Some advice on a first credit card

[illram]

??If you have a bank account, and that bank account (not paypal) has money in it, the bank should issue you a debit card if you ask for it.

 

[AL_DA_GREAT]

This is the first step down a very slippery slope, don't borrow money.

 

[aimeeandbeatles]

Yes, but I want to put money into PayPal so I can order stuff like magazines off eBay.

 

[Cheetah]

Credit cards aren't really that bad. I pay it off before 50 days has passed, and it doesn't cost me a cent. And I get an added layer of protection for my saved money.

 

[GoodGame]

Credit cards aren't really that bad. I pay it off before 50 days has passed, and it doesn't cost me a cent. And I get an added layer of protection for my saved money.

um...you are not in the USA, so most comments in this thread are from American posters. Most American credit cards will charge 12% interest on the first month, but only if you pay the minimum (usually $10-20); if you don't pay that, the interest defaults to about 21%.

That is a pretty horrible loan rate.


@ Aimee,
Pre-paid gift cards are actually a good idea, except not everyone accepts them the same as debit cards. I use them for some online purchases.

 

[illram]

Yes, but I want to put money into PayPal so I can order stuff like magazines off eBay.

The solution is:

1) Get a debit card from your bank, and then;
2) Fix whatever the issue is with paypal so that you can put money into Paypal from your bank account and vice versa.

The solution is not getting a credit card, since it sounds like you do not actually need a credit card.

 

[aimeeandbeatles]

Ive already tried it didnt work. Also I want to start getting a good credit early so I can take out a loan later if I need one. And it would be kind of silly to take out a loan for no reason to get a credit.

 

[emzie]

The solution is:

1) Get a debit card from your bank, and then;
2) Fix whatever the issue is with paypal so that you can put money into Paypal from your bank account and vice versa.

The solution is not getting a credit card, since it sounds like you do not actually need a credit card.

Again, here in Canada, banks are just now getting onto the debit card-that-works-as-a-credit-card bandwagon. She won't be able to order online with a standard debit card.

 

[illram]

Oh. I missed that part. If the bank will not issue a visa linked debit card then I guess a credit card is necessary. Sucks to be you guys USA #1 (just kidding, couldn't resist)

 

[emzie]

Oh. I missed that part. If the bank will not issue a visa linked debit card then I guess a credit card is necessary. Sucks to be you guys USA #1 (just kidding, couldn't resist)

I just never closed my account in the US

 

[innonimatu]

It's nearly impossible to rent a car with one. That nearly ruined a trip I took last year.

Looks like a credit "industry" conspiracy. I never understood why americans so willing turn themselves into servant debtors, perhaps it's because they've been led to believe that they must? How , that remains a mystery to me!

I mean, is it so hard to actually have a relatively positive balance in one's account, and spend without having to ever take on any debt? Debt addicts do just the same, except that do it with a relatively stable negative balance, all the time paying interest!
Is it just because banks somehow got all sellers to only sell on credit? Seems impossible! Is it because the marvelous "free market" produced an electronic payments system monopolized by credit card companies and with such a high barrier to entry that you never got a national debit card system going? Or did some partiluarly stupid banking regulatoon produce that result? or what?

Anywaye, @aimee: debt is evil!

 

[aimeeandbeatles]

Thats why I'm asking for advice to stay out of debt.

 

[Silurian]

Only buy with your credit card what you can pay off at the end of the month.

 

[Valka D'Ur]

If what you want is available on Amazon, you can do tasks at Turk to earn a little extra money. It's not really worth the pay but if you're bored or can't sleep it's a good way to earn a little. Or you can find tasks you enjoy and would do for free (I've tested Flash video games there.)

Amazon doesn't really sell the used magazines I look for but for other things I'll look into the Turk thing.

I've been a Mechanical Turk worker for several years, and there's an important thing to remember for Canadians: You will not be paid in anything but an Amazon gift card balance that CANNOT be used on Amazon.ca. Canadians don't qualify for those lovely shipping deals on Amazon.com, so the shipping costs are often much higher than the thing itself.

