24 Looking to build Credit... What are some good tips on your first Credit Card

[vtotheinay]

This is a very beginner question, but if someone could help me it would be much appreciated!

So basically I have a question about how the interest acrrues on your balance. With my Discover card my statement ends on the 5th of each month and then the payment is due by the 2nd of the following month. I currently have a 0% APR so I haven't had a chance to answer this question. Basically does interest accrue on the amount that posts as the statement balance on the 5th (ex: I spent $40 during that billing cycle) or interest only taxed on the amount that is left unpaid if any (ex: I only pay $40 of the $50 so $10 is left over on the balance). I only ask because I want to know if I should be paying off the whole balance before the statement ends or can I wait until the statement posts on the 5th then just make sure I pay in full before the 2nd. Thanks a bunch to anyone that helps!

I only use my CC for purchases I have $$ for so this question is just so I know when to pay my balance in full, whether it's before statement cuts or after as far as the interest is concerned.

 

[jon4rd]

I did not. I took out student loans.

Shouldn't have went to school, fam. You didn't have the liquid cash to pay for it so you shouldn't have taken out a loan.

 

[antidope]

I shouldn't have. I claim 100% responsibility for my student loans.

I was the person who didn't handle my business in high school and started that whole thing. If I did what I was supposed to do I'm high school I should have had a full ride to anywhere in the country.

Didn't deserve to go at all and those loans are my punishment for not doing what I was supposed to.

 

[$tatus $ymbol]

edut nvm

 

[rightguard]

another tip that works for me. Using keepass to manage my username and passwords and changing them every month. Also to check your account weekly. I couple of weeks ago I saw an 80 dollar charge for shell gas station and I have a 13 gallon tank. I did go to the gas station that day but I did not spend that much. I flagged the charge and american express removed the charge.

 

[polosanddunks]

Shouldn't have went to school, fam. You didn't have the liquid cash to pay for it so you shouldn't have taken out a loan.

Not sure if your serious

 

[jon4rd]

Not sure if your serious

Not serious at all. I'm being sarcastic and using his logic. I know hardly anyone has enough funds to pay for school unless you get a full scholarship etc. I'm just tired of these clowns/trolls coming in here acting like credit isn't necessary in life. Especially if you're hypocritical

 

[antidope]

Where did I say that credit wasn't necessary. What I said was that your credit card should be used as a cash equivalent and if you don't have cash for something you don't deserve to have it.

I am very on top of my credit and am a frequent reader and poster in this thread.

 

[capital sb]

Where did I say that credit wasn't necessary. What I said was that your credit card should be used as a cash equivalent and if you don't have cash for something you don't deserve to have it.

I am very on top of my credit and am a frequent reader and poster in this thread.

Good principles to have.

I think he was directing that towards the people saying credit isn't needed.

 

[polosanddunks]

Not serious at all. I'm being sarcastic and using his logic. I know hardly anyone has enough funds to pay for school unless you get a full scholarship etc. I'm just tired of these clowns/trolls coming in here acting like credit isn't necessary in life. Especially if you're hypocritical

Early morning and I didnt sense the sarcasm smh my bad

The one troll that came in here was cringeworthy . I still cant believe he said that no credit is better than good credit

 

[jon4rd]

Where did I say that credit wasn't necessary. What I said was that your credit card should be used as a cash equivalent and if you don't have cash for something you don't deserve to have it.

I am very on top of my credit and am a frequent reader and poster in this thread.

Sorry some of these posts are running together. I do disagree with you saying if you don't have liquid cash to pay for it you shouldn't get a loan on it/use credit though. In most cases yes this is true and should be exercised. But with student loans and school it's not that serious bro. Don't kick yourself or others for taking out loans school is entirely too expensive especially for someone right out of high school to afford unless you have a plethora of scholarships. Also with a car I don't agree either. Yes if you can't afford it or don't have enough saved for a substantial down payment don't buy it but if you don't have the total amount for a car I have no issue with getting a loan for it.

 

[crcballer55]

 

 

Why would i pay cash for a car when i can put a downpayment, have very little interest and invest the rest of the money to go gain more with my investment than i'm "losing" on my car payment interest?

Because you're taking on risk. You're not guaranteed that 11% return. It's the same thinking as most people had prior to 2008. Leverage assets because you can have your money working for you earning xx% more than you're paying someone else. Then the bottom falls out and you're losing money on both ends. (actually all 3 sides because your car is losing value as well as your investments and you're paying 2% on the money you borrowed on top of that).

If it were as easy as paying x%, while making xx% on the money you didn't pay then people wouldn't be as eager to become debt free. Bottom line is that you can't predict when the next recession is

 

[yogetoffmykickz]

I opened this card not too long ago and received my 200 bonus

http://view.offers.aarp.org/?j=fec0...0&jb=ff3010707d67&ju=fe531676736c0d7a7512&r=0

Is this not am awesome card or did everyone just overlook it.?!

I would apply for it but I'm currently looking to transfer my Chase Freedom balance since my intro APR is up...

AARP card posted is a Chase CC and you can't do balance transfer from one Chase card to another.

According to CK my current score is 709. Anyone know what my chances are of getting approved for Disco IT card.?

 

[peniskowski]

Just applied for chase freedom. Pretty sure I don't have any credit and I'm 26. Halpppp.

Said they'll mail something within a week. If they decline me does that effect anything?

 

[eyanks]

Just applied for chase freedom. Pretty sure I don't have any credit and I'm 26. Halpppp.

Said they'll mail something within a week. If they decline me does that effect anything?

