Credit Card

[Lau2046]

I got the first card in 2003, ran up about 4k sterling on it, then got another credit card to pay off the first card - then got another credit card in 2007 because all of my weekly wage ( Was working for Land-Rover then and doing fairly well ) was going on trying to repay the cards.

I have to wonder where your parents were in all this...does no one have a discussion about money with their parents any more? I was always told the credit card was an IOU and if you didn't have the money in hand, you shouldn't be using it. Sounds like you were clueless about managing your finances....particularly if you're up to your eyeballs in debt and decide the way to get out that mess is to get another card.....

 

[Foxrac]

I didn't list everything!


So, what do you expect to get for your starter home?

I just pulling your leg.

Not sure yet.

 

[Reba]

Right. I think apartment don't accept your auto insurance. I may be wrong. I remembered my friend from Texas and his apartment got robbed (large TV, PS3, two computers,games, and some books got stole) and he lost everything and no insurance cover. Scary.

Auto insurance is for vehicles. Why didn't he have renters' insurance?

 

[Lau2046]

Agreed with you. I used credit card a lot when I was high school

You sound like you could handle the responsibility but no one in high school should be allowed to have a credit card. I've seen too many using their credit card like there was a tree out back growing money. Why schools no longer teach these basic survival classes on common sense is beyond me, but they need to offer classes on how to use a credit card and handle one's finances. Sounds like many young adults today would have really benefited from those lessons.

 

[Foxrac]

You sound like you could handle the responsibility but no one in high school should be allowed to have a credit card. I've seen too many using their credit card like there was a tree out back growing money. Why schools no longer teach these basic survival classes on common sense is beyond me, but they need to offer classes on how to use a credit card and handle one's finances. Sounds like many young adults today would have really benefited from those lessons.

I didn't learn about credit card at high school.

 

[Jiro]

for your advice.

I already paid one CC off and didn't use it anymore - I don't close it yet.

I have 3 CC to left now - 2 out of 3 will pay off in one year.

my brother works for major bank so he explained about the credit score and some mumba jumba stuff

the formula for credit score is obviously very complicated to decipher but basically.... it's the ratio between your total debt + total credit limit. your credit score will drop if the % of your credit debt and credit limit is high (not good! the lower %, the better).

for example... your credit limit is $5,000 but your debt is $4,000. so the debt-to-credit ratio % is 80%. NOT GOOD! so always keep it below 60% (ideally - below 20%). ironically... you can reduce that % just by calling them to ask to increase credit limit or get another card card. a major irony.

another example - there's no difference between paying CC bill in full every month or paying minimum. as long as the bill is paid (either full or minimum)... that's all it matters. it's up to you to pay with interests

 

[The Highlander]

Auto insurance is for vehicles. Why didn't he have renters' insurance?

Ok ok. I mean State Farm which it can cover for vehicles, motorcycle, house, boat, etc.

Maybe he can't afford insurance.

Editing:

Wait a min, I remembered someone asked him why he dont have insurance? He said He don't know renter's insurance can cover his apartment.

 

[Jiro]

Auto insurance is for vehicles. Why didn't he have renters' insurance?

hmmm..... in VA and NJ - I was required to get a renter's insurance. I'm not sure if it's same for most states....

 

[Reba]

I didn't learn about credit card at high school.

Neither did I.

Then again, no one had credit cards when I went to school.

I didn't get my first credit card until about my third year in the Navy, and even then it had a $1,000 limit.

 

[Jiro]

Ok ok. I mean State Farm which it can cover for vehicles, motorcycle, house, boat, etc.

Maybe he can't afford insurance.

Editing:

Wait a min, I remembered someone asked him why he dont have insurance? He said He don't know renter's insurance can cover his apartment.

oh I think you meant that he didn't get a home insurance included to his State Farm insurance coverage. State Farm covers a lot of things - auto, home, life, etc. sux that he didn't know about it.

 

[Lau2046]

I didn't learn about credit card at high school.

No, I'm saying parents should be involved in explaining what a credit card is. Schools should be stepping up to teach how to be financially responsible. Given how many young adults use credit cards like free money, it sounds long overdue to not be teaching courses along this line in school....and there's clearly a need.

 

[Reba]

hmmm..... in VA and NJ - I was required to get a renter's insurance. I'm not sure if it's same for most states....

In our state renters' insurance isn't required by law but it's recommended. Landlords can make it part of their own requirements for the tenant.

