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more credit card advice needed


Last Edited: May 26, 2007, 12:13 pm

Fees and Disclosures

  • Annual Percentage Rate 19.5% APR
  • Balance Computation Method Average Daily Balance (including new purchases)
  • Annual Fee $59 / yr.

  • Minimum Finance Charge $0.50



do i owe 59 bucks a year if i get this card?  what is that 19.5 apr?      what is the 50 cent finance charge?      if i buy something on a credit card do you have to pay it all back each month?


Entry #1,145


TenajComment by Tenaj - May 26, 2007, 1:15 pm

delores247Comment by delores247 - May 26, 2007, 6:11 pm
hi Lotto mike i have such a card and has had it for a few years and the annual membership is billed to the card yearly or divided into even payments monthly ,it is according to what card and what company you have,i don't know about the finance charges per item but their will be finance charges incurred each month you have a balance and you donot have to pay the entire balance unless you like,you can make the mimimum payment but each time you make the lowest payment they make money off of you ,it would take you forever to pay the card off,goodluck mike,,,,,,,delores247
Comment by LOTTOMIKE - May 27, 2007, 7:29 am
JAP69Comment by JAP69 - May 27, 2007, 10:15 am
With a prepaid credit card you are paying them to borrow your own money.
justxploringComment by justxploring - May 29, 2007, 5:41 pm
Mike, the bottom line is "can you manage your money & your spending?" If you can't then you will be in big trouble in a year from now.

When was the last time you had your credit report run? Do you know your FICO (or Beacon) score?

It's hard to give advice when someone doesn't know your credit history, but JAP is correct. You are paying them to use your own money if this is a prepaid card. I have no idea how those work, but even with a regular credit card, I wouldn't pay 19.5%.   To answer your basic questions - No, usually you only need to make a minimum payment. READ THE TERMS of your agreement. Some make you pay 2% or 3% of the balance. Maybe yours is different. If you don't pay the entire balance you will be charged approx 1.625 per month interest. (19.5% annually)   This means if you only owe as little as $500 and pay a minimum payment like $10 or $20, your interest will almost be as high than what you pay. So you will never get out of debt if you keep using your card.

People who are ill or out of a job and need to use a card for medical bills or even to buy groceries don't have a choice. It's unfair, but often they're the people who get caught up in this credit trap. I was in such pain last year that I gave in and charged a root canal (which was a waste anyway) but I was fortunate and had a no fee, 0% card for a year.

However, if you have the cash and you've been able to pay your bills every month, why get a card that is charging you to use it? IIRC, you just bought a new computer package. Did you finance that?

Now I feel a little nosy & judgmental, but you asked. :-)

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