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The Godfather · Jan 17, 2003, 10:11 AM

I was going to make it a poll, bu then I thought of all the many possibilities... too many.

I was just curious of the most common age American people get started with their credit history.

MacGorilla · Jan 17, 2003, 10:16 AM

I have never applied for or gotten a credit card. Ever. I don't believe in them. My first credit was a car loan in 1987. I got a mortgage in 1991 and again in 1999.

The Godfather · Jan 17, 2003, 10:18 AM

Originally posted by MacGorilla:
I have never applied for or gotten a credit card. Ever. I don't believe in them. My first credit was a car loan in 1987. I got a mortgage in 1991 and again in 1999.

How do you rent cars, get cell phones, or get good insurance rates???

SimeyTheLimey · Jan 17, 2003, 10:27 AM

Originally posted by The Godfather:
How do you rent cars, get cell phones, or get good insurance rates???

Maybe he uses a debit card? You can use them just like credit cards, but they draw from your checking accounts. My ATM card is a debit card by default.

Maybe things have changed, but when I came back to the US after growing up in England, I had a terrible time establishing credit. In England, I was just given a credit card by my bank when I turned 18. I had no idea what a credit check is.

Once I arrived in the US, I found my credit history was a blank slate. No lender will give a credit card to someone with no record whatsoever. Because I didn't have parents in the US, nobody could co-sign for me, so I was utterly stuck. The only reason I was able to establish credit at all was because I joined the Army. Lenders love the military because they know who your employer will be for 4 years and who to go to for garnishment if necessary.

Paco500 · Jan 17, 2003, 10:30 AM

Believe in 'em buddy. Thay are real. Far too real for my tastes.

Originally posted by MacGorilla:
I have never applied for or gotten a credit card. Ever. I don't believe in them.

The Godfather · Jan 17, 2003, 10:30 AM

Originally posted by SimeyTheLimey:
Maybe he uses a debit card? You can use them just like credit cards, but they draw from your checking accounts. My ATM card is a debit card by default.

I was explicitly told that I need a credit history and a credit card to get a cell phone, and rent a car.

maxelson · Jan 17, 2003, 10:36 AM

I got my first- a visa- when I was 20. I PANICKED when I discovered that... SOMEHOW my balance had crawled its way up to... gasp... $500.
Oh, those were the days...

maxelson · Jan 17, 2003, 10:38 AM

Originally posted by MacGorilla:
I have never applied for or gotten a credit card. Ever. I don't believe in them. My first credit was a car loan in 1987. I got a mortgage in 1991 and again in 1999.

*WOW*

Your powers truly ARE beyond mine...

SimeyTheLimey · Jan 17, 2003, 10:39 AM

Originally posted by The Godfather:
I was explicitly told that I need a credit history and a credit card to get a cell phone, and rent a car.

Yes, you do need a credit history. That's why establishing one when I started my life here was so important. Afterwards, however, you don't need to have a credit card per se. Any card with "Visa" written on it will do. As far as the lender is concerned, a debit card with Visa written on it is a credit card. They don't care that it actually draws from your checking account.

The reason is, of course, that they convert to credit if you go overdrawn on your checking account. The lender therefore still gets paid. Since I don't go overdrawn, I have found that a debit card is a good way to have the convenience of a card without the temptation to run up debt.

Macgorilla has a mortgage. With that kind of credit history, getting a cellphone isn't going to be a problem.

G4ME · Jan 17, 2003, 10:41 AM

i am only 18 but i still don't have an actual credit card, but i do have a debit card that works everywhere, i oder stuff off of the internet so much that is was just a pain to snag my dads and then pay him back.

I also don't really see the point in credit cards, why pay 18% when it can just be taken out. Latter on i think i will get one just to have on occations when i haven't transfered money over to my checking account. and to build a good credit. But i never plan on using the credit card.

SimeyTheLimey · Jan 17, 2003, 10:45 AM

Originally posted by G4ME:
i am only 18 but i still don't have an actual credit card, but i do have a debit card that works everywhere, i oder stuff off of the internet so much that is was just a pain to snag my dads and then pay him back.

I also don't really see the point in credit cards, why pay 18% when it can just be taken out. Latter on i think i will get one just to have on occations when i haven't transfered money over to my checking account. and to build a good credit. But i never plan on using the credit card.

