Question : How exactly does a credit card work?
I want to apply for a credit card that starts out with a minimum credit line of $300. If I get it, it will be my first credit card. If I get the $300 credit, I want to make a purchase for like $200. Is this a good thing or a bad thing to do? Can someone give me some good tips on handling a credit card without getting bad credit?I will mostly be using this card trying to start an at-home business.Ya mama b*tch. Eat my p*ssy, h*e!!!Oh, rudecatt63, you've hurt my feelings ever so much, I'm going to cry....NOT. For someone who keeps visiting the GLBT section and has a rainbow in they're background, you sure do do a lot of gay bashing. Self hate is so stupid. But then again if I were you, I would probably hate myself too.
- asked by indrep33
All Answers:
Answer #1
well always make sure you make the minimumpayments, because that shows that your wanting tokeep your credit down.
- answered by sexylittlemisstweetybird83
Answer #2
The answer is to really pay off your credit cardin full every time the bill comes in. If you onlypay the minimum balance every month, this is wherethe interest rate is high.
- answered by sarah071267
Answer #3
if you decide to spend 200, try to pay it offwithin the next two months after you spent it. ifyou can't pay off the bill within 2 months afteryou made the bill it can begin to become a problemplus you will start to accrue interest. That isabout the only tip I can give. make sure you canpay off what you spent within the following 2months.
- answered by godsimage74
Answer #4
Kolkata: As another call centre employee comesunder the crime radar, this time in Kolkata for acredit card fraud, we take a look at how it allhappened. Twenty-three-year-old Sulagna Roy hasbeen accused of buying luxury goods worth $4500using credit cards belonging to some US clients.Now if you had the 16-digit credit card number,the three-digit CVC number at the back of thecard, the date of expiry and the name as it standson the card, it could be your ticket to buyingvirtually anything on the Internet.That wasSulagna's ticket to conning the US citizens andbuying white goods and designer outfits from anAmerican website.Though police claim the amountthat she stole is not very big, it cost thecompany she works for a great deal ofcredibility.Jayshree Infotech, which is part ofthe B K Birla group, is now struggling to explainto its clients how a fraud like this could takeplace. The management had thought it had taken allpossible precautions, but now feels there isperhaps no foolproof mechanism to prevent crimeslike this.The Chief Executive Officer of the firm,Rajesh Sarda, says the American website from whichgoods were being bought should have raised analarm much earlier."Some sort of check and balanceshould have been there in the software. To detectthat the shipment is going to take place in Indiabut the card information is from the US. Now ifsome American wants to gift it to some Indian inIndia then again the IP address of the computerhas to be in the US. It cannot be from India,”says Sarda.For Jayshree Infotech, it certainly isa serious setback. But coping with it is perhapsnot as difficult as providing tighter datasecurity to its clients in future.For Sulagna Roy,who has now been remanded in police custody for 12days, it's certainly the end of the road.
- answered by babai_ib
Answer #5
Yes, you can use up the credit limit stated inyour credit line. To keep a good credit record. Pay up your credit card monthly minimum payment ontime every month.
- answered by ptlconnections
Answer #6
A credit card is something like a promissary note.When you give the credit card to someone, the bankpays that bill and you promise to repay the bank(or the credit card company if the card is notissued by a bank). That's why you have to sign thecredit slip at the store, to show that yourecognize that you are indebted for that amount.The REALLY important thing to remember about acredit card is that, although the transaction isso easy, it has to be backed up by real money. Andit is very important to be prompt in yourpayments. Otherwise you will find penalty paymentsadded to your account. If you keep right up todate on the payments a credit card can work verywell. Sometimes you have to keep track of yourcharges and pay them before you get an accountingfrom the company, because the contract says youhave to pay the bill within 15 days or theinterest charges begin, so if they only bill oncea month, you are automatically going to payinterest unless you keep on top of your charges.Awell conducted credit card account also bolstersyour private credit rating and before long, you'llbe invited to take out a credit card with a $1,000max, then a $5,000 max. The same rules apply.
- answered by old lady
Answer #7
Using a credit card is a good tool to establishingcreditworthiness. Yes, go ahead and use yourcard. The best advice I can give you is to pay itoff each and every month. Most cards give you a20 or 25 day grace period. If you pay off thebalance, no interest or service fees get charged. If you only make minimum or partial payments,interest and service fees will start accruing, andthis can make a $200 purchase cost you $400 ormore! As you use the card and make payments everymonth, your credit line will increase. It's veryeasy to charge right up to the max. Keep an eyeon what you have charged by accessing your accountactivity online frequently. You should be awaredown to the penny of how much you owe at any giventime. Do not use your card to get a cash advance. The fees and interest are astronomical and canlead to trouble fast. Another good choice for afirst card is a "secured" card. This means youhave $300 in a savings account before you aregiven a $300 credit limit. You can't spend morethan you have that way. Secured cards are easierto get, and once you have had one for awhile, youcan be bumped up to a regular card.Good luck!
- answered by Doe
Answer #8
The best way is to keep the balence no more than50% of the limit. If you go higher than the 50%,it will look like you have bad credit instead ofno credit.If you pay the first balence off thatmonth or pay half this payment and half the next,the bank will be very happy and raise your creditlimit.You do not want to make only minimumpayments. That will get in you into BIG trouble.They can raise the interest rate and it will costyou way more to borrow that money than you thoughtit would.If you have to because of money issues,make the payment that is due a min amount and thenmake another payment that month that is double themin. That will show good faith to the company.After about 6 months, you can call them and askfor the interest rate to be lowered or a higherlimit.
- answered by Smartypants
Answer #9
Can you wait and save for the item? This is thebest way. There are other ways to estabishcredit. By the way, do you have a bankingaccount, debt card, a job? All 3 are sources ofcredit. If a card is the best way to go, pay fulland don't be late! 0% now, 29% once you arelate!Best way is still wait until you have thecash. Debts from credit cards is the main killerof this economy.
- answered by badgerfan
Answer #10
Check the interest rates on the card you get.Somecan be very high.
- answered by Rudecatt63
Answer #11
you got some replies but here's some greatreading, might take you a whilethough:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.comif you get any luck please don'tforget about me lol, hope it helped you!
- answered by terunaz
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