What do i look for when purchasing a credit card?
Credit Card
BrynaBoo asked:
I already have a debit card but I think im going to need a credit card or college please help.And do i need to find a low apr or a high which one is better 0% is bad right.
Gilbert
I already have a debit card but I think im going to need a credit card or college please help.And do i need to find a low apr or a high which one is better 0% is bad right.
Gilbert
April 23rd, 2009 at 5:21 am
Bertha
you want a lower apr, means u have to pay back less, or something
April 25th, 2009 at 3:25 pm
Lucille
Low apr is better. APR is annual percentage rate which is how much they charge you for the money you borrow. 0% is best but that is usually a 6 month teaser rate to get you to shift your balance from another card. It will usually shoot up to 18% for first time card holders. So you will want to use your card sparingly. Check with Capital One or Bank of America. They probably have the best rates and services.
April 26th, 2009 at 7:35 pm
Alicia
No 0 APR is great, but read the small print because it is probably only an introductory rate and then it will go up.
You do not want a card with an annual fee either. All real credit cards do not have annual fees, they make money off of you paying the finance charges. CHASE has some pretty good deals for students.
April 30th, 2009 at 3:41 am
Floyd
Stick with your debit card, pay cash and forget about the credit cards. They will steal your money.
April 30th, 2009 at 3:12 pm
Minnie
You aren’t going to find 0% APR. That would mean they were loaning you money for free.
Do not get a credit card unless you have a plan for paying the bills.
You don’t purchase a card. You apply for one. Either the bank says okay or it doesn’t.
May 3rd, 2009 at 9:09 am
Tanya
3 very critical elements to review before applying for a specific credit card.
1. Review the introductory % rate and length of time that term is offered.
2. Balance transfer options
3. Once intro period over, what will be the standard APR and keep close to the pigmy print that may advise the creditor has the option to raise your interest rate without notice ( due to some internal review process of your credit history ).
Most new cards un-solicited come with a promoriton intro % rate, many with no interest on new charges or balance transfers. Stay away if the program is just balance transfers. That option is good if you currently have a high interest balance from another card and you with to transfer to save the monthly interest charges. 0% on charges is attractive if you have the discipline to make sure the balance is paid off before the interest rate kicks in.
A CRITICAL thing to watch for is a stated interest range. This is when a bank can just change your rate within that range at a whim. And may do it several times a year.
What is a creditor………an intstitution that offers a program where consumers can make purchases under a I.O.U. program. I.O.U.’s cost you money and the challenges are never spend more than you can afford to pay in total within 30 30 - 45 days. Spend 5 months paying off a blanket that costs $100, you’ve just spent $50 more than the blanket was worth.
Good luck.
May 3rd, 2009 at 9:34 am
Hazel
Get a card that works for you. Look for a rewards program. Basically a program that pays you back for using the card. Bank of America offers a number of different credit cards for specific universities. If they have one for the school you are going to, see if it offers “World Points” that is their loyalty and rewards program
If you are in college DO NOT REVOLVE A BALANCE. use the card to earn points, but pay on time and in full each month. If this is your first credit card you are not going to get a great interest rate (APR) but that only matters if you revolve a balance.
Be aware of all fees on the card. There are fees for late payments, going over your limit, taking cash advances or using access checks to access the account.
also, interest starts accruing on cash advances as soon as you use it while purchases have a 25 day grace period if yoiu are not revolving a balance
Remember, the due date is the day the payment must post to the account, not the day you put in the mail or enter into your online banking for payment. Even one day late will generate a late fee as well as interest charges
be careful with your first card, a credit card is a great tool, butif used carelessly can cause huge headaches
May 4th, 2009 at 3:37 am
Bernice
In America we are always looking for a simple answer. The beauty of beinf here is that we have tremendous choices to meet our individual needs- that is also the problem! So your answer is really- IT DEPENDS ON WHAT YOU WANT. First of all- regardless of what you are trying to do- do not ‘purchase’ a credit card- i.e. why on earth would you want to pay someone money to give them the privelege to charge you interest? Second what is your goal of the credit card. Is it pay off some other debt (if so then you want one with low APR), is it to rack up miles for rewards and pay in full at the end of each month (then you want a rewards card like Capital One), is it to get cash back( like discover)- So the second rule really is that unless you are in a credit crisis and are struggling with finnces- ALWAYS demand MORE than you purchase- NEVER just pay for the cash value of goods. For example if you buy a soda bottle at wal-mart for $1- charge on the credit card with reawrds- so you get something back- even if the cash values of that is 1cent. If you use only one card- over a long period (usually a few months) you should accumulate enough points to get some ‘free stuff’
May 4th, 2009 at 7:06 am
Tom
I’d go with Capital One. They’ll give a credit card to anyone, albeit with a 250 or 500 credit limit. But they don’t charge any annual fees. If you receive offers in the mail that aren’t from a major bank, make sure you research them online to make sure it isn’t a scam. If you want the credit card people to come to you, just do one of those free credit report things. You’ll then get all the pre-approved offers you’ve been dreaming of.