(Closed) credit card question

posted 8 years ago in Money
Post # 3
Member
3564 posts
Sugar bee
  • Wedding: August 2010

As long as you don’t carry a balance from month to month, you won’t be charged interest. We charge pretty much everything on our cards, from dinners out to a $2 purchase at the drugstore, and we pay it off every month. We get a ton of rewards points for it.

Post # 4
Member
642 posts
Busy bee
  • Wedding: July 2011

@spoonoutmyheart:  You should only incur finance fees if you do not pay the bill in full each month.  I say go for it, so long as you know you’ll actually pay it off each month.  I use American Express because it’s a charge card, not a credit card.  I have no choice, charge cards must be paid in full at the end of the month.  I do pay a $90 annual fee, but I get way more back each year in rewards (i usually do Pottery Barn or Williams-Sonoma gift cards.).  I’m not an expert, but I don’t think your credit will drop because you pay your card off in full.  I would think quite the opposite.  But again…I can’t say for sure.

Post # 5
Member
2889 posts
Sugar bee

um, using your credit card and paying the balance in full is how you get good credit. I would never see it as a bad thing and you won’t get charged interest as long as you pay it in full before the due date. I took out an AMEX with Starwood points for wedding expenses and as a result, we earned 5 hotel nights at a 4 star hotel so we’re taking a week vacation in April. I highly recommend using your credit card both for he points and the insurance in case a vendor should go out of business.

Post # 6
Member
2889 posts
Sugar bee

@vaness13181: My AMEX is a credit card and I only pay a $65 annual fee. Maybe you want to look into some other options or ask them to reduce your fee?

Post # 7
Member
642 posts
Busy bee
  • Wedding: July 2011

@slicey19: Like I said, mine is not a credit card but a charge card (AMEX Green).  I use it for work expenses too and sky’s the limit.  Sometimes in a month I spend a ton for work and it helps not to have a limit.  I charge gas, hotels, flights, dinners with clients, etc. so I earn tons of points.  I just wanted the OP to know I pay an annual fee in case she goes looking at some of the AMEX options.  They always ask me to get the platinum card because I pay on time, but there is no way that I am going to pay the $400 annual fee just to wave a platinum card around!  That’s a ridiculous fee (unless you benefit from the extra amenities, but it’s just not worth the money to me).

Post # 8
Member
7173 posts
Busy Beekeeper

@spoonoutmyheart: As long as you pay off the balance in full every month, you wouldn’t incur interest.  I don’t believe it would have any effect on your credit score, unless you had tons of cards you did this on vs just one.

Post # 9
Member
221 posts
Helper bee
  • Wedding: March 2012

FYI:  Your credit score will go down because you’re opening a new account; however it will go back up after you make and pay for your first purchase.  Also, the other bees are correct, you will not be charged interest unless you don’t pay it off every month.

Post # 10
Hostess
18637 posts
Honey Beekeeper
  • Wedding: June 2009

Having a card and paying it off every month won’t incur interest but it will help with your credit because it shows you are using it responsibly.  The thing that can make your score drop is charging over 30% of the available limit, carrying a balance, or having too many credit cards open.  New credit will temporarily ding your credit score but not much.

Post # 11
Member
14658 posts
Honey Beekeeper
  • Wedding: June 2011

Absolutely, as long as you can pay off your card each month, charge it up.  I also charge absolutely everything to get benefits of cash back.  I hadn’t redeemed my cash back off my cards in a few years, but just did and it was over 1k! 

Post # 13
Member
602 posts
Busy bee
  • Wedding: October 2010

I dont think it reflects your credit poorly if you pay in full,  however if you charge over half your available balance that does affect you.  For example if your credit card has a 4k max and you charge 2500k in a month;  even if you pay it off in full,  it refelcts poorly (though I dont know how much it actually lowers your score,  I imagine not that much).  There are a lot of weird tricks.

Post # 14
Member
2410 posts
Buzzing bee
  • Wedding: July 2011

@slicey19:

I have the Starwood AMEX too and I love it. I paid for all my hotel rooms for honeymoon in points because all wedding related charges have gone on the card, plus I got a big signing on bonus.

Post # 15
Member
1328 posts
Bumble bee
  • Wedding: July 2011

We use our credit card for lots of purchases, but pay it off every month.

 

Here’s a little something we learned about credit and cards:

 

When we sat down to get a mortgage pre-approval, the banker also told us that your credit will go down if you max out or use 75%+ of the limit every month.  They say it’s better to use 50% or less of the credit before paying off

 

Basically, If your limit is $500, and you max out 500, credit will not be as great as if you charge $250, and then pay it off and then charge the other $250, etc.

 

Weird, I know! 

Post # 16
Member
14658 posts
Honey Beekeeper
  • Wedding: June 2011

@spoonoutmyheart:Do you have amex Blue?  If so, check the fine print on their card.  They only give half a percent until you charge 6500 in your reward year, THEN they give you the cash back that is advertised.  It’s not worth it unless you plan on charging much more than 6500 the year.  If you have Chase freedom, I’d go with that one, and make sure to sign up for whatever the quarterly bonus is for the 5% cash back.

I just made assumptions based on amex and chase most popular card, but just make sure to read the fine print regarding their cashback to see which is best to use.

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