Need help picking a credit card

[quote name='parKer']Edit: Regarding closing accounts, totally forgot, but this will describe credit utilization ratio better than I can.
http://www.myfico.com/crediteducation/questions/credit-cards-and-score.aspx


I've seen people do it different ways. Some people will keep a card if they like the perks enough and if it's a card where a bonus is given again (I want to say there was a high-annual fee AmEx card that did that), but most will close it and restart later. The people over at a travel forum that I frequent have made churning into an art.

When looking at the cards, you have to pay attention to the issuing bank. Each bank will only give you so much credit and churners take advantage of that numbers game. For example, they will do an app-o-rama, applying for a Chase Southwest, Citibank American Airlines, and a third airlines card that isn't issued by Chase or Citibank, all at the same time. Look at Calipso's list. He has several cards issued by the same bank and his credit limit totals per bank are about the same range. I'm guessing he did several app-o-ramas at different times.

Sorry to keep referring to you, Calipso lol. And, I was only slamming you for posting your actual amounts, as it's like discussing your salary with co-workers, socially inappropriate. But, I now see your point at needing data to prove your point. Also, kudos that you've dug your credit rating out of the hole. It was probably not easy and required diligence and self-control.





Hey, now. No hard feelings.[/QUOTE]

One negative on my Experian report had me held down for 7 years. Discover wouldn't touch me. Amex wouldn't touch me. Even if people don't get into the credit card churning game, it's so much more benefitial to have excellent credit than to have just one flaw on there.

I maxed out my credit at 18-21. Did stupid crap. Paid for it for years.

I only listed my limits/income as proof that credit is to be used as an asset. I know better than anyone.....credit does not equal actual money. I would much rather have $100k in cash in the bank than $1,000,000 in available credit.

I pull my credit report daily with USAA's daily puller and I use creditkarma just to see if anything changed on TU. After years of neglect and destoying my credit, I'm diligent about keeping it flawless. All bills are paid on time right after closing (if I didn't pay them in full) because I don't ever want to take a chance on a 30-day late appearing on my reports.

I stand by my original recommendation for the OP though. Chase Freedom. Easy card to get for beginners. $100 statement credit for spending $500. Good 5% bonus catagories. When someone pairs the Chase Sapphire Preferred with the Freedom....you can transfer your UR points over to airlines that Chase is partnered with.

[quote name='parKer']The funny thing is that a good majority of people who do the credit card churning are actually people who do make a decent income and those with advanced degrees, business people and high-income professionals. It isn't a small-time thing at all like game flipping or mediocre churning to get a few plane tickets or an upgrade to first class here and there. These people spend tens of thousands of dollars in a matter of a couple of months in order to get hundreds of thousands of miles (some try for the million mark) because of the minimum purchasing requirements for their selected cards. So, their credit limits and accompanying bonuses are way beyond those of people like Calipso. And, most importantly, they know how to do it without significantly affecting their FICO.

I'm not saying that churning is right, but it is intriguing and shouldn't be dismissed like a Slickdeals/games hoarder or classed at that level. You see it as crap and they would probably view our video game forum as crap. :lol:[/QUOTE]

You've be quite surprised at what some people on Flyertalk, MyFico Forums and various boards do for work. They just like playing the system and flying for free and staying at good hotel rooms.

I have to laugh though. Someone trying to put down people who churn credit cards or flip games or stuff for extra profit.....yet he posts on a forum dedicated for being a cheap mofo to get vidya games.

Compared to the dedicated churners on Flyertalk, I am barely on the radar for churning. My points are laughable compared to the people who fly first class all over the world on bonuses and point promotions. I fly across the US for free and will continue to do so for several years.
 
Try citi card. I know some people hate them, but I have never had an issue with them. I get reward points and no apr.
 
I already said that it's one thing to be frugal, and another to go crazy flipping shit or abusing credit card reward program loop holes.

