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First credit card (advice)?

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Luna_88
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First credit card (advice)?  Reply with quote  

I am in my twenties and living on my own for the first time.

I am NOT a student. I pay rent by working as a freelance artist/illustrator.

Freelancing definitely has its perks, but one of them is not a steady, reliable income. ( I do well enough to pay my rent and typically have some $ left over, but the amount varies.)

I have NEVER owned a credit card. (and have no debt of any kind).

I only have a personal checking and savings account (which I use to save/keep track of my money).

I keep records of all my deposits, withdrawls and receipts (when people pay me for my artwork). So far this works well and I have not experienced any problems with it.

However, most people at least own ONE credit card. In **my** case however, I don't think this would be a great idea (as I never know exactly how much money I will make/have each month).

Would it be fine to just keep doing what I'm doing (using only checking/saving)?

My parents got into a LOT of credit card troubles & debt when they were younger, so I never want to go down that road (ever!).

I do not make (or have) much money, but what I do have I am very responsible and organized with.

Any advice/thoughts for my particular situation?

I really have no else to talk to about this (most of my friends have regular 9-5 jobs and 'steady' paychecks).

Thanks for reading.
Post Mon Apr 20, 2015 11:04 pm
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oldguy
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quote:
I have NEVER owned a credit card. (and have no debt of any kind).



How do you pay for your car costs? Or do you live in a major metro (such as NYC) where cars aren't needed?

quote:
Would it be fine to just keep doing what I'm doing (using only checking/saving)?



Sure - that's how we all did it in 1960 before credit cards.
How do you handle your Income Tax - do you get 1099 forms for your earnings?

Aside: There are several major corporations that hire illustrators full-time, real 9 to 5 W2 jobs. Or do you prefer the "starving artist" lifestyle?
Post Mon Apr 20, 2015 11:26 pm
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Luna_88
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Hi ~ Yes, I live in the city so I can just walk everywhere.

My uncle takes care of any tax stuff for me.

( as I don't really understand that stuff specifically).
Post Mon Apr 20, 2015 11:36 pm
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Luna_88
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I prefer the 'starving artist' thing for now, as it gives me complete freedom to be my own boss.

I have some pretty regular customers (and contacts from each of them), so they are kind enough to constantly introduce me to new people (and potential customers).

It works for me for now.
Post Mon Apr 20, 2015 11:40 pm
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Luna_88
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quote:
Originally posted by oldguy
quote:
I have NEVER owned a credit card. (and have no debt of any kind).



How do you pay for your car costs? Or do you live in a major metro (such as NYC) where cars aren't needed?

quote:
Would it be fine to just keep doing what I'm doing (using only checking/saving)?



Sure - that's how we all did it in 1960 before credit cards.
How do you handle your Income Tax - do you get 1099 forms for your earnings?

Aside: There are several major corporations that hire illustrators full-time, real 9 to 5 W2 jobs. Or do you prefer the "starving artist" lifestyle?


THANK YOU for the info. I appreciate it.
Post Tue Apr 21, 2015 3:43 am
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littleroc02us
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It's great that your thinking about the serious problems that your parents have with CC's. There aren't anything to mess with unless your responsible. In your case it sounds like you live a simple checking and balance lifestyle, so unless you intend on buying a home someday, unfortunately I would suggest getting one credit card and using it for something small each month and paying it off ontime each month. It will help establish a history with credit and paying off debt.
It's not that I personally enjoy credit cards myself, but unfortunately it's the system we live with. My family only uses one credit card and we have scores of 800 each.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Apr 21, 2015 2:59 pm
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Luna_88
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Thank you, I appreciate it.
Post Tue Apr 21, 2015 9:20 pm
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oldguy
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quote:
My uncle takes care of any tax stuff for me.
( as I don't really understand that stuff specifically).


I agree, keep doing what you are doing. Very Happy

But for your far-future happiness, it might be good to take a couple of courses - taxes, math, etc. Life is way easier if you have a basic understanding of how things work - ask your uncle.
Post Tue Apr 21, 2015 10:26 pm
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gabrielmartine
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Re: First credit card (advice)?  Reply with quote  

I admire you for being so independent. Whether to live in savings and debit cards is up to you. I'd say it's a good decision at this keeps you from money trouble in the future however there are cases when having a credit card is wise. Like if you need to make big purchases that your cash can't cover or if emergency situation arise.

I suggest getting at least one card and don't worry about getting in debt. As long as you're not abusing its use and shopping till you drop you'll be fine.
Post Wed Sep 14, 2016 8:13 am
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AmyBrandon
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Very useful forum ... Thanks for sharing,
Post Fri Sep 23, 2016 3:17 pm
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raybenz1985
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I think having credit card is very necessary if you have big business and you need to deal with many big companies then cash handing can create problems and there are danger to loss your cash in robbery so credit card can help you to transfer your money in seconds sitting at your home or in company office.


prepaid master cards
Post Tue Oct 11, 2016 1:34 am
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Paul@GFS
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efficient money management  Reply with quote  

Most of us would find ourselves in a similar situation during our teenage. Getting our first credit card brings with it a number of challenges. We have to use it responsibly. If we manage our credit cards efficiently, it leaves a positive impact on our credit history. No credit history is generated if we don't use a credit card; it isn't a good sign as it doesn't prove an effective money management.
Post Tue Oct 18, 2016 11:31 am
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