Current Events > Any credit card tips I should know of?

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I've been bullshiting around, but I should probably get one soon. I've just been afraid of all the stigma surrounding it. Thankfully, according to everyone I know, that only really happens if you're a stupid person who can't pay shit back on time.
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Dont buy things you can't afford just because you can, and pay off your statement balance every month. It's really that simple

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You'll have to go for a starter card most likely with a very low limit.

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Use a credit card for everything you can because it's a layer of security for you. If your card gets compromised, it's not your money that gets lost.

Pay it off in full every month.

Go to Best Buy and buy a bigscreen TV with your credit card ASAP. Then don't pay it off.

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the rewards are a scam to keep you using your card.

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Don't buy stupid shit you can't pay off immediately.

Pay it off in full every month.

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Credit is just free money, spend it how you like.

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Use it like an atm card, dont get anything with an annual fee

SauI_Goodman posted...

the rewards are a scam to keep you using your card.

Tag this person as financial moron so you don't ever accidentally listen to him

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Set up a reminder on your phone or calendar app to go off every two weeks to remind you to log on and pay your bill.

I would recommend using it initially (for the first half a year or so) only for recurring bills (car insurance, phone, utilities), and *not* for other things. This will get you familiar with seeing how your checking account looks before and after the card payment, and will help ensure you're making payments on time and not over extending yourself.

Once you get into that groove then consider using it for other regular purchases like groceries and gas, but *don't* use it for other stuff.

You might consider starting out with two cards just to help build a longer average credit history earlier on. If you do this, I would just use the "weaker" card for small purchases every couple of months, like a soda at the gas station, just to keep it active.

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https://www.youtube.com/watch?v=mV6YaTbNvvE
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ocelot51 posted...

Use a credit card for everything you can because it's a layer of security for you. If your card gets compromised, it's not your money that gets lost.

Pay it off in full every month.

enjoy getting your wages garnished

Hexenherz posted...

Set up a reminder on your phone or calendar app to go off every two weeks to remind you to log on and pay your bill.

I would recommend using it initially (for the first half a year or so) only for recurring bills (car insurance, phone, utilities), and *not* for other things. This will get you familiar with seeing how your checking account looks before and after the card payment, and will help ensure you're making payments on time and not over extending yourself.

Once you get into that groove then consider using it for other regular purchases like groceries and gas, but *don't* use it for other stuff.

You might consider starting out with two cards just to help build a longer average credit history earlier on. If you do this, I would just use the "weaker" card for small purchases every couple of months, like a soda at the gas station, just to keep it active.

Personally, I'd put everything on the card (I do) that can be purchased with card. Don't ever use your debit card, only to withdraw from the ATM. The bank will screw you over if your card gets skimmed or something.

Pay it off every month, get a card with rewards, build your credit and your rewards. Every quarter or so, redeem your rewards as a credit towards your balance.

And when I say use it for everything, I mean only for things that you would normally buy and can afford. It's not free money. You have about 30 days to pay off your purchase you just made.

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Pay it off every billing cycle, don't ever run a balance.

It's that simple tbh, just use it like you would a debit card and enjoy racking up rewards

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krazychao5 posted...

Personally, I'd put everything on the card (I do) that can be purchased with card. Don't ever use your debit card, only to withdraw from the ATM. The bank will screw you over if your card gets skimmed or something.

Pay it off every month, get a card with rewards, build your credit and your rewards. Every quarter or so, redeem your rewards as a credit towards your balance.

And when I say use it for everything, I mean only for things that you would normally buy and can afford. It's not free money. You have about 30 days to pay off your purchase you just made.

I also use my card for everything now, but I just recommend someone who's starting out to more slowly develop good spending habits - it is really easy to fall into the trap of "I'm going to use this for everything!" and then you check your checking account and still see a bunch of money there and so you spend even more and now you're putting a dent into your savings unexpectedly.

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I remember when I was 18 and could actually pay off my credit cards

pay off immediately, i do it every couple of days just to know where im on track for the month

go for rewards for everyday spending or 0% interest for big purchases

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I thought this topic died tbh.
Thanks for the tips, guys!
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use other credit cards to pay off other credit cards

infinite money

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MC_BatCommander posted...

Pay it off every billing cycle, don't ever run a balance.

