What are some common mistakes people make when they first get a credit card, and how can I avoid them?
I have never had a credit card before and I want one. What are some common things I should watch out for? Are there any offers that look good but actually cost you but don't help in the long term?
How can I build and maintain a perfect credit score?
Remember – a credit card is not free cash; it's only a loan (with very high carrying costs); so, my advice, especially to gain a good credit score is to:
A – only charge what you can ultimately pay by the due date of the statement. This may mean to charge things you now normally pay cash; but make sure you set aside the $$ to pay it
B – PAY OFF your credit card bill in full each month!!! This will avoid you the grief of paying interest, which is typically pretty high
C – do NOT take a cash advance unless you absolutely need to to stay out of trouble; the cash advance fees are pretty high (3% or more)\
To get and keep a great credit score – make sure you pay ALL your bills timely; including utility bills. Do NOT apply for every card/credit offer out there; to much available credit will lower your credit score. Also, applying for a lot of cards and credit offers will create a lot of "hits" (inquiries) to your credit profile which too will lower your credit score.
Good luck!!
December 27th, 2008 at 1:29 pm
…Use you card only for emergencies then pay your card off in full each month.
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December 27th, 2008 at 1:36 pm
Get one that does not charge you a membership fee or activation fee. Don't max it out, and by paying over the minimum amount due it will give you better credit ratings.
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December 27th, 2008 at 2:24 pm
Remember – a credit card is not free cash; it's only a loan (with very high carrying costs); so, my advice, especially to gain a good credit score is to:
A – only charge what you can ultimately pay by the due date of the statement. This may mean to charge things you now normally pay cash; but make sure you set aside the $$ to pay it
B – PAY OFF your credit card bill in full each month!!! This will avoid you the grief of paying interest, which is typically pretty high
C – do NOT take a cash advance unless you absolutely need to to stay out of trouble; the cash advance fees are pretty high (3% or more)\
To get and keep a great credit score – make sure you pay ALL your bills timely; including utility bills. Do NOT apply for every card/credit offer out there; to much available credit will lower your credit score. Also, applying for a lot of cards and credit offers will create a lot of "hits" (inquiries) to your credit profile which too will lower your credit score.
Good luck!!
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December 27th, 2008 at 3:05 pm
Use only about 30% of the limit.Pay more than the monthly payment.Be smart! Credit is a priviledge.
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December 27th, 2008 at 3:34 pm
people get a credit card and they audmaticly start spending
i always say if you don,t have the money for the stuff then wait till you do.. the intest is not worth it …. you end up in the end paying three times more for it … a credit card should only be used for emergencys ……… thats the best advice some one can tell some one else….. be wise …. have a great day ,………………
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first hand exsperince ……………………………….iam in debt know …………………
December 27th, 2008 at 3:52 pm
I assume you mean beyond the issue of carrying a balance and paying 20% interest.
Obviously, pay your bills on time, don't carry a balance, don't get over-extended.
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December 27th, 2008 at 3:59 pm
The biggest mistake you can make is carrying a balance. If you do get a card get a low limit and never use it. Make sure there is no annual fee. Look at all the people on here crying about their credit cards, do you want to be one of them?
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December 27th, 2008 at 4:40 pm
MAXING out the credit card right. People assume they have free money and it's not, you have to pay it and the companies will harass you if you don't after a certain time. AND ANOTHER THING!! Keep track of your bills, c.c. companies can be grimey and they sometimes won't send out your statement and people assume no bill, no payment. WRONG WRONG!! It happened to me, I called and they said "Oh, ok, I'll mark it that when you send in your payment it's not late." Communicate with your company. They won't hurt you if you call.
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