To get a credit card or not?

[Lyric]

Hi All,

There are so many varying suggestions, reports, articles, etc. on this topic from reputable sources, so I'm hoping that a few people can chime in with their own experiences!

I am debating whether or not it makes sense to get a credit card. I am a single twenty-something living on my own. Currently the only debt I have is from a student loan (5 years in, 5 years to go). I paid off my car loan a few years ago and do not own a home (I rent), so there is minimal activity on my credit report. Up until now, I have not had a credit card as I did not want the temptation to live outside my means. I'm finding myself thinking, though, that it would be good to have in case of an emergency (freak car repairs, etc.). In addition, if I keep a close eye on my monthly budget and pay the credit card bill each month, I could move my purchasing over to the credit card and have more activity on my credit report.

Is it be better to have a credit card and pay it off each month, or would it be detrimental to my credit score to have a credit card? Any advice?

Thanks in advance!

 

[Darcy03231]

As long as you can be disciplined with it, there's nothing evil about have a credit card.

Most credit card companies will let you make up to 4 payments a month on-line. I charge everything I can and pay off my charges weekly. I get paid on Thursdays and on Fridays I go in and pay off what has posted for the last week. If there happen to be 5 Fridays in a month I end up paying off two weeks together. This way it never gets too high.

 

[ICF]

Despite what a certain group of people will tell you....there is NOTHING WRONG with getting a credit and honestly, if you can be responisble with it it's a dumb idea not to have one (IMO).

Find a card that has no fee.....gives you a rewards that YOU want (disney $, hotel or airline points, cash back...whatever it may be) and pay it off every month.

I have multiple credit cards and a credit score of 800+ it wont hurt your credit score to have a credit card.

My 2 main cards are the disney visa and a hotel rewards card. I havent paid for a hotel in many many years and our trip to Disney last year we had over $200 in rewards to spend. It is a great way to get free money via rewards.

You only get in trouble if you spend money you dont have and end up paying interest / fees each month due to not paying off the balance in full. Pay it off each month in full and you will be fine.

 

[disneychrista]

I honestly think that it is important to have a credit card. But it is not OKAY to buy things you can not afford/pay off. Credit Card DEBT is evil, Card Cards are NOT.

 

[PatsMom]

There is nothing wrong with credit cards when they are used responsibly. I do like a PP - charge a lot of stuff to get my Southwest rapid rewards, then I pay it off weekly. So it is just swiping a credit card instead of a debit card.

 

[DisneyCowgirl]

Aren't there situations where you NEED a credit card? Renting a car for example.

 

[scottmel]

I have around 12 and have perfect credit score. I couldn't be without them! I have no debt though and always pay off the bills but credit cards help build a credit score...ok you don't need 12 but I was getting southwest trips and opening like crazy and then disney cards and costo amex and store cards...But once I get my trips squared away I do plan to close a few. But need at least 3...

 

[disney11fan]

hi all,

there are so many varying suggestions, reports, articles, etc. On this topic from reputable sources, so i'm hoping that a few people can chime in with their own experiences!

I am debating whether or not it makes sense to get a credit card. I am a single twenty-something living on my own. Currently the only debt i have is from a student loan (5 years in, 5 years to go). I paid off my car loan a few years ago and do not own a home (i rent), so there is minimal activity on my credit report. Up until now, i have not had a credit card as i did not want the temptation to live outside my means. I'm finding myself thinking, though, that it would be good to have in case of an emergency (freak car repairs, etc.). In addition, if i keep a close eye on my monthly budget and pay the credit card bill each month, i could move my purchasing over to the credit card and have more activity on my credit report.

Is it be better to have a credit card and pay it off each month, or would it be detrimental to my credit score to have a credit card? Any advice?

Thanks in advance!

what type of job do you have? How long have you been there? Do you buy things on a wim? Do you have a bank account and checking account. Do you have a 401k plan ? As long as you don't buy things without thinking and you have bank accounts a good job and a 401k plan go for it.

 

[msmama]

I can tell you that my sister was in a very similar situation.

When she went to move, she had to have her mother cosign her lease because the landlord said she didn't have enough credit history.

So, NOT having a credit card can be detrimental to your overall credit!! Just make sure you pay it off every month (if not more often).

 

[scrapquitler]

Hi All,

There are so many varying suggestions, reports, articles, etc. on this topic from reputable sources, so I'm hoping that a few people can chime in with their own experiences!

I am debating whether or not it makes sense to get a credit card. I am a single twenty-something living on my own. Currently the only debt I have is from a student loan (5 years in, 5 years to go). I paid off my car loan a few years ago and do not own a home (I rent), so there is minimal activity on my credit report. Up until now, I have not had a credit card as I did not want the temptation to live outside my means. I'm finding myself thinking, though, that it would be good to have in case of an emergency (freak car repairs, etc.). In addition, if I keep a close eye on my monthly budget and pay the credit card bill each month, I could move my purchasing over to the credit card and have more activity on my credit report.

Is it be better to have a credit card and pay it off each month, or would it be detrimental to my credit score to have a credit card? Any advice?

Thanks in advance!

Having a credit card and showing that you can use it responsibly (paying it off monthly) is a GREAT way to build your credit. Having a good credit history is important if you want to ever buy a home (even years in the future).

