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

takman

rehanmalik3030 wrote: »

Your pro credit card contributors on this thread will all try to put me down try to denigrate my view and point you towards the Starbucks loyalty card and free drinks offer. You need to question their ethics. For them "the ends" i.e. free rewards etc justify the means.

If you think people on this thread are going to be pro Starbucks because of their loyalty cards then you obviously don't understand any of the points being made!. Anyone who gets drinks from a coffee shop every day is just wasting money. Even taking a Thermos of coffee each day is a waste of money to me. I drink water everyday, a lot healthier for you and it's free!.

But getting back to your other points a credit card is completely different to a loan. I really don't see the problem of putting small purchases on a card that you would normally be buying to get cashback. Obviously you are unable to control yourself when using a credit card from what your saying?.

Also to say not to use credit cards because other people are paying interest to subsidise your use is ridiculous. Using that logic you must never have any accounts paying interest on your savings, no insurance bought from comparison sites. Never take advantage of any special offer from any company!.

PeacefulWaters

rehanmalik3030 wrote: »

You should listen to both sides of the argument. If you look back at the all the post in this thread I think they are all pro credit cards. They want you to use your credit card regularly so you can eventually get higher credit limits along the way earn cashback and improve your credit score etc etc All sounds very good on the surface.

You should view your credit card as pre approved loan, because in essence that is what it is.

Now the question is would you get a loan to buy a cup of coffee at Starbucks? No you would not yet millions of people everyday use their credit cards to buy coffee.

If you went to a bank and asked them for a loan so you can buy a cup of coffee, they would think your were crazy, but yet millions of people are doing this everyday. Why?

The reason is simple you just take out a piece of plastic from your pocket and pay for it. The next thing you know you get your credit card bill and it says over the month you have been to Starbucks 15 times and on many occassions you also purchased a muffin or a pastry or doughnut as well and you now owe £60 just for visits to Starbucks over 1 month.

I like coffee and I like doughnuts, I make a thermos flask of fresh coffee every morning and take to work. Over a month it costs me a few pound.

Credit cards are designed to make the average "Joe" spend foolishly. If you ever get a chance to visit America you will notice more and more vending machines over there accept card payments, and guess what their profits have gone up.

Sure along the way they will increase your credit limit, improve your credit score etc etc only for the sole purpose they want to tip you over the edge so that you spend more than you earn.

Now your thinking a bank would only lend money where they know they will make money on the loan i.e. interest. So how do credit card companies make money from a card holder who sticks to purchases pays his statement balance in full every month and is given rewards.

They know your average "Joe" will rarely pay the balance off in full all the time, will do cash withdrawals, will sometimes be late therefore default charges, will occasionally go over the limit again further default charges, lets not forget lets promote direct debit so if they do not have the money in the bank there will be a double whammy charges by the bank and credit card company and the list goes on and on.

The credit card companies make their money from the average "Joe" and pass the benefits to people like on this thread in terms of a credit card for which they do not have to pay a monthly or annual fee and get rewards like cash back.

Now your thinking well I am not average "Joe" I will pay back in full and not spend foolishly. This is where the ethics of using a credit card come in. You are benefitting from the mistakes and misery of your average "Joe"

Your pro credit card contributors on this thread will all try to put me down try to denigrate my view and point you towards the Starbucks loyalty card and free drinks offer. You need to question their ethics. For them "the ends" i.e. free rewards etc justify the means.

The OP seems to be using his card in a very intelligent way.

No idea why you're trying to discourage him with your bizarre nonsense.

rehanmalik3030

PeacefulWaters wrote: »

The OP seems to be using his card in a very intelligent way.

No idea why you're trying to discourage him with your bizarre nonsense.

Depends on the type of intelligence you are referring to.

Social intelligence has a positive correlation with compassion and therefore morality.

The inverse of your statement being if you do not use a credit card correctly then you must have a low intelligence since it is directly related to IQ.

Are you saying average "Joe" has a lower IQ? because he cannot afford to pay the balance in full or is tempted to spend more than he can afford because he has moments of weakness??

msallen

Oh !!!!!! !

kellogsnutty carry on as you are now. Use your CC for things that you would be spending on anyway, and pay off in full every month - I would recommend via a DD, but there are a smaller number of people on here who prefer to do it manually.

