Thinkin of getting a credit card..?

Question

i dont want to run into debt with it so im sort of wary, but in your opinion is a credit card more of a help or a hindrince...explain to me all the terms and stuff and what cards have the best offers...im going on holidays and thinking of getting one so i'm not left stuck for cash...i have a job and should be getting a better paid one in the next few months so i'll be able to make the repayments...but whats your opinion on them?

Answer 1

I got myself into BIG debt on credit cards and I have been trying to get my life back for the past few years. I started using a pre paid Visa card (bopo) since last year so I can only spend what I have on the card. It took a little time to avoid the temptation of buying stuff before I could afford it but now I have one credit card left and nearly paid it off.

The credit card companies need you to be in debt to make money. If you need a Visa card try a prepaid one first. I think you can get one from the Credit Unions too. They usually offer good advice and are different from the banks.

Answer 2

They're pretty good. Try http://www.reviewmycreditcard.com for some good opinions.

Answer 3

A credit card is absoutely no different than how you handle anything else. If you spend cash wildly, you'll still be broke. If you pay your credit card on time, you'll be fine. It's just another method of payment.

Choose a card that offers the lowest interest rate (granted you have good credit to begin with). If you're travelling, you may want to opt for a Visa/Mastercard than you can collect frequent travel miles with. It doesn't really matter what card you choose, it's how you use it.

A few pointers:

- keep your usage below 25% (ideally 10%)

- pay your balance owing in full

- if you can't pay full balance, ALWAYS pay the minimum

- always pay on time

- keep an eye on your card, make sure the charges are legit

- dispute any charges that aren't yours

Keep a perfect repayment history on your account to establish and increase your credit history. In a year or 2 you may qualify for a better card.

Answer 4

a credit card is either a huge benefit or a huge mistake. credit is one of the most important things you'll ever need, and if you think you can handle it, then go for it, but don't get urself in too deep and then can't pay for it. i did that when i was 18, and made the biggest mistake of my life. with a credit card, you pay an apr (annual percentage rate), and that's on the purchases u make. it would be good to try and find a card that has 0% apr for a certain time (12 months or so). creditcards.com is a very good place to find them. credit bureaus base your credit score on a number of things on how you use your credit cards. it is best to keep your balance under 50% of your credit limit. they also would rather see you making monthly payments instead of paying off ur whole balance at once so they can see how u would do with payments. it is good to pay about $20 more than your balance each month. just make sure you make your payments on time, and dont get in over your head. credit cards are addicting & people think they can afford it, and then it gets out of control, and that's how u get bad credit. but if u are ready for it, and all the responsibility that comes with it, then go for it. research some websites that have good incentives on cards, and great specials, and try and get the best apr you can. i hope that helped, and if u have any other questions about it, feel free to email me.

Answer 5

In this country you have to build credit history if you want to buy a home some day.

So get a card and than cut it i.e. do not use it.  This will build your credit history.

For travel - get a debit card and leave enough cash in your checking account.

Answer 6

I don't like them..or use them.

I personally think they allow people to spend over what they could ever possibly pay back.  most people don't realize what not paying your credit card bills will do to you.  

If anything you can try to get a prepaid card to take on vacation. I know Visa has them.  That way, you are only using money that you actually have.