   Credit cards
  So I'm new to this whole credit card thing.  I mean have my check card which I can use like a credit card, but I think having money debited out of your account and using actual credit are two totally different things.  I mean I have $3900.00 at my disposal, but probably can't...err make that definitely can't afford the min. payment on that amount.  And I have credit from paying my truck note and things like that(not sure if cell phone payments build credit, lol), but I was wondering if anyone had any tips for me and my first real credit card. Thanks.And on a completely unrelated subject, Waffle House is the best restaraunt in the world. If you've never been to Waffle House, you are a poor, poor soul.  Just thought I would mention that while I was here so I didn't have to start a new thread for it.-AJ   
  I've never seen a waffle house on the west coast :(#1 rule of credit, don't spend more than you have. #2 rule, guard your identity with all you've got. and #3, make sure that you get a credit card where you can dispute purchases and is covered for fraud.Enjoy the freedom of credit, but remeber bad credit or id theft/fraud is a major pita.   ;  I pay back the full amount of my credit card each month, which means I've never paid any interest. This means you do need that money in your account, which takes away one of the big reasons people use credit cards, but I still get the security that comes with credit cards, and I still get a month before I have to pay back the money.I guess you're looking for tips on how to avoid the interest snowballing, but I can't help there sorry. [smile]   ;  From experience I know that I may not be the most wise credit card user because I tend to spend a whole frickin lot on them but so far the minimum payments are very reasonable providing the fact that I pay a minimum of 100$ on each card I have every month( I have 2 ). I know that in order to build a good credit you have to use it often, make sure you make at the very least but preferably more than the minimum required payment each month and never go over your credit limit. Paying interest on the card due to a balance that you can't afford to pay all at once is not desired for your pockets but is appreciated by the credit card companies because that's how they make money. So far if you use the card in a reasonable way and that you pay a decent amount of money on them each month even if it's not the complete balance, you will be able to build your credit.That's my personal opinion though, some people may not agree with me but so far I know from some credit check up that my credit status is in top shape despite the "heavy load" I keep on the cards because I have never missed a single payment and because I am able to keep the cards under the limit and still use them every day for my bills, grocery, entertainment, etc...I hope this was useful   ;  But paying $200 a month just on interest sucks. You have less cash to buy more stuff after that first blow-out.In general credit cards are bad, but useful for those who are fully aware the potential benefits and how to avoid the traps.   ;  Just use it occasionally and pay it off immediately to help establish credit. That way if you get married and try to buy a house, you don't have to put the house in your wife's name (or worse, one of your parent's name) because you don't have any credit.Waffle House's are awesome, and I miss them up here in NYC. Although the last time I went to one (last summer) I noticed they raised their coffee prices. It used to be .70 for a sit-down cup of coffee with refills.Off-topic: You're from North Charleston? I'm originally from Charleston, SC, where my family still lives. Do you go to high school or college there?   ;  there was a Waffle House by my high school...a couple years ago some dude murdered 2 people in the freezer there.   ;Quote:Original post by BitBltOff-topic: You're from North Charleston? I'm originally from Charleston, SC, where my family still lives. Do you go to high school or college there?I am stationed in the Navy here going to the nuke school on the weapons station(not sure if you've heard of it).  I am graduating at the end of December and then it's off to Norfolk.Quote:Original post by HelplessFoola couple years ago some dude murdered 2 people in the freezer there.That's pretty crazy.  I still love Waffle House, though [smile]Thanks for the credit advice, everyone.  It sounds like sound advice from seasoned pros, hehe.-AJ   ;Quote:Original post by AvenyrPaying interest on the card due to a balance that you can't afford to pay all at once is not desired for your pockets but is appreciated by the credit card companies because that's how they make money.That's not the only way they make money.  They also make a certain amount (probably percentage based, worked out with the seller) on every purchase, period.  So every time I buy a DVD at Best Buy for $15.00, and then pay my bill at the end of the month Visa probably gets to keep part of that $15.00 that I send them from my bank account, and give only $14.XX back to Best Buy.  So even though I paid no interest, Visa still made some money.Actually, it might be a little more complicated.  I don't think companies like Visa and Mastercard actually handle the credit/interest part of the whole credit card deal.  They handle providing a single company with which retailers and other sellers must work with.  But each individual credit card user also works with another company, the one that actually handles debt, payments, interest, and such.  And they probably don't make much money from people like me who pay their whole bill every month.  Maybe then get a small cut from Visa just to make it worthwhile, though.  Because otherwise, I doubt they'd be too inclined to give me any benefits, like a higher credit limit and such, because I'd essentially be a worthless customer if they make all of their money from interest payments.  Visa still loves to give me plenty of benefits, though, because that means that more stores will be pressured into accepting Visa cards, guaranteeing that they continue to get a piece of a huge number of purchases.  For example, fast food restaurants didn't typically tend to accept credit cards. Now they do, and I'm sure that Visa and Mastercard have noticed that more and more purchases are being made through them now at places such as fast food restaurants, and are very happy about that.  The more that credit cards are used, and the less that cash and checks are used, the more the credit card companies make, even if no one pays interest.  At least, that's the pattern I seem to have observed.Oh, and another advantage from the user's perspective of credit cards are the little benefits floating around.  Frequent flyer miles, cash back, etcetera.  I get 3% back on every gasoline purchase I make, and 1% cash back on everything else.  And this was the first credit card I got, when I hardly had any credit history.  And since I pay off my bills consistently every time, I have essentially been getting reduced prices from the people I buy stuff from, especially gas stations.  Not that 3%/1% is huge, but it beats paying interest, and it does add up to at least a noticeable level.;Quote:Original post by AgonyThat's not the only way they make money. They also make a certain amount (probably percentage based, worked out with the seller) on every purchase, period. So every time I buy a DVD at Best Buy for $15.00, and then pay my bill at the end of the month Visa probably gets to keep part of that $15.00 that I send them from my bank account, and give only $14.XX back to Best Buy. So even though I paid no interest, Visa still made some money.That's why lots of places (like most restaurants, esp. fast food) will charge like $0.69 to use a debit and/or credit card.  It actually costs them money for Visa or whoever to 'give them the privilege' of accepting that card there.   