general Credit Cards- do you have/use one?

[Cirrus. 1,088]

I got my first one when I was 18. I had to get a secured one since I didn't make much money at the time.

 

I made a blog entry about getting and using a credit card and credit history since a lot of us here are right around the age to get started on that kind of stuff.

 

https://mlpforums.com/blog/2138/entry-18979-getting-started-credit-card-credit-history-the-easy-way/

 

 

So do you have/use credit cards?

 

How old were you when you first got one?

Edited January 4, 2016 by Cirrus.

[Shanks 10,811]

Yes, I do have one but I don't use it that much saving it for really major purchases. I used to use it a bit more to build my credit up a bit with minor purchases here and there and paying them off almost immediately, but now that I have perfect credit that is no longer necessary.

Edited March 24, 2016 by Shanks

[Kyoshi Frost Wolf 40,306]

I only ever use a debit card. those are a lot easier for me to use and plus I have never had any use for a credit card specifically. It would probably needlessly over-complicate things for me. XD

[~Chaos~ 3,966]

I do have one. I also do use it from time to time, but I try not to spend a ton on it.

 

Debit usually.

[BlueBrony 388]

I have a credit card- I pay it off every month so I basically use it like a debit card, but it helps build up my credit.

[Jokuc 8,172]

Personally I prefer to pay with cash. I've had a debit card since I was 15, the rules regarding cards are quite different here in Sweden and I don't know anyone who uses a credit card. It's very uncommon, most people use debit cards. I think the idea of credit cards sounds pretty stupid tbh.

[Venomous 18,813]

I do not own a credit card yet.

[CT-1138 3,180]

I use a debit card. It keeps me mindful of my spending habits when I have to remember that it's MY MONEY I'm spending, and I'm not just buying on credit.

Edited January 4, 2016 by Dinos4Ever

[Celtore 2,769]

Ive had one since I opened my bank account, but only started using it once I started paying my phone bill at 16. Cash and debit are my preferred forms of payment however because I dont like paying interest needlessly.

 

Sometimes it's needed for online transactions though and that's the only use I currently have for credit. I pay the card off almost immediately following any charge.

[PiratePony 8,473]

PIRATE PONY'S PRIMER ON CREDIT CARDS

-or- how to plunder for free money

 

Credit cards are great fantastic tools for the financial savvy and thoughtful. They are a terrible burden for those who are not. What is a credit card.

 

A credit card is a high interest loan account. Yes, that's all it is. Large company buys item on your behalf, and you owe them them their money back. If you do not pay it right away, you owe a ridiculously high amount of interest. Why so high? It's actually incentive for you to pay it off faster, unlike a mortgage which is low interests/long term.

 

So, sounds good, then why do so many people hate them, hate the interest, and think that the companies are the worst businesses in the world. A lot of times, the problem comes with overbuying. 

 

TIP 1: Miminum Payments

 

Do not make minimum payments. They flat out tell you on the statement balance that it will take 15 years and you'll pay double what you charged if you continue this. Believe it or not, they don't want you to make minimum payments forever; the companies actually just want their money back with reasonable interest (or just money back at all...they do charge all these vendors a fee every time you use it).

 

TIP 2: "Charge Card" Mentality

 

When American Express came out, it was touted as a charge card. It still is mostly to this day. That is, they will front you the money, and you will pay it off within the next billing cycle, and for the convenience of the card, you will pay an annual fee. Wins for all.

 

Credit cards (Visa, Discovery, Master & some Amex) work on the short term interest bearing loan system. You pay back whenever, but you have to pay interest. However if you pay off the balance every month, you will not pay a dime of interest.

 

TIP 3: Only charge what you can afford

Yes, you must budget. Treat it as if you would cash, or a debit card. However, the convience of it is that if you budget correct, you can purchase items and have money from your next paycheck pay off the balance. Now, if you have cash in your account, you may be wondering why not just use a debit card - why risk using a credit card. Well, here's the way Pirate Ponies do it:

 

TIP 4: REWARDS!!!!

 

Credit card companies charge vendors. They want you to use their card. Therefore, they will offer reward incentives. Now, this is the single reason that I charge with a credit card for everything that I purchase - yet I CARRY NO BALANCE. I basically take their high interest loan, pay it off every month, and get money back on everything.

 

Chase Freedom has 1% cashback on all purchases, plus 5% in quarterly cycles on some categories. Do not listen to Samuel L Jackson - 5% rotating with everything else being 1% is still way better than 1.5% anytime. That's just there to fool you that convenience is better than due diligence. 

 

This Christmas season, Chase Freedom bumped it up to 10% Cash Back on all purchases at Amazon.com - now if you're like me, I do a lot of shopping for my friends, family and self at Amazon. So I had Chase Freedom give me a 10% coupon on all of my Christmas shopping. THEN I PAY OFF THE BALANCE, SUCKERS.

