Tips for First Credit Card
John Wong
Posted: Tue Jun 01, 2004 3:13 pm
Post subject: Tips for First Credit Card
Date: 3/12/2003 1:35 pm CDT
Hi there,
I just received my first credit card, which is secured VISA. The credit limit set is $900. If I charge $1500 on this card and pay the bill in full when it comes, am I risking anything? The other obvious question is, will I be able/allowed to charge $1500 while the credit limit is $900?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
bail
Posted: Tue Jun 01, 2004 3:14 pm
Post subject: Tips for First Credit Card
Date: 3/12/2003 2:11 pm CDT
to my knowledge you are not allowed to spend a cent over the set credit limit. doing so my trigger outragious penalty fees, negative credit record.
to better build credit you should not spend more than 50% of the limit.
good luck
David*
Posted: Tue Jun 01, 2004 3:15 pm
Post subject: Tips for First Credit Card
Date: 3/13/2003 11:58 am CDT
John,
Check your terms & conditions that came with the card, but I suspect your credit limit is just that - a limit. A very few higher end cards will allow you to spend over your credit line, but they expect payment in full (to bring the balance back below the credit line, at least) with the next statement. As this is your first card, and it is secured, I'm guessing it doesn't have the same benefits as these higher end cards.
In all likelihood, if you attempted to charge $1500 to this card, it would simply be declined - embarrassing to you, but hopefully no charges from the credit card company.
Also, be careful to check what your "grace period" is. If there is no grace period, then be careful to leave enough of your credit line for interest charges, as they will start accruing from the day your transaction is made.
Also, "bail"'s comment about the ratio of your current balance to your total credit line is very important. If this ration gets too high, then potential lenders get nervous because it looks like you are starting to get "maxed out". Also, the less scrupulous lenders will see that you are "over a barrel", and can use this as an excuse to raise interest rates on existing credit.
I hope some of this helps - sorry it probably wasn't the answer you wanted though )
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Jun 01, 2004 3:13 pm
Post subject: Tips for First Credit Card
Date: 3/12/2003 1:35 pm CDT
Hi there,
I just received my first credit card, which is secured VISA. The credit limit set is $900. If I charge $1500 on this card and pay the bill in full when it comes, am I risking anything? The other obvious question is, will I be able/allowed to charge $1500 while the credit limit is $900?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
bail
Posted: Tue Jun 01, 2004 3:14 pm
Post subject: Tips for First Credit Card
Date: 3/12/2003 2:11 pm CDT
to my knowledge you are not allowed to spend a cent over the set credit limit. doing so my trigger outragious penalty fees, negative credit record.
to better build credit you should not spend more than 50% of the limit.
good luck
David*
Posted: Tue Jun 01, 2004 3:15 pm
Post subject: Tips for First Credit Card
Date: 3/13/2003 11:58 am CDT
John,
Check your terms & conditions that came with the card, but I suspect your credit limit is just that - a limit. A very few higher end cards will allow you to spend over your credit line, but they expect payment in full (to bring the balance back below the credit line, at least) with the next statement. As this is your first card, and it is secured, I'm guessing it doesn't have the same benefits as these higher end cards.
In all likelihood, if you attempted to charge $1500 to this card, it would simply be declined - embarrassing to you, but hopefully no charges from the credit card company.
Also, be careful to check what your "grace period" is. If there is no grace period, then be careful to leave enough of your credit line for interest charges, as they will start accruing from the day your transaction is made.
Also, "bail"'s comment about the ratio of your current balance to your total credit line is very important. If this ration gets too high, then potential lenders get nervous because it looks like you are starting to get "maxed out". Also, the less scrupulous lenders will see that you are "over a barrel", and can use this as an excuse to raise interest rates on existing credit.
I hope some of this helps - sorry it probably wasn't the answer you wanted though )
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:46 PM
0 Comments:
Post a Comment
<< Home