Help!! I want a Credit Card But Im Only 20!!?
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I got a offer in the mail from capitol one! It said something about the interest rate being 9.9% I want to know what is affordable for me! For example I have a full time job where I get paid $10 and hr plus comission. I pay my own cell phone bill and my gas and car insurance! With all these bills could I afford a credit card? Whats a decent interest rate? And how do I manage my card? Please and Thanx!
Help!! I want a Credit Card But Im Only 20!!?Well, you couold definitely afford a credit card with only having a cell phone bill and car insurance. 9.9% isn't a bad interest rate at all. How the interest rate works is this:
You divide 9.9% by 365. This is called the "daily periodic rate" which in this case would be 0.0271232%
Then you would multiply that by how many days are in each month (30) and then you would get 0.8136986%
Now let's say that your balance is $200, you would multiply ($200) and (0.8136986%) together to find out the interest which would be a $1.63
Now the BEST way to use your card would be to use it only when you know that you can pay it off. Or the best scenario would be to pay your cell phone bill and gas with it, then turn around and pay the credit card every month. Or buy gas once a month with it and pay it off. Whatever you do, the main thing is to either make a small purchase or a purchase you know that you can easily pay off on time every month. You should use no more than 25-30% at any given time. The lower the balance, the better not only for your credit score, but for your pockets as well. The higher the balance, the more you have to pay off, the more you'll pay in interest.
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