That works. Buy stuff on the credit card, then pay it off in full each month. That way you will build up great credit without paying any interest.

willed · Jan 17, 2003, 11:14 AM

Yeah, I pay off in full every month - only got one last year when I was 18. How would I buy off the internet otherwise? Many companies (ie Apple UK) don't accept debit cards.

KaptainKaya · Jan 17, 2003, 11:15 AM

Originally posted by SimeyTheLimey:
That works. Buy stuff on the credit card, then pay it off in full each month. That way you will build up great credit without paying any interest.

Unless you're a student like me and needed a computer which I put on the good ol' plastic. Sucks but there was no way in hell I was going to use a G3/350 for Photoshop work in X.

Face Ache · Jan 17, 2003, 11:21 AM

I'm 36 and I've never had a credit card (or car loan, etc).
Interest is the DEVIL I tells ya!

scaught · Jan 17, 2003, 11:22 AM

i didnt have an actual credit card in my name until i was 27 i think. i had checking accounts and debit cards prior to that though. now that ive leased a car in my name and have a mortgage on a house i have credit like mad.

Face Ache · Jan 17, 2003, 11:26 AM

Originally posted by KaptainKaya:
Unless you're a student like me and needed a computer which I put on the good ol' plastic. Sucks but there was no way in hell I was going to use a G3/350 for Photoshop work in X.

Oh COME ON!!!

My Mac is a G3/400 running X. It's a lot faster at Photoshop than my 7600 was.

Paying off a house quickly is a lot more important than having the latest and greatest toys. Save your money and pay cash (if you must).

So you're paying what percent interest on a rapidly depreciating computer?

SimeyTheLimey · Jan 17, 2003, 11:27 AM

Originally posted by KaptainKaya:
Unless you're a student like me and needed a computer which I put on the good ol' plastic. Sucks but there was no way in hell I was going to use a G3/350 for Photoshop work in X.

I know just what you mean. I had to burn my credit card for my books this semester. I just didn't have $400 spare right after Christmas.

I'll be able to pay that off, but I still have balances on my card left over from my earlier student days. That's down to a manageable level now and is being paid off. Balancing debt with income is one of the main reasons I decided to go to law school part time. This way at least I can earn an income while I am in school. Of course, I have whopping student loans too.

Zero balances are a nice goal, but reality dictates otherwise sometimes. The trick is to know when debt is appropriate and how to contain it when it is not.

KaptainKaya · Jan 17, 2003, 11:27 AM

8.9%, not to mention half was paid already thanks to the federal government tax return. So its not like I'm paying for the rest of my life, just another 3 months at the most.

Gul Banana · Jan 17, 2003, 11:46 AM

Don't have one, and I'm not getting one - I get things when I have enough money for them.

Edit: That was my thousandth post? How.. irrelevant.

Gene Jockey · Jan 17, 2003, 12:46 PM

I was 19. Citibank Visa, the college student's choice. I still have it, and another from MBNA. I never carried a balance on either of them for the longest time; I would use the MBNA card for POS transactions and the Citibank card for Online purchases, so I could see fraud easy. Never happened, but it pays to be careful. I just liked being able to write one check at the end of the month.

My whole take on debit vs credit cards is that if you intend to pay off your balance on a credit card, it makes way more sense to charge rather than debit. Why give a merchant your money now when your CC company can pay them now and you can pay the CC company in a month? You get to keep interest-bearing money around 30 days longer. As long as you have a no-annual-fee card, it seems like a no-brainer to me.

I only have carried a balance since I was in grad school. You don't get paid much there, and the choice between living in a decent apartment with decent food and carrying a balance vs. a shithole roach motel eating ramen every day ain't no choice at all. It's only 9.99% anyway, so I'm not getting raped too bad anyway. I have a good credit history in any case, so when I need to buy a house I'll have one piece of that puzzle solved.

--J

wdlove · Jan 17, 2003, 01:40 PM

I was approximately 24 when I got my 1st Credit Card. Grew up with the notion that you paid cash. Always pay the balance each month, interest is a waste. Interest just raises the price that you pay for an item. A big profit maker for companies such as GE & GM!

