Banking Advice

Do you REALLY need a credit card? Credit can be good and it can also really hurt you.
If you get a credit card, go with the lowest regular rate (not introductory rate) and for gods sake, don't max it out, don't use it for food and don't be late on your payments. If you need to establish credit, start with like, SEARS or Foleys... buy something small and pay it all off at once. Once you do that, man, sit back and watch the applications start filling your mailbox. Everyone will want to give you credit. Just don't accept them all. Once you get into CC debt, it can be HELL to get out. Be careful.

I've had no problems with Wells Fargo and their online banking rocks. Of course, there are tons of banks and everyone has their own opinion. Ask about service charges, overdraft protection and types of checking/savings accounts. If your bank offers it, get a debit card. Checks are so, yesterday. The only thing i use checks for are paying bills by mail. If you have a job, get direct deposit, so you never have to "go to the bank" on paydays.

Spend wisely. Be smart and don't max that card out!

rH

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visit: The Psychedelic Groove House of Rockets Basketball Love!

 

Do you have a job yet? Reason is you may want to see who your compnay uses for banking. Our company's bank gives all our employees that use direct deposit free checking (there are limitations like 20 checks/month and 10 ATM uses) but essentially it is free.
If not I would just go to the most conventient bank (closest atm to home or work) and or the number of atms they have in town.

As for credit cards first determine what is your objective. If you ar ejust using it to pay for things then to pay off at the end of each month avoid cards with a yearly fee. If you are planning on going into debt you may want to consider a CC where you pay a yearly fee for a lower rate.

 

My advice is to look carefully at the type of checking account you get. Mine (Chase Bank) limits me to a certain number of transactions per month; for every one over that number, I get charged 75 cents. That doesn't sound like much, but it adds up.

Now, I just put everything on my American Express (where I cannot carry a balance and thus have to pay everything at the end of the month) and only have 8 checking transactions per month. That way I'm not paying 75 cents AND I'm not accruing interest on the purchases.

 

What is your goal? To build credit?
If not, get a Check Card.

If you do get a credit card, choose wisely. Their whole trick is to get you to pay late and rack up as much money as possible. Another trick I hate is the yearly maintence fee of $50...and of course, I do not suggest getting any Visa/Master Card that charges you that. As for intrest, you'll probably be paying 19%-24%... just as long as you pay it off monthly, it shouldn't be a concern.

As for banks, the musts I demand are Check Cards, Overdraft Protection(a must), Internet Banking, and free ATM use.

Check Cards are nice because you can use them wherever Visa/Mastercard(depends on which you have) are accepted. It also automatically come out of your banking account.
The bad side of course is its way to easy to use and you can spend your real cash very quickly if you don't control it.

Overdraft Protection is another must just in case you go over your limit for whatever reason. Most banks charge $25 for each over the limit ... which can add up quickly, and thats if they don't reject the payment. I went over my limit with 3 small checks (less than $10 each) and I ended up paying over a hundred dollars in overdraft fees.

Internet banking ... its just a nice convience to have... as long as its free.

Some banks charge you to use the ATM each time. Depending on how you use it (i use my a lot) you can be paying a lot of money. If you do get free ATM, you still will be charged to use other banks ATMs. (Go to Krogers, they will give you the money with no charge at the courtesy desk)


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Im too drunk to walk ... Im driving home!

 

Speaking as someone with far more credit card debt than you could EVER want, I strongly suggest living without them. If you cannot afford to buy it (outside of very large purchases like cars and homes), you probably shouldn't buy it.

If you need things, I stronly urge you to pay cash. It's one thing to have a mortgage or a car payment (or even take out a home improvement loan), but unsecured credit is very VERY dangerous. Try living without it. You'll be better off in the long run.

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The internet is about the free exchange and sale of other people's ideas. - Futurama

 

Damn Jeff, yet when I see you, you seem so happy! I never would have guessed!

