Need A Credit Card

Discussion in 'After Hours Lounge (Off Topic)' started by Rich Romero, Jul 24, 2005.

  1. Rich Romero

    Rich Romero Supporting Actor

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    Know any links to good credit card companies that can actually approve me? I'm 19, am looking to buy a new TV and need a credit card. Most cards will do, as long as they have a $3000 or up limit.
     
  2. Paul_Medenwaldt

    Paul_Medenwaldt Supporting Actor

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    If you have a Target in your area, I would recommend them. When I was your age and looking to start out my credit history, I was told to get a Target card.

    Back then they only had their own CC, now they are affliated with Visa so it would now be a full fledged CC.

    Also you might be lucky to get $3000 plus, some CC companies may be generous, but with having no CC history you may be limited to $1000 and below, until you begin to use it and accumulate a good track record.
    Paul
     
  3. MarcoBiscotti

    MarcoBiscotti Producer

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    Assuming you are a student, NO credit card company or bank that you sign up with is ever going to issue you a starter card with a 3k limit off the bat without prior credit buildup. Go to your bank and inquire about their products and find one which suits your needs best. Chose one with no anual fees or interest and the lowest rates. Generally, you will start of with a student card. At least in Canada, the general limit is usually around $500 starting for student cards and can be raised as your credit builds. If you are working full time and can show that you have a significant weekly income than you might be issued a slightly higher credit but eitherway it shouldnt be difficult to raise the maximum if you use it regularly and pay your balances on time, that's key! You can easily start off with a $500 maximum and raise it to $1500 within 4-6 months if you show that you are spending and covering responsibly and request to raise your limit. Just don't slip up with your minimum payments because that can really hurt you. Banks are good place to start from my experience, they offer good credit building cards to first time card owners and good reward points as well. That's another important factor, find a card/program with useful rewards like flier miles or gas points that can be cashed in.
     
  4. Dome Vongvises

    Dome Vongvises Lead Actor

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    On the application when you list total household income, put down every single cent your whole family earns. That helps oodles.
     
  5. Matt Gordon

    Matt Gordon Supporting Actor

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    Hey man, it's your money (well, not money, but credit), and you can do what you want with it. But did you consider actually saving up the cash for it? That's a far better thing to do than finding ways to go into debt for what you want. Go in there, flash cash, and get a better deal. Not only that, but it's a lot wiser thing to do financially. Just sayin'...

    But if you do decide to get a credit card, do yourself a big favor and don't carry a balance. Ever. If you buy a $2,000 TV with a credit card charging 18.5% interest and pay off the balance with minimum monthly payments, you'll take over 11 years to repay the debt. By the time the TV is paid off, you will have spent an extra $1,934 in interest alone -- almost the actual cost of the TV.
     
  6. Jeff Ulmer

    Jeff Ulmer Producer

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    That is a very good piece of advice.
     
  7. Keith_R

    Keith_R Screenwriter

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    very wise advice indeed. I'm 20 and got my first card when I was 18. The way I started was through my credit union, they gave me a card and had my parent cosign for me, they gave me a $500 limit which they took out of my parent's card that had a $1000 limit. I used my card a lot and paid off the balance each month in order to not worry about minimum payments and keep good credit.

    I've since been able to get another card that is completely my own (no cosigners) and that one recently had it's credit limit upped because of a good credit istory.

    I'd recommend that you start with your bank or credit union, but be warned that will not give you a high limit if you have no previous credit history. I think someone else mentioned $500 and that sounds right.

    Have you considered saving your money instead of charging this television?
     
  8. Joseph S

    Joseph S Cinematographer

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    You'ld be amazed what the CC companies will do if you pay off the whole balance on schedule. My card went from a $1000 to $5000 to $25,000 limit during college and another 12.5K limit on another. Yeah, I'll buy my computer for the extra warranty with the card or cash back, but I don't take the bait. If you have the money, there's nothing wrong with building a good credit history. Cash is a problem when you want a great deal online, debit cards tend to have low daily limits which can be a problem as can sending cash to the online retailer.
     
  9. Ryan Tsang

    Ryan Tsang Second Unit

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    I'd hate to be the preacher man but I hope (for your sake) that you want this card so you can buy this tv online, and that you have the money already to pay it off.

    If not...

    Spending credit is so easy and addictive. Believe me. I was there. It was only after school and started working did I realize how hard it is to climb out of a hole. And my student loans and personal line of credit were only at 5.5-8%. I was stupid and bought fancy stereo equipment that I had no right to own. I made it out ok, but I could be driving a much nicer car than an Accord or have a much bigger down-payment for a house had I known then what I know now. Anyway...be careful.
     
  10. Dome Vongvises

    Dome Vongvises Lead Actor

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    Random question: does carrying a balance hurt your credit? I've just purchased a 300 dollar item, and I'm thinking of paying it off in three payments as opposed to one.
     
  11. Ryan Wishton

    Ryan Wishton Screenwriter

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    Get something cheap at Walmart (around $100) or use what you have until you save this money.

    Don't ever charge something like a tv. You will be furious at yourself 1/2/3 years from now when you are still paying on it.

    Sure, it's all fun and games (for a few weeks until the new wears off) until the future years when you are still paying on something that is already outdated. Just be careful.

    19 is an age where people want things. Unless you were fortunate, no 19 year old is really going to have that kind of money to buy plasmas, BMW's, etc.

    Basically, don't charge items like this. It's a vicious hole that can become very hard to get out of.
     
