JohnLenin
Putting the semen in amusement   SSHOLE |
Posts: 1050 Registered: 7/8/2005 Offline
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2/27/2006 at 21:51 |
- I've done a little research on my questions, but credit cards sites are a little confusing, so I figured I'd ask you kind folk (ha). -
I want to make a $2,000 purchase within the month, and I want to do it on credit. Here are my questions:
1. What credit copmany would approve me for that amount on a 'Limited Credit History' type card?
2. What , on average, would the minimum monthly payments be for said purchase amount?
KTHX
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freakmachine
Web Fucko Extraordinaire  SSHOLEPosts: 590 Registered: 4/15/2004 Offline
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2/27/2006 at 22:02 |
Before you get embroiled with credit cards, try an unsecured bank loan (somtimes called a "signature loan"). They may well approve you if you can show adequate income. I have done it before and it worked great for me. Be sure the bank you use is the one you deposit your paycheck in and use the most. Note: the interest rate may be a little higher than on a credit card.* Research.
If you do go the credit card route, 1. reconsider this unfortunate course of action, and 2. never pay only the minimum amount. They rape you this way: it will take forever to pay off and insure you pay like three times the actual price of the object in question. Bend over the bar stool baby. I think this option is only good if you can really only pay the minimum payment every month. I forget the standard min payment, something like 1.5% or 2% of the purchase price maybe?
*Low rates on credit cards are all for an introductory period only. Read all contracts and fine print everywhere.
On 2006-02-27 at 16:07:08, freakmachine enjoyed furrysex |
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fastlane
Zombie scream style  SSHOLEPosts: 673 Registered: 2/7/2004 Offline
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2/27/2006 at 22:12 |
Solid advice freak.
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nocal
It's insane, this guy's taint  SSHOLEPosts: 811 Registered: 8/25/2004 Offline
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2/27/2006 at 22:27 |
Yeah, pay close attention to the APR. I get solicitations all the time, ones that say shit like, "NO PAYMENTS FOR A MONTH!" Then you check the fine print and it's %24 APR. Not more than 50 years ago, charging that kind of rate was considered usary and could get you locked up. It's bullshit.
I would also say to not go with the credit card, unless this is something you really need. Need as in can't function without it, not need as in "I need a new computer to play Doom 3."
My one tip for establishing credit: get a card from a department store. Buy something smallish and pay it off. Magically you have a credit score. You may not want to take this route though, as this takes longer.
Tips: don't sign up for credit cards without focus, don't cancel them. Signing up for one means they have to get your credit report, which dings you for about 10 points. Canceling dings you for more, I believe. So never cancel a card, just pay it off and hide it somewhere.
I worked for a mortgage broker for a summer, and let me say this: NEVER EVER EVER MISS A PAYMENT. That shit stays with you for approximately ten years. People would get married and find out that they can't buy a house because their spouse has shit credit from college.
Just don't fall into the credit trap; they want you to pay minimum balance for the rest of your life. They want to charge you for missed payments. They want you to have bad credit so that you pay more. |
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freakmachine
Web Fucko Extraordinaire SSHOLEPosts: 590 Registered: 4/15/2004 Offline
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2/27/2006 at 22:46 |
Nocal:
"Canceling dings you for more, I believe. So never cancel a card, just pay it off and hide it somewhere."
Yes, except that these days I understand credit has been deregulated and if you don't use a credit card for a while the issuer can cancel it thereby dinging your credit score too. They get you coming and going. The credit industry is the scam of the century.
BACK SLOWLY AWAY FROM THE CREDIT CARD APPLICATION AND APPLY FIRE LIBERALLY TO IT. |
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nocal
It's insane, this guy's taint SSHOLEPosts: 811 Registered: 8/25/2004 Offline
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2/27/2006 at 22:51 |
Yes, except that these days I understand credit has been deregulated and if you don't use a credit card for a while the issuer can cancel it thereby dinging your credit score too. They get you coming and going. The credit industry is the scam of the century.
What the fuck? This is why I don't have a credit card and don't plan on having one until I need a credit score. I can't believe that companies can get away with this shit.
No coercion my ass, Loki! |
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jwalker
Token Discordian  SSHOLEPosts: 949 Registered: 8/6/2005 Offline
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2/27/2006 at 22:57 |
nocal: Yes, except that these days I understand credit has been deregulated and if you don't use a credit card for a while the issuer can cancel it thereby dinging your credit score too. They get you coming and going. The credit industry is the scam of the century.
