How Do Credit Cards Work? - Tilted Forum Project Discussion Community

CConner · 09-22-2004, 07:41 PM

Can someone please tell me how they work.

Also I get letters from credit card companys all the time as everyone else does. The problem is that the capital one card I keep getting is 13.9% APR but when I look at their site it shows the same card for 8.9% APR, whats the catch?

Please help me.

Mango · 09-22-2004, 10:21 PM

They work likr this. You buy some stuff. At the end of the month they send you an invoice. If you pay it all off you pay no intrest. If you pay some of it you pay the intrest that you have agreed to pay when you applied for the card (as high as 22% with some cards). If you can get a better rate apply for the better rate then cancel your higher rate card. Often they offer an itroductory rate that is much lower than the regular rate. Unfortunaely after the introduvtory term end you get nailed with the regular rate on any ballance owing. Simple really. Just pay the thing off EVERY month and you pay nothing. Zero, Zip, Nada. Some cards will give a lower rate but charge an annual fee. I avoid those cause I'm a cheap fucker. I pay the ballance EVERY month. In 15+ years I have paid less than $100 intrest on my CC's while spending $1500+ on them each month.

hokieian · 09-24-2004, 02:09 PM

if you are thinking about getting a credit card, be VERY careful with it.

Generally speaking, it is a good idea to have at least one or two credit cards on hand to boost your credit score and to use in case of emergencies.

DO NOT DO NOT DO NOT get a credit card and treat it like free money. Only use it for things that you can pay off at the end of the month. And remember that whatever you buy and don't pay off when you receive your bill at the end of the month, you are really paying at least 10% more for.

DJ Happy · 09-25-2004, 01:38 AM

I agree with Mango. Credit cards should only be used if you can pay off the balance every month, otherwise you're going to get eaten alive by interest payments. In which case you might as well get a debit card instead. When you use a debit card the money comes out of your account straight away and you don't have to go to the hassle of paying off a credit card balance every month.

mosha · 09-25-2004, 05:22 AM

I made the mistake of getting a CC when I was in college. They gave me, a kid with no income, a card with a $2,500 limit!! All it will do is hurt your credit unless, like they said, you can pay it off every month. THere are many that say carrying a small balance (10% or so) can actually improve your scores but I dont see that as being worth it.

09-22-2004, 07:41 PM	#1 (permalink)
CConner Upright	How Do Credit Cards Work? Can someone please tell me how they work. Also I get letters from credit card companys all the time as everyone else does. The problem is that the capital one card I keep getting is 13.9% APR but when I look at their site it shows the same card for 8.9% APR, whats the catch? Please help me.

09-22-2004, 10:21 PM	#2 (permalink)
Mango Banned	They work likr this. You buy some stuff. At the end of the month they send you an invoice. If you pay it all off you pay no intrest. If you pay some of it you pay the intrest that you have agreed to pay when you applied for the card (as high as 22% with some cards). If you can get a better rate apply for the better rate then cancel your higher rate card. Often they offer an itroductory rate that is much lower than the regular rate. Unfortunaely after the introduvtory term end you get nailed with the regular rate on any ballance owing. Simple really. Just pay the thing off EVERY month and you pay nothing. Zero, Zip, Nada. Some cards will give a lower rate but charge an annual fee. I avoid those cause I'm a cheap fucker. I pay the ballance EVERY month. In 15+ years I have paid less than $100 intrest on my CC's while spending $1500+ on them each month.

09-24-2004, 02:09 PM	#3 (permalink)
hokieian Crazy Location: Saratoga Springs, NY	if you are thinking about getting a credit card, be VERY careful with it. Generally speaking, it is a good idea to have at least one or two credit cards on hand to boost your credit score and to use in case of emergencies. DO NOT DO NOT DO NOT get a credit card and treat it like free money. Only use it for things that you can pay off at the end of the month. And remember that whatever you buy and don't pay off when you receive your bill at the end of the month, you are really paying at least 10% more for.

09-25-2004, 01:38 AM	#4 (permalink)
DJ Happy Psycho	I agree with Mango. Credit cards should only be used if you can pay off the balance every month, otherwise you're going to get eaten alive by interest payments. In which case you might as well get a debit card instead. When you use a debit card the money comes out of your account straight away and you don't have to go to the hassle of paying off a credit card balance every month.

09-25-2004, 05:22 AM	#5 (permalink)
mosha Crazy Location: Htown, NJ	I made the mistake of getting a CC when I was in college. They gave me, a kid with no income, a card with a $2,500 limit!! All it will do is hurt your credit unless, like they said, you can pay it off every month. THere are many that say carrying a small balance (10% or so) can actually improve your scores but I dont see that as being worth it.