I also said I rarely visit the deals forums here anymore, unlike when I first joined when I was a broke ass grad student and had to find super deals to buy any games. :D Now I don't game as much and I'm behind on games, so most games are cheap by the time I get around to buying them and playing them anyway. For the few things a year I want to play day 1 I have no problems just paying $60 on Amazon--and they often have gift with preorder deals as well. So I have little need to hunt down game deals these days.

I do still check the Bluray deals forum a little as I buy more movies than games--but I've cut that way back too as I seldom have time to watch more than a disc or two from Netflix a week. So my owned movie collection largely gathers dust. But for those I mainly just keep an eye on add scans and make sure I don't miss Best Buy upgrade and save promos since I still have some DVDs I want to swap out for the Bluray versions. That's another good example of deal hoarding stuff I'd never do too--I'd never go buy cheap DVDs to trade in for that promo. I just use it to ditch DVDs I want to upgrade, or shit I bought years ago that I shouldn't have bought as I've watched it once (or never) over several years.
 
I applied for the Amazon card so let's see how that goes.

I'm curious on one thing though. I looked into the Citi card and the Chase card and both of them mentioned needing a checking to use the rewards program. Is this correct or am I reading the wrong information?

Honestly, I have an account already with a local bank here and am planning on opening one with USAA to have as a permanent bank account so I would really like to avoid having to open another account.

Also, I'm a girl ^^;;
 
So, got a response from Amazon. It was declined due to not having enough accounts opened long enough to establish a credit history.

Looks like I'm going to have to try elsewhere then. Do I need to have a checking account to use the one for Citi?
 
Don't get a credit card.

Pay cash for everything.

If you need money to pay for something, think of ways to make to money instead.
 
[quote name='Brak']Don't get a credit card.

Pay cash for everything.

If you need money to pay for something, think of ways to make to money instead.[/QUOTE]

I really hope you're kidding. Not having a credit card is about as dumb as spending foolishly.
 
PM me how much debt you have, bro. I want to see how smart it is to have a credit card.

Devising ways to make money instead of swiping the plastic? How retarded.
 
[quote name='EnvyNeko']So, got a response from Amazon. It was declined due to not having enough accounts opened long enough to establish a credit history.

Looks like I'm going to have to try elsewhere then. Do I need to have a checking account to use the one for Citi?[/QUOTE]

try this: http://www.creditcards.com/no-credit-history.php ---> this one looks promising. It's only $19 a year and the first year is free. In 2 years, unless you do something dumb like not pay on time, you should have enough of a credit history to get a free card. That $9.50 a year is better than getting rejected all the time.
 
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Why are you always so insulting? Post a picture of yourself so I can laugh my ass off, please. PLEASE.

Back to the topic at hand: Good work perpetuating the "you need a credit card to buy a house / get a loan" BS. Corporate America has you right where they want you.
 
[quote name='Brak']Why are you always so insulting? Post a picture of yourself so I can laugh my ass off, please. PLEASE.

Back to the topic at hand: Good work perpetuating the "you need a credit card to buy a house / get a loan" BS. Corporate America has you right where they want you.[/QUOTE]

:lol: You're one of those types. It's a conspiracy! Corporate america is out to get everyone! :whee:

If you've got cash to buy a nice house, all the power to you. But I highly doubt that.

Oh, was that insulting too? :roll:

It's amazing that you cannot grasp the concept that people can have the money to buy something AND use credit cards.
 
[quote name='Brak']Internet Badass Alert.[/QUOTE]

way to fall back on some nonsense because you're wrong.

The fact is that you need a credit card in today's society. Just as you need to manage that credit wisely.

I'm sorry that goes against your silly little theories on corporate america and how the man is keeping everyone down.

OP wants to get a credit card. Telling her never to get one is just stupid.
 
When you make assertions about the person you're arguing with (online :lol:), you'll always come out on top.
 
To you, or the girl who started this thread?

The internet isn't about you. Every thread I see you post in, you figure out a way to make the topic of the thread about you.

