tried:
1. Texaco
2. Best Buy
3. Bank of America
any ideas?
Best answer:
Answer by Mary F
Credit card declinations are not reflected in your credit report but a lot of inquiries can hurt your score. If I were you I would consider trying to get a credit card through your bank or try a local credit union. If you need to get a secured credit card where the amount of deposit you put in equals the credit line. Charge some small purchases but pay off the entire balance every month. You also want to show a payment as agreed history. My husband and I have superior credit (over 850 scores) He has limits of $ 25,000 or more on some of his cards. Believe me when I married him I was coming into the marraige with a Chapter 7 bankruptcy and by following this advice I am in Credit Heaven. Good Luck!!
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Categories: Credit Score Questions Tags: affect, Applications, Card, Credit, declined, Score
Q&A: How many points are taken off your credit score when you cancel a credit card?
Question by Janice: How many points are taken off your credit score when you cancel a credit card?
I have 3 different credit cards from my bank and I just learned that they will be charging annual fees for each one very soon. I have these cards only because one was first time card (no offers). The next one had point rewards and the newest one had cash back. How many points will I lose from my “credit score”? Is there a sequence of time I should be concerned about as well..Oldest vs. newest?
I have to cancel at least cancel one or two.
P.S. I am in good standing with all 3.
Best answer:
Answer by Judy
Closing accounts hurts your rating in two ways.
1. Closing your oldest account will wipe out part of your history.
Length of credit history is 15% of your FICO.
2. You will be reducing your overall available limit on your cards.
But if you are paying fees, close them. There are plenty of cards out there without them.
How long until they will start charging you? I would open a new credit card before closing my oldest account.
Remember for pristine credit scores never carry a balance. Pay your bill in full each month and get 800+ scores.
Add your own answer in the comments!
The College Kid’s Guide To Student Credit Cards: Get Valuable Credit Card Tips On How To Use Credit Card For Students So You Can Build Good Credit And Develop Your Money Skills Early On In Life
The College Kid’s Guide To Student Credit Cards: Get Valuable Credit Card Tips On How To Use Credit Card For Students So You Can Build Good Credit And Develop Your Money Skills Early On In Life
College is where many of us get to enjoy our first taste of freedom and living pretty much in the manner that we desire. It is also the time where we get our first taste of the power of credit cards. Being new to financial freedom and its responsibilities, college kids are easily vulnerable to the enticements of credit card advertisements and decide to apply and begin using college credit cards for all the wrong reasons. Unwise spending and incorrect payment methods of course lead to accumulated interest charges that can end up being very costly. Misuse of student credit cards can seriously damage credit rating. Later on in life, you may be turned down for employment or be denied a loan to buy a new car or home. More seriously, your debts can add up that by the time you finish college you’re way in too deep in debt without any means of paying it off. A college credit card can be beneficial, but only if the college student remembers to use it correctly at all times. Student credit cards work the same way as any other credit card; they are loans that need to be paid back so responsible use is key to success. This credit card book is a guide to the young college student as well as to parents who are thinking about getting student credit cards. There are valuable tips and info on how to choose the right student credit card and how to use it as a financial tool to build good credit history which is necessary for adult life and to handle money properly which is essential for budgeting and living a debt free life.
List Price: $ 15.95
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Q&A: When using a Visa debit card is it better to use it as “credit” or use a pin number and hit “debit?”
Question by Granny: When using a Visa debit card is it better to use it as “credit” or use a pin number and hit “debit?”
I’m wondering if there is better protection or lower fees with one or the other.
Best answer:
Answer by Thomas E
It’s probably BETTER to use it as a debit card.
Of course there ARE credit card fees; as a matter of fact, I read the other day that some “mom-and-pop” gas stations have stopped allowing the use of credit cards to pay for gasoline for that very reason – the fees eat into their profits. The people who sell gasoline actually make very little profit (maybe 12 cents per gallon), and the credit card companies base their fees on the total sale, so, since gasoline costs so much now, the fees can run as high as 10 cents per gallon, leaving very little profit. By the time gasoline hits the retailer, big oil has already gleaned all the profit, but that’s another story.
On the other hand: Use it as a debit card, and I think that the bank takes some fees; although I am not sure of that, it makes sense to me that that would be the case, since banks also are very greedy when it comes to “fees”.
Either way, though: If it works like mine does, the money is deducted from your account immediately, so at least YOU don’t have to worry about a credit card bill. And YOU will not be charged any fees either way – only the merchant.
Add your own answer in the comments!
How To Use A Credit Card; Use Your Credit Card Wisely With This Guide To Credit Card Protection, Maintaining a Good Credit Score, Finding Low Interest Rates, Money Management And More! Reviews
How To Use A Credit Card; Use Your Credit Card Wisely With This Guide To Credit Card Protection, Maintaining a Good Credit Score, Finding Low Interest Rates, Money Management And More!