Ignore the bizarre troll who has infested your thread.

I would suggest not going above about 80%-ish of your credit limit as some future lenders looking at your credit history may view this as you only just living within your means. Also remember that if you are at 80% of your limit at the time your statement is produced then assuming your are paying off by direct debit 3 weeks or so later then you will not be able to spend any more on it until then, so practically speaking a limit of about 50% in any single month or billing period is probably a maximum.

agrinnall

rehanmalik3030 wrote: »

Depends on the type of intelligence you are referring to.

Social intelligence has a positive correlation with compassion and therefore morality.

The inverse of your statement being if you do not use a credit card correctly then you must have a low intelligence since it is directly related to IQ.

Are you saying average "Joe" has a lower IQ? because he cannot afford to pay the balance in full or is tempted to spend more than he can afford because he has moments of weakness??

You obviously must have the thick skin that I mentioned previously or you wouldn't continue to post such garbage, so the condemnation you will receive is richly deserved. It's a shame we aren't allowed to say just what we think of people like you.

bigadaj

rehanmalik3030 wrote: »

Depends on the type of intelligence you are referring to.

Social intelligence has a positive correlation with compassion and therefore morality.

The inverse of your statement being if you do not use a credit card correctly then you must have a low intelligence since it is directly related to IQ.

Are you saying average "Joe" has a lower IQ? because he cannot afford to pay the balance in full or is tempted to spend more than he can afford because he has moments of weakness??

If you pay a credit card comoany a lot of interest for no reason most people would say you weren't very intelligent.

If you are susceptible to moments of weakness then don't use credit cards, if you aren't and you get cashback, 0% deals, cash flow advantages, section 75 protection, chargeback, a better credit file etc etc then many people, will use credit cards to their advantage.

[Deleted User]

rehanmalik3030 wrote: »

They know your average "Joe" will rarely pay the balance off in full all the time, will do cash withdrawals, will sometimes be late therefore default charges, will occasionally go over the limit again further default charges, lets not forget lets promote direct debit so if they do not have the money in the bank there will be a double whammy charges by the bank and credit card company and the list goes on and on.

What is Joe drinking at Starbucks? All that caffeine should be making him more alert. Why is he forgetting to make payments?

It may be that he is going for Frappucinnos or some such nonsense. They are high calorie with a lot of sugar. This may be making him sleepy and sluggish and causing him to miss his payment.

Could Joe switch to a plain black Americano?

rehanmalik3030

You tell one side of the story the otherside is:


Deceiving minimum payments
Encourage impulse purchase
They increase your spending
They encourge you to spend more money than you have
Credit cards will bait and switch with 0% introductory offers
They come with fees
They come with default charges
Hidden rules in the fine print
They can damage your credit score
Expose you to identity theft
Credit card debt can lead personal, family, work and social problems
Paying for privileges and rewards you do not use


There is no such thing as responsible credit card use, this is a universal truth

takman

rehanmalik3030 wrote: »

You tell one side of the story the otherside is:


Deceiving minimum payments
Encourage impulse purchase
They increase your spending
They encourge you to spend more money than you have
Credit cards will bait and switch with 0% introductory offers
They come with fees
They come with default charges
Hidden rules in the fine print
They can damage your credit score
Expose you to identity theft
Credit card debt can lead personal, family, work and social problems
Paying for privileges and rewards you do not use


There is no such thing as responsible credit card use, this is a universal truth

I think this last post just shows how much of a troll you are!. This post is so factually incorrect I really find it hard to believe you can be serious?.

So igoring all the incorrect stuff just answer this one question:

You say that you can't use a Credit Card Responsibly. Lets say I purchased something over £100 to take advantage of Section 75 protection, while having the money in a savings account. This means I get cashback on the purchase and it also protects me from fraud because if the card details are stolen none of my money from my bank is taken. How can that be irresponsible use?

marksoton

Bloody hell, has Jeremy Corbyn come amongst us?!