Good First Credit Card?

miyamotofreak

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So, I think I'm ready to have a credit card so I could build some credit. I know I'm going to get a crappy rate (but I'll make sure I pay it off full every month, I swear!) but what's the best places to look? Almost bit on the Amazon/Chase deal but I figured I'd ask here. Thanks!
 
American Express (the green one). It's a charge card, so there is no interest rate. Or go with a Blue if you want a traditional credit card. They have a new Zync charge card, but I don't know much about it.
 
Discover Card is great for cash back (1% on everything, 5% on different things throughout the year). I've built up a few hundred in cash back in the last few years (and I always pay off my card every month). Not EVERYWHERE accepts it (i rarely run into a place that doesn't though) , so I got a normal Visa for the places that don't take discover.
 
2nd year of community college? Seems like you're gonna be under 21. I believe they recently changed the rules where your parents have to cosign a card with you unless you have a sustainable income.
so you're gonna have to ask your parents to add you as an authorized user on one of their cards. Thats still a way to build up credit.
 
AMEX Blue for Students is good. Reward program = points + points mall & its revolving credit so dont have to pay all in one lump sum at end of billing statement.
The Zync one is ok but charge per rewards category a annual fee.

Amazon.com visa is good - 3pts per $1 @ amazon.com + 1 pt\$1 everywhere else.
2500 points = $25.00 amazon GC other rewards start @ 5,000 + $30 sign up bonus off a purchase.

Discover is 5% cashback in various categories that change about every 2-3 months and 1% back on everything else.
- Really good website for tracking purchases.
 
[quote name='shosh']2nd year of community college? Seems like you're gonna be under 21. I believe they recently changed the rules where your parents have to cosign a card with you unless you have a sustainable income.
so you're gonna have to ask your parents to add you as an authorized user on one of their cards. Thats still a way to build up credit.[/QUOTE]


yay!!! complete overreaction by the administration!!! who woulda thought it?


if you're a full time student... with little to no credit... good luck getting started now.
 
[quote name='Afflicted']yay!!! complete overreaction by the administration!!! who woulda thought it?


if you're a full time student... with little to no credit... good luck getting started now.[/QUOTE]
not really an overreaction when you consider an average college student amasses almost 10k credit card debt when they get out. companies used to love to prey on college kids as you can probably see if you're on a college campus. they give out stupid t-shirts like the "college" animal house shirt so they can rope you in.


edit: im sorry its actually 20k in debt
The average college graduate has nearly $20,000 in credit card debt; average credit card debt has increased 47 percent between 1989 and 2004 for 25-to 34-year-olds and 11 percent for 18- to 24-year-olds. Nearly one in five 18- to 24-year-olds is in "debt hardship," up from 12 percent in 1989. (Source: Demos.org, "The Economic State of Young America," May 2008)
 
[quote name='shosh']not really an overreaction when you consider an average college student amasses almost 10k credit card debt when they get out. companies used to love to prey on college kids as you can probably see if you're on a college campus. they give out stupid t-shirts like the "college" animal house shirt so they can rope you in.


edit: im sorry its actually 20k in debt[/QUOTE]


well a simple fix would be limiting them to 1K in revolving debt... that way they would still be able to get 1 card with a 1K limit or 2 cards with 500 limit. Heck even limit them to 500 total. There could be many good fixes to this problem... but they used the 20 lb sledge.


Not to mention the credit amount you mention is not all revovlving debt. There's a big difference in credit card debt and student loan debt. I'll be blunt. I don't trust that quote. It reads very misleading.

Does anyone actually think that our government can give any sound advice when it comes to credit and how it works and how to use it?
 
[quote name='Afflicted']well a simple fix would be limiting them to 1K in revolving debt... that way they would still be able to get 1 card with a 1K limit or 2 cards with 500 limit. Heck even limit them to 500 total. There could be many good fixes to this problem... but they used the 20 lb sledge.


Not to mention the credit amount you mention is not all revovlving debt. There's a big difference in credit card debt and student loan debt. I'll be blunt. I don't trust that quote. It reads very misleading.

Does anyone actually think that our government can give any sound advice when it comes to credit and how it works and how to use it?[/QUOTE]
1k card limit on students? hmmm.... who's suppose to regulate that rule? the government? Companies sure aren't gonna regulate themselves. if this recession has taught us anything, is that these lenders need to be kept under control. its their right to make money, but when you put a country at a financial risk like they did recently, they need to be regulated. and that quote is debt. debt is debt.
 
[quote name='shosh']1k card limit on students? hmmm.... who's suppose to regulate that rule? the government? Companies sure aren't gonna regulate themselves. if this recession has taught us anything, is that these lenders need to be kept under control. its their right to make money, but when you put a country at a financial risk like they did recently, they need to be regulated. and that quote is pure credit card debt. thats only 5k per year. who only pays 20k for four years of college? thats basically community college with no expense.[/QUOTE]


actually... you could regulate to a 1K limit... lending regulations can be very strict and impose high penalties. IMO it would be better than saying we're just not gonna give students any credit.

as for the quote... it says "college graduate". A college graduate is anyone who finished college... from 20 - 115. It doesn't state the debt is there when they graduate. One of the groupings in the quote is 25-34 which is typically not the ages of a recent grad. In fact quite a few sites I would trust more quote the amount of revolving debt much much lower for college students.
 
