Quote:
|
Originally Posted by Denman
Thats crazy! Banks know they can get more money from people in debt than those with money... it sucks.
|
Well, it isn't actually such a bad idea, provided that you don't buy things which you can't afford. The trick is, exactly as Kim said, to build up a (good) credit history by buying things which you can repay
immediately when the statement arrives. As long as you don't carry any debt beyond the end of the billing period, you don't pay any interest, and a good credit history accumulates. (This makes it easier and cheaper for you to conduct future transactions where you might need to take on significant amounts of useful debt—mortgages, for instance.)
The problem is, people (idotically or ignorantly) buy things on their credit card which they can't afford immediately. If you need to borrow money, borrow it at the lowest interest rate available to you—which is to say, don't use your credit card for that purpose. Try the store's financing options, or a bank loan, for example. (And, of course, ask yourself if you really need whatever it is that you're buying....)