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Thread: Need a Credit Card Which One Is for me?

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    Veteran Member Stipperella's Avatar
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    Default Need a Credit Card Which One Is for me?

    ALot of people always tell me never to get a credit card and i have always agreed, but lately i've been wanting one. I am pretty sure i can handle it i am good at paying what i owe, and i'll make sure i dont' overcharge. I think i should be o.k. or how is it that these people get into so much debt with a credit card? I assume they overcharge and not pay. is that right?

    Anyway the question is which one should i get? and how do i get it?

    I am 22

    My credit score is in the 300s

    The only credit card with my name i own is a gas card which is actually my moms account she just got me one with my name on it.

    So i am pretty much clueless about credit cards any info would be greatly appreciated. Thanks in advance.

    P.S. The Card I just want it not need it

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    God/dess Emily's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    check out http://creditcards.com/

    they have them all listed out with the perks of each. It's pretty cool. They have some for sub-prime credit too (which you have)

    You are part right about credit cards. They can be bad, but they can be good too. It just depends on how you use them (like a lot of things in life, now that I think about it.)

    I got in huge CC debt back in college. It's a sin they give college students such high credit limits because they know you don't make money and will be in huge debt when you graduate. But yeah, it comes from spending a certain amount and not being able to pay it off every month.

    Let's say you charge $500 worth of stuff on your card. When you get your bill, they will say your minimum payment is $15. So, if you don't pay the whole $500, they charge you interest. And chances are that if you don't have the $500 that month, you probably don't have it the next month, and you certainly don't have the additional $500 for the other crap you bought, so you pay the $15 again...and so on and so on. Eventually you get in this frame of mind that the debt is too huge to overcome so you charge like crazy because the money doesn't feel real.

    This is my real-life experience with credit cards and I had $18,000 in debt from them and very little to show for it (thankfully I got out after I started dancing.) It happens to so many people, which is why your friends are advising you not to get it. When I really thought about it, I was paying double for everything with all the iterest charges. That means I could have bought better/more clothes or gone on a better vacation if I could pay it off (i.e. save for the things I wanted instead of buy now and pay later.)

    BUT....on the flip side. Despite all the debt, I had excellent credit (CC companies love for you to make the minimum payment, but you must make it every month or ELSE!) When it came time to finance a car or a house, I had a great credit score because I showed that I had a history of consistently paying what I owed (even if it was the minimum.) This meant that I could get a good rate on these things. If you have bad credit, sometimes you have to get an outrageously high rate or you can't get a loan at all. So you actually SAVE money by having good credit, and you build good credit by taking out loans and paying them back.

    Credit cards were my lesson into the world of compound interest. It can be your best friend or your worst enemy.

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    Veteran Member Stipperella's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Thanks for all the valuable info and website i'm gonna check it out right now.

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    Veteran Member Stipperella's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Another question if i get a card, use it, pay it off, can i just cancel it anytime? or stop using it? what is i'm not using it all the time

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    God/dess Emily's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    You don't have to use it all the time, and you can cancel whenever you want. Most of the sub-prime cards have an annual fee, so you might not want to have ones that you aren't using.

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    Veteran Member Gerina's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    I had six (yes six!) credit cards in college and used them to cover living expenses since my parents weren't helping out. Problem was, like Emily said, you accumulate so much debt it doesn't feel completely real and you end up buying things on sale because you just wanted them. My credit score is really good, though, since I always made payments on time over four years and then paid them off only five months after college (thanks to dancing). Now when I use them I budget the bill into my "real money" to pay the balance at the end of the month.

    You could consult a financial planner (some banks will give you one for free if you have an account with them) to weigh the pros and cons of having a subprime card w/ annual fee versus a high interest card that you pay off every month. It depends on what you want to use the card for, and if you just want to have one on hand I'd say no additional fees. Oh, and definitely avoid Capital One.
    ...and the day came, when the risk it took to remain closed in a bud became worse than the risk it took to blossom.