Do you want to learn how to take control of your credit cards, debt, and credit score? Would you like to learn the strategies to use your credit card wisely? Are you interested in credit card protection against fraud? This comprehensive guide, How To Use A Credit Card will show you the answers to all of these questions and more. You will learn the strategies of wise credit card use, such as paying in full every month, or paying more than the minimum balance, how to track expenses through your credit card bill, and practical steps you can take to protect your credit card information from being stolen.
While the credit card is a common item in almost every household, most of us struggle with credit card debt and do not pay off our balance in full every month. We end paying interest over and over again. With this book, you will learn skills of money management so you can begin to take control of your finances and reduce your credit card debt. It will also show you how to use your credit card responsibly so you can maintain a good credit score. This will open up doors for you in the future regarding loans or mortgages you could qualify for. You’ll also learn common ways that people’s credit card numbers and information are stolen, so you can take precautionary measures.
Take a look at some of the valuable information included in this book! Here is a list of the chapter titles you won’t want to miss:
Chapter 1: A smart way to manage credit cards
Chapter 2: Use Credit Cards Wisely
Chapter 3: Using Your Credit Card Wisely
Chapter 4: Guaranteed Credit Cards – Use Them Wisely
Chapter 5: Credit Card Words to the Wise
Chapter 6: Teaching Responsible Credit Card Use
Chapter 7: What You Should Know About Using Your Credit Cards
Chapter 8: How Best To Use A Credit Card
Chapter 9: Understanding And Maintaining A Good Credit History
Chapter 10: How Can You Keep Your Credit Card Safe?
Chapter 11: Using Credit Cards Safely Online
Chapter 12: When Not To Use A Credit Card
Chapter 13: Credit Protection Tips While Surfing The Internet
Chapter 14: 4 Steps to Creating Good Credit
Chapter 15: Credit Cards Abroad – How To Save On Charges
Chapter 16: Getting a Handle on Credit Cards
Chapter 17: 5 Basic Credit Card Safety Tips
Chapter 18: A First Step To Initiate A Good Credit Rating
Chapter 19: Credit Cards Used Wisely Can Reward You, More Than The Credit Card Company
Chapter 20: Credit Card Safety – Chip And Pin Not Enough
Chapter 21: A Good Credit Report – The Key To Cheap Finance
Chapter 22: Beware Credit Card Users–It Is All In The Fine Print
Chapter 23: Be Smart With A Credit Card And Use It Wisely
Chapter 24: Repay Your Credit Cards Quickly
Chapter 25: Find A 0% Interest Rate
Chapter 26: Reduce Debt By Paying More
Chapter 27: Credit Cards: Playing It Safe
Learn How To Use A Credit Card Today! Take action and instantly download this book to your Kindle so you can use your credit card to your advantage.
List Price: $ 9.75
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Categories: Credit Score Products Tags: Card, Credit, Finding, Good, Guide, interest, Maintaining, Management, Money, more, Protection, Rates, Reviews, Score, This, Wisely
What Is Credit Score?
What Is Credit Score?: A Bad Credit Card Report Can Hurt Your Credit Scores Credit Cards For Bad Credit Can Be Reversed By Acquiring Good Credit Score And By Monitoring Your Credit Score Ratings
Find out how you can improve your credit score.
This manual will help you improve your credit score by including topics such as;
What to Look for in a Contract with a Credit Repair Agency
How to Use a Secured Credit Card to Build Credit
How to Minimize the Damage of a Foreclosure on Your Credit Report and many more!
If you really want to improve your credit score then download and read this Kindle manual today.
Find out how you can improve your credit score.
This manual will help you improve your credit score by including topics such as;
What to Look for in a Contract with a Credit Repair Agency
How to Use a Secured Credit Card to Build Credit
How to Minimize the Damage of a Foreclosure on Your Credit Report and many more!
If you really want to improve your credit score then download and read this Kindle manual today.
List Price: $ 4.97
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Q&A: Are there ways to get “good credit” without owning a credit card?
Question by ssmith: Are there ways to get “good credit” without owning a credit card?
Because people say you need good credit to get loans for houses, etc., but then they say “don’t get a credit card, they are bad news”… so how can you get good credit other than by having a credit card?
P.S. I also already have a debit card, that works as a credit/debit card and I buy a lot of stuff online with it, which is always billed toward the credit feature… so does that mean I already have somewhat of a credit value built up?
Best answer:
Answer by cpaige517
I own a credit repair agency, ( one of the legit ones) The best thing to do is get a credit card and be responsible with the card. You can’t get credit in the future if you can not show lenders how you have handled your credit obligations in the past. The way to help your credit and be able to obtain credit whenever needed is to keep the balance of the credit card or line of credit you use under 30%. Use the card to fill up your car every two weeks. All you really need to do is show activity on the account and keep the balance relatively low. To answer your question, you can always piggy-back or mirror someone else credit. They could add you on as an authorized user to a credit card or line of credit that they already have. Be careful though because with some cards, once you’re on , you’re on and if that person defaults, it will show up on your credit as well. Rumor is that this trick is not going to work much longer because the credit bureaus have caught on and are going to stop including these type of accounts in their credit scoring process. Hope this helps.
Know better? Leave your own answer in the comments!