 

My favorite is 5% off on grocery sales the first quarter of the year, when my favorite store has the best sale of the year (ShopRite's can-can sale...where I buy all the coffee and canned veggies I need for a year)

 

Tip 5: Signup Bonus

 

Certain cards will reward you for signing up in the first place and making a minimum amount of charges within the first couple of months. I signed up for a Chase Sapphire card and got 3 free roundtrip plane tickets to Orlando for our family Disney vacation. Then of course...ahem, I PAY OFF THE BALANCE, SUCKERS.

 

There are 100 dollar signups, free airfare, etc. 

 

SUMMARY:

Pay off balance monthly

Pay no interest

Get Rewards

 

If you budget well, you will be able to use credit cards to your piratey advantage and literally make THOUSANDS OF DOLLARS IN CASH BACK AND REWARDS over several years, instead of owing tons of interest. 

[simba86 1,541]

I have never had a credit card and I never will, I watched my parents struggle for years and finally have to file bankruptcy to get out from under them! it is to easy to spend more than you make and are able to pay back and then once you get so far in debt you can only afford the minimum payments then you will NEVER pay them off even if you pay on them your whole life,and then they eat you alive with interest. If i can't afford it i save until i can buy it or i do without. I have never done any debt of any kind. i use cash or paypal/debit card to buy online

[SparklingSwirls 21,261]

Yes, I have a credit card. My credit card gives 2% back on all purchases which goes to my college fund. It's a great way to get free money

 

Credit cards are great as long as you always pay them off fully each month.

[Britney Biskit 55]

I do like, have a credit card, don't use it much though.

[00000000000000000000 32]

Edited.

Edited February 10, 2020 by 00000000000000000000

[Moonlight 7,279]

Not old enough to own one so my parents let me use theirs (and their debit card). I feel like I'd rather use debit cards overall though.

[Shoobedoo 44]

I do have a few cards, but I just paid them all off.

[Raynoult 32]

No, and I'm not going to get one

[SquipyCheetah 449]

I don't have one. I don't want one. And I'm too young anyways.

[Yarishia 144]

Not, but I'm planning to have one.

[Tanos 179]

No, cause in general it's not a good idea

[chocolate cake 114]

I buy pretty much everything with my credit card, and pay it off in full every month.  I like the rewards, and generally it's safer to use a credit card online than debit.  My credit score is awesome.

[Cirrus. 1,088]

I buy pretty much everything with my credit card, and pay it off in full every month.  I like the rewards, and generally it's safer to use a credit card online than debit.  My credit score is awesome.

 

PIRATE PONY'S PRIMER ON CREDIT CARDS

-or- how to plunder for free money

SUMMARY:

Pay off balance monthly

Pay no interest

Get Rewards

 

If you budget well, you will be able to use credit cards to your piratey advantage and literally make THOUSANDS OF DOLLARS IN CASH BACK AND REWARDS over several years, instead of owing tons of interest. 

 

 

Same here I'm sure Ive gotten a few thousand for free already. Why not get some of the money back that you're spending anyway?

 

 

The only place I use my Debit card is in the ATM.

 

If my number got stolen or something online I'd much rather it be a credit card than my bank account getting screwed up. If I have bills due, I wouldn't want to be waiting around for that to get fixed. With a credit card, it's the card company's problem.

Edited January 5, 2016 by Cirrus.

[Snow Frostflame 3,567]

I dont like the idea of using pretend money to pay for something then get billed later... As of now I only use cash and debit and using debit still makes me panic cause I dunno if some bug will keep me from my money... and before you start replying saying it aint good to have no credit I'm aware. Though I'm not gonna apply for a credit card for awhile now until I'm nearing the point it becomes releveant

[LostButterflyUtau 780]

No, I don't have one. I have enough debt on my shoulders (for a brat who lives at home, anyway) between the Car Payment, the student loan, my bills and my teacher training class I signed up for. Like I need another bill to pay...Plus, I don't really spend a lot of money anyway. I'm trying to go minamalist, so not having money is good. Means I won't buy stupid things.

[Lost 1,409]

I got my first credit card about 3 years ago, the bank gave me one with my student account, I spent £150 on it and slowly paid it off as some people told me it can help build your credit rating up. My largest purchase was my motorbike, £2500 of which was on a credit card which was just something that had to be done, it cost me a fortune and I wouldn't recommend putting yourself in that much debt as just paying the minimum payments alone almost broke me. I had no other choice, but even now, 2 years down the line I still haven't fully recovered financially.

 

In short, credit cards are entirely fine and sometimes useful, but never use it to spend more than you can afford, small purchases only.