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    Veteran Member Gerina's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    I think I should mention that having a card for a short period, maxing it out, cancelling it, and paying it off is not good for your credit score. Loaners want to feel like they're going to make money off you long term.
    ...and the day came, when the risk it took to remain closed in a bud became worse than the risk it took to blossom.

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    Member MistressJennaIL's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    You might try a pre-paid card to get used to the idea of credit, etc...it's basically a pre-paid debit card, Bank of America does a nice one that works anywhere they take visa...the idea being that you charge it up (by paying the 500 or whatever to the card) and then it's there for you...I suggest this because it is sooooooo easy with the predatory lending that goes on these days to get in waay over your little head...and that's the last thing you want, managing your credit is very important...even if you have cash to pay for things as I advocate doing 99% of the tiem, your credit score is still important...

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    God/dess VenusGoddess's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    If you have a credit score of 300, you are more than likely going to get hit by only being able to get cards that charge you an "opening fee" of $100 or more and then a yearly fee of $50 or more and then pay interest of 23.9%. If you DO get a credit card, make sure that you are careful of how much you charge. The biggest thing that goes against credit score is available balance. If you have a credit card that has a $2,000 limit and you have an $1,800 balance on it, it will affect your credit score negatively. The trick is to maintain a balance (make the minimum payment) for 6-9 months, but to only charge very small items on the card. So, buy some dancing make-up on the card and then slowly pay it off. You'll pay more for it, true, but paying off the credit card in full every month does not help your credit. After the 6-9 months of this (never let you balance exceed the 25%-40% of your credit line) pull your credit report and check on your score and all info. If your score has gone up (which it should if you pay EVERYTHING on time) then you will be more likely to get an unsecured credit card with a low APR.

    It's so easy to over-charge on a credit card. Just be concious of how much you are spending and be realisitc about how much you can really afford.

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    Banned Melonie's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    One other observation for what it's worth. ALL credit card transactions are easily available to the IRS and state tax dept's if they should ever have reason to want to check. This means next to nothing if all of the money you have been spending via the credit card has been previously declared as income on your tax return and if you have paid the taxes due.

    However, if for any reason the total amount of money a person has been spending, via credit cards, checking accounts, monthly loan payments etc. obviously exceeds the amount of after tax income they reported to the IRS, credit card and other spending records can be used by the IRS to 'reconstruct' an actual income and to send you a bill for the unpaid taxes.

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    Member HIJACKER's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by Melonie
    One other observation for what it's worth. ALL credit card transactions are easily available to the IRS and state tax dept's if they should ever have reason to want to check. This means next to nothing if all of the money you have been spending via the credit card has been previously declared as income on your tax return and if you have paid the taxes due.

    However, if for any reason the total amount of money a person has been spending, via credit cards, checking accounts, monthly loan payments etc. obviously exceeds the amount of after tax income they reported to the IRS, credit card and other spending records can be used by the IRS to 'reconstruct' an actual income and to send you a bill for the unpaid taxes.
    Very true.

    Get a credit card with no annual fee and put a cap on it of about $500. I would try checking your bank first, or a Credit Union if your a member of any. The low balance will prevent IRS audits on your income, and you can easily keep $500 within budget. Just pay like $100/month forever on it and maintain a LOW balance. Try using that credit card for Gas instead of the Gas card.

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    God/dess Emily's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    It's next to impossible to get a credit card with no annual fee if you have bad credit.

    And I thought the IRS could see any credit card transactions. Are you sure about what you're saying? I mean, if it's on your credit report, the IRS can easily obtain that information.

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    Member HIJACKER's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by Emily
    It's next to impossible to get a credit card with no annual fee if you have bad credit.

    And I thought the IRS could see any credit card transactions. Are you sure about what you're saying? I mean, if it's on your credit report, the IRS can easily obtain that information.
    If your only using the credit card for low-end purchases like gas, the IRS has nothing to base your income -> expense ratios. If your using a Visa ChekCard, that's a "credit" card in some sense, however its making direct debts on your checking account and the IRS can't access that without your consent and authorization.

