[AngryMetalsmith]

Credit card companies are evil, just say no.

The reason why your bank wants you to get a credit card right out of school is so they can start you on a long term plan of accruing debt with them. Their goal is to make sure you end up working just to pay them.


They do this by enticing you into spending more than can pay for. If you make payments on time they will gradually increase your limit. What happens to a lot of people is that they end up living well beyond their means and finance their lifestyle through credit cards.

Any debt counselor will tell you that if you can't afford it, then don't buy it. And the only thing you should ever by on credit is a car and a house.

 

[Toshi]

I'M not going to bite on this one. But I cant believe you really think that.

I pay $0 in annual fees. I pay $0 in interest. Yet I got $716.21 in cash back from Amex this year for simply using their card and paying off the bill in full each month. That's hardly evil, IMO.

Credit cards are not for those who don't understand arithmetic or who see them as magic, I suppose. That doesn't make them evil.

 

[SkaredShtles]

Credit card companies are evil, just say no.

Sounds like someone with little self control.

 

[AngryMetalsmith]

Sounds like someone with little self control.

That is their preferred customer base.

 

[gtastro]

I pay $0 in annual fees. I pay $0 in interest. Yet I got $716.21 in cash back from Amex this year for simply using their card and paying off the bill in full each month. That's hardly evil, IMO.

Credit cards are not for those who don't understand arithmetic or who see them as magic, I suppose. That doesn't make them evil.

Just because your the exception doesnt make them the tooth fairy.
If that was the bussiness plan we would have to bail out all of them.
(OH WAIT WE ALREADY DID)

 

[SkaredShtles]

Just because your the exception doesnt make them the tooth fairy.
If that was the bussiness plan we would have to bail out all of them.
(OH WAIT WE ALREADY DID)

They sent me over $500 last year.

 

[reflux]

Just because your the exception doesnt make them the tooth fairy.
If that was the bussiness plan we would have to bail out all of them.
(OH WAIT WE ALREADY DID)

He's at an age where he can develop smart spending habits and start to build strong credit. Answer this question for us, how can the OP accomplish those two goals?

Credit card companies are profit driven and very aggressive in making money from their customers. In fact, their most profitable customers are those who carry balances and make the minimum suggested payment every month. Nobody with half a brain would disagree. It's not that hard to keep from being a tool of the credit card companies: don't spend money you don't have.

 

[SkaredShtles]

<snip>
Credit card companies are profit driven and very aggressive in making money from their customers. In fact, their most profitable customers are those who carry balances and make the minimum suggested payment every month. Nobody with half a brain would disagree. It's not that hard to keep from being a tool of the credit card companies: don't spend money you don't have.

And when I get my $$ back at the end of the year I always have a hearty "Thank you" for those people that can't control themselves. 'Cause in effect THEY'RE payin' me.

 

[gtastro]

He's at an age where he can develop smart spending habits and start to build strong credit. Answer this question for us, how can the OP accomplish those two goals?

Credit card companies are profit driven and very aggressive in making money from their customers. In fact, their most profitable customers are those who carry balances and make the minimum suggested payment every month. Nobody with half a brain would disagree. It's not that hard to keep from being a tool of the credit card companies: don't spend money you don't have.

OK So theres this kid in college, he has no credit history. These times were in are tough they arent giving this stuff away anymore.

What do think there going to give him a card with a 500.00 limit, 1000.00 tops.This kid he aint making 70 large a year so lets go with 500.00 limit.

I recomended not spending more than 10% and carring 7%, me thinks thats 50.00 and 35.00 so for giving that advice Im a moron on the internet net.

Over 35.00 are you kidding.

worst case the kid runs up 400 - 500, misses or cant make the minimum.
CC company lowers limit, raises interest. Now kid feels the burden of life has parents help out. Learns a valuable lesson for cheaper than alot of us did when credit ran freely.

Now I never encourged anyone to live beyond there means, and it seem to me that he had a grasp of what he was asking. He isnt 5 he has already shown some independence by having a debit card.

 

[MTB_Rob_NC]

I can't believe I am going to get into this but here goes.