Arkham_c · Jan 17, 2003, 01:45 PM

I was probably 17 or 18. I was on campus at Ga Tech, and they were handing them out like candy (apply for a card, get a free gift on the spot). Everyone did it for the free stuff. I ended up with a Citibank Visa and an AT&T Universal Mastercard (both now cancelled). I didn't get into heavy debt like a lot of people do, but my brother did (took him 2+ years to pay off).

I now only carry two cards. Discover, and a Visa for places that don't take Discover. Last year we got back over $800 cash back.

Worst. Episode. Ever. · Jan 17, 2003, 02:47 PM

I got my first credit card when I was in college. Used it to buy a mountain bike.... and I'm probably STILL paying for that bike.

Timo · Jan 17, 2003, 03:48 PM

Originally posted by Gene Jockey:
I was 19. Citibank Visa, the college student's choice. I still have it, and another from MBNA.--J

Spooky: my trajectory as well. Don't tell me marketers aren't up to snuff.

simonjames · Jan 17, 2003, 03:51 PM

My parents gave me a supplementry card to their account when I was 15.

I try to use my Amex all I can - its like cash as you have to pay it off at the end of each month and has the advantage of reward points. I've flown business class 14 times in the last few years just on points alone.

as2 · Jan 17, 2003, 05:47 PM

I got my first credit card when I was 19, it had a �750 limit, and I hardly used it.

Got an egg card last year, so that any money I spent on my other credit card I could transfer over, and get interest free for another 6 months.

I'm already �1000+ overdrawn, and owe �8k in student loan, and i've just had my limits increased to �1300 and �800 repectively.

What are they trying to do to me... stoopid bank!

I did use my CC to puy my iPod though!

Adam

Jan 17, 2003, 06:09 PM

If you're gonna get a credit card, get one that gives you points for free stuff, and pay it off in full every month. Then buy everything, including your groceries, with a credit card. You pay no interest and get free stuff.

I have one that gives me Aeroplan points (like Air Mile Points). As soon as I get enough for a free trip for me and my fiancee (free honeymoon travel), then I'm getting rid of it because it has an annual fee. I'll probably get one that gives me free gasoline after that.

Patrick · Jan 17, 2003, 06:12 PM

Got my first last year at age 24. My parents kept saying I should have a credit card, and that the check card the bank sent me a few years ago wasn't enough. I applied for one and got denied� probably because I had no credit history.

So I managed to find one through an investment company I have an account with (some of them offer cards to any of their clients). They gave me a low credit limit (considering my income that makes sense), but no annual fee. I just use it for random things, like buying gas and groceries.

Aside from the whole credit history thing, there isn't really much difference between using my credit card or check card. My checking account doesn't get any interest, so there's no reason to leave the money there. And the check card functions as an ATM card at most supermarkets, so I have to enter my PIN number and press a few extra buttons on that machine. It's worth it to save a few seconds there.

I honestly wonder how I ever got by without either one. I mean just an ATM card and a checkbook? Crazy. I hardly ever write checks anymore, except to pay bills. And I can remember, as a kid, having to wait at the bank for my parents to withdraw money before ATMs became widely used. And at the supermarket, they had to make a paper copy of the credit card number because that was before all these computerized cash registers.

OwlBoy · Jan 17, 2003, 06:30 PM

Originally posted by hayesk:
If you're gonna get a credit card, get one that gives you points for free stuff, and pay it off in full every month. Then buy everything, including your groceries, with a credit card. You pay no interest and get free stuff.

I have one that gives me Aeroplan points (like Air Mile Points). As soon as I get enough for a free trip for me and my fiancee (free honeymoon travel), then I'm getting rid of it because it has an annual fee. I'll probably get one that gives me free gasoline after that.

Thats what I want to do, plus I need one for internet shopping... hmmm

I never wanna have debt on a card though, I have seen what that can do

-Owl

wataru · Jan 17, 2003, 06:41 PM

I've been on my parents' credit card account for a couple years, ever since I went to Japan for the first time. They added me to their account so I'd be able to take advantage of the better exchange rate on the card.

Does anyone know if I can "inherit" their credit rating? If I can, then I'd have an incredible rating.

I just applied for the crappiest card offered by the local credit union. It counts as an extra service so I can get free rewards checking.

as2 · Jan 17, 2003, 07:08 PM

The thing that annoys me is that although I'm about �9k in debt through my student loan, and don't have a job, and so no income, credit card companies keep sending me application forms.

I must get 4 or 5 a month!

Surely they should know better.

