Quote:
Originally Posted by Finnster
Before you do anything, watch this program online by Frontline on PBS. Secret History of the Credit Card. Frontline is awesome and has great documentaries. Interesting program, but also illuminates a lot of the traps and pitfalls CC setup to get the most $$ out of you through fees and interest. As said, CC's are very dangerous if you use them carelessly and stupidly.
Also, never ever pay the min amt. 1st off, between the low min and high int rates, you will take years to pay off the balance, and that's if you don't ever buy more on the CC. 2nd, making a min actually goes on your credit rating as a ding. At worst pay a few $$ more. People who have to make min payments are in financial trouble, so assumes the credit raters.
CC help build credit, but only a bit. They are a good 1st step if you are careful, but having an auto loan and paying it on-time is much better. Anyone can get a CC, and credit raters know this.
Lastly, don't get a BoA card. They suck. They make payments online tough, meaning you have to pay several days in advance of the due date. Even to pay the day before, you have to pay a $12 "express payment" fee to be counted before the due date. Late charge is like $45. BS. I've heard Citi is not that great either, but IDK first hand. I hated my BoA card and will never get one again.
I now have a card from Barclay's. They don't do the stupid crap BoA does, and you can make payments upto 7pm that will count the next day w/o fees. They also send out email reminders for payments. Also they are not constantly raising credit limit like BoA does (which can hurt credit as well... you can only have so much credit to your name, and if CC take up a large portion, other loans factor those amts in.) |
All true, but you're not going to get that car loan at anything less than 18% without prior comparable high limits. That's where the CC comes in.
I honestly almost never check the interest rate of a credit card I want, because I don't pay them interest. ONLY PAY IN FULL.