1) Establishing credit is good, managing it is more important.
2) As mentioned your FICO score is not driven UP by carying CC balances if you can pay it off, pay it off.
3) Your FICO score IS driven by the length of time you have had an open line credit. As an example if you have had a CC as I have for almost 20+ years and you have never missed a payment and have always been in good standing it will substantially raise your credit score.
4)Getting a "Bank" CC is a double edged sword.
a) If you look at your banking agreements, both credit card, checking and savings they have the right to cross collateralize (My word not their) your accounts. Therefore IF you get into some kind of trouble with your CC or your checking/savings account they can grab the money from where ever it sits.
b) Banks are very sophisticated in calculating how you, their customer is "profitable/valuable." You are more valuable to them if you have multiple accounts. Therefore if you ever need to leverage your relationship you have a better shot if you are a more profitable customer. IE they are more likely to give you a discounted car loan or mortgage if you have your checking, savings and CC accounts with them.

I personally love my Airline sponsored CC. I use it for all my business purchases, which are reimbursed by my company and then turn around and use the "Rewards" for my personal travel. I almost always get bumped to 1st class and earn about 1.5 free trips a year.

 

[reflux]

stuff

Why are you so insistent on the OP carrying a balance?

 

[SkaredShtles]

Why are you so insistent on the OP carrying a balance?

'Cause he read it on the intarwebz!

 

[MTB_Rob_NC]

Why are you so insistent on the OP carrying a balance?

'Cause he read it on the intarwebz!

He likes being wrong multiple times?

 

[reflux]

He likes being wrong multiple times?

It's the Max Power Way of doing things.

 

[binary visions]

I recomended not spending more than 10% and carring 7%, me thinks thats 50.00 and 35.00 so for giving that advice Im a moron on the internet net.

Over 35.00 are you kidding.

No. That's not why anyone disagreed with anything you said.

The reason I and others disagreed is because you made a statement, did not back it up, and numerous other sources state that what you said was patently untrue. Therefore, carrying a balance to increase your credit score was simply bad advice. Nobody made a big deal about the money. We said that carrying a balance is a bad practice and has no up-side.

 

[gtastro]

I wont disagree Im wrong. But I have had Personal experiences in the past where if you didnt make a certain amount of payments over time you didnt gain a history. Most of us on here have made 100's af payments over time and developed our own history.

The first article flat out said to pay off.
The second also said to pay off. But made the reference if your timing between them reporting and you paying was right it apeared you carried a balance.

While paying off is the the most sucessful way to go (I agree) . I just dont believe any of us know the exact formula these credit burues(sp?) use at different times in history.

I have learned over time how important a fico score is though.

You guys wore me out, now back to the nonsense at supercross.cm

 

[gtastro]

No. That's not why anyone disagreed with anything you said.

did not back it up,

I just went back to the first post and looked at what I said. And I did make reference to why I said that. but every one disagreed and we all went down a different path. I just dont think I communicated or spelled very effectivelly
in that first post or the others.

 

[pinkshirtphotos]

Monkey's help apostrophes is with how it's spelled.

I can get a credit card I think, mom says no but I want it. I need this new lens on my camera. It cannot wait until I have enough cash which isn't like me yet it is. I also am unemployed living on my last paycheck. If I began a credit card they have interest rates. My idea is find 0% interest, keep laughing if I am funny thinking this exists. Best buy has this on their card if I was getting it from them but they don't have the lens. 2 year 0% interest along those lines. Put up half of the value $600 and have 2 years with minimun payments off my card.

This gives me the idea $1200 lens in 24 months is $50 per month and with $600 down from the beginning this is now $25 every month. I don't want the company making money with my money. I will give the plastic company $1200 and not a coin more.

Is this idea crazy or utterly good.

 

[blackohio]

you're too ****ing stupid to get a credit card.

plain and simple.

 

[jdcamb]

I think you should get the card. Then go online and book a trip to Costa Rica. Worry about chit when you get back.

 

[Da Peach]

Is it Burly who always used to say "Jesus"?

 

[jdcamb]

Is it Burly who always used to say "Jesus"?