Adam

MacGorilla · Jan 17, 2003, 07:16 PM

I have a credit history, just no credit cards. You don't need a credit card to get a credit history. As for rental cars, etc, I use a debit card. I have never had any problems.

residentEvil · Jan 17, 2003, 07:16 PM

actually, keeping your card(s) at zero balance is WORSE then carrying a balance in terms of a good CREDIT SCORE (known as FICO), for when you need a big loan like car/truck, house, boat, etc. no matter how many cards, history, balances, etc, some 85% of home/auto lenders ONLY look at the fico score. the other 15% are those companies you here advertising loans for 'no credit history, bad credit history, etc'...avoid those at all costs.

while it isn't good for you in the money you pay because of interest, it boosts your FICO overall. credit checks via the big three checkers is a snapshot. it shows, at that given point in time, (will only talk about cc's, not loans, holds, leans, etc) the balance, limit, how long you have had it, delequencies, etc.

if yours shows a 0 balance and 5000 limit, 2 years, no delequencies, to a loaner, it looks like it never has been used.

it may not sound fair, but that is how it works.

thePurpleGiant · Jan 17, 2003, 08:16 PM

Got it a few months after turning 18 (6 months ago now). I always keep money in the account, so it's always in credit, I never pay interest. It is used soley for buying things off the internet.

Getting it was a slight hassle, since I had 2 jobs, one accounted for 90% of my income, but was only paid in cash. The other one was 'legal' and went straight into my account, and I had payslips to verify this one. The bank said my cash job didn't count, so I needed to be earning at least $500 a fortnight with my 'legal' job to get one. Well this job's payslips were mnthly, not fortnightly for some strange reason. I found 3 payslips from the previous 2 years that happened to show me earning over $500 that month. (which was much higher than my usual amount, I barely worked there). But sure enough, I got my card. The bank didn't notic that:

a) The payslips showed that I got over $500 a *month* not *fortnight*, they simply assumed that since it looked like a standard payslip, it was fortnightly.

b) The payslips were from 'Feb 2001, October 2001 and June 2002', none were recent, and those were the only months that I got even close to earning enough from that job. (My cash job was my "real" job)

Yet I still got the card with a $1500 limit!

Face Ache · Jan 17, 2003, 11:31 PM

Originally posted by thePurpleGiant:
The bank didn't notic that:

a) The payslips showed that I got over $500 a *month* not *fortnight*, they simply assumed that since it looked like a standard payslip, it was fortnightly.

b) The payslips were from 'Feb 2001, October 2001 and June 2002', none were recent, and those were the only months that I got even close to earning enough from that job. (My cash job was my "real" job)

Yet I still got the card with a $1500 limit!

Heh. Lucky you. You think they didn't notice, or you think they "didn't notice" (nudge, nudge, wink, wink).

daimoni · 03:35 AM

.

wataru · Jan 18, 2003, 02:12 AM

Originally posted by daimoni:
Heh. Depends who's President next (or again).

I didn't mean inherit upon death, I meant that I'd have a good rating by association with theirs, since I'm on their account.

I guess we'll know if they offer me a $25,000 limit

MikeM33 · Jan 18, 2003, 05:40 AM

I'm 34 now, but back when I was a kid and driving I got into a terrible accident (the other persons fault too). They were going to sue me for 10 grand, so when I was like 20 I filed bankruptcy (chapter 13). I was scared of being sued, so at that time I thought it was the safest bet.

Then I joined the navy and got out, got married (now divorced) and suddenly my credit was good again and I was receiving applications for credit like crazy. So I guess I was around 26-27 when I got into the credit game.

I made my payments and had real good credit until I got evicted from my first apartment I basically had to run-up all my cards for every-day stuff so I could afford a new place.

Now my credit is totally in the sh_tter.

I really don't give a crap though. Credit is more of a curse than a blessing. I think I'll just grow old as one of those crazy guys that keeps all his money in a coffee can instead of a bank.

MikeM

CaseCom · Jan 18, 2003, 01:22 PM

I got a Citibank Visa back when I was 21, the year I graduated from college. I could have papered the walls of my dorm with the credit applications they were sending me. It's the only credit card I've ever had, and I still have it (although Citibank switched to MasterCard last year).