In this instance, I do believe you're trying to let us know that you have some money and are able to manage your credit cards. That's awesome, dude. I'm really happy for you.

But, I ask this: why are so many Americans in crushing debt? I'm sure you'll say they're "stupid", so you can create a line in the sand between you and people who have debt, so you can feel smarter and make the subject about you again, narcissist, but that doesn't change the fact that credit card debt is a huge problem for A LOT of people. You scoff at this like it's a conspiracy theory. Moronic. Do you think credit card companies offer their services to help people? :lol: Just because you're allegedly $0 in credit card debt doesn't mean that the OP will be adept at managing her money.

(Now that you've read that paragraph, I'm sure that you're going to accuse me of being in debt. Have fun with that.)

Creditors deploy a lot of dirty tactics to suck people further in debt, such as raising a borrower's credit limit, or changing their rates and rules on the fly. Oh. And preying on dumb people, right?

Now, here's some ways to boost your credit score WITHOUT the risk of going into debt with a credit card

- Loans (I'd suggest through a Credit Union; Small - Medium to start)

- *BONUS* Use that small or medium sized loan to purchase things to sell for a profit. Double up that loan within a month and pay it all back and have some free motherfuckin' money. I've done this numerous times this past year. You learn a lot, get free stuff and free money - Tons of fun! Do this many times and your credit score will be bangin'.

- Pay your bills on time.

- SAVE and have a steady source of solid income. Naturally, a bank or credit union looks at these factors before handing you a loan. It's elementary.

- Use the money you SAVE as a hefty down payment. This looks good. If you get sucked into the credit trap (not a conspiracy theory by any means), the creditors will be leeching fees off of you every month - maybe worse, if you get too far into debt. Why not SAVE that money?

None of this answers the OP's question, though. I was offering what I believe to be great advice to her, and you chimed in and made it about yourself like you do in every thread.

If all she wants to do is shop online with it, she should just use a debit card. Hell, get a small loan at your local Credit Union and have a mini shopping spree with your debit card on Amazon - Just make sure you pay that loan off (as quickly as possible, if you can).
 
[quote name='Brak']

In this instance, I do believe you're trying to let us know that you have some money and are able to manage your credit cards. That's awesome, dude. I'm really happy for you.
[/QUOTE]

Oh, so I volunteered that I had $0 debt all by myself. Nobody asked me what my debt was, "bro"? GTFO of here. Your statement to not get a credit card was downright silly. And when I called you on it, you decided to get all high and mighty about the perils of debt and how I would have some.

You're not helping her at all. You're pushing your belief that not having a credit card is the way to go through life and that people who have one are suckers. You're the one instilling your belief in this thread, not me. You're the smartass who assumed that just because I have a credit card, that I would be in debt. I made no assertions about your debt or lack thereof, nor do I give a shit.

I can't help that people have crushing credit card debt. Nor is it my problem.

I don't know the OP from Adam so I will assume that she will use her credit wisely because I won't assume she is going to f up her credit from the get go.

She SHOULD get a credit card. You know why? Because she wants one. Despite people screwing it up, a credit card is the easiest way to establish your credit history. It shows you are responsible for paying your bills on time and you can manage your finances. Excuse me for having a little faith in someone on the internet.

Despite what you may think, having no credit cards lowers your credit score. Showing you can handle them is the best way to raise your FICO score.
 
I'll just put this here:


[quote name='EnvyNeko']So, I'd like to get my first credit card. I'd like to only have one and I'm looking for one with a really good rate and rewards program.

Currently I'm considering the Amazon card since I shop there a lot.

The only problem is that I currently have NO credit. You pull up my name and nothing shows up. So I would like some more information on what cards would work for me. Does anyone have any knowledge on this?[/QUOTE]

Now, do you have anything constructive to add? Because "don't get one" is not the right answer.
 
If you don't think it's constructive, just delete my post.

Think about that for a minute.

Exactly.
 
I know that getting a loan is a good way to get some credit without having a card as long as it's paid on time.