Besides that, having that one credit card makes it easier to rent a car, buy a plane ticket, etc.

 

[Cheshire Figment]

With no credit it is very difficult to get credit. One of my nephews recently had a real problem. His wife inherited a house with a value in the upper six figures (in NYC) that is free and clear. They have been living in a rental for over ten years. They want to spend about $100,000 to do remodeling, including having a rental unit. They have no credit history less than ten years old and have been having a very difficult time to get a loan for the remodeling.

If you can get a general purpose credit card (or two) it is a good idea. Keep track of your spending, as if it were cash. When the biil comes in each month pay it in full immediately.

This way you will have a current excellent credit record if a need does come up to borrow money.

 

[Disneybuckeye]

I think everyone should have at least one credit card. In addition to being easier for rental cars, hotel rooms, emergencies when you are out of town or late at night, building your credit history, money is not immediately taken out of your account if stolen like a debit visa, the free reward points are great. As everyone else said, pay it off in full every month and it is like free money!

 

[marie1203]

Credit cards are important to build credit. I love my credit cards because I never paid a penny in interest yet I gotten money back in rewards plus our credit is great. When you look at credit cards make sure you pick something with no yearly fee and good rewards.

 

[malibuconlee]

Haven't read the other responses, but here is my opinion.

No idea what line of work you are in, but with my husband's job there is no way he would be able to do his job without a credit card. He charges things for work, actual items needed for jobs, he puts hotel nights on his card, car rentals. Just not sure how he would do that without one.

We do exactly as you say. We charge things to our card and pay them off, not every month, but every two weeks when DH is paid. We have excellent credit scores. Actually DH just bought a new truck which wasn't something we expected to do this year. The financing guy at the dealership came out and shook DH's hand because as he said in the 12 years he'd been doing his job he'd never seen that high of a credit score.

It is always nice knowing that you have a credit card for emergencies. (like renting a car when yours breaks down out of town!)

OH and for anyone that will argue about my husband and him not having a company credit card for those things....well, they don't give them out. Too many have abused them in the past!

As long as you use them wisely credit cards are not the evil so many seem to think. We also just used rewards for airline tickets for a trip when I found flights to be much more expensive.

 

[midwestdee]

Because you are young - you probably won't be at the point where the rewards part of a credit card will be your priority. Like most posters, I too do the reward thing big time - but when I was young(er) it was more the practicality of having it for emergencies. Research the card best for your needs. Don't charge (unless it is a dire emergency) for anything you don't have cash for now and when you charge it - note that in your checkbook or whatever bill journal you keep so when the bill comes in - the cash is there. Credit cards have consumer protections that debit cards do no have. I don't even have a debit card! When I need cash - I write a check and drive to the bank. In other words, I am a dinosaur. Having said that, your thoughtful approach will serve you well.

 

[dd50]

I think that every one should have at least one credit card if not more. The only time you shouldn't is if you purchase every thing you see and then carry a balance every month. I have a rewards card and use it for every thing and pay it off monthly or more often. I don't pay them money but they pay me. My daughter is in college and she got one with rewards and she also pays hers off every time she gets paid. She is saving her cash rewards for her disney trip.

 

[eliza61]

Contrary to popular belief credit cards are not some evil invention out to get you. they are a tool, plain and simple and like any other tool they can be abused. Dh & I have 5 total. we each have a personal american express and a visa and then we have 1 joint account. I have an old sears account from the good ole days when every house wife in America shopped at sears or JC penny's. LOL.

My American express has a rewards program and so by the disney time in august I'll have enough points to get 600 bucks in restaurant gift cards (we eat offsite).

Yes, I would recommend you get 1.

 

[bettymae1121]

I agree with the other's, have a CC (or two) is fine. You may want to start out with a store card (Kohl's, Macy's or another favorite store) and then after a few months apply for a major card. If rewards aren't a concern just look for one with no annual fee. If you do want rewards, some of them have fees so just make sure the reward is worth the yearly fee you'll pay.

As long as you have a budget and stick with it, you should be fine. My parents had cards since they were invented, and in 40 years of use, never paid a cent of interest (and got a lot of free airline tickets, once reward cards came about!). So it's certainly possible to have CC's and avoid CC debt.

 

[Lyric]

Thank you all for your wonderful advice! I so, so appreciate all the input you've offered. I do believe I'll be browsing through my credit card options to find the best fit.

what type of job do you have? How long have you been there? Do you buy things on a wim? Do you have a bank account and checking account. Do you have a 401k plan ?

* I work for a school district, so I have PERS, not a 401k. I've been with the district 6 years and in my current position (office manager) for 2 years.

* I used to be an impulse buyer but have trained myself to not give in.

* I've had a savings account for 25 years or so, and a checking account for approx. 10 years.

I think everyone should have at least one credit card. In addition to being easier for rental cars, hotel rooms, emergencies when you are out of town or late at night, building your credit history, money is not immediately taken out of your account if stolen like a debit visa, the free reward points are great. As everyone else said, pay it off in full every month and it is like free money!

Thanks for mentioning the security-- this was actually one of my main reasons behind considering getting a card.