I use mine daily and earn frequent flier miles since my wife and I like to travel.

Most of the time I pay the whole thing off, but occassionally I'll put a larger purchase on the card. I was kinda bad about doing that when I was younger, luckily I learned my lesson before anything got out of hand.

I've got 2 credit cards that I don't use anymore, so far it's been about 2 years since I put anything on my citibank card. No yearly fees, and they haven't dropped me yet.

- NCSU

 

It is an interesting thread for sure.

I DO use my CC on a daily basis. In fact its VERY rare that I have cash on me. I use my CC for EVERYTHING then pay it off each month. I do have 2 other CC's, one I only use every couple months, the other has a balance on it at a 3.3% intrest rate (I used that to finance my Fiance's ring last fall...Its almost paid for). The extra its going to cost me far out weighed taking that money out of something more secure and trying to save it back up.

 

I'd hold off till you got a couple months into school, theres alot of expenses that tend to pop up, and money for extra curricular activities such as alcohol and women lol

 

Do not EVER pay just the monthly payment on a CC, you'll end up paying 3x more for the tuner than what you would have spent if you paid for it outright. When I met my wife, she had about $1500 in CC debt. not a whole lot, but her interest rates were insane, I think one of them was 29%. she was paying the minimum payment on both cards and the principal that she paid every month was like 5 or 10 cents on the balance. I got that **** straight and she's more educated about finances now.

anyhow, it's great to build credit, but you have to do it responsibly as was said before. you have to remember that most of the guys on here are older than you and have been in the work force long enough that they're making decent salaries. it's easy to get caught up trying to keep up with the jones', even if they're only your neighbors on the internet.

in the end, it's just a truck. it's probably nicer than what a lot of kids your age drive and i assure you, it won't be your last vehicle. take care of it, take care of yourself (job) don't get stupid, and it'll fall into place eventually.

 

Well stated. Always pay the full balance every month. Doing that is the same as paying cash for your mods.

Credit cards work for you if you pay them off each month. Using them to finance anything is a bad choice. The rates and terms on many credit cards are so high and misleading one has to wonder how they can be legal. I would think some of them would be listed as a scam.

BankofAmerica is as good an example of buyer beware as any I've seen out there. They mailed me an offer to transfer in a balance from another card and pay only 2% interest on that money. First of all, that rate was for a limited time which was less than one year. Reading the fine print showed there was a 3% fee for transfers. So it's not 2%, it's about 2+3= 5%. Reading the fine fine print the 3% transfer fee was only good through the end of the month, so because I received the offer two days before the month ended, the fee for balance transfers would be 4%. Now the rate is really about 2+4=6%.

That's only the beginning of this legal financial trap. Let's say the finance charge on unpaid balance is 14% like the link posted here. Let's also say they you pay off your balance every month, and plan continue paying it off monthly. Now that this other balance is transferred here you'll always have a balance, so your monthly charges will be charged every month at the higher rate 14%.

If you spend $100 a month, and transfer in $1000 you will be charged 2% on the $1000 and 14% on the $100. That may not seem all that bad, but guess what happens when you send in your monthly payment of $100 to cover your monthly charges. The payment gets applied to the $1000 balance with the lower 2% interesting rate leaving you with the 100 at 14% still there.

After charging another $100 the second month you will be charged 2% on $900 and 14% on $200. Continue this charge and payment routine and in ten months you'll end up being charged 14% on $1100 each month. Maybe in real life example you would pay off some of the transferred amount each month, but I intentionally did not show that so I could make my point, and keep the math simple. So in the end it's not 2%, it may not even be about 6%, it may end up being 14%, and if you take a cash advance along the way that portion charged at 24% will get paid off last.

Please correct me if I'm wrong, but this is how I believe it works based on my reading and understanding of the fine print. Stay away from carrying any balance on your credit card unless you know for a fact the terms and rates are fair and reasonable.

 

thanks greencrew- that definately put things into perspective. maybe i'll just talk my dad into a christmas present kinda thing.

 

This is the dangerous part.

If the card stays at 14.24 ( don't expect that for too long, it is variable by EOY, expect the mailing notifying you the rate is at 25% APR ), you have a 400.00 balance, and the minimum payment is 35.00 per month.

It will take 13 months to pay off, and the 400.00 will cost you ~ 460.83 total.

The dangerous part is 60.83 does not sound bad, but it is. This is how things can get out of control.

Not sure how much the other mod is going to cost you, but putting them on hold until you have some cash reserves is a good thing.
Try to have at least 3 months expenses banked, 6 months is a better idea ( rent, insurance, fuels costs, food, etc ).

Reasonable present ideas are always good for the family, even if a group splits 1 item.

Once the job hunt is done, focus on the cash reserves, then look at modding. Paying cash from an account for a mod is a good idea, especially when the mod might require premium fuel, and cause you to drive in a non beneficial MPG mode ( I know I still do after all these years ).

BTW : Cash on hand is how I pay for things, why make them cost more than you have to.

 

credit cards can simply get u into trouble if u dont pay em, or u just pay minimum, if u can pay at end of month all the balance go for it, if not well just save money up..

 

From what I've seen you are correct, the credit card companies apply your payment to the lowest interest part of your debt first, leaving the higher interest portions alone so they can charge you more $$.

Getting a cash advance on a credit card is about the worst thing you can do. Especially if you carry any previous balance on that card.

- NCSU

 

There is so much corruption and greed in this industry I think we should create a government agency to oversee banks and and their credit card policies to protect the general public from being taken advantage of by this powerful industry.

 

x2!

i was reading up on a BP Plus card and they have it locked at 21% didnt they use to lock up people for that? loansharking?

 

- NCSU

 

Raptor, I"m in the exact same boat, 18 in college and makin under 200 a week thanks to our local grocery store's budget cuts. tuner is my next step for my truck too

 

You have to ask yourself do you really need a tuner? Credit cards will get you in trouble real fast if your not careful. Been there done that and now I'm debt free. Just wait till you get your own place and you have to decide wether you want a new mod or do you pay the grocery, electric, rent,utility, gas bill. Hope you make the right decision.

 

credit cards are like anything else. those of us that pay pay for deadbeats that dont.

it is an unsecured debt, they cant come after to you for it, they simply give you bad credit and harassing phone calls.

i use mine daily and pay off at the end of the month.

last month we had enough frequent flyer miles to pay for 2 round trip tickets to Maui and they paid for 3 of my 7 night at the Sheraton in Maui.

on the flip side i know several people that ran up $70k plus on cards and the negotiated to pay 1/3 back.