It's that simple tbh, just use it like you would a debit card and enjoy racking up rewards

wrong, statements like this are dangerous the cost of the rewards is now included in the price of all goods since everybody is doing it now so you have to pay with card to get the rewards just so you can break even thank you

CharlesBronson posted...

wrong, statements like this are dangerous the cost of the rewards is now included in the price of all goods since everybody is doing it now so you have to pay with card to get the rewards just so you can break even thank you

Shut the fuck up

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CharlesBronson posted...

wrong, statements like this are dangerous the cost of the rewards is now included in the price of all goods since everybody is doing it now so you have to pay with card to get the rewards just so you can break even thank you

What the fuck does "rewards is now included in the price of all goods" even mean?

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Just treat it like a debit card. Keep a mental track (or even paper track if you want to go the extra mile) of how much money is in your account and don't change your spending habits.

Don't miss payments, but better, don't put yourself in a position to where you'd even have to make payments. I go into my Chase portal every day and pay off everything.

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i'm starting to think he's anti-credit card.

unfortunately for some they don't have any savings built up if something happens ie lost job. emergency or pet related etc. myself i would have a card just for that and then pay it off before the interests rack up too much.
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I just got a Discover It card, made a few purchases already. I think I'm either in their intro period where there's no interest or something, because it says my statement balance and minimum payment due next month on the fourth is zero.

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Sexypwnstar posted...

I just got a Discover It card, made a few purchases already. I think I'm either in their intro period where there's no interest or something, because it says my statement balance and minimum payment due next month on the fourth is zero.

According to the website is has a 0% intro APR for 14 months. Making it a excellent card for beginners getting the hang of a new card and its responsibilitys.

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Discover It was my first and I used it for a long time before I built up my credit and moved to a better card.

Always get cards with no apr for 12 months. Pay it off in that time frame. Then get another no apr card and one that gives you money back after spending so much in 3 months.

Solid Snake07 posted...

Dont buy things you can't afford just because you can, and pay off your statement balance every month. It's really that simple

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CultOfPhil posted...

Always get cards with no apr for 12 months. Pay it off in that time frame. Then get another no apr card and one that gives you money back after spending so much in 3 months.

If you are paying it off in a timely manner the APR could be 100% and it doesn't matter.

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Hexenherz posted...

If you are paying it off in a timely manner the APR could be 100% and it doesn't matter.

dont risk it. Shit happens.

CultOfPhil posted...

Always get cards with no apr for 12 months. Pay it off in that time frame. Then get another no apr card and one that gives you money back after spending so much in 3 months.

Don't do this. It's bad for your credit score to keep opening accounts.

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CultOfPhil posted...

dont risk it. Shit happens.

yeah, i've missed a few payments thinking i had scheduled the payment. the late fees and interest were reversed every time i asked for it.

Tyranthraxus posted...

Don't do this. It's bad for your credit score to keep opening accounts.

Yes, and no. The hard impacts will have a small dent in your score and will disappear rather quickly.
Number of accounts, total credit balance, time active will all benefit you in the long run more than the hard impact inquiry as long as your are effectively managing the accounts. Having more accounts in good standing will benefit you and your score.

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krazychao5 posted...

Yes, and no. The hard impacts will have a small dent in your score and will disappear rather quickly.

Depends on what you consider quickly. You might find buying a house really hard if you've opened a new account in the last two years.

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Also your accounts aren't going to stay active if you stop using one after a year. They can get closed with inactivity after a while. It's just a weird tactic imo.

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Hexenherz posted...

Also your accounts aren't going to stay active if you stop using one after a year. They can get closed with inactivity after a while. It's just a weird tactic imo.

I have only ever seen that happen with loyalty accounts not general credit cards.

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Here's a few tips:

-Always pay off your card in full. It looks better for your score and you pay less money too obviously

-Never go above 30% of your credit limit if you want a good score (aka if your limit is $100, don't have a balance over $30). Plus it's good to have a buffer in case an emergency comes up.

-Live within your means and don't spend crazy cuz you can pay it off later. You'll get fucked with interest. That's how credit card companies make a profit; by idiots spending a lot and holding a balance forever instead of paying it off in 1 go.