    In response to the bad credit, Annual fees are nothing more than a service charge that is applied to ALL customers on certain cards. Usually the only cards that have an annual fee are those with 5% cashback on purchases or give you special options, it has nothing to do with credit. How high your credit limit is, what APR %, and what it will cost upfront to start an account (thats if you even get approved) is what has something to do with your credit score.

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    God/dess Emily's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Not true. There are special cards out there for people with bad credit, and they all have annual fees and high interest rates. The ones that don't have annual fees are for people with average to good credit.

    As for not charging much to stay under the IRS radar....you don't need a low limit for that. Just don't charge a lot.

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    Member HIJACKER's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by Emily
    Not true. There are special cards out there for people with bad credit, and they all have annual fees and high interest rates. The ones that don't have annual fees are for people with average to good credit.

    As for not charging much to stay under the IRS radar....you don't need a low limit for that. Just don't charge a lot.
    I can tell you for fact I'm right. I know my job and I understand what I do for full time work...

    Thanks for playing though.

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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by HIJACKER
    I can tell you for fact I'm right. I know my job and I understand what I do for full time work...

    Thanks for playing though.
    Umm, okay.

    But usually annual fees are unavoidable for people with sub-par credit.



    Because there ain't no tits on the radio

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    God/dess Emily's Avatar
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    Default Re: Need a Credit Card Which One Is for me?



    welcome to stripperweb

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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by hardkandee
    Umm, okay.

    But usually annual fees are unavoidable for people with sub-par credit.
    A score of 300 from a girl that is 22 saying "I've never had any credit cards before.." means.. she hasn't developed a credit history. In her case, annual fees are avoidable.

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    Banned Melonie's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    If your only using the credit card for low-end purchases like gas, the IRS has nothing to base your income -> expense ratios. If your using a Visa ChekCard, that's a "credit" card in some sense, however its making direct debts on your checking account and the IRS can't access that without your consent and authorization.
    Just to be clear about the difference between a true credit card and a checking account linked debit card in regard to the IRS, basically the IRS has the authority to snoop around credit card records because the 'lender' i.e. MasterCard or Visa has given them permission to do so. The credit card holder from a legal standpoint is only one party of a two party transaction, thus if MC or Visa agree to show the IRS how much money they lent you it's the very same info as the amount you borrowed and spent.

    A debit card is basically an electronic check, and legally is a single party transaction. However, it's not exactly true that the IRS cannot access your checking/debit card spending records if you do not give your permission. If the IRS has probable cause to think that a crime has been committed i.e. underreporting of income and non-payment of taxes, it's a simple matter for an IRS judge to authorize disclosure of these records without your knowledge let alone permission.

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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by Melonie
    Just to be clear about the difference between a true credit card and a checking account linked debit card in regard to the IRS, basically the IRS has the authority to snoop around credit card records because the 'lender' i.e. MasterCard or Visa has given them permission to do so. The credit card holder from a legal standpoint is only one party of a two party transaction, thus if MC or Visa agree to show the IRS how much money they lent you it's the very same info as the amount you borrowed and spent.

    A debit card is basically an electronic check, and legally is a single party transaction. However, it's not exactly true that the IRS cannot access your checking/debit card spending records if you do not give your permission. If the IRS has probable cause to think that a crime has been committed i.e. underreporting of income and non-payment of taxes, it's a simple matter for an IRS judge to authorize disclosure of these records without your knowledge let alone permission.
    Very good. But to get yourself in this situation, you have to be talking about thousands and thousands of dollars. Sounds like you know this a little to well.. prior experience?

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    Member HIJACKER's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by Melonie
    However, it's not exactly true that the IRS cannot access your checking/debit card spending records if you do not give your permission. If the IRS has probable cause to think that a crime has been committed i.e. underreporting of income and non-payment of taxes, it's a simple matter for an IRS judge to authorize disclosure of these records without your knowledge let alone permission.
    I know this.. its called getting a warrant. Like I said, they can't access that information from a bank without your permission. If there is EXTREME probable cause, a warrant can be taken out.

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    Veteran Member Stipperella's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    I'm not a good researcher but i think so far emily is right i haven't found a card with avoidable annual fees, etc.