[quote name='miyamotofreak']So, I think I'm ready to have a credit card so I could build some credit. I know I'm going to get a crappy rate (but I'll make sure I pay it off full every month, I swear!) but what's the best places to look? Almost bit on the Amazon/Chase deal but I figured I'd ask here. Thanks![/QUOTE]

I would go would the amazon card myself... planning on getting one someday.
 
+1 to CC companies preying on students. It's a fact. They used to come to campus and set up tables filled with tshirts and applications. They would offer free stuff if you fill out credit card applications.

They go after the college students because college students have a higher chance of making some dough and the CC companies want to get their hooks in them early.


In regards to which CC to go after, just make sure you don't get one with an annual fee and go for one with the lowest rates. Look into getting one through your bank.
 
[quote name='Afflicted']actually... you could regulate to a 1K limit... lending regulations can be very strict and impose high penalties. IMO it would be better than saying we're just not gonna give students any credit.

as for the quote... it says "college graduate". A college graduate is anyone who finished college... from 20 - 115. It doesn't state the debt is there when they graduate. One of the groupings in the quote is 25-34 which is typically not the ages of a recent grad. In fact quite a few sites I would trust more quote the amount of revolving debt much much lower for college students.[/QUOTE]
i would call 25-34 recent grads, as its not that many years following graduation. but debt is still debt, especially when 25-34 is the age where you try to buy a house or a car or even start a business.
and who says students aren't getting credit? parents would just be responsible for their children or they actually have to have a full time job. which, i don't know about you, but totally makes sense to me.
anyway, this is pointless. he can't even get a credit card himself since he's 19. I'm sure his parents are more than capable (i hope) in choosing a good card for him rather a video game site.


http://en.wikipedia.org/wiki/Credit_CARD_Act_of_2009


  • Limits credit cards to teens
    • A credit card cannot be issued to someone under age 21, unless they have a co-signer (who is 21 or over), or can provide proof of a means to repay
 
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Don't do it! Seriously. Unless you want to be going through a Total Money Makeover in 10 years or so. I wish I would have listened to Dave Ramsey many years ago.
 
[quote name='MorPhiend']Don't do it! Seriously. Unless you want to be going through a Total Money Makeover in 10 years or so. I wish I would have listened to Dave Ramsey many years ago.[/QUOTE]

Don't get a credit card? You do realize you live in the age of credit, right? Not having a good credit score is pretty much suicide if you ever plan on buying a car or house. Only people who act like idiots, financially, get into major credit card debt. It's pretty hard to get into debt if you have half a head on your shoulders. No offense to anyone here.

I would advise the OP just go with any credit card you can find that has no annual fee. That's what I did and then I worked my way up to better credit cards. I have 4 credit cards and I'm only 20. I started with a Capital One that gave me a $500 limit and then got an Amazon, a Discover and just recently at BBY RewardZone Mastercard. I prefer maximizing my rewards everywhere I shop, which is why I have all these cards (4% back at BBY, 3% back at Amazon, Discover for everything else, Capital One as a "just in case" card). Just be careful and you won't get charged any interest. I run everything through CCs and I think I've only paid somewhere near $12 in interest when I needed to pay for new winter tires for my car and didn't want to dip into my savings to pay for it.
 
We live in a matrix that goes to unspeakable expense to nurture us from the teat to be good consumers. You are issued a tax collection number at birth (SS#), another artificial number for your credit worthiness (FICO), and then you're extended a certain amount of tokens to play "life" based on those numbers. This virtual currency, not unlike your earned Farmville coins, only has value because you give it value.

It is a brilliantly designed game: the banksters create a unit of money out of thin air; lend it to people with interest attached; get them to buy real items; then raise the rates, force people to work harder, hover like a vulture until expected default occurs, and rake in the forfeited assets. Best of all, when the whole Ponzi scheme comes crashing down because they drunkenly gambled with your interest payments, the very people who destroyed you get bailed out by you with tax money. And they call you the thieves when you can't pay them back. The game is rigged for the house and it's always a Win/Win for them and a Lose/Lose for you.

Sure, you get to "rent" a flat-screen TV, a car, or a home from them, making life in the matrix almost worth it. But, ultimately, you only temporarily use that stuff at great expense to you and massive profits to the banks. After years and years of paid interest, you still never truly own anything. The TV is now obsolete and worthless; you still must pay increasing property taxes and insurance on your homes and cars, even when your done paying the bank three times their value, all while they bought your years of servitude with nothing real or tangible.

For the many who are contemplating dropping out of the corrupt debtor system, the least impact from the mafia will occur by ignoring your unsecured credit cards. Before you take this action, be warned that you may have to return the signing bonus gift you received when got your contract to play in the big leagues.

