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Credit Cards
I'm thinking about getting a credit card because I heard that the earlier you get one the better your credit rating will be in the future or something like that.
I honestly don't spend a lot... So I probably won't use my credit card all that much.
I don't know much about credit cards, so does anyone have any idea on some good ones? Low interest and whatnot.
I've heard of the BMO SPC one, but I used to work in Metrotown so I have the employee Metrocard which has about the same discounts.
My friend who works at CIBC showed me this one that's 1% cashback. So I'm guessing if I spend $100 I'll get a dollar back, haha.
Then for this VISA one there's a bunch of discounts but I remember seeing the discounts being not as good as the SPC one (I haven't even heard of half the stores).
I'd probably like to earn some airmiles, since I'm hoping to teach overseas, haha.
Also, I'm going down to the states at the end of the month, should I use the credit card or just go get some USD because the exchange rate sucks?
Thanks =]
I honestly don't spend a lot... So I probably won't use my credit card all that much.
I don't know much about credit cards, so does anyone have any idea on some good ones? Low interest and whatnot.
I've heard of the BMO SPC one, but I used to work in Metrotown so I have the employee Metrocard which has about the same discounts.
My friend who works at CIBC showed me this one that's 1% cashback. So I'm guessing if I spend $100 I'll get a dollar back, haha.
Then for this VISA one there's a bunch of discounts but I remember seeing the discounts being not as good as the SPC one (I haven't even heard of half the stores).
I'd probably like to earn some airmiles, since I'm hoping to teach overseas, haha.
Also, I'm going down to the states at the end of the month, should I use the credit card or just go get some USD because the exchange rate sucks?
Thanks =]
Comments
They lure you in with these cash back offers....and sooner or later there will be a time when you are low on money but you want to get something. So you will use your credit card, thinking that you can pay it back later. And thats where things start to go bad. You start to carry a balance, and you get charged interest charged, which is usually 18-22%.
I'll admit, I had a credit card when I was a student and that's basically what happened so I hate credit cards. Just spend the money you have and save for things that you want. Like so many others I had to learn the hard way, but life is so much better if you stick to cash.
Up to you though :P
I haven't applied since. And I think it's actually a good thing since I am terrible at saving and spending money.
But yah, definitely avoid the massive interest rates. Make sure you only spend what you can afford and pay it off asap.
i first applied for a VISA from TD bank, mind u I've been a TD customer for over 10years, they reject me claiming they "cant validate my student number, please resubmit application with proper student number" which i thought was BS so what did i do? send it back in with my student number... reject again sayn "application already rejected once"... why would they tell me to resubmit in the first place?
i switched to BMO and and man is it an awesome bank. I got my BMO MasterCard in no time after applying for it no questions asked. It was a student card with a 400$ limit or something weak like that. They since upped the limit to 1k.
my recommendation is to switch to BMO, they have a FREE student checking account, their SPC MasterCard is great, u can also choose to get CashBack or AirMiles.
also i randomly walked into CanadianTire one day to buy some car parts and they had a lady chillin there who was doing some credit card signups so she filled in an application for me and i got accepted their card had like a 900$ limit but i maxed it out the first day i got it buyn snowboard gear lol and paid it back 2 days later, the following statement they increased my limit to 2.5k lol
For those who are wondering why u should get a card? well firstly u work on ur credit score. it will be very hard later in life to get a decent loan without some sort of credit history.
another reason is checking accounts are great but most (ex. @ TD) have a 10transactions per month then they charge for every transaction over. this is the case with most banks... now if ur a controlled person u will only spend on credit cards what u know u have. then @ end of month pay it over and it only eats up one transaction on ur checking account.
Being approved for a credit card has nothing to do with how much money you have in your bank account.
As for getting a Visa or MasterCard, I would suggest one from a proper bank. I have a TD student Visa and I also have a BMO MasterCard.
A student Visa would be the best for your situation right now, as the interest rates are low.
BMO MasterCards are useful, however they are more prone to fraud than TD Visas. I used to work a register, and there have been A LOT of times when BMO cards came up fraudulent.
And it also helps when you apply for a Visa or MasterCard through the bank you're already with. It's definitely a good idea to build up good credit with a credit card--but remember to start small, and do not accept random credit increases without speaking to your bank about it first.