However, you mentioned paying bills adds to my credit and I'd have to say that's false.

I've had a cell phone for nearly 4 years now. When I first signed up it was through a program that was supposed to build credit when I paid my bills on time. I have NO credit. So explain how paying my bills has helped me build credit. I've had utilities and rent all paid on time and I still have nothing. I don't believe that paying bills on time has had an effect on my credit.

I understand what I'm getting into and I'm not just going to stupidly throw money around. If you don't have any good suggestions on a card that I could feasibly apply for then don't post in my thread.

I'm getting a card. Period. I just don't know from who or what kind yet.
 
I don't know about cell phones, but most utilities don't report because it costs them too much money to do so - some do, though.

If you're delinquent on utilities, it can harm your credit score if they report it to a collections agency.

In short: They typically only report negative information.

If you're (not you) are trying to attain a home, like whatshisnuts brought up, delinquency on your utilities can come in the way of that goal.

What I said wasn't specifically a message to you - It was a message to anyone who happens to read this thread in the same boat as you. No one else was speaking about the cons of credit, so I piped up. I don't think that really disrupted you from getting your credit card, did it?

Good luck in all of your future endeavors.
 
I'm sure everyone knows the cons of credit is getting into debt. That was never really brought into question. Sure, you can go your whole life without needing a credit card but what good does that do for the ones who do want a card and are in the same boat as me.

I think if anything others who read this thread need solutions. Your comment on paying off loans to build some credit has merit. If you wanted to state the cons of credit then starting off with "Never get a credit card" is not the way to do it.
 
The whole "never get a credit card" thinking assumes everyone is a dumbass who can't handle credit. It's really an obnoxious stance to have, which is why I laid into Brak.

so anyway, did you check out that capital one card?
 
I'd never go without a credit card. Too much hassle dealing with fradulent charges if you're using a debit card as the money is out of your account until they investigate at most banks vs. just disputing charges on a credit card. Especially since i shop on line so much and have gotten fradulent charges a handful of times over the years from sites getting hacked.

Add in the rewards which are free money and its a no brainier as long as you're responsible enough to treat it like cash and not charge more than you can pay off in full each month so you never pay interest.
 
I talked to a representative yesterday on it and the only one they suggested was the secured credit card. It has an annual fee and I'd have to deposit money into it as my credit limit (deposit 200 for 200 in credit) Which I don't get back until the card is closed.

As much as I'd like a card I don't think that one is the right one for me. I'm going to check with USAA or my bank and see if maybe we can work something out. Otherwise I'm going to get a loan and pay that off to at least have something.

I tried for a Citi card and got the same response as Amazon. I figured it would be that, but thought I'd try anyway. I wish I could apply for a student card but since I'm no longer in school that's not an option.

I almost wish I had gotten a card when I was 18. It probably would've been easier than now -_____-

I listened to my parents who always told me never to get a credit card and look where I am now. I have no credit, so I can't buy a house or a new car. And forget about getting a job in my field when employers look at credit scores too!

I'll be talking to USAA tomorrow. Hopefully I can get somewhere with them since I have an account on their site for years now.

Is there anything I need to know about credit limits? If I could get a card that had a $50 or $100 limit (that would be low tier right?) would that be fine to start out? I should still verify on any fees associated with those limits correct?
 
What I did for my first cc was to go through my Credit Union (Grow Financial). I had a $500 credit limit (I was 19 or 20 at the time) and paid my bill in full and on time every month. Eventually I got sick of their crappy rewards and no credit limit increases so I applied for the Citi forward card. It gives me awesome rewards for shopping on Amazon and I can use the points I earn in general to shop on Amazon. They gave me a $4,000 credit limit to start. I was baffled by that. After a few months they increased it to $6,000. It is an awesome card.