  12. Clinton McClure

    Clinton McClure Casual Enthusiast
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    Getting my last personal loan from my bank, the loan officer told me that carrying a balance on a credit card will give you negatives on your credit rating if it is more than half of the credit limit on that card.
     
  13. Jeff Ulmer

    Jeff Ulmer Producer

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    I regularlly carry a balance on certain cards due to their low interest (1.5-3.9%) offers, which is far cheaper than financing any other way. However, I also make sure that the balance is manageable should I need to pay it off (these are short term rates, but there seems to be no end of offers, so they can be transferred elsewhere when they are over.)

    Other than these special cases, payments are deferred for the minimum length of time, balances paid in full. I will also collect rewards based on the card.
     
  14. DaveF

    DaveF Moderator
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    [​IMG] I've had my Discover card for a decade, since I graduated college. I've paid my balance in full every month. The credit has only slowly crept up to its current high of perhaps $10k. My other credit cards have shown similar credit limit behavior.

    I'm not jealous -- my credit limit easily is three times what I need. I've just never seen credit limits jump so fast, especially for someone with (presumably) no income.

    As for the TV: if you can't get a credit card with the necessary limit, how about borrowing from family? Better to pay interest to loved ones than to the credit company.
     
  15. ThomasC

    ThomasC Lead Actor

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    I didn't feel like starting a new thread, since this one already exists. I'm in my 5th and final year of college. I've got two credit cards, and I've had both since I started college. One is a bank check card where the paycheck from my job goes, which I use to pay for lunch and the bills (electric, gas, cable, Internet, and cell phone). There's never much left after I pay the bills. The other is a credit card which my parents pay for, and I use that for gas and groceries.

    My mom has suggested to me that I get my own credit card now, so I can start building credit. Would you pick Visa over MasterCard, AMEX over Visa, MasterCard over Discover, etc.? Or does it really not matter? I don't ever plan to make big purchases unless I have the money to pay for it. Having a check card has helped me out with that, since I can only spend what I have, or else comes that $29/day overdraft fee, which I accidentally got once. I preordered a $120 DVD set two months before release, and the company put a hold on my card to see if it would go through (they told me they were going to do that before the transaction), and my available balance went into the red. My account balance was $117 or something like that. Anyways [​IMG], back to the question of which credit card company may or may not be better. Any thoughts?
     
  16. Colton

    Colton Supporting Actor

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    I heard that if you pay your balance on your credit cards each month - most credit card companies will drop you because you aren't making them any money. True?

    - Colton
     
  17. Charles J P

    Charles J P Cinematographer

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    I seriously doubt it. My wife and I put everything on our credit cards. We've had the same companies (Chase and MBNA) since college. Now that we are both working professionals we put $30k a year on our credit card and have NEVER EVER EVER in 9 years EVER carried a balance of even $1 and never paid interest to the credit card company and have not been dropped.

    BTW, that being said, I would think its obvious that my opinion is never carry a balance. Credit cards should NOT be a tool to buy something you cant afford. Just because you have a credit card, if you cant afford it you cant afford it. That being said, if it will NOT be a financial burden on me, I DO take advantage of store offered free financing. My wife and I paid for my first home theater projector and ALL of our living room furniture over the course of two years with no interest. BUT, as simple as it may seem, MANY people dont understand that the interest accumulates during that time and if you fuck up you pay it ALL. I.e. if you finance 2,400 on your best buy card for 24 months no interest and you pay $99 a month instead of $100, when that 25th month rolls around, you owe the remaining $24 plus all the interest for the entire 2 years which is usually massively high and you might end up owing and additional several hundred dollars on that $2400 purchase which makes the financing option a horrible deal. But, if you dont screw up (I usually even pay off a couple months early due to paranoia) then free financing is a different animal to me, but NEVER put something you cant afford on a credit card.
     
  18. Paul Padilla

    Paul Padilla Supporting Actor

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    No chance. They probably won't even drop you for inactivity, though they may begin charging an annual fee.

    You're probably sick of hearing this Rich, but the No Balances chorus you keep hearing is echoing for a reason. The only way to establish and build credit is to use it, but the dangers are huge if it isn't kept in check. Remember this. It's much easier to get credit when you have no record than it is if you have a bad record. And there's a cliche that goes, "You can never get credit unless you don't need it."

    You're smart to want to establish and build some credit (though the 3 grand limit ain't gonna happen) but wanting to buy a TV is a really dangerous reason. Save up for what you want...get your hands on a credit card or some financing...buy the TV...then pay the bill as soon as you get it. It sounds really anal, but there are thousands of people who are looking back at this very moment wishing they had done exactly that.
     
  19. Malcolm R

    Malcolm R Executive Producer

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    Doubtful. You make them money through transaction fees every time you use their card, whether you personally carry a balance or not.

    Every time you use your card to buy something, that retailer has to pay a transaction fee to Visa/MasterCard/whoever. I believe there's generally a flat rate plus percentage of the final sale amount (e.g. 35 cents plus 3%). So on a $10 sale, you're making 65 cents for your credit card company.

    Then people wonder why some small merchants grumble about accepting credit/debit cards. For that $10 sale, the merchant is only really receiving $9.35. Depending on your margins, that could be a significant chunk of profits every month when you multiply that by all the sales paid for by plastic.
     
  20. Paul Padilla

    Paul Padilla Supporting Actor

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    Yup. If you ever see a business that gives a "discount for cash" that's just their way of getting around things. Banks and services who process credit card sales through terminals have stipulations against passing the cost of the service to the consumer.

    So, "we're not charging you more for credit...we're giving you a discount for not using credit. Wink...wink...nudge...nudge.

    Credit card companies rake it in hand over fist.
     

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