Minimum amount to spend on a monthly basis with Credit

[toaster_ghost]

I'm new to using credit. I need some clarification on a few things. 1) Most importantly, is there a minimum one needs to spend every month in order to use credit? If there is, I'm sure it most likely varies from person to person. I want to avoid using credit as much as possible. 2) Do I need a history of credit use to be approved to take advantage of Credit? I have never used credit before. I have read through the terms at least twice, and these questions remain unanswered. Thanks in advance for any help you can offer! If you have any other information that might be of use regarding "Promotional" stuff, I would appreciate that too. I'm so lost in all of this. I want to have a solid understanding of all this before I apply.

[Anonymous_User · Accepted solution]

There's no minimum amount you have to spend - it's basically a line of credit that's available for purchases or sending money.   When you initially apply, you're asked to provide your date of birth, your income after taxes and the last 4 digits of your Social Security number.  If you read the Terms & Conditions of PayPal Credit, the first paragraph states - The lender may obtain information, including employment and income information, from others about you (including requesting reports from consumer reporting agencies and other sources) to evaluate your application, and review, maintain or collect your account.  

Also note the section: 

15. CREDIT INVESTIGATION AND REPORTING:

You authorize us to make or have made any credit, employment and income, and investigative inquiries we deem appropriate related to your application for credit, this Account, and the collection of amounts owed on this Account. You agree that we have the right to obtain credit reports on you in connection with (1) your application for this Account, (2) any potential Credit Line increase and (3) as we deem reasonably necessary to maintain and collect this Account.

As an alternative - assuming you deal with a bank, look into what credit cards they offer and compare the rates - you may find a better deal.   Look at the “Annual percentage rate”  or "APR".   This term is a little misleading as you are not charged interest on your balance once a year but, your interest is charged on a daily basis.  This amount can add up fast if you end up only paying the minimum amount due each month.

 

[toaster_ghost]

Thanks for all the information! The terms confuse me in some places. Is paying Interest inevitable? Obviously the company makes money one way or another. If the answer to that question is no, I'm assuming it is fairly easy to end up paying Interest without anticipation of doing so. One more thing: When comparing different credit opportunities, is the most important thing lower interest rates/APR? Is there no way around paying Interest on all things that I would use credit for?