Student with first credit card - how much of my credit limit should I spend?

rehanmalik3030

Let me take all those pro credit card members on this forum to school.

Personal Finance Fundamentals 101

Do not spend more money than you have
Many people find this difficult
Top debt temptation is credit cards

grumbler

rehanmalik3030 wrote: »

Do not spend more money than you have

I agree and I don't spend more.

Many people find this difficult

Well, many people abuse alcohol and drugs.

Top debt temptation is credit cards

You say so.
Our lives are full of temptations. The best is to learn to keep them under control.

rehanmalik3030

grumbler wrote: »

Stop making generalisations, please.
I have several CCs and have never been 'tempted'.
Made a lot by stoozing when savings rates were higher, loads from cashback and saved commission on currency transactions.

Firstly glad to hear Grumbler has not been tempted. (it almost makes me think Grumbler may be some lost biblical character on the side of God)

Secondly I hope Grumbler is happy to make money from credit card companies. The same credit card companies whose income is partly derived from that offering poor people a low introductory purchase APR and then hiking up the rate so they can start bleeding them.

CLAPTON

rehanmalik3030 wrote: »

Firstly glad to hear Grumbler has not been tempted. (it almost makes me think Grumbler may be some lost biblical character on the side of God)

Secondly I hope Grumbler is happy to make money from credit card companies. The same credit card companies whose income is partly derived from that offering poor people a low introductory purchase APR and then hiking up the rate so they can start bleeding them.

50% of CC are cleared in full every month

that leaves a lot of people who don't but then that's life.

ViolaLass

rehanmalik3030 wrote: »

Firstly glad to hear Grumbler has not been tempted. (it almost makes me think Grumbler may be some lost biblical character on the side of God)

Secondly I hope Grumbler is happy to make money from credit card companies. The same credit card companies whose income is partly derived from that offering poor people a low introductory purchase APR and then hiking up the rate so they can start bleeding them.

The rate is irrelevant to those who pay off in full every month. I had a CC as a student and have had at least one ever since but have never got into debt. What matters is your attitude, not your access to money.

takman

rehanmalik3030 wrote: »

Others here will say you need to use a credit card to help you with your credit score.

Nobody on here will say that because they all know that credit scores don't really exist (Read more on this forum to find out about this).

But I think your advice about credits cards is only really suitable for someone who has no self control at all. I have a credit limit of £19,200 in total on three cards and the only balance I have is £600 on interest free (with the money in a savings account ready to pay it off). I have never missed a payment on anything and have never had any charges. These credit cards have allowed me to make money by cashback, stoozing and good exchange rates with no fees.

If someone is rubbish with money and buys things they don't need then they should change the way they budget. By telling people to avoid Credit Cards it doesn't solve the problem!

agrinnall

rehanmalik3030 wrote: »

You cannot argue against this logic.

Clearly you can, because people have. Your posts are nonsensical and of no assistance to the OP, who is running their credit card in a perfectly acceptable way. If you intend to carry on in this vein I hope you have a thick skin because plenty of vitriol is going to be coming your way.

pogjo

The way you're doing it is fine. Try your best to not have to increase the limit (going from what you say, I doubt you'll have to )

ViolaLass

pogjo wrote: »

The way you're doing it is fine. Try your best to not have to increase the limit (going from what you say, I doubt you'll have to )

Depends why you're increasing it. If you're paying off in full every month, an increased limit is not a problem.

grumbler

It might become a problem at some point if the OP routinely keeps spending up to 90%+ of the limit.