Credit Card Help.?

Question

I'm 17 I turn 18 in 5 days I just wanted to know when i get a credit card do I have to spent the whole amount they give me for example they give me $300 to spend and i only spend $90 what happens to the other money do I still have to pay the rest of the $210 I need to know this stuff so once i apply for one i know the pros and cons of the whole thing.

Answer 1

If it's a credit card that mean you must pay that amount back to the credit card company either by payments or the full amount after 30 days.

If it's a debit card then someone has put a certain amount into your account and you can spend it when ever you want.

Answer 2

You should only use about 25% in order to keep your good credit rating. Remember, it is a LIMIT, not an amount of money for you to spend.(of course you could spend it but it is not that good)If you use more than 25% then it shows that you depend on it and it isnt good. Just try to not use more than 25% of the limit.

Answer 3

You do not need to spend the whole amount they give you.  That amount is your maximum spending limit, so you cannot purchase anything higher than that amount.  Or say your max is $300, and you already spent $90 and haven't paid the bill yet.  If you try to purchase something that is $210.01 your card will be declined.

When your statement/bill comes in, you are told how much is charged on your card for that billing period.  You can either pay the entire thing off, or just pay the minimum.  If you pay the minimum however, you will get charged interest on the amount that you didn't pay.