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And Kinky, I would suggest getting a credit report. A credit card isn't the only thing that could ruin your credit.
Do you have your own cell phone bill? Are you responsible for any type of bills?
What about any fines you might've had from the city that you haven't paid off?
I like it for its convenience. I don't like to carry too much cash with me, and it helps me to document my expenses. And I heard they're more secure than debit cards..? But yeah, up until then, I kept using my debit for everything. It also helps when I want to buy something online as well.
I don't spend what I don't have, or if it really comes down to it, I would only spend as much as my next coming (guaranteed) paycheck would allow me to. I pay off everything right away through online banking, so if you're good with not spending what you don't have, a credit card can be useful for you.
I will probably apply for another one though once I'm done with finals.
They insisted that I get the student one with no benefits, $500 limit, and no low annual interest rate but I pushed them until they gave me the classic one.
- 1% cash back (can be used for RRSP, investment, stock options)
- $1000 limit
- 11% annual interest rate
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Anyone who wants to improve/start their credit should be using a credit card. I purchase everything with a credit card, then put my entire pay cheque back into the credit card. Never a late payment, receive rewards, better tracking of your spending from the monthly statement, improve credit, develop responsibility.
If you've got the student one with basically no benefits and a low $500 limit, i'd suggest asking if you're legible for an up at least on your limit. Depends on how your previous payments were of course.
regardless of the fact that you dont have a credit card you still have a credit score i believe. if you keep applying for a credit card and keep getting rejected i was told that it actually lowers your credit score right off the batt.
also, money does play a role in getting a credit card, not necessarily how much you have in your account but how much you make yearly. (was asked annual income on every card i have, even my student one)
as for getting a student card? for me it was pretty easy. i walked in, asked to get a student visa, showed my student id, signed some paper work and it showed up in the mail a week later.
@kingsley: wtf is the point of having a credit card if your going to pay it off the day after you spend money on it? you have to be pretty fuckin retarded in order to FORGET to pay your bills. it shows up in your mail, you open it, and you usually have 2 weeks to pay it off. and also, your credit does not immediately drop just because you forgot to pay ONE bill. it drops progressively as the amount you owe keeps building.
edit:
also, i have a coast student visa. they upped my limit from 500 to 1200 in a year of using it.
It's fine, we points and stuff.
Started off with $1k limit, then they decided to up it to $1.5k.
I like it because their Customer Service is unbelievably awesome :)
i just like the no annual fee and has my picture on the physical card
pretty much use it for everything since i dont carry around much cash
limit is a several grand, but ive never maxed it out b4
it doesn't necessarily help your score if you always end up with $0 in your balance, but rather that you make steady payments every month will help your credit score.
Maybe it's just me but I don't see what's so difficult about fiscal management using cash, debit, and credit cards. Buy things you can afford and don't buy things you can't afford.
I use them intead of using cash and debit because of the benefits then I just always pay it off at the end of the month.
I think if you are responsible theres no reason to not have a credit card, the earlier you have one the better credit you can build. There was one time I was 1500.00 in debt a few years ago and could only afford to make the minimum payment and its not a good situation to be in, because the interest is equal to or exceeds your minimum payment.
Before my first credit card I got rejected like 3 different times, until I signed up at the BMO booth at metrotown where they chase you down. I think I have 8 credit cards now.
I also share a credit card with my dad that has a limit of $12,000. I use that to pay for big items.
Anyways good luck finding a credit card that gives you good rewards and a low interest rate, those two rarely go together. CC companies want you to spend and they want you in debt.
Also, having many credit cards lowers your credit rating (so my banker tells me).
I wanna get an amex with air miles so I can use it to pay for stuff at Costco.
I don't want one with my parents because the credit rating will go with them, not me. I've known some people having to start their credit all over again because they had shared with their parents.
I'll probaby jsut be interested in a low interest rate thing and cash back if those two go hand in hand. For air miles I could always get that air miles card (just a card, not credit card) and buy a separate SPC card for discounts
If only SFU still accepted Visa, I could fly around the world by the time I graduated. :p
From what I understadnd, in the grand scheme of things though (when you have long established your credit), several cards doesn't really have that much of an impact on your score, except for the fact that lenders will think you are a greater risk to them. Its just when you are starting out, you don't have anything to absorb the impact, so to speak.
and then i have a Amex platinum card for costco.