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Random Thought Thread

huh said:
They let you use their money and you pay it back each month. If you don't pay the entire balance off each month they charge you interest. So let's say you borrowed 20 by buying something on ur card and you don't pay it back you now at 20 percent interest u now owe 24 dollars
They will let u pay a minimum of your balance but doing that will rack up your bill with interest as well
Oh and there are also penalties for various things like late payments. Going over your credit line ( the total amount they are willing to loan you)

Best rule of thumb is that if you don't have the money in the piggy bank to buy something .. You shouldn't!
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So if I do have the money and I always pay them back what I owe them, is that building up my credit score?

I don't like the idea of getting something I don't have money for or haven't fully paid for.

If I bought something for $100 and paid them back all $100 by the due date. That's all I have to pay back right? No interest I have to pay back or anything?
 
sfbloodbrother said:
So if I do have the money and I always pay them back what I owe them, is that building up my credit score?

I don't like the idea of getting something I don't have money for or haven't fully paid for.

If I bought something for $100 and paid them back all $100 by the due date. That's all I have to pay back right? No interest I have to pay back or anything?
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Depends on the contract you enter in to. Watch for and never accept any card that has an annual fee.

Credit cards aren't the best or fastest way to help your credit score. It's that what you're trying to do? Why?
 
TheAtheistReverend said:
Depends on the contract you enter in to. Watch for and never accept any card that has an annual fee.

Credit cards aren't the best or fastest way to help your credit score. It's that what you're trying to do? Why?
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My brother tells me I should start building my credit because I'm actually really good with money.

I honestly don't like the idea of a credit card.
 
sfbloodbrother said:
If I bought something for $100 and paid them back all $100 by the due date. That's all I have to pay back right? No interest I have to pay back or anything?
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Correct.

The easiest thing is to set up an automated payment to pay the full balance each month - it's called a Direct Debit here in the UK, though the name may be different in the US. Does mean you have to ensure you have the funds in your account, of course.
 
Kaat72 said:
Why would you use it then?
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In the states not using credit can be bad for your credit. Then for those purchases where borrowing makes sense (e.g. cars, homes) you pay a higher rate. Sometimes it is a necessary evil. I recommend using one for a common and relatively fixed expense and paying off the balance each month. I did it for gas when I was young. I had a regular commute, it was something I was going to purchase and pay for anyway. I just paid off the balance each month. After time my limit was increased. I wound up having to use it for a repair that was both unexpected and unaffordable with the cash I had on hand. Over 3 or 4 statements I was able to pay it off without falling behind on other bills, just dipping into discretionary spending.
 
sfbloodbrother said:
My brother tells me I should start building my credit because I'm actually really good with money.

I honestly don't like the idea of a credit card.
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your brother is right. just be very very careful. I would start with a gas card as Unforgiven said. They are usually easier to qualify for. Also department store credit cards are as well. As the rev said do not ever get a card that charges you a fee just to have it. My advice would be to join a credit union and do your banking through them. Direct deposit your paycheck build up a "relationship" and go from there. They are more personal and will walk you through establishing credit gradually. They tend to have pretty good rates and group member benefits and some perks group Auto, home insurance ,money market rates, student , car loans, local discounts..etc...It can be more difficult to get approved for credit initially because it is a credit union instead of a national bank it's in essence owned by its members so they tend to error on the side of caution but again if you establish a banking account with them it would be a safe reliable way to go!IMHO:)
 
Depending on what you will be using your credit score for, here's another bit of advice.

The longer you have a bank account, the better. If you do switch to a credit union(always a good idea) try to at least keep your current bank account open if it won't cost you anything. On big credit checks (buying a house) they really want to see a long established account. The longer, the better.
Loans are the best way to build credit, but they do cost you. I would recommend financing a piece of furniture, probably co-signed by a family member the first time around, and pay that off. It's a small enough loan that it shouldn't cost you too much in interest, but if you pay it off on the schedule they outline it will give your credit a healthy boost.
 
