Credit card/large purchase question?

Question

I was thinking about getting a debit card, but I plan on making a few large purchases this year so I may opt for a credit card depending on if I really need what I'm buying. For example:

Let's say I buy a TV for $1000. How would you pay for such a thing using a credit card? Would there be a way to pay for it monthly? Do you charge it to the card then every month you cough up 100 bucks or so? Or at the end of the month you purchased it are you expected to pay it all back at once? I'm kind of confused, obviously, so if anyone can explain all of this to me I would really appreciate it.

Thanks in advance.

Answer 1

"Also, just for confirmation, If i did opt for that and use a credit card, it would only charge me whatever i agreed to pay monthly right?".

No, the montly fee would be a percentage of the outstanding balance or a similar calculation that would change from month to month.

Based on your questions, it sounds like you do not understand enough about credit cards to use them at this time.  I would read http://articles.moneycentral.msn.com/Ban... before using a card.

Answer 2

Never use a credit card on an item like a TV unless you have the money to pay off the balance by the end of the billing cycle.  Unless you want that 1000 dollar TV to end up costing you 1200 dollars after you add in the interest.

Never borrow money to buy an item that goes down in value.

P.S.

Hopefully a 1000 dollar TV does make it on your "really need" list.

Answer 3

SAVE for the TV, a TV is not a neccessity, however, if you were in dire need of new clothes, buy the clothes, if you used a credit card, pay it off immediately. The longer you wait and pay the minimum requirement, the higher your end-balance will be. (You'll pay more than the goods are worth.)

Answer 4

Credit is always nasty unless you pay all amounts due within the month of purchase. Otherwise huge interest come in. That's where credit companies make their money: most people can't pay back within the month of course, especially on big item purchases. And the worst shark (in terms of huge interest fees) are those big box stores and others of the same kind. So, the best, if you need, say, to  get a new living room set or whatever, would be to get a loan from your bank (smaller interest, fixed at the beginning and that's that and you pay monthly, period. From that loan you pay for your entire set and that's done. I much prefer to pay my monthly loan at the bank then get those credit card bills and crazy interest rates.

Answer 5

You pay it in full at the end of the month unless you want to do it in monthly payments which cost you interest.  Either sign up for a store card if they have one that offers zero interest for etc months.  Else just pay in full.