However, I will say that it's an interesting experience, and sometimes an awful experience - like the task I was doing that required me to catalogue blogs, and one link took me to a child porn site. That freaked me out very badly, and to this day it frustrates me that I didn't know how to report it (other than to Mechanical Turk, of course).

At least being a Turker has enabled me to acquire some of the nuDune books without actually having to pay for them...

Why do you need paypal for a debit card? Do you have a bank account in your name with money on it? Do you have an ATM card? (Don't banks issue Visa/Mastercard debit cards as standard with a new bank account these days anyway?)

Banks will offer a credit card. That doesn't mean they'll actually approve you. And sometimes it depends on how you apply. I didn't get approved until I applied online - snailmail and phone applications didn't work.

OK. So you do not have a bank account other than paypal in your name with money in it?

Do the following:

1) Open a checking account in your name, preferably one with no monthly fee, at a bank near you that you can physically walk into.
2) Put money in it.
3) Get a debit card.
4) Wipe hands on pants.

5) Do not let mother find out.

Ive already tried it didnt work. Also I want to start getting a good credit early so I can take out a loan later if I need one. And it would be kind of silly to take out a loan for no reason to get a credit.

Actually, many decades ago my grandfather took out a loan to buy something he already had quite sufficient money for. He wanted to establish his credit rating, and he figured it was better to get it done when he really didn't need the loan than to have to try later for when he did.

Again, here in Canada, banks are just now getting onto the debit card-that-works-as-a-credit-card bandwagon. She won't be able to order online with a standard debit card.

Bingo. That was the problem I ran into some years back, and what finally prompted me to apply for a card (plus you can't get a hotel room for cash/debit anymore).

Aimee, one question they will ask you is if there is any family member you want to include on your card. Say NO.

 

[Ahovking]

Dont get an credit card its the perfect away of spending yourself into debt.....................

 

[Maniacal]

Do you have that crazy U.S. style system in Canada as well, where you have to use credit cards to earn credit??

One of my Norwegian friends is working in the U.S. now, making somewhere around $90k a year I think. But since he has never "earned" credit in the US, he has problems renting a car, getting a phone subscription and he had to pay an extra month of deposit money to get to rent his apartment.

In Norway I recently contacted my bank, showed them how much I earn, and got my credit limit doubled in a few days.

You earn credit just by having one and paying it off. Some people have two (and a few probably have three) because of that, but they only really use one. However, people use their debit/bank cards a lot more in Canada than the USA (apparently most Americans with a credit card use it like for everything they buy).

 

[deanej]

To those who are advocating debit cards: debit cards are evil. You want to be able to check everything on your statement each month before sending the money out so you can dispute erroneous transactions. A debit card just siphons money off your checking account. If it's stolen, you just lost all you money (as opposed to simply having to get a new credit card and tell your company). If a company charges you more than they should (there have been infamous stories here about steam charging multiple times for a game), you're out of luck. If you get gas, you might have 500 dollars held from your account for a few days, because debit cards are often processed the same way as cash, requiring you to pre-pay.

Seriously, just pay off your credit card bill each month within the grace period. It's just like cash or a debit card in this case, but with none of the drawbacks.

um...you are not in the USA, so most comments in this thread are from American posters. Most American credit cards will charge 12% interest on the first month, but only if you pay the minimum (usually $10-20); if you don't pay that, the interest defaults to about 21%.

That is a pretty horrible loan rate.


@ Aimee,
Pre-paid gift cards are actually a good idea, except not everyone accepts them the same as debit cards. I use them for some online purchases.

If your card doesn't have a grace period where you can pay off your balance without paying interest, either you're not paying in full each month, or you should dump the card right now.

 

[Antilogic]

Rule #3 is beware of key-loggers if you order by internet. I only use IE for credit card transactions. Keep your computer clean of key-loggers.

I agree with the rest of your post, but this raised an eyebrow. Do you only use IE for transactions because it is otherwise unused on your computer, or is IE somehow more secure?

If your card doesn't have a grace period where you can pay off your balance without paying interest, either you're not paying in full each month, or you should dump the card right now.

A thousand times this. My card (singular) has a one-month grace period, and it's rarely used (plane trips, reserving rentals, hotels, and the like). I pay it off quick so they don't screw me.