First Credit Card!

trollape74

trollape74

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Just as the title says I got my first Credit Card! However it is only a Sears card but I we all gotta start somewhere. Any advice you fellow CAG's can give me on building my credit and hopefully getting a better one? I've done some googling and read get varied answers on how to build up to a better card. I plan on paying the balance in full on time every month but about how long should I do this before applying to a better card?

 
trollape74 said:
I plan on paying the balance in full on time every month but about how long should I do this before applying to a better card?
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Depends on which card you want next. CapitalOne typically caters to people with bad credit, so they will probably accept you very early.

Oh, and never cancel any credit card,even if you don't use it anymore. Having very old credit cards active is good for your credit card, especially if they have high limits.

 
I opted to get a credit card through my bank. That way I can transfer money from any of my accounts onto my credit card, and I can pay on it immediately. The best thing you can do to build your credit is just to frequently use it and make sure that you pay it off. You'll get your credit up in no time. I got mine when I turned 18, and at 23 I now have a really good credit score--all just from the one credit card.

 
I got my first Credit Card when I was 18, but I think the recent changes in banking laws prohibit anyone under 21 from getting unsecured credit. Just charge a little bit every month and pay it off. Combine this with getting bills ie: mobile phone, cable, car insurance, in your name, and you'll build your credit up north of 700 within a few years. I financed a $17,000 car at 21 and got approved for a $140,000 mortgage at 26, so it's not hard as long as you remain dedicated, and make your payments on time. You don't even need to pay it off in full every month (although I would suggest doing so), just don't pay it late.

 
in terms of waiting, 6 to 12 months. I started with a target card, ended up with a Chase card with a 6000 dollar limit 9 months later.

just pay your bills on time. otherwise, life can be a pain. if ya really want to build credit, buy a car.
 
Thanks for the advice, I do have the home internet bill in my name so that should help build some credit. Unfortunately I paid off my car already but that was in my dad's name. I'll probably wait 6 months before trying to apply for another.
 
Josh1billion said:
Depends on which card you want next. CapitalOne typically caters to people with bad credit, so they will probably accept you very early.

Oh, and never cancel any credit card,even if you don't use it anymore. Having very old credit cards active is good for your credit card, especially if they have high limits.
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Completely wrong, you dont know how scores work.

It hurts your credit score when you have a lot of unused credit sitting around. Reason being is that you could go out the next day and buy 10k worth of shit if you wanted to. Having a credit card with a high limit just sitting around does you no good if you have multiple cards. Stick with just one card, always pay the balance on time or early, and after a few months ask for a credit limit increase or apply for another card with better perks.

Target CC is pretty good, 5% off all target purchases.

Southwest CC is great, free trips but has a 60/year fee(me and my wife use it for EVERYTHING minus bills we cant pay with it like our mortgage, earn an assload of points)

Amex Clear, no fee, it only does 1% cashback (2500 spending gets your 25 giftcard) but its Amex so has that prestige deal and gets other amex perks like rental car coverage.

But again, having an old card with a high limit not being used will actually lower your score if you have multiple cards. If its your only one, no problem, but like 4-5 CC with high limits will lower your score. Look up debt to equity ratio.

 
kilik64 said:
Completely wrong, you dont know how scores work.

It hurts your credit score when you have a lot of unused credit sitting around. Reason being is that you could go out the next day and buy 10k worth of shit if you wanted to.
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Source? In the past, I've read just the opposite on this.

 
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