I learned my lesson early about letting interest build up. Now I've paid it off every month for years. They stopped charging an annual fee several years ago, so they haven't made a dime off me since. I heard credit-card companies will drop you if you pay it off every month, but it hasn't happened to me.

wdlove · Jan 18, 2003, 01:36 PM

Originally posted by as2:
The thing that annoys me is that although I'm about �9k in debt through my student loan, and don't have a job, and so no income, credit card companies keep sending me application forms.

I must get 4 or 5 a month!

Surely they should know better.

Adam

I agree the constant "You pre-qualify" via E.Mail & mail becomes a real nuisance!

hadocon · Jan 18, 2003, 01:37 PM

I got my first credit card when I was 14. I was travelling to Eurpoe and I needed something to use in emergencies. I am 24 now and I use it all the time!

hadocon · Jan 18, 2003, 01:42 PM

Originally posted by hadocon:
I got my first credit card when I was 14. I was travelling to Eurpoe and I needed something to use in emergencies. I am 24 now and I use it all the time!

oh, I forgot to mention that I only had one month where I could not afford to pay my credit card bill - so what did I do? I got a cash advance on my credit card to pay the months bill and had a double bill the next month. I did this becasue I knew that I was coming into some $ the next month. So I still have perfect credit rating! - I think that this may be illegal, I think that the term is "kiting"....

I now have a 5K (Canadian) limit.

I use it for paying for things on the net and cellphones and DSL

Amorya · Jan 18, 2003, 03:41 PM

Originally posted by The Godfather:
I was explicitly told that I need a credit history and a credit card to get a cell phone, and rent a car.

Never rented a car, but I do have a cellphone (on contract). Here in England, you don't need anything like that - just fill in a form with a few things like previous address (if you've moved in the last four years), and show proof of ID.

For a pay as you go phone, of course, you need nothing. Just walk into a shop, buy one, walk out.

Amorya

Amorya · Jan 18, 2003, 03:43 PM

Originally posted by willed:
Yeah, I pay off in full every month - only got one last year when I was 18. How would I buy off the internet otherwise? Many companies (ie Apple UK) don't accept debit cards.

Sorry to double-post, just had to say:

They accepted my debit card - visa electron. Bought my ipod on it. I just selected card type visa on the web form, they never knew the difference.

Amorya

KaptainKaya · Jan 18, 2003, 04:02 PM

Sad thing here. I couldn't get one 6 months ago cause my history was 'not acceptable'. I get one through Household Bank in November and now all of a sudden I am getting accepted for every single one you can think of. I had to throw away 3 cards in 2 weeks cause I don't want them.

The Godfather · Jan 18, 2003, 05:43 PM

*applies to the U.S. only*

You can shop online with a debit card.

You can't rent a car with a debit card or just cash.
You can't get a cell phone contract without a credit card.
Withouth CC, you only can pick from a subset of car insurance companies.

So, I proclaim that it is a necessity more than a nuisance.

Earth Mk. II · Jan 18, 2003, 05:50 PM

I'm 21 only have one (1) debit card. Says MasterCard on the front.

I'm delaying the aquisition of a credit card until I actually need one and have a job that pays enough to make it a reasonable goal to pay the bill off in full each month.

I don't buy alot anyway.

simonjames · Jan 18, 2003, 06:29 PM

I am guessing that the group who shun credit cards rarely travel internationally. I was travelling Europe years back when I got mugged in Frankfurt - American Express had a new card to me and the equivalent of $400USD to me in 8 hours.

I don't know how you could travel with just travellers cheques and cash - way too risky travelling with that much money.

MacGorilla · Jan 18, 2003, 06:38 PM

Originally posted by simonjames:
I am guessing that the group who shun credit cards rarely travel internationally. I was travelling Europe years back when I got mugged in Frankfurt - American Express had a new card to me and the equivalent of $400USD to me in 8 hours.

I don't know how you could travel with just travellers cheques and cash - way too risky travelling with that much money.

My debit card worked just fine for England this last March.

as2 · Jan 18, 2003, 06:43 PM

Originally posted by Earth Mk. II:
I'm 21 only have one (1) debit card. Says MasterCard on the front.

I'm delaying the aquisition of a credit card until I actually need one and have a job that pays enough to make it a reasonable goal to pay the bill off in full each month.

I don't buy alot anyway.

Forgive me, but isn't Mastercard a credit card...

It is here in the UK.

Adam