I know this is extremely off topic. But I’d just like to repeat a warning most of you have heard hundreds of times but like me probably didn’t listen.
So two months ago I got a credit card, I set the limit at $300 so I couldn’t mess things up for myself too bad. I charged a couple things, and one Korg Nanopad, some gas, and a couple packs of cigarettes later, my balance was at about $280. No problem, I thought, I’ll pay that off before I charge anything else.
Wrong. Yesterday my statement came. There were two $10 finance charges that put me over my limit, $301.97, to be exact. Now my 0% interest rate is 28.5%. SHIT!!!
My rule of thumb: if the money isn’t in the bank, I don’t charge it to the credit card. Going near the limit or maxing out the card affects your credit negatively. I’m terrified of that. I still need that first mortgage by 26.
credit cards are not for extra money. they are for just in case situations.
andrew is exactly right, if it isnt in the bank dont charge it unless you have to.
If you can’t repay the card in total, then set up a fixed payment (not minimum %) and don’t touch it until it is back to zero. Then, select something that you regularly pay for - petrol, food etc.. and use the card -only- for that with the balance paid in full at the end of the month.
This will undo any bad rating you have caused, and should lead to a very healthy credit rating in the future.
Credit cards can be saved for emergencies, or they can work for you - my card has cashback and other point benefits when used with allied companies. I use it all the time, but pay it off in full each month .. this is important.
FYI - I got burned the same as you when I got my first card … it’s one thing to do this with a £300 card (as i did), but now i have a total of £14k available!! :eek: .. dangerous.. lol
Yeah, Honestly, just pay it off as fast as you can and don’t use it again. Eventually the interest rate will go down, and the balance will go up, as you establish more credit.
Also, just wait for more offers to come it. Take out another small card and pay it off right away. As you do this your interest rates will lower more, and your balances will increase more, as the companies will try to persuade you to spend more.
I’m trying to get myself out of some small credit card holes, but the best thing to do is set a monthly amount you always pay. After a few months of this it’ll be directly factored into your budget and you won’t have to think about it.
I was previously was a loan officer in the credit card dept for the largest credit issuer in the world. Ok so you went over the limit by a dollar and change. Call customer service and ask for a waiver, if they decline, ask to speak to a manager, they usually give you a call back withing 24 hrs. If they dont call you back you have all right to call the escalations dept and they will help. If that fails too you can always write into the correspondence dept and explain that it not fair they raised your rate from 0 to 28% over a dollar. They usually get back to you within 30 to 45 days, if they dont, the case is in your favor. All you have to do is bug the right person, its going to take several phones calls, but you acct should be back to normal. If you can have the limit raised to $500 to have a cushion just in case you go over.
In regards to applying for more than 1 credit card in 1 year, that is a myth. Just dont over do it, if you are building your credit, I would say apply for store credit on student type cards every 6 to 9 months but dont over do it. 4 to 5 cards max. Start off by applying at your local bank where you have a checking acct.
Good luck, and btw I am not affiliated to Susy Orman in any way.
Thanks for the advice, I’ll try calling as soon as I get home from work.
Also, since you obviously know what your talking about, do you have any idea why it would say something like “APY applied this billing period: 92.5%” ??
EDIT: At this point I’d also like to add in that I’m not an idiot, and even though I look like a giant run-of-the-mill-young-kid-in-credit-card-trouble, it’s not because I was completely dumb about spending. I just should’ve read more carefully.
I just realized that to anyone reading this it probably sounded pretty typical. You know what I mean? “Oh some 19 year old screws up with his first credit card? Shocking!” Ehh… Whatever. It’s not the end of the world I guess.
It’s pretty safe to say worse things have happened, and worse things will happen…
… it’s one thing to do this with a £300 card (as i did), but now i have a total of £14k available!! :eek: .. dangerous.. lol