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My first credit card. Halp!

Okay, so i'm definitely not gonna hold a balance. I don't wanna pay more than I have to especially when the med bills i'm paying don't have interest and I only have to pay one set amount.
But to be clear, it's better to use 1/3 of the limit instead of maxing it out and paying it off immediately? True or false?
 
Tony said:
Okay, so i'm definitely not gonna hold a balance. I don't wanna pay more than I have to especially when the med bills i'm paying don't have interest and I only have to pay one set amount.
But to be clear, it's better to use 1/3 of the limit instead of maxing it out and paying it off immediately? True or false?
Click to expand...

I doubt there's a difference. But I don't know for sure.
 
Tony said:
Okay, so i'm definitely not gonna hold a balance. I don't wanna pay more than I have to especially when the med bills i'm paying don't have interest and I only have to pay one set amount.
But to be clear, it's better to use 1/3 of the limit instead of maxing it out and paying it off immediately? True or false?
Click to expand...
I doubt there's much difference, especially when the limit is only $500.
 
colton said:
I've listened to Ramsey's show several times, and generally agree with him. But if he says never to use a credit card, than that's something I think he's very wrong about. If it's an expense that you're going to pay ANYWAY, then paying for it with a credit card that you pay off every month is great.
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He agrees with this theology but he agrees more to the fact that most of the United States have no self control.
 
Am i doing something wrong with my credit card compared to you in US:)? I have an AMEX; all the AMEX transactions will be automatically debited on my main bank account on the 10th day of the month. Although the yearly fee is about 20 EUR, the bonus points (6 EUR will give 1 point; with 400 points i can get a department store gift card valued about 10-20 EUR, depends on store) will somewhat compensate that. Of course, AMEX is not for me to spend money that i not have, mainly a tool to better manage my finances. Your stories are kind of complicated to my brain.
 
lauriandres said:
Am i doing something wrong with my credit card compared to you in US:)? I have an AMEX; all the AMEX transactions will be automatically debited on my main bank account on the 10th day of the month. Although the yearly fee is about 20 EUR, the bonus points (6 EUR will give 1 point; with 400 points i can get a department store gift card valued about 10-20 EUR, depends on store) will somewhat compensate that. Of course, AMEX is not for me to spend money that i not have, mainly a tool to better manage my finances. Your stories are kind of complicated to my brain.
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It basically sounds like a rewards card that is automatically paid (deducted from your bank account). As long as you're disciplined and don't spend more than you have, it's a good way to go.
 
Tony said:
Okay, so i'm definitely not gonna hold a balance. I don't wanna pay more than I have to especially when the med bills i'm paying don't have interest and I only have to pay one set amount.
But to be clear, it's better to use 1/3 of the limit instead of maxing it out and paying it off immediately? True or false?
Click to expand...

The 1/3 is only if you want to use the card to establish credit. If you have other lines of credit it is not necessary.

Me and my old lady had very poor credit due to young hooliganism. When we decided to grow the **** up along with actually paying our bills on time we got a $500 credit card. The card did not seem to make a difference after doing some research we did the 1/3 thing. once we had established other lines of credit (mortgage car loan etc.) we paid it off. we were in the high 400s like 5 years ago and last time we applied we were at 760.
 
Beantown said:
He agrees with this theology but he agrees more to the fact that most of the United States have no self control.
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For every saver there must be a spender. This old white guyism is on of my pet peeves.

Also, Please stop being so quick to judge. Why do you feel comfort,.. nvm.
 
heyhey said:
The 1/3 is only if you want to use the card to establish credit. If you have other lines of credit it is not necessary.

Me and my old lady had very poor credit due to young hooliganism. When we decided to grow the **** up along with actually paying our bills on time we got a $500 credit card. The card did not seem to make a difference after doing some research we did the 1/3 thing. once we had established other lines of credit (mortgage car loan etc.) we paid it off. we were in the high 400s like 5 years ago and last time we applied we were at 760.
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Not being a dick.. but I srsly didn't even know scores went below 500's.
 
PKM said:
Not being a dick.. but I srsly didn't even know scores went below 500's.
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Not at all. You have to be actively self destructive for it to happen but yeah it can be done. While it is a pain in the *** to dig yourself out of it it's not as difficult as many make it seem.
 
With a credit card, your credit score is based off how much available credit you have. So, if you had a $500 limit on one card with $500 charged to it, your score would be lower than if you had $500 on a $10,000 limit card.

Also, if you guys want to feel better about yourselves, two weeks ago, I officially crossed into the "over a million dollars in debt" threshold.

Makes my knees weak when I think about it.
 
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