Merry Christmas
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Thing is I don't buy gas. I ride my bike just about everywhere.
I do buy my own food now.

So joining a credit union sounds good but there's nothing I really want at this point where I have to take out a loan for. Furniture or house is a few years away.

I'm considering buying a car. Like a nice car, but am very skeptical about it because I don't want to get sucked into the responsibility of owning and maintaining a car.

Electric cars should come down in price bow that Tesla released their parents to their competitors. Now competition should increase and more cars should be made.

Honestly, at 19 do I really need to start building up a credit?
 
sfbloodbrother said:
Thing is I don't buy gas. I ride my bike just about everywhere.
I do buy my own food now.

So joining a credit union sounds good but there's nothing I really want at this point where I have to take out a loan for. Furniture or house is a few years away.

I'm considering buying a car. Like a nice car, but am very skeptical about it because I don't want to get sucked into the responsibility of owning and maintaining a car.

Electric cars should come down in price bow that Tesla released their parents to their competitors. Now competition should increase and more cars should be made.

Honestly, at 19 do I really need to start building up a credit?
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Yes, because it can better prepare you for the future. Unless you find yourself acquiring a large sum of money, you will need credit for major purchases (i.e.: house, car, etc.). Some employers even look at your credit before considering you as a candidate for hire.

Start out small with a credit card with a small balance, and be able to pay it off at the end of the month. You'll save a ton of money in late fees and finance charges. You also need to create a budget to avoid living beyond your means by not maxing out credit cards. I had to find that out the hard way.

If only I was your age again and have the knowledge I have now, I wouldn't have so many regrets.
 
TheAtheistReverend said:
Depending on what you will be using your credit score for, here's another bit of advice.

The longer you have a bank account, the better. If you do switch to a credit union(always a good idea) try to at least keep your current bank account open if it won't cost you anything. On big credit checks (buying a house) they really want to see a long established account. The longer, the better.
Loans are the best way to build credit, but they do cost you. I would recommend financing a piece of furniture, probably co-signed by a family member the first time around, and pay that off. It's a small enough loan that it shouldn't cost you too much in interest, but if you pay it off on the schedule they outline it will give your credit a healthy boost.
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I totally agree with the advice given. Also try not to cancel a credit card once you have it. Canceling a card will cause a drop in your credit score!

Another advantage of some credit cars is a cash back feature. For example my card is offering 5% back on gasoline purchases. At the station I use, the price is $4.07 a gallon for cash. $4.17 a gallon on credit card. With the cash back feature it turns out to be $3.96 a gallon. This is why i'll be buying on my credit card until Oct. 1 when the cash back drops to 1%. :D
 
Yes at 19 you should be building credit and money management skills..A checking account at the very least. Welcome to adulthood!!:D:D whoop! whoop!:smokingsomb:
 
on a side note...i think there may be a bidding war a brewin' on my old house and it's not even open for showing yet!! Market is very very hot around here...especially where my old house is located...as they say LOCATION LOCATION LOCATION...:D fingers crossed*
 
huh said:
Yes at 19 you should be building credit and money management skills..A checking account at the very least. Welcome to adulthood!!:D:D whoop! whoop!:smokingsomb:
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I have both a checking and savings account with a more than good amount of money in there for someone my age.

Any hoot.

Just called both Microcenter and sprint and here's what they had to say.

Microcenter: positions were filled and I should reapply to different positions. Summer hours are slow.

Sprint: it can take anywhere from 1 - 3 weeks before they give me a phone call.
 
sfbloodbrother said:
I have both a checking and savings account with a more than good amount of money in there for someone my age.

Any hoot.

Just called both Microcenter and sprint and here's what they had to say.

Microcenter: positions were filled and I should reapply to different positions. Summer hours are slow.

Sprint: it can take anywhere from 1 - 3 weeks before they give me a phone call.
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hey can I borrow.........:D:D kidding kidding
 
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