Memories (and what I learned) About Getting My First Credit Card
January 27th, 2010
by Colleen
Ever heard the phrase “If I knew then what I know now”? Well, some of us can relate that phrase back to getting our first credit card. You know what I’m taking about…buying the latest electronic gadget, tickets to a must-see concert, or a new outfit for a special date, certain you can pay off the balance rather quickly. But of course, that’s when the unexpected happens: your car needs a new battery, your TV [or computer] gets fried during a thunderstorm (note to self: use a surge protector), or your hours get cut at work. Suddenly, making payments on, let alone paying off, your credit card isn’t going to be as easy as you thought.
Being out on your own can be fun and exciting, but it also means taking on new financial responsibilities. The decisions you make now about how you manage your finances and borrow money will affect you in the future – for better or worse.
Did you know that there are companies that keep track of whether you pay your debts and if you make payments on time? They’re called credit reporting companies, and they sell this information, in the form of a credit report, to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a place to live.
A bad credit history can haunt you for a long time – seven years or more. That’s why the best thing to do is learn how to maintain good credit before there’s a problem. While this might seem complicated at first, it gets easier once you understand the basics of credit and how it works.
So rather than getting your credit education through the “school of hard knocks,” let the FTC help – for free: Getting Credit: What You Need to Know About Your Credit and Focus on Finances: Preparing for Your Future provide tips on budgeting, shopping for credit cards, using cards carefully, and keeping your credit record clean. They also explain credit reports and credit scores, how to protect your identity, improve your credit record, and what to do if you are a victim of identity theft. Focus on Finances also navigates the ins and outs of buying a car, new or used. Both publications are good sources of information for people like you who are just learning about credit and making your own buying decisions.
And as they say, “pay it forward.” Share this information with your friends – and your parents. They may learn something, too.
Tags: children, credit, credit cards, kids, teaching
This entry was posted on Wednesday, January 27th, 2010 at 8:41 am and is filed under Credit and Debt, For Kids. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
This stuff does young people no service. With our current system, most are better off without credit cards. Using them for travel and major purchases is conveneient and almost necessary but using the credit is usually a horrible deal. It only make sense if the balance is paid off entirely every month, but few young people will understand than, much less have the discipline to do so. Debit cards are poor alternative because the consumer protections are even weaker.
Why not be honest and start the article by mentioning the outrageous interest rates cardholders pay if they’re in “default” (i.e. a few days late with a payment) — in Ohio, It’s 29.9%.
Face it. This website and the authors of the above article are just tools of an abusive industry operating under a corrupt government.
Hi, hopefully someone can assist me. I am in a dispute over the terms of my credit card from Capitol One. I am behind in payments and they are charging me 29%, late fees, over the limit fees…you get the idea. I would never be able to pay them off if left alone.
I sent several messages to them via their secure mail server and finally one customer service agent agreed to lower my interest rate, refund some of the late and over the limit charges, and generally work with me. Well…one week later they recinded this offer. I have the money to get the account current, but will not pay it until they stick to the agreement they are now back-tracking on.
I am not asking a lot, just for them to stick to their agreement so I can get the card paid off in a reasonable time frame. So if anyone can help me short of filing a complaint with the FTC, PLEASE HELP ME!
Hi Capitolized One,
The Office of the Comptroller of the Currency handles questions and comments about credit cards issued by national banks, such as Capital One. You may find useful information at HelpWithMyBank.gov (http://www.helpwithmybank.gov). You also can write: Office of the Comptroller of the Currency, Office of the Ombudsman, Customer Assistance Group, 1301 McKinney Street, Suite 3450, Houston, TX 77010; call: 800-613-6743 toll-free; or visit: http://www.occ.treas.gov.
8 CFR 103.7(b)