What the fuck? This is why I don't have a credit card and don't plan on having one until I need a credit score. I can't believe that companies can get away with this shit.
No coercion my ass, Loki!
Except that having a credit card helps you build a credit history, which helps you get a good score. If you're careful and responsible with it (pay off every month, don't use it for cash advances to pay crack whores, etc) it will be a plus for you when/if you need a house loan or whatever.
(Loki is coercing your ass? sounds kinky.)
On 2006-02-27 at 16:58:17, jwalker enjoyed furrysex
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qwerty
DARTH MENSES  Posts: 628 Registered: 9/8/2004 Offline
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2/27/2006 at 22:57  |
Credit drives the underground cash society.
Viva la revolution
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LOki
Refusenik  SSHOLEPosts: 484 Registered: 3/8/2002 Offline
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2/27/2006 at 23:39 |
nocal: Yes, except that these days I understand credit has been deregulated and if you don't use a credit card for a while the issuer can cancel it thereby dinging your credit score too. They get you coming and going. The credit industry is the scam of the century.
What the fuck? This is why I don't have a credit card and don't plan on having one until I need a credit score. I can't believe that companies can get away with this shit.
No coercion my ass, Loki!
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nocal
It's insane, this guy's taint SSHOLEPosts: 811 Registered: 8/25/2004 Offline
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2/28/2006 at 00:10 |
No one's holding a gun to your head forcing you to operate on credit that you don't need or can't afford.
Partly I was just kidding. But seriously, when I worked at the mortgage broker, there was a multi-millionaire who took out loans for shit he could easily afford. They aren't holding a gun to your head, but if you want to buy a house or car, you need a credit score. Sounds pretty fucked to me. |
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Acidburn
I am El Chupacabra  SSHOLEPosts: 778 Registered: 8/1/2004 Offline
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2/28/2006 at 01:13 |
You could try saving up the money and avoid the leeches all together.
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JohnLenin
Putting the semen in amusement SSHOLEPosts: 1050 Registered: 7/8/2005 Offline
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2/28/2006 at 01:20 |
Thanks for the info/advice. My plan was to get the card and make the purchase, paying 20% per month with my shit job. Then only use the card for small purchases thereafter, which I figured would help build my credit . I understand I'll end up paying more in the long run, but I really don't care about that (I'm not really saving for anything right now, and dont plan to until after I pay off the 2,000+)
On 2006-02-27 at 19:24:22, guitarjon123 enjoyed furrysex
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middle_age_man
Mostly Harmless  SSHOLEPosts: 427 Registered: 1/11/2005 Offline
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2/28/2006 at 01:27 |
Acidburn: You could try saving up the money and avoid the leeches all together.
Best advice so far. Unless this is a life and death need or a purchase required for obtaining employment. Saving is always the best option.
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coknurmowth
Crisco Fux  SSHOLEPosts: 120 Registered: 10/20/2005 Offline
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2/28/2006 at 02:08 |
stay away from the devil cards..
They can raise your rate (without you knowing), which gives you an interest payment that pushes your monthly total over your maximum credit limit which gives them the right to charge you the max rate!!!! I went from 10% one month to fucking 25% (now it's fucking 27.9% and fucking rising) the next and I couldn't do anything but change companies and no one would extend me that much credit on one card right off the bat...So the only choice was to try to take out 4 different cards, fuck that. The main problem is that they operate like crack dealers...they keep fronting you a little bit more credit until they own your ass...bam 25%
Unless your funding some life saving surgery or fleeing the country, i wouldn't do it.
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middle_age_man
Mostly Harmless SSHOLEPosts: 427 Registered: 1/11/2005 Offline
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2/28/2006 at 02:12 |
coknurmowth: stay away from the devil cards..
They can raise your rate (without you knowing), which gives you an interest payment that pushes your monthly total over your maximum credit limit which gives them the right to charge you the max rate!!!! I went from 10% one month to fucking 25% (now it's fucking 27.9% and fucking rising) the next and I couldn't do anything but change companies and no one would extend me that much credit on one card right off the bat...So the only choice was to try to take out 4 different cards, fuck that. The main problem is that they operate like crack dealers...they keep fronting you a little bit more credit until they own your ass...bam 25%
Unless your funding some life saving surgery or fleeing the country, i wouldn't do it.