As for your limit, you should be getting ~$500 depending on your financial situation. There would be no point in a cc limit under $200. You'll honestly just have to stick it out for a year or two with a crappy credit card then go for a better one. I've never paid attention to apr or anything or that nature beyond not having to pay some kind of yearly fee to use the card. American Express and Discover won't stop hounding me now which is one bad thing. They send me offers all the time in the mail.

As long as you're responsible there is no reason not to have a credit card. Only spend money on things you have money for. It's not hard to do. Also don't cancel you're starter card even if/when you get a better credit card. It's better to just keep the account open even if you don't use it.
 
[quote name='EnvyNeko']Is there anything I need to know about credit limits? If I could get a card that had a $50 or $100 limit (that would be low tier right?) would that be fine to start out? I should still verify on any fees associated with those limits correct?[/QUOTE]

That is crazy low. If you use more than 30% of a credit card, it lowers your credit score.
 
[quote name='elessar123']That is crazy low. If you use more than 30% of a credit card, it lowers your credit score.[/QUOTE]


Yeah, I didn't think of that until after I had posted.


I haven't tried my bank yet so I'll have to give that a shot. Even if it's just a card I gotta start somewhere.
 
Honestly, I'm gonna come out and say don't get one. The reason you don't have any credit is likely because you've never been in get (your FICO score is more than 50% made up of your debt history). Aside from rewards (which aren't usually very good outside of sign up bonuses) what do you need it for that a debit card can't do? Not wanting to start a debate on using credit cards, but they just make it so easy to fall into debt that it's a really risky thing to use
 
[quote name='MrNinjaSquirrel']Aside from rewards (which aren't usually very good outside of sign up bonuses) what do you need it for that a debit card can't do? Not wanting to start a debate on using credit cards, but they just make it so easy to fall into debt that it's a really risky thing to use[/QUOTE]

1. Start building up credit history by having credit available, not using a lot of it and paying your bills on time.

2. Security. Much easier to just dispute fraudulent charges on a credit card than waiting to get money back in your checking account if you get fraudulent charges on your debit card.

Of course a credit card does require the ability to be responsible and treat it like cash and never charge more than you can easily pay off in full each month. So if one lacks that self control, then yeah, probably best to hold off on getting a credit card.
 
[quote name='MrNinjaSquirrel']Honestly, I'm gonna come out and say don't get one. The reason you don't have any credit is likely because you've never been in get (your FICO score is more than 50% made up of your debt history). Aside from rewards (which aren't usually very good outside of sign up bonuses) what do you need it for that a debit card can't do? Not wanting to start a debate on using credit cards, but they just make it so easy to fall into debt that it's a really risky thing to use[/QUOTE]

That's horrible advice. My GF never had a credit card, and we co-signed a lot of things. My score is like 50+ points higher than hers when we co-signed on a car, and that's with a big ding from when I was young. When that ding dropped off, my credit was like 100+ points higher than hers. She finally got one, and be credit is improving rapidly just from the card.

Plus, I'll take 1-5% rewards any day over 0%. A couple hundred dollars extra a year for doing nothing extra is a lot to just toss away.

Here comes the real world advice. You only have to use your credit card every 3-4 months, charging any amount (my GF puts GMG purchases on there, so it fits the bill). Pay the balance off, even before your statement closes. Tada. Free credit history with no abuse.
 
[quote name='elessar123']That's horrible advice. My GF never had a credit card, and we co-signed a lot of things. My score is like 50+ points higher than hers when we co-signed on a car, and that's with a big ding from when I was young. When that ding dropped off, my credit was like 100+ points higher than hers. She finally got one, and be credit is improving rapidly just from the card.

Plus, I'll take 1-5% rewards any day over 0%. A couple hundred dollars extra a year for doing nothing extra is a lot to just toss away.