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    Default Re: Need a Credit Card Which One Is for me?

    Quote Originally Posted by HIJACKER
    I know this.. its called getting a warrant. Like I said, they can't access that information from a bank without your permission. If there is EXTREME probable cause, a warrant can be taken out.




    WRONG!!!



    Sections 7601 through Sections 7612 of the Internal Revenue Code ("IRC")gives the Secretary of the United States Treasury and any officers or employees of the Treasury Department the right to issue summons to any taxpayer or third party recordkeeper for the purpose of inquiry to determine or collect any tax liability. The summons can cover both testimony and the producing of records and books for inspection. They may not contact third parties without first notifying you that they intend to contact third parties. They do not have to disclose who those third parties are until after they have actually contacted them and even then under certain circumstances they do not have to disclose.



    Banks, credit unions, mortgage companies, savings and loans, credit reporting agencies, credit card companies, mutual savings banks, cooperative banks, securities brokers, attorneys, accountants, barter exchanges, regulated investment companies, enrolled agents, and developers of software source codes are all defined by section 7603 of the IRC as third party record keepers.



    For your reference, an audit is an inquiry into the compliance with IRC and Treasury Regulations for the determination of any tax liability.



    Thanks for playing.

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    Banned Melonie's Avatar
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    Default Re: Need a Credit Card Which One Is for me?

    Very good. But to get yourself in this situation, you have to be talking about thousands and thousands of dollars. Sounds like you know this a little to well.. prior experience?
    In the minds of the IRS, or anybody else who reads repeated reports in the media that New York dancers are earning $1000 a night (no thanks to the brainless twit dancers who say such ridiculous things on record during interviews), it's not difficult to make plausible assumptions that New York dancers are possibly under-reporting their incomes by tens of thousands of dollars per year. And yes as a dancer in the 90's I was indeed exposed to IRS scrutiny along with about 2,500 other New York dancers and about 25 clubowners. Believe me it's very difficult when you're placed in the position of having to prove that you did NOT earn the amount of money that the IRS is 'estimating' you did.

    Banks, credit unions, mortgage companies, savings and loans, credit reporting agencies, credit card companies, mutual savings banks, cooperative banks, securities brokers, attorneys, accountants, barter exchanges, regulated investment companies, enrolled agents, and developers of software source codes are all defined by section 7603 of the IRC as third party record keepers.
    Thank you for reinforcing this point. Again, the IRS is basically a legal authority unto itself, with its own 'investigators', its own 'prosecutors', its own courts, its own judges, and its own way of doing things. There is no specific 'probable cause' standard within the IRS sustem like the one that exists in the normal court system. There also isn't much 'presumption of innocence'.

    But in the final analysis, the IRS system is not looking for the same end result as the 'normal' court system. The 'normal' court system wants to make charges, successfully prosecute them, and obtain a conviction of the defendant - with the costs associated with accomplishing this being totally irrelevant. On the other hand, the IRS system doesn't really want to prosecute and convict defendants. It is the IRS's assigned job to collect money for the gov't. To that end the IRS would be much happier making a charge, negotiating, and arriving at a 'settlement' wherein the person charged agrees to pay the IRS more money in exchange for dismissal of the charges - which also saves the IRS a great deal of money in regard to in depth investigations and preparation of cases for actual trial.

    At any rate, to get back to the subject of this thread, anyone who uses a true credit card must basically operate under the assumption that all of the transactions occurring through that credit card account are an 'open book' to the IRS. The #1 corrollary is of course that if you are spending more money through your credit card account than your tax return shows you are earning (after first subtracting basic living expenses), expect to attract some IRS attention sooner or later.
    Last edited by Melonie; 03-02-2005 at 04:42 PM.

  25. #25
    mermaidnz
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    Default Re: Need a Credit Card Which One Is for me?

    i find DINERS to be useful. you HAVE to pay off the whole amount each month, so you cant get into debt with it ( good for me, cos im stupid with money,and i know id spend way too much on travel) and its not as widely accepted, so you might want to spend on it, but cant cos the merchants dont accept it. perfect

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