Have you considered a consolidation loan? Even if the bank stuck you with a 4 to 6 over prime rate it sounds like you might save money.
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coknurmowth
Crisco Fux SSHOLEPosts: 120 Registered: 10/20/2005 Offline
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2/28/2006 at 02:30 |
that's exactly what we were going to do, but I got an inheritence unexpectedly and I was able to pay all but 4k of the last card off. If things go as planned (har-har) I will be selling the house i am in now and paying that last card off in about 2 or 3 months...then I will have broken the 21 year credit card chain that started with a bastard radio shack account.
My main fear is what NoCal described when looking for a house loan, I've always made my monthly payment on all my cards but I've been late quite a few times in the last 5 years on credit cards, a few times on car payments, and the majority of payments on school loans. Only a few days late most times but late none the less. After I sell this house I will only have about $300/month in payments and almost 40k to put into a new house. Do you think I am fucked on getting a house loan? keep in mind that houses down here are going at 100 to 125k so it's not going to be a huge loan I am looking to get...
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nocal
It's insane, this guy's taint SSHOLEPosts: 811 Registered: 8/25/2004 Offline
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2/28/2006 at 02:40 |
Do you think I am fucked on getting a house loan?
In short: sorta. You'll get a loan, most likely. Will it be a good loan with good terms? I would say no. Additionally, you might have to shop around a little for which lender is willing to loan you money. I mean, the classic example I always give people is: that millionaire I mentioned above? He was late on a car payment before a million dollar loan had gone through. So in the middle of readying paperwork, his credit score went down. They had to call him up and be like, "WTF, millionaire? Your rate just changed." He didn't care much, because he was a millionaire, and he was going to pay it off that month.
I don't mean to scare you at all, and you sound like you have quite a bit of money towards the house already. Just don't be surprised if they try to give you the shaft a little. |
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middle_age_man
Mostly Harmless SSHOLEPosts: 427 Registered: 1/11/2005 Offline
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2/28/2006 at 02:45 |
I don't know how it works in the US but in Canada you are entitled to a free copy of your credit repot from the credit reporting agencies. You just have to mail in a request form. It's a good thing to see before you make a major purchase.
On 2006-02-27 at 21:07:37, middle_age_man enjoyed furrysex
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" Honesty may be the best policy, but it's important to remember that apparently, by elimination, dishonesty is the second-best policy."
George Carlin |
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magicchex
Fuckin' your bitches and stealin' your cars since 1985.  SSHOLEPosts: 425 Registered: 1/5/2005 Offline
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2/28/2006 at 02:50 |
guitarjon123: Thanks for the info/advice. My plan was to get the card and make the purchase, paying 20% per month with my shit job. Then only use the card for small purchases thereafter, which I figured would help build my credit . I understand I'll end up paying more in the long run, but I really don't care about that (I'm not really saving for anything right now, and dont plan to until after I pay off the 2,000+)
On 2006-02-27 at 19:24:22, guitarjon123 enjoyed furrysex
Get a card that starts you off for a while at 0%, then make sure you pay off your purchase within that time and have a 0 balance when the 0% ends. It'll help your credit and be free.
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Clavis_Apocalypticae
Beautiful Puppet of Chaos  SSHOLEPosts: 764 Registered: 5/16/2004 Offline
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2/28/2006 at 03:02 |
magicchex: guitarjon123: Thanks for the info/advice. My plan was to get the card and make the purchase, paying 20% per month with my shit job. Then only use the card for small purchases thereafter, which I figured would help build my credit . I understand I'll end up paying more in the long run, but I really don't care about that (I'm not really saving for anything right now, and dont plan to until after I pay off the 2,000+)
On 2006-02-27 at 19:24:22, guitarjon123 enjoyed furrysex
Get a card that starts you off for a while at 0%, then make sure you pay off your purchase within that time and have a 0 balance when the 0% ends. It'll help your credit and be free.
DO NOT take financial advice from the Poleski.
EVAR.
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Uart
DARTH MENSES  Posts: 1228 Registered: 3/5/2005 Offline
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2/28/2006 at 06:13 |
nocal: What the fuck? This is why I don't have a credit card and don't plan on having one until I need a credit score. I can't believe that companies can get away with this shit.
No coercion my ass, Loki!
You're a student. Get one while nobody cares that you don't have a credit score. You'll have a harder time getting one that doesn't suck after college.