Here comes the real world advice. You only have to use your credit card every 3-4 months, charging any amount (my GF puts GMG purchases on there, so it fits the bill). Pay the balance off, even before your statement closes. Tada. Free credit history with no abuse.[/QUOTE]

that's all well and good, but I suppose it's really who's holding the card that matters. I just know it's way to easy to end up end debt with a credit card. Sure, you can only use it sometimes and always pay it off, but there is always the chance that something crazy could happen, like losing your job, getting in an accident, etc. that could make paying it impossible. Then they slap on the rediculous interest fees, and you find yourself in the endless cycle so many fall into. Again, I don't want to get in a debate, just in my opinion it's not worth the risk
 
Again it just takes responsibility to not charge more than you already have cash in the bank to pay it off in full at the end of the month and not charge more than you could pay if you miss a paycheck etc.

So sure, don't get one if you think you lack that responsibility or have a very insecure employment situation etc.

Otherwise, if you have a stable job and are responsible it's silly not to have a credit card due to the easier security vs. using a debit card (especially for online purchases), reward programs and building up your credit score.
 
[quote name='MrNinjaSquirrel']that's all well and good, but I suppose it's really who's holding the card that matters. I just know it's way to easy to end up end debt with a credit card. Sure, you can only use it sometimes and always pay it off, but there is always the chance that something crazy could happen, like losing your job, getting in an accident, etc. that could make paying it impossible. Then they slap on the rediculous interest fees, and you find yourself in the endless cycle so many fall into. Again, I don't want to get in a debate, just in my opinion it's not worth the risk[/QUOTE]

And how would that be any different with a debit card? Only difference is, if you only have a debit card and things start to spiral out of control then you have nothing to lean on and you would just get hit with overdraft fees.. Where as you can at least use the credit card as a crutch if you really needed to. If you aren't fiscally responsible enough to have a credit card then you shouldn't be handling money in the first place
 
[quote name='slickkill77']And how would that be any different with a debit card? Only difference is, if you only have a debit card and things start to spiral out of control then you have nothing to lean on and you would just get hit with overdraft fees.. Where as you can at least use the credit card as a crutch if you really needed to. If you aren't fiscally responsible enough to have a credit card then you shouldn't be handling money in the first place[/QUOTE]

You missed my point, but nevermind. It's your money, if you want a credit card go ahead and get one. Myself, I try to stay away from them, but everyone has different opinions.
 
[quote name='MrNinjaSquirrel']You missed my point, but nevermind. It's your money, if you want a credit card go ahead and get one. Myself, I try to stay away from them, but everyone has different opinions.[/QUOTE]

Well then what would you propose if you got into an accident or w/e and you don't have a credit card? I already have two as I explained above. I have zero issue paying it all off every month. If you really can't manage a credit card then that is your fault. Not having credit when you go to buy a car or house sucks. And as someone above stated, what is the point in using a debit card/cash when you can get reward points for stuff you're going to get? They aren't awesome but it's something and you're essentially throwing away free money
 
[quote name='slickkill77']Well then what would you propose if you got into an accident or w/e and you don't have a credit card? I already have two as I explained above. I have zero issue paying it all off every month. If you really can't manage a credit card then that is your fault. Not having credit when you go to buy a car or house sucks. And as someone above stated, what is the point in using a debit card/cash when you can get reward points for stuff you're going to get? They aren't awesome but it's something and you're essentially throwing away free money[/QUOTE]

Well everyone should have an emergency fund with at least $1000 in it. Using a credit card will only make matters worse if you find yourself in trouble. Really, I'm not trying to sound like I'm some sort of better person for not using one, I was just advising the OP to think long and hard about if he really needs one.
 
[quote name='EnvyNeko']And forget about getting a job in my field when employers look at credit scores too!
[/QUOTE]
You're going a bit too far in your paranoia here. You might even live in a state that banned the practice. There are eight of them.
 
[quote name='toddacoco40']Go for the Amazon card and pay your bill out every month. Next Problem please.[/QUOTE]

I was already declined for the Amazon card due to not having any credit history. If it was that easy I would've gotten one already.