 

[Jiro]

In our state renters' insurance isn't required by law but it's recommended. Landlords can make it part of their own requirements for the tenant.

ah..... hmmmm yea you're right. I don't think it's a state law. I've rented several apts in my life in 2 different states and all did require me to get a renter's insurance.

All I had to do is ask my parents to cover it with their home insurance and everything was fine.

 

[Lau2046]

Neither did I.

Then again, no one had credit cards when I went to school.

I didn't get my first credit card until about my third year in the Navy, and even then it had a $1,000 limit.

It was a good thing you didn't have one growing up and I'll bet you had more financial sense when you finally did. I didn't get mine until I was in college...I couldn't get one in high school because get this: I didn't have "a credit history." I don't know how high school students today are getting cards thrown at them but that strikes me as unethical. Clearly most teens aren't bright enough to know how to use it responsibly.

 

[Foxrac]

my brother works for major bank so he explained about the credit score and some mumba jumba stuff

the formula for credit score is obviously very complicated to decipher but basically.... it's the ratio between your total debt + total credit limit. your credit score will drop if the % of your credit debt and credit limit is high (not good! the lower %, the better).

for example... your credit limit is $5,000 but your debt is $4,000. so the debt-to-credit ratio % is 80%. NOT GOOD! so always keep it below 60% (ideally - below 20%). ironically... you can reduce that % just by calling them to ask to increase credit limit or get another card card. a major irony.

another example - there's no difference between paying CC bill in full every month or paying minimum. as long as the bill is paid (either full or minimum)... that's all it matters. it's up to you to pay with interests

Yes, my debt to credit ratio is around 50% to 60% but used to be 90% last year because of inherited a lot of debt from Gally - that was my stupid decision with spending and medical bills.

Of course, I put larger payment as I could to keep interest down.

If you make late payment so interest rate could shot up to more than 30% so that why I told young adults to pay attention on bills - look at due date.

 

[Foxrac]

No, I'm saying parents should be involved in explaining what a credit card is. Schools should be stepping up to teach how to be financially responsible. Given how many young adults use credit cards like free money, it sounds long overdue to not be teaching courses along this line in school....and there's clearly a need.

Even, my parent didn't teach me about credit card.

 

[Lau2046]

Of course, I put larger payment as I could to keep interest down.

That's what many new credit card owners never get. If you only pay what the statement shows, you could be paying off that bill for years....and they'll (the credit card company) will continue to get rich off of you. Whenever I had a bill - my hearing aid bill for example. It was unexpected, I didn't plan to buy them but I really needed them so I put it on my card because I didn't have the money ($6,150.00). When I got the monthly statement, I paid four hundred a month or more to bring it down...and I stopped spending on everything: movies, music, martial arts, language classes so that money, went to paying off my bills. So now I'm out of debt. Not for long though, let's face it, life is debt but how you manage it will put you ahead of the game.

 

[whiskeyonesix]

I have to wonder where your parents were in all this...does no one have a discussion about money with their parents any more? I was always told the credit card was an IOU and if you didn't have the money in hand, you shouldn't be using it. Sounds like you were clueless about managing your finances....particularly if you're up to your eyeballs in debt and decide the way to get out that mess is to get another card.....

I agree I was stupid with Credit Cards, but I never discussed money with my Dad ( my mum passed away years ago ). Looking back now, I could have cut my spending and sorted out the debts, but just didn't....
Everyone I knew had at least one credit card - it was that odd time in the british economy (early-2000's) that Credit was incredibly easy to come by, it was free money!

But, like I said, never again! Learnt my lesson with that one...

 

[CrazyPaul]

Right, I almost never use credit card or debt card to order stuff fron online. I use paypal (PP) for almost 10 years. I use PP for newegg.com and ebay.com mostly times and no problem so far. I remembered my wife ordered Kimono (GI) from Japan for Brazilian jiu-jitsu class with her debt card. Then she got GI, Almost few weeks later, Her debt card got hacked and took almost $1k from our bank and bank alert us and traced hacker from Australia. So we got money back and expired old debt card and got new debt card then she switched to PP for order online.

Have you received any email to verify your paypal account? That's email fraud so be careful. In other words, someone who emailed it knows you have a paypal account and tries to hack it. Therefore, it's not 100% worry-free.

 

[Jiro]

Have you received any email to verify your paypal account? That's email fraud so be careful. In other words, someone who emailed it knows you have a paypal account and tries to hack it. Therefore, it's not 100% worry-free.

incorrect.