Quote:
Originally Posted by emcee squared
I really don't know why I keep getting offers for cards. I just graduated and don't really have an income to speak of.
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DON'T DO IT! IT'S A TRICK!!!
I believe that the credit card companies prey on young adults, even those with "no income" as you claim...because eventually that is going to change. So they rope you in with your first card, the temptation to spend money you don't have, which is really hard for young Americans to resist, maybe the minimum monthly payment is only something like $25, and that's not a big deal, right?
Before you know it, you've been approved for half a dozen cards, you're using them all, and you're thousands in debt. Even if you are quite capable of making the payments with no difficulty (once you have a job of course) you will be very likely to carry around those balances for a decade or more, and pay thousands in interest. This is how these companies make their money.
The trap you fall into as a "just graduated" sort of person, is that you must establish credit. Having one card can actually help your credit score, but you have to be excruciatingly careful about how you use it. The best thing I've found is to establish a good banking relationship with a certain bank where you have your checking/savings. Then get their card, especially if it has a good rate and rewards. Don't ever accept any card with a minimum interest charge, inactivity charge, or annual fee. Don't let them sign you up for life insurance, or payment protection, credit score monitoring, or any other junk (they will try.) And then use that credit card to make ONLY purchases you actually have the cash to pay for in your checking account, then go home and use your online banking to pay the amount you just spent to the card. This can generate miles/rewards points...yet costs you nothing...and establishes good credit.
I was an accounting/finance major and I KNEW BETTER, but I am still beating away at balances I charged ten years ago. Don't make this mistake. I regret it daily.
Oh, and just because a card issuer will approve you when you have no income, doesn't mean they expect you to not pay the bill, or will accept it if you don't. You don't want to ever default on an account. So if you can't afford something, don't buy it, with plastic or anything else.
**climbing down from my soapbox now!**
I hate the offers in the mail, it's a total waste of paper, they go right in the shred. But the phone calls are worse. I never do business with anyone who solicits me by phone, as a rule. Ever.
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