[quote name='Spokker']You're going a bit too far in your paranoia here. You might even live in a state that banned the practice. There are eight of them.[/QUOTE]

Perhaps you're right. Just a little bitter over the crappy job market ^^;;

So far it seems like my only options are to either get a secured card (which I don't want) or to get a store card (like target) and build it up slowly until I can get a rewards card I like.


[quote name='MrNinjaSquirrel']Well everyone should have an emergency fund with at least $1000 in it. Using a credit card will only make matters worse if you find yourself in trouble. Really, I'm not trying to sound like I'm some sort of better person for not using one, I was just advising the OP to think long and hard about if he really needs one.[/QUOTE]

Not everyone has that option honestly. I know I don't have an emergency fund set up and I'm trying to set aside money that doesn't go towards bills. I do agree with slickkill77 though. Credit cards are a lot of responsibility yes, but if you use them properly they'll be a huge asset. And having one around for emergency use isn't a horrible idea either as long as you can pay it off in the future.

Believe me, I have thought about this. I'm not just thinking of how cool it'd be to have a credit card in my wallet or something stupid like that. I'm looking for a good way to build up credit while still doing what I normally do anyway. I would like to be able to buy a house within a couple years and no credit history isn't cutting it.
 
[quote name='EnvyNeko']
Not everyone has that option honestly. I know I don't have an emergency fund set up and I'm trying to set aside money that doesn't go towards bills. I do agree with slickkill77 though. Credit cards are a lot of responsibility yes, but if you use them properly they'll be a huge asset. And having one around for emergency use isn't a horrible idea either as long as you can pay it off in the future.

Believe me, I have thought about this. I'm not just thinking of how cool it'd be to have a credit card in my wallet or something stupid like that. I'm looking for a good way to build up credit while still doing what I normally do anyway. I would like to be able to buy a house within a couple years and no credit history isn't cutting it.[/QUOTE]

Well I'd at least try to get a small one going if it's at all possible. Sounds like you know what your doing though, and aren't one of the thousands getting cards because, as you say, "they look cool". That's really not an exaggeration for most people sadly. Good luck picking a card, though obviously I don't really have any advice on which is best.
 
From personal experience you need a credit card, you have to have credit to get any sort of loan. I was stuck in the we don't have credit and can't buy a house category when I was younger (with a 40% downpayment). It took a year and a half to build enough credit to get approved for the mortgage. I made sure my younger brother got his own card at 18 just so he could start building credit and not run into the same roadblocks I did. Credit cards aren't these magical evil pieces of plastic that can control your life. The easiest way to not get into trouble with them is don't buy things you couldn't buy with cash.

Perfect credit is one of the most important things you can attain. I was able to walk in and out of my credit union with a 30k car loan pre-approval for the car I wanted in under 10 minutes last week. Yes income goes a long way, but so does a high credit score.
 
[quote name='perdition(troy']From personal experience you need a credit card, you have to have credit to get any sort of loan. I was stuck in the we don't have credit and can't buy a house category when I was younger (with a 40% downpayment). It took a year and a half to build enough credit to get approved for the mortgage. I made sure my younger brother got his own card at 18 just so he could start building credit and not run into the same roadblocks I did. Credit cards aren't these magical evil pieces of plastic that can control your life. The easiest way to not get into trouble with them is don't buy things you couldn't buy with cash.

Perfect credit is one of the most important things you can attain. I was able to walk in and out of my credit union with a 30k car loan pre-approval for the car I wanted in under 10 minutes last week. Yes income goes a long way, but so does a high credit score.[/QUOTE]

I'm not disagreeing with this, but it's clear the vast majority of card owners tend to wind up forgetting that credit isn't their money. If someone is already being super careful with their money, then a credit card likely won't change that, but many just get them because they are easy to use. Then years later they're still paying them off. It's all a matter of maturity, and that isn't something a person can always expect. Sorry for the rants, clearly the people of CAG are better at controlling their spending than the average joe. I'm not trying to get in a fight here
 
No one is disputing that. It has been said repeatedly that people who are immature and irresponsible with money shouldn't get a credit card until that changes.

