New Credit Card

Not sure if it was mentioned it here, but keep your balance quite a bit lower than your credit limit. Having cards near your Credit limit can really mess up your credit rating and score. (A Loan officer here told me that) If you make little charges and pay them off every month, that is the start of a good repayment history.

I personally like the American express, they MAKE you pay them off every month

You know I am glad you posed the credit card question. Because this is a serious issue, especially when you are say 18, 19 years old. You can easily and quickly ruin your credit history, which will affect your ability to purchase a home, car etc. or qualify for the lowest interest rates. And I am glad that the responses have gotten your attention and put a little fear in your credit card plans because it will, not can, it will get out of hand. I always tell my son that if you can't pay cash for it or you need a cosignor to purchase something, then you are not ready for it - just wait a little longer until you can either pay cash or buy on your own.

As previously stated purchase items that you can pay off within 1-2 billing cycles. My theory has always been, especially with car parts/repairs or large ticket items, is that I use the credit to purchase it that way I have a "recourse" via the credit card company against the merchant if they do not honor their warranties or the product is damaged etc. Now, mind you, I have the cash in the bank to payoff the balance. I just don't want to give the cash to the merchant just in case I have problems with the product. Remember, cash is hard, better yet, impossible to recover, but with a credit card purchase you can go thru the credit card company for resolution. My suggestion, anything over $300, especially auto repair parts/repair work, should be purchased/paid for with a credit card, in my opinion, for "recourse" purposes and peace of mind if you are not satisfied with the product/repair. Take your time and build you Mustang slowly - choose the most effective part for the money you have. This not a time for trial and error with the money, especially if it's tight. Learn how to work on your own car that way your monies can go to go fast parts and not the mechanic. As a matter of fact, your 1st purchase should be the Haynes repair book - worth it's weight in gold. Gee. I sound like I'm talking to my son. Just be easy with the card. Just One Man's Opinion. Peace

PS. After a couple of purchases, they will increase you limit so be careful.

A credit card DOES NOT equal having money. If you don't have the $500 to pay the bill or expect to be able to pay it off with in a month or two, don't spend the money. Be careful or you will screw your credit up big time.

very good advise above.

and that thing with the intrest shooting thru the roof if you miss one payment. very true i had a payment get there one day late. bam!! 22.38% intrest on my next bill. i wish they would of let me pull my pants down before screwing me. or at least take me out to dinner. s.o.b.

Im 19, have a credit card with a 2k limit (no intrest for first 1.5 years), and a loan out for 4.5k for my jet ski. i have about 1900 on the credit card out, and my credit score is 730. never missed a payment and always pay about 3 times my minimum payment and ive never felt like i was in too deep.

oh yeah the credit card is pretty much just for car parts.

like everyone is saying dont do too much to where you can't handle it, but credit cards are good, if used responsibly.

tjm73 said:

A credit card DOES NOT equal having money.

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Sound advice, and worth repeating as often as it takes . Never go into debt to buy mods. Use the credit card for small stuff you can pay off on the next bill, and keep it as an insurance policy for a rainy day.

Dave

Buy the pullies, pay it off completly, and then get a cai, and pay it off completly. Don't go throwing tons of cash on there, it will come back and bit you in the ass.

Also, a situation might come along, and you might HAVE to charge something important. Don't go nuts with the plastic.