-Keep track of the money you're spending. It's easily to just keep swiping all day and all of a sudden you have a huge balance at the end of the money cuz you lost track

-But also use the card if you can and pay it off in full to rack up reward points for stuff. You'll spend the same amount if you didn't have the card, but you're also getting bonuses for it too.
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I Like Toast posted...

Use it like an atm card, dont get anything with an annual fee

Tag this person as financial moron so you don't ever accidentally listen to him

Okay, doofy.

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ocelot51 posted...

Discover It was my first and I used it for a long time before I built up my credit and moved to a better card.

What better card did you move onto?

Get all the credit, ever, you won't actually live to pay it all off

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SauI_Goodman posted...

the rewards are a scam to keep you using your card.

Yes and no. Any credit cards with annual fees are usually a rip off, despite their good sign up promotion.

If you are someone who is paying off your statement balance in full every month, you are making out using credit cards. I use my credit card any time I would use cash and pay it off in full every month. I paid for my last vacation solely from my credit card bonus points. Credit card rewards can be very beneficial if you are smart about it.

LameFAQs posted...

Yes and no. Any credit cards with annual fees are usually a rip off, despite their good sign up promotion.

If you are someone who is paying off your statement balance in full every month, you are making out using credit cards. I use my credit card any time I would use cash and pay it off in full every month. I paid for my last vacation solely from my credit card bonus points. Credit card rewards can be very beneficial if you are smart about it.

wrong again your not making out everytime you use the card every time you use the card your retirement is getting postponed you didn't NEED to go on that vacation you could have invested that money, thanks

Solid Snake07 posted...

Dont buy things you can't afford just because you can, and pay off your statement balance every month. It's really that simple

Pretty much the best credit card advice you can find.

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LameFAQs posted...

Yes and no. Any credit cards with annual fees are usually a rip off, despite their good sign up promotion.

It depends. This is really one of those "what are you using it for?" questions. Cards with annual fees tend to be really really really good for travel expenses and are usually used by business where the employees do a lot of traveling & hotels.

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Tyranthraxus posted...

CharlesBronson posted...

wrong, statements like this are dangerous the cost of the rewards is now included in the price of all goods since everybody is doing it now so you have to pay with card to get the rewards just so you can break even thank you

What the fuck does "rewards is now included in the price of all goods" even mean?

He's actually not wrong.

https://youtu.be/ySH5SudRwak

It's actually pretty interesting. If you're not using a credit card then you're paying for other people's rewards and not receiving anything for it. Basically the only logical approach is to use a credit card for every purchase or else you're not only leaving money on the table, but you're essentially giving money away.
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CharlesBronson posted...

wrong again your not making out everytime you use the card every time you use the card your retirement is getting postponed you didn't NEED to go on that vacation you could have invested that money, thanks

I just used the vacation as an example. Thats just the perk that I chose because I like to travel.

Many cards offer 2x points on gas and groceries. Any theres plenty of cash back cards out there today. As long as youre avoiding any fees, how arent you making out using certain credit cards?

Tyranthraxus posted...

Don't do this. It's bad for your credit score to keep opening accounts.

Temporarily.

it's worse to open a new account when your credit history is 30 years old than it is to open a new one when your credit history is 2 years old.

Way worse. It's an average - so if all your accounts are 20 years/20 years/2 months - that kills your AVG...so open what you need when you are young and build your credit. Don't start building at the age of 32...bad idea

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LameFAQs posted...

I just used the vacation as an example. Thats just the perk that I chose because I like to travel.

Many cards offer 2x points on gas and groceries. Any theres plenty of cash back cards out there today. As long as youre avoiding any fees, how arent you making out using certain credit cards?

Becuase you will always buy more at the store when using a credit card than when using your own money.

Gas - yes - definitely always use a credit card (mine is 3% cashback)
But grocers - don't fall into that trap. You'll start throwing 1 or two extra items in your cart because "Oh, I'll pay it back before the month is up"
^ try that for 10+ years. Yeah right you'll pay it once the month is up.

Just trust me, it's a trap. Don't desensitize yourself to spending money. Don't be like me when I was 25 and be ordering Dominos on a credit card because "you get cash back and can easily pay it back!"

At first, sure, that worked - but I got so desensitized to it that my $20 grocery bills were becoming $40. I was buying random shit. I was eating out more.

It's "The Man's" way of putting you in debt. Trust me.

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