What is Burly?

 

[pinkshirtphotos]

you mean to say I can leave all my environmental problems here in the United States and choose if I come back from the frogs of color.

 

[Pesqueeb]

Did your parents have any kids that lived?

 

[binary visions]

I can't ever tell if PSP is actually a genius, master troll. I mean, some of these questions aren't just lack of common sense... they're lack of the sense that keeps you from wandering into traffic or mistaking the bleach container for a water bottle. In case this isn't trolling and I can save you hundreds of dollars and multiple years of bad credit:

NSFW

Horrible idea. There's no way you're going to be that responsible with your first card. You asked about declaring bankruptcy then moving to shirk the payments in another thread, - that right there shows an incredible lack of foresight and responsibility. I promise: no matter how much you think this seems like a great idea, it's not. Pay yourself first, then buy the lens when you have the money.

In any event, there's a pretty good chance that, with no credit, you're not going to qualify for 0% for 24 months anyway.

Incidentally, if you're planning on paying $1200 of ANYTHING off over 2 years, you can't afford it. And WTF are you thinking you need a $1200 lens for, when you're unemployed?

 

[johnbryanpeters]

Fvck the card. Learn the difference between need and want.

 

[pinkshirtphotos]

I made round numbers there. 3 6 9 those are round numbers. The divisible without remainder are pointy. So anyway I cannot afford what I need since what I want is less. Simplicity of choosing what I may need in the future rather then what might satisfy me now. Credit out the window, bestbuy sticker deals the best. Looking for a 10 - 24 for my new book "Relevance of Elephants".

 

[CrabJoe StretchPants]

Fvck the card. Learn the difference between need and want.

This. Though I think a CC is almost necessary to build up a substantial credit history, which is the sole reason I got one (and its the only one I have several years later). Getting a CC with the intention of buying things you know you can't afford is the worst possible mentality to have. Though the CC company will love you.

I've said this in another thread about CC's before, but I use mine as if it were a debit card. If I don't have the cash sitting in my checking account at the moment, I'll hold off on buying it. I refuse to carry a balance....barring any unforeseen big emergency expenditures.

 

[jonKranked]

Two words: witness protection

 

[Banshee Rider]

So how do you guys recommend going about building credit?

I pay all my bills, have no student loans, no debt, have a good savings/checking account, blah blah blah. However, I recently got denied for this mileage rewards credit card I applied for because my credit score was too low. Makes sense, I don't have credit cards or much else going on except rent and utilities.

Is this something worth calling the credit card company about to try and "justify" getting the card? I've lined up a job that will have be traveling a fair bit, and want this specfic card to rack up extra mileage perks. No other credit cards interest me - I'd just assume pay with my debit card. But, is that what I have to do to build credit? Get some ****ty card, use it for everyday stuff, and pay it all off to improve my score? How long before my score improves a 100 points to get me the actual card I want?

 

[bean]

So how do you guys recommend going about building credit?

I pay all my bills, have no student loans, no debt, have a good savings/checking account, blah blah blah. However, I recently got denied for this mileage rewards credit card I applied for because my credit score was too low. Makes sense, I don't have credit cards or much else going on except rent and utilities.

Is this something worth calling the credit card company about to try and "justify" getting the card? I've lined up a job that will have be traveling a fair bit, and want this specfic card to rack up extra mileage perks. No other credit cards interest me - I'd just assume pay with my debit card. But, is that what I have to do to build credit? Get some ****ty card, use it for everyday stuff, and pay it all off to improve my score? How long before my score improves a 100 points to get me the actual card I want?

You've pretty much got it. Get whatever card you can, build some credit, then get the card you want. When you get the new one eventually, keep your older one so that you retain its history. Even if you don't use the card, it will still show up on your statement as paid on time every month.

Did you talk to your current bank about getting a card through them? Generally banks like having multiple revenue streams per customer, so your current one may be willing to work with you a bit in order to have both accounts with you.

 

[velocipedist]

Do you really need to use it? A card I got when I was in high school with a 200 dollar limit, never used it once. Forgot about it, ten years later I got a mileage card with a 17000 limit. I was told my "other" card helped my score. So does an active card with no activity help your score or is correlation not causation and there were other factors in play with my anecdote.

