Time for a credit card?

[wincrasher]

Credit cards are just a way to spend money you already have. Keep that in mind and you'll be fine.

The best way for you, since you are just starting out is to go to your regular bank - where you have your checking and savings - and sign up for their card. It might be easier for you since you are already a good customer.

But first, I'd check my credit report - if you had identity theft, you want to be sure all that has been properly cleaned up.

You credit score will be important later in life - getting that mortgage, low insurance premiums, etc. A mix of credit types is important to building that score. Don't listen to the nut-jobs on here that tell you that credit is evil and to totally avoid debt. Most of them have wrecked their financial lives. The bank isn't evil for giving you credit and expecting you to pay it back.

Good luck young friend!

[Eric80]

Credit cards are just a way to spend money you already have. Keep that in mind and you'll be fine.

maybe you mean debit card? credit card is the way to spend the money that you do not have yet. you will have to pay it on time. otherwise, will have to pay high interest.

if you pay it on time each month, then it is a way to build ur credit, go for it.

[wincrasher]

Eric,

Maybe you English is not so good.

It's a saying.

Think on it, and you might get it.

[cypher1]

Here is a similiar post I asked recently on the same topic:

http://www.savingadvice.com/forums/personal-finance/54500-new-cc-recommendations.html

I ended up getting an American Express Blue Cash with convenient awards, while keeping my Chase card since I've had for almost 9 years for history.

As others have said, using a CC adds additional temptation especially with added perks, as with anything else in life. Just requires more discipline and self control, which you already know. Several years ago I also had a case of identity theft, and was able to get corrected, so I understand the concern. But another advantage to a CC is if you're overcharged on a bill, its much easier to dispute CC company than going after money already withdrawn from a check or debit card. If my wallet was stolen, I'd be more concerned with someone having my checkcard and draining all my checking/savings, than the CC. I understand you can still dispute with the banks, but you're not waiting to get back money.

[Relmiw]

Credit cards are just a way to spend money you already have. Keep that in mind and you'll be fine.

The best way for you, since you are just starting out is to go to your regular bank - where you have your checking and savings - and sign up for their card. It might be easier for you since you are already a good customer.

But first, I'd check my credit report - if you had identity theft, you want to be sure all that has been properly cleaned up.

You credit score will be important later in life - getting that mortgage, low insurance premiums, etc. A mix of credit types is important to building that score. Don't listen to the nut-jobs on here that tell you that credit is evil and to totally avoid debt. Most of them have wrecked their financial lives. The bank isn't evil for giving you credit and expecting you to pay it back.

Good luck young friend!

i see what you are saying about a cc being a way to spend money you have. that's definitely how i consider it.
about my credit report. i was somehow approved on this card which reportedly required an "excellent" rating. i was surprised i was able to get that one, being so young and having little history of credit.

i'd like to check my credit report, but doesn't it lower your credit score every time you do so?

[Relmiw]

Just pay your balance on time and in full each month - and no more. Why would you want to pay them more than you owe? Also, most credit issuers will only allow you to pay your balance or a small percentage over it.

Oh, and congrats on getting what sounds like a decent cash back credit card! Spend wisely, and enjoy the benefits. My favorite time of the year is walking into Costco, handing them my AMEX TrueEarnings cash back refund, and walking out with a nice chunk of change.

my hopes were that i could pay over enough such that i would have a balance left over, a cushion in case i ever didn't pay on time. i suppose they would just send any extra money back to me instead of applying it to my next bill then? except for if i only payed a small amount extra, then they would hold on to it for me?

[whitewater30]

I have not have a credit card for 3 years now, and I have more peace of mind for not making that decision.

[jpg7n16]

my hopes were that i could pay over enough such that i would have a balance left over, a cushion in case i ever didn't pay on time. i suppose they would just send any extra money back to me instead of applying it to my next bill then? except for if i only payed a small amount extra, then they would hold on to it for me?

How often do you miss your payments??

If you're that concerned with missing a payment, don't get a card in the first place.

[JoshuaHeckathorn]

i'd like to check my credit report, but doesn't it lower your credit score every time you do so?

Pulling your own credit reports has no effect on your credit score. You can pull them as often as you'd like.

And make a pact with yourself now that you will always pay your credit card bill in full and on time. In fact, set up your bill on autopay, and then you'll never have to worry about possibly being late.

[ferriwinkle]

The perks on credit cards don't pay off. Some "emergency" will always happen that will "force" you to carry a balance, which will then negate any cash back you might get because of interest charges. I would not recommend anyone get a credit card--if you decide to get one, use it carefully and watch yourself.

[JoshuaHeckathorn]

The perks on credit cards don't pay off. Some "emergency" will always happen that will "force" you to carry a balance, which will then negate any cash back you might get because of interest charges.

I disagree. Emergency funds are for emergencies, and credit card perks do pay off. I've used credit cards since I was a teenager, have never carried a balance, and have never paid a cent in interest. In return I've received thousands in cash back, paid for my entire honeymoon with rewards, and enjoyed many other trips using miles. And I'm certainly not the only one using credit cards to my advantage.

Managing a credit card responsibly isn't rocket science. Just buy what you already have cash for in the bank, pay your balances in full, and enjoy the rewards.