Credit

[Nubian]

I'm a student (read: BROKE) working to establish my credit. At this time I have a few items on my credit report, they include my student loan, and various credit inquiries. I want to get a credit card, but I don't know what to look for, any tips?

[dst-sunshine1]

Start out with a gas card. They have lower interest rates. But, be careful with those cresit cards, they will mess you up!! Believe me, I know personally!!

Sunshine

Get a card with a low interst rate.

Pay all of your bills on time --late payments negatively affect your credit report.

If you make a large purchase that you can not pay off immediately, pay more than the minimm amount due. If not, you will be paying for more than what you purchased (finance charges will be added to your purchase amount after a period of time).

If you are going to be late or miss a payment contact the credit card company and let them know what is going on. If you do they may waive the late fee or make sme arrangments with you. If you keepin contact with them they are usually pretty flexible.

Also, just because the company gives you a limit of say $1000 dollars does not mean that
you have to accept it. You can request that your limit be lowered.

I would reccomend the American Express card simply because there is no preset limit. However, there is also no minimum payment allowed. All balances must be paid in full every month or you will be penalized and your card will be made inactive.

I would stay away from Discover because their interest rates are pretty high. It really will not mean anything if you pay your balance in full every month but if you
have a large purchase on the card then you should do like I said earlier and pay more than the minimum amount due (at least $20 more) in order to take care of the interest and chip away at the principle balance.

Hope I helped!!

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I think we're alone now. There doesn't seem to be anyone around
I think we're alone now. The beating of our hearts is the only sound

[korkscru]

Sisterfriend, PLEASE, PLEASE, PLEASE don't get caught up in that mess until you have a stable, secure, and good-paying job. Take it from me, I made the mistake of getting a credit card while I was still in undergrad and because of my lack of maturity and a good job, I suffered the consequences. I realize that stuff like that seems appealing (heck, most credit card companies actually target college students), but believe me IT IS NOT WORTH the trouble if you are not truly ready for it. I feel that NO CREDIT is really better than BAD CREDIT any day.

If you do decide to take on this responsibility while you are still in school, PLEASE, PLEASE, PLEASE start out slow and use it wisely.

I'm now older and wiser and I've made the decision to TEACH my children about the SERIOUSNESS and IMPORTANCE of maintaining their credit rating and I also plan to assist them in MONITORING the process until they are ready to handle it on their own. I did not receive this kind of guidance from MY parents because they themselves were really not aware or educated about this. So, in part, I made some bad decisions. But now, through trial and error, I realize the truth of the matter, I've educated myself, and therefore I feel empowered about the issue.

Don't make the same mistakes that I made. I hope that I didn't offend you by writing this response. It is truly and sincerely from the heart and meant in good faith.

GOOD LUCK SISTERFRIEND!!!!

[NOWorNEVER]

It's because of those stupid cards that my credit was completely messed up before I even graduated from HIGH SCHOOL! At one point, I had four cards, all of which were maxed out and above the limit. Like Korkscru, I would suggest to anyone NOT to get one until you have established some type of financial stability. If you HAVE to have one, be sure to put SOMETHING on those monthly payments. They cannot report you if you at least send something when the minimum balance is due. And if possible, send in over the minimum amount due. You know yourself more than anyone else, and you know if your an "impulse" person or one with more composure. Personally, I buy on impulse and I've learned from that. I'm a cash-only person. I have cut all but one card which will only be used for emergencies (I keep it AT HOME). Interest and various charges has made me pay over three times the amount of the original item that I bought! Isn't that a trip! Right now, every penny I earn goes toward my debt, and that's very hard especially since I'm still in undergrad. I think the whole system is a trap, but I'm determined to get out. Best of luck to you.


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*someday...if it's in God's will*



[This message has been edited by NOWorNEVER (edited July 02, 2001).]

[Nubian]

At first I considered not applying for any credit until I was more established, but I've had a streak of bad luck. The flood wiped out my television and VCR, I put a huge dent in my car, and my printer is on the fritz, not to mention the fact that I have to cover rent and part of my summer school tuition without parental assistance. I'm flat broke, and credit is just looking really tempting right now. I still haven't figured out exactly what to do, but thanks for all the great advice.

