Credit Card FAQs

>>1151994
>buying a computer for $2.5k
>on credit
Why are you even here?

>>1151996

can you explain a little better?

>I am an accounting and economics student
>"How do credit cards work?"

Are you studying at a community college or something? WTF

>>1151999

i dont remember typing "how do credit cards work"..

what i'm asking is:

for ppl in my college, buying things with credit is a good thing.. but once i read that warren buffet said that buying things with credit is a dumb thing.

i see people attacking the use of credit cards and people defending them.

i know that credit, if used wisely, can help one build wealth... but how do i know that i can control them? even being a accounting student i feel kinda afraid of getting 3, 4+ ccs and being fucked in a few months...

> i have the money to buy the computer with cash.. should i use cash or get 2+ credit cards to buy it with credit

>>1151998
What function does the computer serve? Why are you spending so much on it? You dont need it if you are still in school. You can get a solid functional desktop for a couple hundred bucks.

Short story:
> join a startup company a couple years ago
>one of the perks of joining was a brand new $7k macbook
>been using this thing for 2 years now
>although I like it there is absolutely nothing I can do on it that I cant do on a laptop that costs a fraction of the price
>would have sold it immediately if I thought my work would never find out
Don't fall for the expensive computer meme. Even if you are into gaming you really need to cut back on that because its a time sink. Use your extra time to learn a programming language or two. You will thank me for it later.

>>1152005
You did type it with your posts.

You're a retard

>How do I control them

What the fuck does that mean? Buy it then pay it off by the end of the month when your bill comes.

>>1152005
Never use a credit card for big purchases that you cant pay off immediately. Credit cards are only useful for building credit history (which you will need if you ever start a business or rent/buy a home) and cash back bonuses.

>>1152017

I'm planning to develop softwares, websites, play some games, manipulate big databases..

maybe a linux, i5, 8gb ram, 1 tb..
i'll depreciate it in 5y

i live in a 3rd world country, and with our depreciated currency the cost of imported goods is kinda high atm

>>1152019

how do i control them:
i was expecting something like: "you should not let the sum of total expense exceeds 80% your income"

idk.. just dont be an online jerk. :-)
peace bro

>>1152022
humm...

i have 8k in investments

a computer costs 2,5k
have 1,3k credit limit in 2 cards (500 + 800)
earn 1k/month (internship)
invest 200~/month

should i get 2 cards with 500 limit and buy the computer using 2,5k in 4 credit cards

should i pay it 100% with cash?
80%? 60%?

how can i know which decision should i take?

Oo!

>>1152035
>I'm planning to develop softwares, websites, play some games, manipulate big databases
As someone who used to be a software/web dev you don't need a $2.5k computer to accomplish this. Its a bad use of money especially for someone who lives in a third world country. If I were you my number one priority would be to save up enough money to move. I have a feeling you arent going to listen to me and buy it anyway so at least dont put it on credit cards. You will end up paying $3k because of interest. Pay for it in cash.

Look how long it actually takes to pay back credit card debts, remember that it happens easily, and fast. Remember the wise words that Warren Buffett said: "The best credit score to have is zero." And then you use your debit card like a smart person so you can pay for what you want with money you HAVE. If you budget correctly, spend less than you make, and earn more than you spend you're going to never be broke.

>>1152104
>saving $80,000 in one bank to buy a house in a flyover
>not at all considering that inflation is a thing
>a hundred other things I can't be bothered to type out right now

You are actually better off having that money in cash than all piled in one debit account.


>look how long it actually takes to pay back credit card debts

If you paid the card off before the monthly term is up, you wouldn't even have debt.

>>1152121
>in a perfect world no one has debt.
but yea you have valid points.

>>1152104
When did Warren Buffet say that?

Source?

A credit score is LITERALLY a requirement for so many things these days.

Renting apartments, mortgages(duh), car rentals, some job sectors.

Credit cards are great if you aren't a retard. I've gotten about $300 cash back just for using my discover card over the past year for things I would buy anyways.

I used to pay exclusively in cash until a couple years ago but now I put almost everything on a credit card. I am actually more tempted to spend physical cash because what's $10 for lunch, $40 on drinks on one night, ect. But when you get a giant statement at the end of the month for $1,000 it has a lot bigger impact than spending $40 a day on worthless shit.

>>1152035
You have 8k in investments, you earn 1k ... and yet you want to buy a 2,5k thing while 0,5k thing should be more than enough for you. Do I need to spell it out for you?