How exactly does a credit card work?
I want to apply for a credit card that starts out with a minimum credit line of $300. If I get it, it will be my first credit card. If I get the $300 credit, I want to make a purchase for like $200. Is this a good thing or a bad thing to do? Can someone give me some good tips on handling a credit card without getting bad credit?
I will mostly be using this card trying to start an at-home business.
Ya mama b*tch. Eat my p*ssy, h*e!!!
Oh, rudecatt63, you’ve hurt my feelings ever so much, I’m going to cry….NOT. For someone who keeps visiting the GLBT section and has a rainbow in they’re background, you sure do do a lot of gay bashing. Self hate is so stupid. But then again if I were you, I would probably hate myself too.
June 25th, 2010 at 10:38 am
well always make sure you make the minimum payments, because that shows that your wanting to keep your credit down.
June 25th, 2010 at 11:32 am
The answer is to really pay off your credit card in full every time the bill comes in. If you only pay the minimum balance every month, this is where the interest rate is high.
June 25th, 2010 at 11:56 am
if you decide to spend 200, try to pay it off within the next two months after you spent it. if you can’t pay off the bill within 2 months after you made the bill it can begin to become a problem plus you will start to accrue interest. That is about the only tip I can give. make sure you can pay off what you spent within the following 2 months.
June 25th, 2010 at 12:01 pm
Kolkata: As another call centre employee comes under the crime radar, this time in Kolkata for a credit card fraud, we take a look at how it all happened.
Twenty-three-year-old Sulagna Roy has been accused of buying luxury goods worth $4500 using credit cards belonging to some US clients.
Now if you had the 16-digit credit card number, the three-digit CVC number at the back of the card, the date of expiry and the name as it stands on the card, it could be your ticket to buying virtually anything on the Internet.
That was Sulagna’s ticket to conning the US citizens and buying white goods and designer outfits from an American website.
Though police claim the amount that she stole is not very big, it cost the company she works for a great deal of credibility.
Jayshree Infotech, which is part of the B K Birla group, is now struggling to explain to its clients how a fraud like this could take place.
The management had thought it had taken all possible precautions, but now feels there is perhaps no foolproof mechanism to prevent crimes like this.
The Chief Executive Officer of the firm, Rajesh Sarda, says the American website from which goods were being bought should have raised an alarm much earlier.
“Some sort of check and balance should have been there in the software. To detect that the shipment is going to take place in India but the card information is from the US. Now if some American wants to gift it to some Indian in India then again the IP address of the computer has to be in the US. It cannot be from India,” says Sarda.
For Jayshree Infotech, it certainly is a serious setback. But coping with it is perhaps not as difficult as providing tighter data security to its clients in future.
For Sulagna Roy, who has now been remanded in police custody for 12 days, it’s certainly the end of the road.
June 25th, 2010 at 12:59 pm
Yes, you can use up the credit limit stated in your credit line. To keep a good credit record. Pay up your credit card monthly minimum payment on time every month.
June 25th, 2010 at 1:08 pm
A credit card is something like a promissary note. When you give the credit card to someone, the bank pays that bill and you promise to repay the bank (or the credit card company if the card is not issued by a bank). That’s why you have to sign the credit slip at the store, to show that you recognize that you are indebted for that amount.
The REALLY important thing to remember about a credit card is that, although the transaction is so easy, it has to be backed up by real money. And it is very important to be prompt in your payments. Otherwise you will find penalty payments added to your account. If you keep right up to date on the payments a credit card can work very well. Sometimes you have to keep track of your charges and pay them before you get an accounting from the company, because the contract says you have to pay the bill within 15 days or the interest charges begin, so if they only bill once a month, you are automatically going to pay interest unless you keep on top of your charges.
A well conducted credit card account also bolsters your private credit rating and before long, you’ll be invited to take out a credit card with a $1,000 max, then a $5,000 max. The same rules apply.
June 25th, 2010 at 1:23 pm
Using a credit card is a good tool to establishing creditworthiness. Yes, go ahead and use your card. The best advice I can give you is to pay it off each and every month. Most cards give you a 20 or 25 day grace period. If you pay off the balance, no interest or service fees get charged.
If you only make minimum or partial payments, interest and service fees will start accruing, and this can make a $200 purchase cost you $400 or more!
As you use the card and make payments every month, your credit line will increase. It’s very easy to charge right up to the max. Keep an eye on what you have charged by accessing your account activity online frequently. You should be aware down to the penny of how much you owe at any given time.
Do not use your card to get a cash advance. The fees and interest are astronomical and can lead to trouble fast.
Another good choice for a first card is a “secured” card. This means you have $300 in a savings account before you are given a $300 credit limit. You can’t spend more than you have that way. Secured cards are easier to get, and once you have had one for awhile, you can be bumped up to a regular card.
Good luck!
June 25th, 2010 at 1:54 pm
The best way is to keep the balence no more than 50% of the limit. If you go higher than the 50%, it will look like you have bad credit instead of no credit.
If you pay the first balence off that month or pay half this payment and half the next, the bank will be very happy and raise your credit limit.
You do not want to make only minimum payments. That will get in you into BIG trouble. They can raise the interest rate and it will cost you way more to borrow that money than you thought it would.
If you have to because of money issues, make the payment that is due a min amount and then make another payment that month that is double the min. That will show good faith to the company. After about 6 months, you can call them and ask for the interest rate to be lowered or a higher limit.
June 25th, 2010 at 2:00 pm
Can you wait and save for the item? This is the best way. There are other ways to estabish credit. By the way, do you have a banking account, debt card, a job? All 3 are sources of credit. If a card is the best way to go, pay full and don’t be late! 0% now, 29% once you are late!
Best way is still wait until you have the cash. Debts from credit cards is the main killer of this economy.
June 25th, 2010 at 2:05 pm
Check the interest rates on the card you get.Some can be very high.
June 25th, 2010 at 2:57 pm
you got some replies but here’s some great reading, might take you a while though:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
if you get any luck please don’t forget about me lol, hope it helped you!