Questions about Credit Cards?
My Fiance and I are thinking about getting a credit card to furnish our new apartment. I don’t really know much about credit cards to begin with so I know this is a stupid idea anyway, so don’t try to trash this please, I was just hoping to find out which cards are better, ie discovery, and just the basics i need to know, like interest, APR, and all that oh so wonderful stuff.
Again, please don’t trash me, I do understand that credit cards can be bad, but I am very good with money and at least im educating myself first!!
Capital One and Discover both have plans where you don’t pay any interest for 6-months to a year these are good just be very sure to pay off the account in full before the grace period expires.
This way you get to furnish your apartment and establish your credit all at the same time.
Or like the first poster said there are furniture places all over that offer 12-months no interest again be very sure to pay it off in full before the grace period expires.
My Wife and I used 2 credit cards with 0% interest when we bought our new home 4.5 years ago and paid everything off in 12-months.
Comments
Better to find one of those furniture stores where you dont pay for a year. The trick is that you pay it off before that time comes up therefor you dont pay any interest!!!
YAY
References :
Capital One and Discover both have plans where you don’t pay any interest for 6-months to a year these are good just be very sure to pay off the account in full before the grace period expires.
This way you get to furnish your apartment and establish your credit all at the same time.
Or like the first poster said there are furniture places all over that offer 12-months no interest again be very sure to pay it off in full before the grace period expires.
My Wife and I used 2 credit cards with 0% interest when we bought our new home 4.5 years ago and paid everything off in 12-months.
References :
Finance Manager for over 9-years.
they all have different interest and plans—alot is based on your credit record/score. Stay with name brand ones (so to speak) Discover, Citibank, Bank of America, American Express (not the one you have to pay back every month-unless you truly plan on that) You might get a little higher interest rate to start out with–look on line -get phone #’s and call and talk to them! BUT DO BE CAREFUL!!! DON’T OVERCHARGE!! PAY WELL!! Good Luck!! It will help build your credit!!
References :
Please! You’re starting on the wrong foot. Be reasonable in your expectations of what your apartment will look like. Buy what you can afford now and only what you need now. You can add as time goes by. A credit card should be used as a convenience, not as a “source”. Consider this: when the bill arrives next month and you can’t pay the total, for every $100 you spent you now owe about $118. Bad deal. If you must spend more than you can afford now, at least try to get a bank loan. It’s more affordable than credit card debt.
References :
I'm not sure which area of the country you're in, but around the Seattle area, furniture companies are desperate for sales right now. As a result of the housing slump many of them are having difficulty moving their inventory and staying in business. A good example of this would be the company I used to work for, ReclinerLand, Inc., which is even going so far as to offer up to a year's financing at 0% interest for purchases of $1,000 or more.
If you and your fiance are planning on purchasing your furniture on credit it would be much better for you to consider the financing options available at whatever retailer you decide to go with. Most times they will offer a safe, fixed rate, with an installment payment plan.
Whatever the case it will most likely be lower than the rate offered on a credit card, ranging from a low of maybe 7%APR (annual percentage rate) to a high of maybe 12%APR after the zero interest expires.
The trouble with credit cards is that their rates are totally variable and could increase drastically over time. While many offer a low introductory rate, chances are that if you haven't paid off what you owe after that rate expires, your payments and interest will go through the roof.
Credit cards could end up having rates of lows of around maybe 12%APR and highs of 25%APR after your zero interest expires. If you miss a single payment or if the Prime interest rate goes up considerably (the rate most cards are indexed to: http://en.wikipedia.org/wiki/Prime_rate ) you could even end up paying in excess of 32%APR.
References :
1 year as a Retail Furniture Salesman
2 years as a Personal Banker
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