Wasp needs a credit card

[Wasp]

I ONLY need a credit card for buying things in places where im not, i.e. booking flights online, buying stuff from wreckers (hopefully not this one) and other stuff.

I currently bank with psis, they offer some sort of credit line solution but i dont think its suitable http://www.psis.co.nz/InternetBanking/nt/creditline.asp

This one looks like a good one to me http://www.westpac.co.nz/olcontent/o...est+MasterCard

Basically if you have any advice on how a credit card works, what not to do, what to do (i hear its good to get a credit rating by letting something earn interest?) etc etc.

Cheers,

[Squeak the Rat]

• Shop around comparing fees and interest rates
• Use the card only for transactions where it is needed
• Do not carry with you in your wallet - too tempting
• Pay off every month. Most cards are around 20% interest. If you cant afford something dont buy it.
• Put your card in a container of water then put it in the freezer.
• Don't use when drunk.
• Do the math on rewards points. A lot of schemes require a base fee, worhtless if you don't use your card much.
• If you are planning on staying in debt on the card there are low interest options.
• Don't stay in debt on the card

[Str8 Jacket]

Waso, repeat after me. I do NOT need a Credit Card! Dont get caught in the trap if you know that you're likely to spend. If you can control your spending and not be tempted to spend up large then you might be alright.... Just be very careful, they can be a huuuge trap!

[Wasp]

its only for things like booking flights online and buying contact lenses (cheaper) from aus and hopefully not for buying parts from bike wreckers.

i will not be using this card very often. it will not replace my eftpos card.

[bungbung]

Go to NZ Post shop and pay $5 for a Prezzie card. It is effectively a pre-pay Visa. Have a look at http://www.nzpost.co.nz/Cultures/en-...d/Howtouse.htm

[merv]

What every one else is saying - be careful, don't get into the trap of having outstanding balance because if you don't pay it off every month the interest mounts up.

Credit cards are very useful when you are overseas too if that's something you will do.

If you can afford a good life OK and go for one with rewards the annual fee is usually more, but if you can go for one of those then put all your spend on it to accumulate the points, but remembering point 1 you've got to be able to pay it every month. Airpoints are great if you want to fly anywhere, especially Air NZ these days with its simple Airpoints Dollars approach. If you aren't in Airpoints that will cost you a one off joining fee of $50 too.

Make your choice carefully and manage it well.

[Squeak the Rat]

Go to NZ Post shop and pay $5 for a Prezzie card. It is effectively a pre-pay Visa. Have a look at http://www.nzpost.co.nz/Cultures/en-...d/Howtouse.htm

What a great solution! Wasp, seriously consider this.

It is faaaar to easy to think "I'll just put it on the credit card"......

[Wasp]

Im not so sure about using that pressie card on the air nz website to book a flight to new plymouth..... which is the main (more urgent) reason why i need a credit card.

but then again thats not a half bad idea...... if it will work

[Filterer]

I use mine for anything over $20.
Basically use it as a combined eftpos for me and the gf has a card for the account as well. You can't get combined accounts without fees like I would otherwise being a student.

I think the credit card for both of us and true rewards membership costs around $30 a year but would get back close to $100 bucks of rewards back that I get petrol vouchers for.

This means that I also have no transaction fees etc. On the downside you have to disciplined enough not to overspend.

[dnos]

i think (don't know) that if you don't pay it off on time then interest is charged all the way back to when you made the puchase. So you need to pay it off each month.

Anybody feel free to correct me if i am wrong.

[Str8 Jacket]

i think (don't know) that if you don't pay it off on time then interest is charged all the way back to when you made the puchase. So you need to pay it off each month.

Anybody feel free to correct me if i am wrong.

When I worked at the bank 4 years ago this was true. Also if you pay back the full amount you spend each month then you are not charged fees. But then my everday account at the the bank does not charge me for any electric transactions either. From what I remember if you have a credit balance they pay YOU interest. I may be wrong though....

[Squeak the Rat]

PS Wasp,

If you put something on the card today and pay it off before the due date on your next statement you do not get charged interest.

But the trap is that if you have ANY amount on the card from previous months not paid by the due date you will then pay interest on all purchases for that month.

eg,
Nov you buy a $3 bag of mixed lollies
Nov statement, you pay $2
Dec you buy a $1000 holiday
Dec statement you pay interest on $1001 (circa $20)

[Edit:] as they said above while i was typing my post......

[placidfemme]

Waso, repeat after me. I do NOT need a Credit Card! Dont get caught in the trap if you know that you're likely to spend. If you can control your spending and not be tempted to spend up large then you might be alright.... Just be very careful, they can be a huuuge trap!

Have to totally agree with Str8 Jacket on this one

[James Deuce]

Don't.

Don't get a credit card. Don't. You'll regret it for years. You'll buy $3000 worth of stuff and services and pay $12,000 for it.

Save the money up and use electronic transfers, bank drafts, and money orders. Use real money. If you borrow make sure the total finance cost is no more than 10-12%.

Credit Card companies lie by ommission and micro-dot sized fine print.

Don't do it.

Don't.

[Freakshow]

Wasp yes they are dangerous but also very handy little pieces of plastic!!

I have one of those global plus ones and buy every thing with it no matter how small. I have not paid interest on it in the last 12 months as I keep on top of it. Keep the max credit low like around $500. It works out cheaper than eftops as there are no transaction fees. Biggest bonus is airpoints these do add up as it got me a trip for me and my lady to Fiji last year.