Credit is a necessary thing in today's society unless you want to rent for ever and live in a city where you can just use public transit etc as you'll never be able to buy a house or get a decent car loan if you don't have a history of using lower levels of credit responsibly.

But of course their is danger in running up bad credit card debt and wrecking your credit history. So one does have to be mature and responsible enough with money to treat it like cash as the goal should be to never pay a cent of interest by treating it as cash, keeping a close budget if you're on a tight income and making sure you can always pay it in full each month even if you missed a paycheck from losing a job or whatever.

So one should definitely save up at least a small rainy day fund (three months or so of expenses at a minimum) before using a credit card probably as that's the first step to being financially responsible. And then work on building that nest egg up to at least six months of expenses and start using the card for most every purchase to build credit and reap the free rewards once you have a decent reward card.

More simply, one has to be able to manage money, credit and debt in today's society. So while one does have to be careful with their first credit card if they lack the experience, one has to start somewhere and a credit card with a lower limit is a great starting point to both build credit and start learning how to manage your finances etc.
 
[quote name='MrNinjaSquirrel']I'm not disagreeing with this, but it's clear the vast majority of card owners tend to wind up forgetting that credit isn't their money. If someone is already being super careful with their money, then a credit card likely won't change that, but many just get them because they are easy to use. Then years later they're still paying them off. It's all a matter of maturity, and that isn't something a person can always expect. Sorry for the rants, clearly the people of CAG are better at controlling their spending than the average joe. I'm not trying to get in a fight here[/QUOTE]


Here's what it boils down to:

If you are a dumbass, then you'll be a dumbass with or without a credit card.

if you are not a dumbass, then not having a credit card is just silly. It builds credit. It gives you rewards. It gives you price and product protection.

So, if you have no self control, then don't get a credit card. But if you know what you're doing, then there's absolutely no point in not getting one. There's only upside.

If you want to buy a house, unless you have all cash (and really, if you have all cash, power to you), then you need a credit history.
 
Credit not only determines whether or not you get a loan, but also your interest rate. But it's not the only factor. While the usual credit score does not factor in things like your occupation or anything not on your actual credit report, the lender can consider anything not already prohibited by law.

So two people come to you wanting to get a $12,000 loan for a car, both with no credit history. Who will you be more likely to lend to on more favorable terms, the college graduate or a high school dropout? Probably the college graduate. Though the college graduate with a good credit history will get a lower interest rate than both of them, all other things being equal.

People with no credit do get car loans, and not necessarily from those shady used car joints. My girlfriend did buy a car from Hyundai with no credit history in her law school days, though she did pay a higher interest rate than she otherwise would have. The loan was eventually paid in full. She will get a lower interest rate next time.

Basically, your credit history is what makes you an individual, otherwise the lender will have to rely on group averages not prohibited by law.
 
Yup that is true Spokker. I walked in and got 2.99% at the credit union, and also qualified for 0% at the dealership (obviously took the dealership). Had my credit been bad, it would cost me quite a bit more for my loan.

Squirrel, you can't fix stupid. If you can't control your spending and are too retarded to not spend more than you have on day to day living don't get a credit card. If you have an ounce of sense, get a credit card, make purchases you can afford, and pay off your bill every month. If you can't do that, get the card, make a charge every 6 months, and build credit. You'd have to be stupid to not want to build credit in today's world.
 
Yup that is true Spokker. I walked in and got 2.99% at the credit union, and also qualified for 0% at the dealership (obviously took the dealership). Had my credit been bad, it would cost me quite a bit more for my loan.

Squirrel, you can't fix stupid. If you can't control your spending and are too retarded to not spend more than you have on day to day living don't get a credit card. If you have an ounce of sense, get a credit card, make purchases you can afford, and pay off your bill every month. If you can't do that, get the card, make a charge every 6 months, and build credit. You'd have to be stupid to not want to build credit in today's world. Also, when I say "you" I am not referring the poster "squirrel", it is a general term.
 
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