You get a "hard pull" which dings your credit a little. It's not a big deal. If they reject you you can try for a Capital One card, those are easier to get.

 

[townbidness]

Just applied for chase freedom. Pretty sure I don't have any credit and I'm 26. Halpppp.

Said they'll mail something within a week. If they decline me does that effect anything?

Nah but its another inquiry which can lower your score a couple points if you have too many.

 

[jjs]

 

 

Why would i pay cash for a car when i can put a downpayment, have very little interest and invest the rest of the money to go gain more with my investment than i'm "losing" on my car payment interest?

Because you're taking on risk. You're not guaranteed that 11% return. It's the same thinking as most people had prior to 2008. Leverage assets because you can have your money working for you earning xx% more than you're paying someone else. Then the bottom falls out and you're losing money on both ends. (actually all 3 sides because your car is losing value as well as your investments and you're paying 2% on the money you borrowed on top of that).

If it were as easy as paying x%, while making xx% on the money you didn't pay then people wouldn't be as eager to become debt free. Bottom line is that you can't predict when the next recession is

My point was more that if you can tolerate risk, there is alot of type of loans you can get even if you would have the cash sitting somewhere.

Of course there is risk ans worst case scenario you'll be in trouble. But the upsides of some scenarios are worth considering. Hence why i disagree with the you should NEVER take a loan if you have the cash "principle"

For example, you have people paying a minimum cashdown on a house when they have the money to pay in full but they decide to invest a good chunk of it and pay the mortgage off with the income that their investment is generating. Risk is always present. But on a 25 year mortgage with the interest rates being that low, it's def doable.

 

[cojp]

Nah but its another inquiry which can lower your score a couple points if you have too many.

If denied don't apply for credit for six months. It's a red alert to creditors...

 

[dam itz lou]

This guy bought a car with his credit card to get the points. He paid the car off in full right after. There were people bashing him. I guess claiming he was financially savvy hit a nerve for some people.

http://thepointsguy.com/2016/01/paying-for-a-car-with-platinum-amex/

 

[The Glove]

anyone have experience using their discover it card overseas..specifically japan?

i've read it's a 50/50 hit or miss

 

[based mod]

This is a very beginner question, but if someone could help me it would be much appreciated!

So basically I have a question about how the interest acrrues on your balance. With my Discover card my statement ends on the 5th of each month and then the payment is due by the 2nd of the following month. I currently have a 0% APR so I haven't had a chance to answer this question. Basically does interest accrue on the amount that posts as the statement balance on the 5th (ex: I spent $40 during that billing cycle) or interest only taxed on the amount that is left unpaid if any (ex: I only pay $40 of the $50 so $10 is left over on the balance). I only ask because I want to know if I should be paying off the whole balance before the statement ends or can I wait until the statement posts on the 5th then just make sure I pay in full before the 2nd. Thanks a bunch to anyone that helps!

I only use my CC for purchases I have $$ for so this question is just so I know when to pay my balance in full, whether it's before statement cuts or after as far as the interest is concerned.

Interest on amount left over from previous statement. Doesn't matter when you complete paying off the balance, as long as you pay it all off before the due date. If you do, that means you don't owe them a cent in interest.

 

 

Why would i pay cash for a car when i can put a downpayment, have very little interest and invest the rest of the money to go gain more with my investment than i'm "losing" on my car payment interest?

Because you're taking on risk. You're not guaranteed that 11% return. It's the same thinking as most people had prior to 2008. Leverage assets because you can have your money working for you earning xx% more than you're paying someone else. Then the bottom falls out and you're losing money on both ends. (actually all 3 sides because your car is losing value as well as your investments and you're paying 2% on the money you borrowed on top of that).

If it were as easy as paying x%, while making xx% on the money you didn't pay then people wouldn't be as eager to become debt free. Bottom line is that you can't predict when the next recession is

True, but looking at the BROAD term, the market is always trending up. Can't predict when there will be a correction, but the chances are that the 0.9-1.9% APR + money in the market is going to help you out more than paying the car in cash.

 

[eyanks]

This guy bought a car with his credit card to get the points. He paid the car off in full right after. There were people bashing him. I guess claiming he was financially savvy hit a nerve for some people.

http://thepointsguy.com/2016/01/paying-for-a-car-with-platinum-amex/

he avoids debt and gets bashed. you can't win nowadays.

 

[slicknick951]

This guy bought a car with his credit card to get the points. He paid the car off in full right after. There were people bashing him. I guess claiming he was financially savvy hit a nerve for some people.

http://thepointsguy.com/2016/01/paying-for-a-car-with-platinum-amex/

he avoids debt and gets bashed. you can't win nowadays.

Thats why u gotta keep your financial matters to yourself. lol

People will find a way to argue or debate anything these days

 

[jon4rd]

All of em probably got the same mindset as the "no credit is better than good credit" dude from a few pages back. Talmbout as soon as you swipe your card you're in debt

 

[slicknick951]

All of em probably got the same mindset as the "no credit is better than good credit" dude from a few pages back. Talmbout as soon as you swipe your card you're in debt

My thing is I understand where they are coming from but I have two major problems with the arguments.

- There are a million ways to manage your money. Just like there are a million ways to reach your goals. This can be seen by studying to following whatever successful person you want to and see how they reached their goals everyone is different and has different priorities in life .

- People who have the most to say about someones situation usually are not in a great one themselves. I'm willing to bet people who are successful are not spending their time criticizing people on the webs financial decisions. With that being said I would take everything with a grain of salt and if anyone wanted real advice I would seek out a professional