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My First Credit Card

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My First Credit Card

Old 10-22-04, 09:23 PM
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My First Credit Card

After a year of school and telling telemarketers "Im not interested" Ive finally decided to get a Credit Card. I am currently pre-approved for a Capital One Platinum by Visa but Im not too sure on if they are offering me something acceptable. The card limit isn't too important to me as Im just using this to establish and build credit. Before I post what the details of the card are, Id also like to know the best method of payment to build up good credit. Ive heard to wait X amount of time or just before they charge interest but Im not too sure on how to manage this, I plan to ALWAYS have whatever money is owed in the bank to pay them. Here are the details and TIA.

Variable Transfer APR Currently: 12.9% (0.03534% daily periodic rate)
Credit Line up to: $2000
Annual Fee:None

My purchase and transfer APR may vary quarterly.The rate will be determined by adding 8.9% to the Prime rate. Rate in effect 07/01/04
My cash advance APR may do the same by adding 15.8%.
Garce period of payment: 25 days from the date of the periodic statement on new purchases if current balance is paid.
Old 10-22-04, 09:37 PM
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It's Credit-Card-O-Rama here on DVD Talk today!
Old 10-22-04, 09:38 PM
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Take your lumps and learn the benefits and especially the dangers of credit on your own! I did and I'm much the better for it!

Kidding, just added some levity before the actual knowledgable people come in.
Old 10-22-04, 09:58 PM
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Be very very careful.
Old 10-22-04, 11:04 PM
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All you need be concerned about is paying by the due date, and pay the balance in full. Then you never need be concerned about the rate of interest, because you'll never be paying any interest.

I have Capital One, and pay my bills on line - register at the Capital One site, provide your checking information, and making payments is a snap and free, and you don't have to worry about a payment getting lost in the mail. I usually pay the bill as soon as it comes in, and the payment is credited the next business day.
Old 10-22-04, 11:28 PM
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Originally posted by mike45
Be very very careful.
Old 10-23-04, 12:07 AM
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Originally posted by marty888
All you need be concerned about is paying by the due date, and pay the balance in full. Then you never need be concerned about the rate of interest, because you'll never be paying any interest.
Marty888 speaks the truth.

I was irresponsible with my first credit card. I never used it at first but then would use it when I was running low on money for buying food, gas, rollerblades, car stereo equipment, etc until I was using it all the time. All the while I was only paying the minimum balance and getting more credit cards.

Suddenly before I realized it I owed $18,000 dollars on credit cards and I barely owned anything. And then the problems started. I almost lost my wife because of the money situation. But we toughed it out, worked our rear-ends off, lived in a cheap rent house and paid off all the balances.

Living debt free is the best feeling you can ever have. We only owe on our mortgage, and two car payments. If we want something then we will pony up the money or we just don't get it.

Don't let yourself get in over your head. It sucks to learn the hard way.
Old 10-23-04, 12:58 AM
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i will also say the most important thing is paying the entire bill on time, every month. the way they make their money is through interest payments. plus paying on time will build up your credit score and that will always come in handy.
Old 10-23-04, 08:23 AM
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thanx guys and gals
Old 10-23-04, 09:40 AM
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A Platinum with a $2000 limit?

I can't tell you the best way to build credit, but the way I did it was to put a hundred or two hundred on the card each month and pay off the balance in full. It only took me two years to go from a $500 credit limit and no credit history to a $10,000 and above 750 credit score. It seems you already have a head start.

What I currently do is buy EVERYTHING on credit. I use my credit card to pay for grad school (which is reimbursed), bills, food, etc. then pay it off at the end of the month. I basically do that for my sky miles, and not for a credit boost, but it seems to have pushed my credit score way up there.

You have to be careful with that last technique, however. It's common for me to have $5,000 credit card bills each month, so if you don't budget properly, it can be hard to pay them off in full.

The worst part about credit cards is that people just swipe them and forget that it's real money. When you hand someone cash, you feel a sense of loss. When you hand them a credit card, you don't necessarily get the same feeling. Remember, every swipe of your card is the same thing as handing the person cash.
Old 10-23-04, 01:28 PM
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Living in the city with Capital One's HQ, I can tell you that a Capital One card isn't so great to have on your credit history. It's an early indication of something wrong with your credit if you suddenly start getting Capital One offers in the mail, as they tend to market to those with poor credit. Now, while it won't stop other credit card/banks from giving you credit (unlike having Progressive insurance, which other insurance carriers will clear away from you because you become high risk), it could affect you.

But whichever card you choose, the advice above is right on. Get a card with a low balance to start with, pay it off in full each month while you get used to having a card, and gradually build up your limit and credit history.
Old 10-23-04, 01:38 PM
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i would choose a card that gave rewards (chase perfect card, or att universal card) and not even worry about the interest rate because i would pay it off every month. Make sure there is no annual fee too.

of course, you have to discipline yourself to pay it off every month. if you don't, you're screwed

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