Credit card advice

[subzerofun]

does anyone know of any good credit card rates out at the moment? i've had a look around online but there are so many out there, i just want a low rate. is 9.99% good? that seems to be the lowest one going at the moment. sorry if this is a stupid question but my knowledge of banks/cards/finance isn't too crash hot so i thought i'd ask for some advice.

muchos gracias in advance!

 

[Hawkamania!]

If you are a teenager or a young adult, my advice is to get one of those debit cards that have credit card functionality. The advantage is that it forces people to save for items first and not spend money they do not have.

There is an annual fee with these cards, but it is usually a couple of dollars a month.

Quite a few young people get caught in the credit card trap and end up spending money on interest, which takes away from their ability to save.

 

[Off The Couch]

Quite a few young people get caught in the credit card trap and end up spending money on interest, which takes away from their ability to save.

Which my daughter is now finding out.

What really annoyed me though is she went for debt consolidation to get out of the cycle and they still offered her another credit card.

Hopefully there will come a time when banks are held accountable for dishing out credit cards as though they were lollies.

 

[Walshy_The_Goat]

I understand how people can find reason to blame the banks for getting them into a financial rut, especially when it comes to youngsters as they don't fully understand the concept of credit cards, but in the end the person to blame is the consumer themselves. What i don't understand is how people can be so ignorant towards the fact that they go out and spend on their credit cards as if it were their own money. Credit implies that it isn't your money, and that it's the banks money you are spending - a short term loan option if you will. It's not a very hard concept to understand, and anyone who blames the banks should first question their own lack of knowledge and ignorance. It boggles the mind as to why people can't understand this.

A personal example; i only recently went overseas to Europe and spent over a grand on my credit card, coming back with close to nothing left in my regular savings account until i got back into casual work again. But the reason i spent on it in the first place is that i knew full well i could repay it once i started working again, and thus knew i couldn't use it anymore until it had been paid off.

Working in retail, myself, it amazes me how many people use credit cards. Of the people i serve i'd say the figure would be close to 80-90% of people use credit, and that's even with the Good Guys slogan preaching to 'Pay Less, Pay Cash'. The trap is when people start to use it regularly rather than just as a one off payment on goods.

In the end the bank isn't there to serve your needs, regardless of whatever hoopla they spin. They are there to make money, and credit card interest is how they do it. I despise credit cards because i see them for what they are - a money making scam - and shake my head at anyone who points their finger at the banks.

 

[Equus]

Debit NOT Credit

 

[carntheroos4eva]

Which my daughter is now finding out.

What really annoyed me though is she went for debt consolidation to get out of the cycle and they still offered her another credit card.

Hopefully there will come a time when banks are held accountable for dishing out credit cards as though they were lollies.

Debit is better than credit.

 

[subzerofun]

the reason why i need a credit card is because i am going overseas soon and would like the security of having a credit card in case things go awol. my story is similar to yours, walker_the_star. i have a job currently and i will be returning to it once i finish my trip so i know i'll be able to pay off whatever i spend.

this is the low rate credit card i was talking about in the first post. i figure the lower the rate the better, right?

 

[Sheeds]

the reason why i need a credit card is because i am going overseas soon and would like the security of having a credit card in case things go awol. my story is similar to yours, walker_the_star. i have a job currently and i will be returning to it once i finish my trip so i know i'll be able to pay off whatever i spend.

this is the low rate credit card i was talking about in the first post. i figure the lower the rate the better, right?

Make sure if you do use the card overseas that you are able to make MMP to the credit card while you are still overseas. So many people think just because they only use the card once or twice and miles under their credit limit they do not have to pay anything. A shock to the system for people to come back and have a bunch of misssed payment fees.

 

[Niximus]

the reason why i need a credit card is because i am going overseas soon and would like the security of having a credit card in case things go awol. my story is similar to yours, walker_the_star. i have a job currently and i will be returning to it once i finish my trip so i know i'll be able to pay off whatever i spend.

this is the low rate credit card i was talking about in the first post. i figure the lower the rate the better, right?

If that is the reason for wanting it, don't go for the low rate, go for the no annual fee.

I personally don't have a credit card though I can see it's appeal in the travelling situation. If I were you I would get one for the trip and cut it up when I return, they are unnecessary here. I have a Visa debit and so can do all the credit card things such as online purchases etc and I don't pay any interest on it. It is a myth that you need one to be able to establish good credit. I was able to borrow for my car and house without ever having a credit card.

 

[haywood jablome]

Credit Cards ARE useful for travel, don't listen to the doom and gloomers that say you don't need one. I assume you aren't mentally challenged and don't spend what you don't have. If it is specifically for travel then look at the Wizard Clear Advantage card. No annual fee, no interest on cash advances IF THE CARD IS IN CREDIT, and they offer the best exchange rates, also no ATM withdrawal fees (unless the ATM it self charges a fee - it will ask you this before you proceed with a withdrawal). The interest rates on the card are HIGH, but this means nothing if you are only buying what you can afford and pay it off every month. You can manage it online and simply use BPAY or Direct transfer to pay it off or put it in credit.

 

[greenred]

Working in retail, myself, it amazes me how many people use credit cards. Of the people i serve i'd say the figure would be close to 80-90% of people use credit, and that's even with the Good Guys slogan preaching to 'Pay Less, Pay Cash'. The trap is when people start to use it regularly rather than just as a one off payment on goods.

A lot of people who are capable of managing their finances use their credit card to pay for everything and simply pay the balance each month, essentially getting an interest free loan for their expenses. If you are earning reward points or anything like that, it's an easy way to increase them and you can keep track of your spending, as it's all on one statement. There's no trap involved, only people who can't live within their means and think the bank is going to give them money for nothing.

 

[thegreenmachine]

Which my daughter is now finding out.

What really annoyed me though is she went for debt consolidation to get out of the cycle and they still offered her another credit card.

Hopefully there will come a time when banks are held accountable for dishing out credit cards as though they were lollies.

I'm a student myself and have been offered a credit card from my bank institution, the Commonwealth Bank, like it's a really good thing to have.
For the large part they have confused me, but the advice I get from people I know is to keep away from them. I'm moving away soon and am thinking about purchasing one, but of course there always seems to be pros and cons of having one.
Only use I could ever see myself with one is for travelling (as others have said is good to have) and to get my account upgraded on this site, which it appears you need to have to get it upgraded.

 

[subzerofun]

great, thanks everybody for your input. you've cleared up a few things i was unsure about.