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"Beware the lollipop of mediocrity. Lick once and you suck forever."

 

Take half your money, stick it in a Mayonaisse jar, and bury it in the back yard.

Take the other half to the race track and bet it all on the dog that does its business before the race starts.

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Charles Barkely on the Raptors defeating the Knicks in Round 1 :"I think it was the Lord. The Lord was with the Raptors. You know the Knicks like to talk so much about religion, but I think the Lord was a Raptor fan."

 

In all honesty, the best way to build credit is to buy something large and pay it off FAST. For instance, finance a car and pay it off in two months. You might pay a SMALL amount in finance charges, but it is written up as a fast pay on your report.

Credit cards don't actually help your credit rating. Loans, car financing and mortgages do much more for your credit than cards do.

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The internet is about the free exchange and sale of other people's ideas. - Futurama

 

Just make sure your wear an ex-presidents mask when you visit the bank.

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"The things I enjoy most, I suck at:
1) Sex: everything's fine until she makes noises." - Achebe

 

Vengeance, I'm glad we could all help. I wish I had had a Clutch BBS to use when I was starting out. My dad, who works in finance and is pretty much a genius in that regard, seemed to think (in hindsight) that I'd be blessed with the same common sense he has-- and thus would not need an explanation about why it was bad to go four months without making a credit card payment...

Oops.

Regarding the check card: scam city unless you have unlimited checking. That's how I was screwing myself-- I put everything I ever bought on my debit card. And at the end of the month, I had a $25 bank fee.

Jeff's right: don't build up debt. I really do recommend a credit card that does not let you carry a balance month-to-month.

[This message has been edited by BrianKagy (edited May 15, 2001).]

 

I caught my first tube today, Sir.


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Ceo of the Walt Williams and Lisa Malosky fan club.


atheistalliance.org

 

"have you seen my dog?"

 

I bank at Wells Fargo and have free unlimited checking, no fees, it kicks ass.

I too am in credit card debt. However, I figure that since I don't have any school loans to pay off, it kinda balances out!

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www.swirve.com
"Pre-born, you're fine, pre-school, you're f*****."-George Carlin

 

That's what I'm saying, it's never too late.

Although I really didn't like Point Break

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You can't stick a porcupine in a barn, light it on fire, and expect to get licorice.

 

Someone told me that banks actually count your credit card capacity as outstanding debt , now, for the purposes of mortgages. Can anyone confirm this?

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I would believe only in a God who could dance. - Friedrich Nietzsche

Boston College - NCAA Hockey National Champions 2001

 

Yes that is true DEPENDING upon how long it will take to pay it off. If it will take less than X months (X may be 6 or 8), then that debt is not counted.

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If your assets and income minus your debt (net worth) is in the negative and that negative represents more than 6 months of payments (usually calculated as 10 percent of your monthly income), it counts against you rather than in your favor.

So, if you make $50K per year and have another $20K in tangible assets (401K, car, etc), you can't have more than $3500 in debt (10% of your total income divided in half - 6 months) of any kind or it counts against you. If you make $30K and have no assets, you can't have more than $1500 in debt or it counts against you.

Each month more that is required to retire your debt service is another strike against you.

Also, when it comes to mortgages, it gets even more complicated because they figure in your monthly mortgage payments, insurance premiums and a little extra in case of illness or job loss.

The key really isn't so much in your debts as it is in your net worth. My wife and I have WAY too many credit card debts we've acquired over the past 5 years, but our net worth is still positive because our debts (including our mortgage) are still less than our assets - mainly the worth of our home.

Thing is, if you are trying to get a mortgage, chances are that you have very few real assets. For example, if your car is financed or leased, it isn't considered an asset until you've paid off more than it is worth. That's why it is so important to stay debt free.

I'm learning more and more every day about the really serious problems that go along with retiring debt. It is a pain in the ass and you DO NOT want it.

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The internet is about the free exchange and sale of other people's ideas. - Futurama