Also, Jon: American Express has no limit, but you have to pay it off at the end of the month and they charge you a membership fee. Every other card has a hard limit, but they'll let you pay it off over time (and pwn you with interest) and won't charge a yearly fee. Shop around. |
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Lefen
I think Clavis wins my heart <3  SSHOLEPosts: 897 Registered: 9/16/2003 Offline
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2/28/2006 at 08:09 |
As I understand it, having no history is almost as bad as having a bad history when it comes to wanting credit for that new car/house/ect.
From that point of view, I think that getting a card could be a sensible idea. Put a few hundred quid on it and then pay it off over time and never miss a payment.
I definitly don't think you should get a card with the express intent of putting $2k on it right away. Listen to the Swarm on this one.
It seems like you've costed up what you can afford to repay every month, so I'd take your case directly to the bank and get a loan. It's not a large amount of money (in real bank terms) and you can prove that you can pay it back over x number of months, so I don't think you'll have a problem. Big bonus of a bank loan is that you'll get a much better rate of interest than on a credit card, and this will also count to giving you a good credit score.
To be fair, the best thing to do would be to save up and then buy, but I don't see why you couldn't use this as an oppertunity to get some good borrowing history on your side.
Be very careful.
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breezysummerday
Tender vittles  SSHOLEPosts: 41 Registered: 3/10/2005 Offline
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2/28/2006 at 09:17 |
Get a credit card issued from your bank, a local one. You could go there in person should any BS arise...ask questions about late payment fees, what if I late on a payment? what penalties will I suffer? and do not ever apply for a discover card...ever |
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freakmachine
Web Fucko Extraordinaire SSHOLEPosts: 590 Registered: 4/15/2004 Offline
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2/28/2006 at 14:48 |
guitarjon123: Thanks for the info/advice. My plan was to get the card and make the purchase, paying 20% per month with my shit job. Then only use the card for small purchases thereafter, which I figured would help build my credit . I understand I'll end up paying more in the long run, but I really don't care about that (I'm not really saving for anything right now, and dont plan to until after I pay off the 2,000+)
On 2006-02-27 at 19:24:22, guitarjon123 enjoyed furrysex
If you can pay 20% of 2 grand each month then getting a card or loan to build credit is not a bad idea, just don't paint yourself into a corner financially. I still prefer a bank loan though.
Good luck, it's a nasty business. |
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magicchex
Fuckin' your bitches and stealin' your cars since 1985. SSHOLEPosts: 425 Registered: 1/5/2005 Offline
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2/28/2006 at 15:26 |
Clavis_Apocalypticae: magicchex: guitarjon123: Thanks for the info/advice. My plan was to get the card and make the purchase, paying 20% per month with my shit job. Then only use the card for small purchases thereafter, which I figured would help build my credit . I understand I'll end up paying more in the long run, but I really don't care about that (I'm not really saving for anything right now, and dont plan to until after I pay off the 2,000+)
On 2006-02-27 at 19:24:22, guitarjon123 enjoyed furrysex
Get a card that starts you off for a while at 0%, then make sure you pay off your purchase within that time and have a 0 balance when the 0% ends. It'll help your credit and be free.
DO NOT take financial advice from the Poleski.
EVAR.
This is how my parents (with their perfect credit) make purchases they can't afford to pay right away. They open a card that gives them 0% for 6month to a year, then pay off the purhcase within this time.
My parents have perfect credit and have never missed a payment on anything (and actually dislike credit enough to refuse car loans/leases vs. outright purchasing).
Granted, personally I fucked up credit card-wise but this does not mean I cannot give advice from what I learned from the experience. And this does not mean I didn't take the appropriate steps to fix my fuckup.
On 2006-02-28 at 09:28:18, magicchex enjoyed furrysex
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tank
SENATOR BABYHEAD  Posts: 113 Registered: 4/4/2002 Offline
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2/28/2006 at 18:35 |
Absolutely cancel cards - having a bunch of active cards can fuck you as hard as having no credit, even if you carry no balance.
For instance, let's say you have 10 cards that you don't use, all with no balance carried and a $1000 limit on each.
When you apply for more credit, the financial institution looks at it as if you were $10k in debt, because you could go out and max out all ten cards after they pull the report. Happened to me.
