<p>I'm worried about getting a credit card, as I'm afraid I'll ruin my financial record before I even start my life. I understand there are benefits to owning a credit card, but I'm starting to wonder if they're worth getting when we're too young. So many of my friends are feeling the pressures of credit card ebt, and they haven't even graduated. What do you think? Do you think credit is too easy to obtain?</p>
<p>Lack of** basic financial knowledge is what is hard to obtain apparently**. Deferred reward and all that it implies. Credit cards or "easy" credit as you call it is NOT the problem. Knowledge is power.</p>
<p>Well why don't you think people have basic financial knowledge? And don't say it's because they're stupid.</p>
<p>Parents don't have it? Parent's done demonstrate nor teach it. Lack of general understanding by general public that this is a teachable thing. If you don't learn by college it is an uphill climb. Most students will graduate to a pension that is of their own funding and management yet will have little or no knowledge of how that works.</p>
<p>Treat is as if it were cash.. only charge what you know you can afford and pay everything off at the end of the month. Track your spending. It's good to get a credit card & start building up good credit so you'll be able to qualify for home loans & stuff in the future. I've had a credit card since I was 15 and I've always paid my bills in full so I don't run up debt. I hardly ever pay in cash anymore because I have rewards credit cards, so it's actually 1% cheaper for me to pay with the card (or 5% cheaper for gas).. granted I have to wait till my rewards to accumulate before I can collect them, but still - it's money I would not have had otherwise.</p>
<p>Credit card companies love people that run up interest - that's how they make money. It's no wonder than they qualify so many irresponsible people.</p>
<p>I actually know a couple people who freak out if I happen to mention that I have a credit card - oh no, how horrible, credit cards are evil, you'll be in so much debt, your credit limit is how high? You'd better get rid of that right away and save yourself! I don't get it. It's not like the card grows legs at night, sneaks out of your wallet and goes and charges things on itself without you knowing about it. It's not like somebody follows you around, making sure that you keep it charged to the max at all times, or they take it away. It's just another way of paying for things. Don't buy things that you don't have the money for...it's not a hard concept.</p>
<p>^^Exactly. People who run up debt in college or worse HS, really don't deserve help. If they are that retarded to fail at such a basic concept, they are a lost cause. You either have money, or you don't. </p>
<p>Get a credit card (it REALLY is important; it sucks, but your world will revolve around credit), pay your car insurance or some lump thing every month, and then use a DEBIT for the rest of your purchases.</p>
<p>Jeez...what's so hard?</p>
<p>Your salary-your taxes=your takehome pay (what you can spend)
Your takehome pay-whatever you blow=savings
When you get a credit card, the amount you spend=whatever you can pay off at the end of the month, something less than takehome pay or allowance, regardless of credit limit.</p>
<p>Yeah, personal finance is REALLY rocket science.</p>
<p>One exception though....if you have a balance on your credit card and you're on a promotional 0% APR, pay the minimum amount until the end of the promo period, then pay it off in lump sum. BUT, take the money that would normally go towards paying your credit card bill, put it in a high-yield savings account (HSBC has a 5.05% APY and a 6% promo rate until april 30th) and make some interest on it. You might as well...what the hell.</p>
<p>Say you're on a 6-month 0% period.
First bill: $1,000
Now if you paid the whole thing off now, you pay $1,000.
If you pay at the end of the 0% apr period:
Interest on "credit card fund": (even if you pay half the balance off) $500*about 2.5% for 5 months=$12.50 (of course compound interest and the fact that you'll be putting money into this fund for the next 4 months factored in, it's more like $50 of interest)
Net paid on credit card: LESS than the full amount, this is an equivalent of a cash back reward or a discount on your bill, because the cost to keep balance on your card is $0, at least until the end of the promo period.
Savings are more if your promo period is longer or if you get rewards.</p>
<p>I get cash back rewards at starbucks for all my purchases. Kinda nice, since I'm addicted to starbucks.</p>
<p>"Get a credit card (it REALLY is important; it sucks, but your world will revolve around credit), pay your car insurance or some lump thing every month, and then use a DEBIT for the rest of your purchases."</p>
<p>While I agree that one should get a credit card and pay it off every month, it is a bad idea to use a debit card for purchases--it should only be used for ATM withdrawals.</p>
<p>Why should it only be used for ATM withdrawals?</p>
<p><a href="http://talk.collegeconfidential.com/showthread.php?t=329448&highlight=card%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=329448&highlight=card</a>
<a href="http://talk.collegeconfidential.com/showthread.php?t=307495&highlight=card%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=307495&highlight=card</a>
<a href="http://talk.collegeconfidential.com/showthread.php?t=225939&highlight=card%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=225939&highlight=card</a>
<a href="http://talk.collegeconfidential.com/showthread.php?t=169182&highlight=card%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=169182&highlight=card</a>
<a href="http://talk.collegeconfidential.com/showthread.php?t=153945&highlight=card%5B/url%5D">http://talk.collegeconfidential.com/showthread.php?t=153945&highlight=card</a></p>
<p>because you can get points on your credit card, which generally are much more valuable then any points you can get on a debit card. besides that, you get a surplus of protections using a credit card that are not available on a debit card.</p>
<p>certain credit cards have a plethora of advantages that you wouldn't receive. my credit card refunded me 100% of the value of an xbox360 that i broke by accident, expands all warranties of things i buy by 1 year, will make reservations for me at hard to get into restaurants, gives me roadside assistance for my car, and a ton of other perks. you can't get these things with debit cards.</p>
<p>remember, a $1 will make us much more happier today, then tomorrow. the $1 will depreciate, and we we will have much more expenses and income so $1 isn't that big of a deal later on.</p>
<p>starvedartist87,</p>
<p>it really is simply because people are stupid. there are no other words to explain it. you just should be intelligent enough to know that you can't spend more on your credit card than you can afford to pay back. i may have a 15,000 limit on one of my cards, but i'm not about to go out and buy a car with it. if you're that concerned over your ability not to be stupid, then i would recommend staying away from credit cards for the mean time because you probably aren't mature enough to handle one. i got my first card when i was 16, and my sister wanted one when she was 16, and my parents told her she wasn't ready yet. they did however let her get one when she was 17 and i think it only has like a 250 credit, but it's a great start for her. everyone should have one at some point to start building credit for when you want to buy a car or a house or even get a cell phone in your name and not your parents... it all revolves around credit.</p>