Saturday, November 24, 2007

Credit card question.?

Credit card question.?
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Okey , so I have never had a credit card. I actually just wanted one for emergencys or in case I was running low on cash between pay days for things like gas. So I was just approved for one with no annual fee, 0% fixed apr, and a variable apr of 14.24%. So I have a few questions. If I dont use the card at all one month, will I have a charge? If I charged say 50$ onto the card in one month what would my bill roughly come out to after all of the charges? Can I cancel it at any time? Thanks!
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The Answer : If you don't use it, you don't have to pay, as long as the balance is 0. But the downside to that is that if the card is not used, then there is no credit history to report, which doesn't help build your credit. The best way to use the card would be to spend no more than $20/month, something that you can pay off every month. That way, you show activity on the account, and minimize as much interest as possible. You can cancel at any time, but you would need to make sure the balance is completely paid in order to do that. But you hurt your credit score when you cancel cards, so my advice to spend no more than $20/month would be your best option.

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