how do credit cards work

kannon · 01-11-2017, 12:26 AM

Quote:

Originally Posted by uh-oh

yea i dont know how none of this shit works. never looked into it. i thought bankruptcy wipes away all your debt except government shit, like student loans and tax shit.

its all good though, i've made it 27 years not giving a shit about credit, no point in starting now

I mean, to be completely honest with you, you should start rebuilding your credit as soon as possible. Credit is hugely important in today's world. Jobs will run credit checks on applicants. Landlords run credit for applicants. If your car breaks down and you got shit credit, hope the bus runs close to your house, cause you wont get a car loan. You need credit for everything.

And bankruptcy stays on your credit report for 7 years making it next to impossible to get any lending for anything. Sure, you could settle some debts now, but you'll be shooting yourself in the foot long term. Don't do that.

Credit is basically a rating of your ability to repay. Using a credit card, you are essentially spending the bank's money, and paying it back. If you miss payments, your credit score goes down. But if you make payments regularly, and pay more than just the minimum required amount, your credit score will go up. There is a lot more that goes into it than just that, and if you'd like I can shoot you a DM with some more info. I've worked in banking for the last 4-5 years, so I could probably point you towards some options to rebuild your credit. (See if your bank offers a "Secured Credit Card." You're not going to like it. But it will help you rebuild credit. Most major banks offer them; BofA, Wells, Citi, US Bank, etc)

But to answer your original question, rather than trying to work out what you owe every month in interest, it would probably be easier if you just told her "HEY. You pay the $2,200 up front. I'll pay you back $2,400. $100 a week til it's paid off." Boom, done. And you'll probably pay less in interest that way than if you actually tried to break it down. Most credit cards charge 15-20% monthly.