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bored_at_work
Tender vittles  Posts: 1 Registered: 2/28/2006 Offline
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2/28/2006 at 19:52 |
middle_age_man: I don't know how it works in the US but in Canada you are entitled to a free copy of your credit repot from the credit reporting agencies. You just have to mail in a request form. It's a good thing to see before you make a major purchase.
On 2006-02-27 at 21:07:37, middle_age_man enjoyed furrysex
You are correct. It is now U.S. law. Go to www.freecreditreport.com. You select from the 3 reporting agencies, Equifax, TransUnion, and Experian. One per company per year. Best advise is to choose one every four months so you can have pretty updated information. |
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magicchex
Fuckin' your bitches and stealin' your cars since 1985. SSHOLEPosts: 425 Registered: 1/5/2005 Offline
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2/28/2006 at 22:10 |
bored_at_work: middle_age_man: I don't know how it works in the US but in Canada you are entitled to a free copy of your credit repot from the credit reporting agencies. You just have to mail in a request form. It's a good thing to see before you make a major purchase.
On 2006-02-27 at 21:07:37, middle_age_man enjoyed furrysex
You are correct. It is now U.S. law. Go to www.freecreditreport.com. You select from the 3 reporting agencies, Equifax, TransUnion, and Experian. One per company per year. Best advise is to choose one every four months so you can have pretty updated information.
WRONG
You want to go here: https://www.annualcreditreport.com/cra/index.jsp
Someone's been watching too many late night commercials
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nexis
SIR BABYHEAD  Posts: 71 Registered: 5/17/2005 Offline
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3/1/2006 at 00:56 |
yeah those bastards make you sign up for a monthly membership (like $10).
i would def. go to the above website and check your report whenever you can get away with it to keep an eye on things.
i had Dell call me about a year ago, they told me someone had tried to use my credit to buy 3 laptops. after calling one of the credit bureaus and having a warning put on my report, i then found out they fukers tried to get a cell phone, 2 credit cards, and a few small things. i do comend dell and these other companies for protecting me to an extent. i might have been screwed if not.
i have really good credit for a 26 year old these days, 738 avg a few weeks ago. it really makes a huge difference when you want to do grown-up things. i can thank my mom (RIP) for staying on my ass about keeping my credit good (and co-signing cars for me.) i have always used cedit cards for major purchases only. $500 in tires, $200 in car repair, $1500 in furniture. these are things that only come up once in a while and that i know i will get a chance to payoff. not like using it everyday, $20 here, $10 there adds us super fast. you can rack up $500 bucks before your next statement comes in and then your fucked fast.
oh and for the folks talking about home loans, some lenders have "drug dealer" loans. you only need 20% of the total price for a down payment, no questions asked. but you get raped on the interest rate. sometimes called no-doc.(ument) loans.
they also have the same plan but for people with good credit, they get much better interest rates. i just had to get one of these because i run my own business and had to "state" my income because it varies. these are low-doc. or stated income loans.
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IMBOLCPunxsutawneyPhil
SENATOR BABYHEAD  Posts: 244 Registered: 3/17/2005 Offline
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3/1/2006 at 00:57 |
All the advice is sound!!
I have done it all from max to min with a bit of fun inbetween!
The whole escape the country while you max out the cards--yep.
Experienced here... I would say don't do it unless you have a big stash of cash ready to volley out the mother fuckers [and dead rich folks count, but don't count on them].
Bank loans are much more attractive as they are not as predatory. Another option is additional student loans--these have very low interest but will come back and bite you in the ass once/if you graduditate.
Multiple cards vs. cancelling dead cards? Cancel, the hit is minimal compared to the outstanding liabllities.
How to build credit? Get any dinky no annual fee [on prinicple] card and buy something you have the money to pay for. Then pay it off. Then do it again over the course of a year.
You can also learn to swing from vine to vine--paying off and dumping one card into another and cancelling out the debt while keeping the interest rate really low!! [WARNING: only expert types should try this, and those with no real need for credit]
by the way AMEX does have a no annual fee card [but I think it has a limit, I think] I got an offer the other day and seriously considered it, then didn't swing from vine to vine because I didn't feel like fucking with it.
oh and...
Expert tip: If you are good enough, and you think your rate is too high, call up the card and tell them you are considering cancelling your card since it does not have a competative interest rate compared to other offers you have seen around [name your price!]. If you are worth keeping you can get it. I have used this to lower interest payments for 8-10 months in the past, not a bad hat-trick.
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