Tamika

[This message has been edited by Nubian (edited July 02, 2001).]

[12dn94dst]

Originally posted by korkscru:
Sisterfriend, PLEASE, PLEASE, PLEASE don't get caught up in that mess until you have a stable, secure, and good-paying job.

AMEN TO THAT!!! I am still feeling the effects of having credit cards & no job. I know it sounds like a great & easy out and you'll feel like you can make the minimum payments, but paying $10 on a $200 balance with 21% interest will not cut it.

[Kimmie1913]

My advice to you would be to be VERY careful. They want credit to be tempting so they can make a fortune off of you. However, the reality is if you are only paying the minimum balance on a moderate to high interest rate card it will take you YEARS to pay off as little as $1000. And you will end up paying them WAY MORE than $1000.

Credit cards are marketed to young people/college students in the hope that you will mess up your credit early and then be subjected to outlandishly high interest rates for years to come. Negative marks stay on your credit for 7 years. So the mistakes you make with credit at 20 stick with you until 27 and can affect what interest you get on a car and if you will be able to qualify to buy a house.

The best bet is to not do it to yourself. You should always treat your credit cards like cash- if you couldn't buy it with out credit you should not buy it with credit. If you need to make a large purchase, make absolutely sure you have created a payment plan that will get the bill paid off right quick and in a hurry and stick to it. You have to pay more than the minimum payment or you will be saddled with that bill for a good long time. And no matter what, protect your credit by always making payments on time.

This is my advice that I had to learn the hard way. I am still trying to recover from the credit hole I dug myself while I was in college and I hate to see anyone repeat that same mistake to the companies advantage- particularly my young sistahs out here trying to make their own way. I am thrilled to say I just cut up all my credit cards and traded in the debt fromt he high interest cards to a low interest loan that will save me money and set me free of them for good. (PS- this is an unsecured loans- for my homeowners out there, be wary of taking out home equity loans to pay off credit cards. Most people end up using the cards again before the loan is paid off, increasing instread of decreasing their debt AND they have traded unsecured debt for secured debt- never a good idea)


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Delta Sigma Theta Sorority Inc.
Baltimore Metropolitan Alumnae Chapter
#3 of ER 30
Spring 1999

"No finer girls will you ever see, and I'm so glad I pledged- for what?
For DST!"

[DirectorDST99]

JUST SAY NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!

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"Director" #2
LaMarque Alumnae Chapter
Spr 99

[This message has been edited by DirectorDST99 (edited July 03, 2001).]

way too many "!" Kel

[This message has been edited by 12dn94dst (edited July 10, 2001).]

[CelestialBlu1]

i know some people say get a credit card for purposes of an emergency...but i wouln't get one just yet if i were you...check cards do just fine as far as convenience...renting cars...or whatever else you need to do...you should have some savings set aside for emergency purposes and not be leaning on borrowed money when you don't have to...school loans are different and you can start paying on them as an undergraduate if you just want to start establishing your credit with something...credit cards are a bit too tempting during college and you might wind up with more than you bargained for...credit destruction instead of building a solid credit record...if you can't afford to pay cash...and its not for an education, a house, or a car...you more than likely don't need it until you can put up the cash...



[This message has been edited by CelestialBlu1 (edited July 03, 2001).]

[mccoyred]

Is this true? Can they still tack on late fees?

Originally posted by NOWorNEVER:
If you HAVE to have one, be sure to put SOMETHING on those monthly payments. They cannot report you if you at least send something when the minimum balance is due. And if possible, send in over the minimum amount due.

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MCCOYRED
Mu Psi '86
BaltCo Alumnae

Dynamic...Salient...Temperate...Since 1913

[luvsong1913]

Originally posted by mccoyred:
Is this true? Can they still tack on late fees?

To answer your questions...YES and YES (if your payment is late). Please don't ask me how I know.



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S.H.A.D.E.
10-Lambda-SP00
Memphis Alumnae Chapter
Delta Sigma Theta Sorority, Inc.

Lady of DSTinction

"Both tears and sweat are salty, but they render a different result. Tears will get you sympathy; sweat will get you change."