New Credit Card

#5
Don't do it!!! Been there before. Totally agree with Slo65.

When I got my first credit card (Citibank) I bought a bunch of parts for my 460 project that I was working on for my 82 coupe. Of course I couldn't really afford it.

To make a long story short, I no longer have that engine or the car and it took me years to pay off the balance and interest. It was a total net loss from my perspective. Now I only buy stuff on credit when I know I can pay it off by one or two billing cycles max.

I love credit card companies and there little subliminal, yet obvious slogons. "Live richly" Gee I wonder what message Citibank is trying to send to its young card holders.

If you want good credit, you should buy stuff that you can completely pay off in full on your next bill. You shouldn't be able to get into too much trouble with $500. When you work your way up to 1K-10K credit lines you start opening up the potential for serious problems.

Buy some pulleys, then pay them off. Buy an intake, then pay it off. My .02, don't go crazy and try to buy everything at once.
 
#7
I just recently got a capital one card too. My limit was $500 and then when I got the card and called to confirm it, they told me my limit is $1000. I really only use it for gas or if I go to the parts store for something small. Every other credit card I applied for I got denied. This company approved me right away. I'm 25.
 
#8
yeah dude...be careful....it can get out of hand quickly....try and make sure you have the money either on hand, or in a bank account so that you can pay your balance in full each month, or at least you KNOW you will make the money in pay before the bill is due...that is the way to do it at first. just do things like use your card to pay for gas instead of cash...then put the cash aside and don't let yourslef touch it till the bill comes...ive got a friend who was 10g's in credit card debt by his 20th birthday....he almost has it payed off now 6 years later...


Anthony
 
#11
I agree with what everyone has said so far. There is this one commercial on tv that's for helping people get off debt and they say that if you have a $10K credit card debt and you only pay the minimum payment, it will take you 30 years to pay it off!!! So if you do charge something, make sure you pay more than the minimum payment or else all of your money is going to interest! :notnice:
 
#12
95StallionGT said:
Yeah I got a letter in the mail and I literally (NO JOKE)I got on line and I was approved in a matter of like 2 min's. Heres the kicker.....ready......ready.....IM 18!!!!!
Click to expand...


My gf went and applied for every credit card offer she got when she was 18. She ended up getting a few of them. She charged up a lot of stuff and now she is 23 and till this day hasnt paid them off yet. I never really talked to her about her financial situation(cause I think it's not my business) until one day we did, and I found out how much debt she was in. I got so pissed I made her cut her cards right away!! I wish her parents actually took their damn time to tell her about how all this crap works!! Of course they didn't and now she is in deep ****.

Another thing you should do is read the fine print. Credit card companies make themselves sound good until you read the print on the back of the credit card offer. Make sure you are not late with any payment!!! If you are late once, your interest rate will shoot thru the roof from then on! Not only that, it goes on your credit score thus screw it up. And that's what loan offices look at when you go get a loan or mortgages. I was reading on the back of one and it said if you were late with a payment, on any credit card you have, that credit card's interest rate was automatically going to go from 9% to 26.99%! So read the fine print and don't be late with a payment!!
 
#13
pleasehelp makes a good point.

My Fiancee has 3 credit cards one is a 500limit other 2 are 200 (wal-mart and Victoria Secret) She has them all maxed. She now realized she didn't make enough to pay them off. I learned from my mistake when I got my first when I was 18. I'm going to be 21 in July. Granted mine is paid off now but I had over 2100 on it. Credit cards will help your credit but can really hurt it too. If you use it for example buy a set of underdrives then when your statement comes if you can't pay it all off pay 50% of what you owe. So say 100 underdrives pay 50. Then next month pay it off. Then you can use the card again. You may think well I'll get 10 dollars gas here and there and after awhile you don't realize it, it will be out of hand. So use it wisely.
 
#14
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
 
#15
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.
 
#16
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.
 
#17
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.
 
#18
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.
 
#20
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.
 
You must log in or register to reply here.

Similar threads

PvolkStang
What should I do
Replies
7
Views
254
1994 - 1995 Specific Tech
WhiteCobra95
WhiteCobra95
M
Broken lower intake bolts
Replies
16
Views
584
1994 - 1995 Specific Tech
revhead347
revhead347
S
Preparation for Holley Terminator X install – Foxbody 306 (electrical fan, alternator, MSD Ignition, etc)
Replies
22
Views
1K
1979 - 1995 (Fox, SN95.0, & 2.3L) -General/Talk-
General karthief
General karthief
B
water pump installation questions
Replies
38
Views
1K
1979 - 1995 (Fox, SN95.0, & 2.3L) -General/Talk-
General karthief
General karthief
E
New Member with 91 foxbody
Replies
9
Views
377
The Welcome Wagon
EricMac13
E
Top Bottom
Back
Forums
Menu