 

[SkaredShtles]

<snip>
I've said this in another thread about CC's before, but I use mine as if it were a debit card. If I don't have the cash sitting in my checking account at the moment, I'll hold off on buying it. I refuse to carry a balance....barring any unforeseen big emergency expenditures.

This.

And as an added bonus, some CC companies will PAY you to use their card. Amex paid me over 600 bones last year for using their card...

 

[jdcamb]

If you sell enough weed you won't need a card. You should do that instead of getting screwed by the man. Don't listen to SkaredShtles he is insanely wealthy to begin with....

 

[AngryMetalsmith]

PSP-

I'm just gonna be real fvckin blunt with ya here dude. You have indicated in another thread that you have serious addiction and dependency problems. If by some off chance a credit card company gives you a card, you will not be able to control it and will quickly dig yourself into a hole. You are exactly what the CC companies want.

They will keep increasing your limit and you will keep buying stuff you can't afford. Eventually you will make a late payment, then they tack on a late fee which will put you over your limit. Then they jack up your interest rate to the maximum allowable by law, about 29%. Then when you can't make the minimum payments, they cancel your card, turn you over to a collection agent who will aggressively pursue you. Think you can just ignore them and they'll go away, wrong. The CC company will sell your debt to another company that will sue you and attempt to take everything you have of value.

Ignore some of the more financially savvy monkeys, they're not unemployed junkies. The only thing you should ever finance or buy with credit is a house and a car. If you don't have the cash, then don't buy it.

Don't believe me, then google how much a $1000 CC purchase actually costs.

 

[jdcamb]

PSP-

I'm just gonna be real fvckin blunt with ya here dude. You have indicated in another thread that you have serious addiction and dependency problems. If by some off chance a credit card company gives you a card, you will not be able to control it and will quickly dig yourself into a hole. You are exactly what the CC companies want.

They will keep increasing your limit and you will keep buying stuff you can't afford. Eventually you will make a late payment, then they tack on a late fee which will put you over your limit. Then they jack up your interest rate to the maximum allowable by law, about 29%. Then when you can't make the minimum payments, they cancel your card, turn you over to a collection agent who will aggressively pursue you. Think you can just ignore them and they'll go away, wrong. The CC company will sell your debt to another company that will sue you and attempt to take everything you have of value.

Ignore some of the more financially savvy monkeys, they're not unemployed junkies. The only thing you should ever finance or buy with credit is a house and a car. If you don't have the cash, then don't buy it.

Don't believe me, then google how much a $1000 CC purchase actually costs.

If your parents are rich. Disregard the above. You only live once or twice until they lose patience. Just remember you only die once also.....

 

[Pesqueeb]

You guys are wasting your time. PSP is either, 1: the least interesting troll in the world, or 2: the dumbest motherfvcker who ever fell out of a womb. Either way he is tired and boring.

 

[jdcamb]

You guys are wasting your time. PSP is either, 1: the least interesting troll in the world, or 2: the dumbest motherfvcker who ever fell out of a womb. Either way he is tired and boring.

Let me guess... You're drug tested at work?

 

[pinkshirtphotos]

You guys are wasting your time. PSP is either, 1: the least interesting troll in the world, or 2: the dumbest motherfvcker who ever fell out of a womb. Either way he is tired and boring.

Neither

I am cut out because the way it was psp was backwords. Always will be too on this note. Really gets annoying knowing you should have been dead before you were born unconventionally into parents who already have one unconventional kid my brother. By a woman who has lungs that are not healthy with a disease called athsema. Then a dad who claims he went deaf from all the rock concerts, so having conversation is not very common.

I get my patients tried by my parents, so tired of that. Credit forfeit it want more of it just bid on it. PSP does rap.

 

[pinkshirtphotos]

Which uncle should be banned, Who divorced, who got gay, who married his wife with the same name as his sister. lame the gay is my god father the divorced gave me my middle name and the other's wife is the same name as my mom. Somebody hooked the engine to the caboose in my family.