Here are the top five reasons not to pay your credit cards:
1.If you owe $6,000 on a credit card with a 20 percent interest rate, and you only pay the minimum payment each time, it will take you 54 years to pay off that credit card. During those 54 years you will pay $26,168 in interest rate charges in addition to the $6,000 in principal that you are required to pay back (Source).
2.Under the legal fractional reserve banking system, the banks NEVER actually had the fake money for the credit they extended you in the first place. They added you to their stable of debt slaves with a simple accounting key stroke.
3.The cartel of the large private banks are a proven criminal entity at the heart of most global problems including, but not limited to: wars, genocide, famine, and resource plundering. It's immoral to continue to support such a system on any level.
4.You won't need a good credit score to live outside of the matrix. It's a place in your mind where it is okay to not ever "use" anything with bank financing for the rest of your life.
5.Not paying your credit cards may be one of the only ways to make the matrix feel the weight of your protest without drawing too much oppression.

Since the foxes guard the chickens on Wallshington Street, the citizens may have to take justice into their own hands through peaceful resistance -- by simply dropping out of the matrix. In other words, don't pay your phony debts to criminal banksters. By not paying your debts, you should expect the system's goons to rain down fear by way of phone calls and mail to you. Additionally, you will certainly risk losing your esteemed Farmville status and, these days, you may even win a free trip to one of the oligarchy's private jails.

However . . . you could just wind up gaining some independence from your manufactured stress and servitude.
 
[quote name='freeorelse']Just say no to credit cards. Pay cash for everything. Wish I could go back in time and do the same.[/QUOTE]

lol, this is terrible advice.

I would say to go for a Chase Rewards card. The Amazon/Chase is a permutation of the Chase Rewards, so it's probably a good option as well (depending on how much you shop at Amazon).
 
Discover was my first and only credit card. I got it when I was like 20 I think and that was 14 years ago and they never did me wrong.

I like the cash back offers, Ive used hundreds of dollars in cash back bonus from just buying stuff normally. Whenever there was suspicious activity on my card they would close it and contact me. Like someone bought 2500 dollars in luggage on my discover card (the only time anyone ever frauded my card) and discover just had me write a letter and sign it saying I didnt make those purchases and they canceled my card number and sent me a new one with those charges removed from my account. They dont call and pester me constantly for services and never given me a hassle.

[quote name='GuardianE']lol, this is terrible advice.
Actually its not that terrible. If I had the cash flow I would never use a credit card. Cash means the transaction is done and over with, no building up charges, no fee's, no account tracking, no account theft/fraud and it keeps you off creditors grid for the most part. Credit cards are what is financially killing this country because so many people use them so much and get in trouble with them and then end up paying bllions each year in fees. Credit cards are just numbers in a computer, it isnt actually real money. Its kind of like how president kennedy wanted this country to go back to using silver and gold coins for currency instead of using invisible dollars in banks and just printing however much money we wanted. Credit cards and bank loans are what has contributed the most to the poor economy we have now because none of its actually real money and thus isnt treated like real money by consumers or lenders/credit card agencies.
 
[quote name='gargus']Actually its not that terrible. If I had the cash flow I would never use a credit card. Cash means the transaction is done and over with, no building up charges, no fee's, no account tracking, no account theft/fraud and it keeps you off creditors grid for the most part. Credit cards are what is financially killing this country because so many people use them so much and get in trouble with them and then end up paying bllions each year in fees. Credit cards are just numbers in a computer, it isnt actually real money. Its kind of like how president kennedy wanted this country to go back to using silver and gold coins for currency instead of using invisible dollars in banks and just printing however much money we wanted. Credit cards and bank loans are what has contributed the most to the poor economy we have now because none of its actually real money and thus isnt treated like real money by consumers or lenders/credit card agencies.[/QUOTE]

No, it's pretty terrible.

As was posted earlier in this thread, we live in a credit centric society, whether we like it or not. Very few of us are going to have the cash readily available to make a car or home purchase... or pay for tuition. That's why building good credit is a very important aspect of your financial life. As long as you don't spend more than you actually have (which is the downfall of most people who use credit cards), then it is very much in your interest to own a credit card and use it regularly.

Ideally, you shouldn't be accumulating any interest, any fees, any surplus charges. If you're smart with your credit, you should be using it essentially like a convenient method of spending your actual cash balance... only spending what you know you have in your bank account.

Bottom line: just because some people make bad decisions with their credit cards doesn't mean that the OP will be as irresponsible as they are.
 
If you have little to no credit, you might not have a great choice for cards. You might be able to find a card that offers some sort of rewards, but your best strategy starting out is to get whatever credit you can just to be able to build up your credit score.

As mentioned, the real problem with credit cards isn't the cards themselves, but people charging more than they can afford and not paying their balance off each month. My wife and I pay for most of our expenses with our AmEx and have yet to owe any interest...if you can (eventually) get a good rewards card and avoid interest fees, your issuer might end up paying you to use their card.

For some people, exclusively using cash is the only way to avoid sinking into ridiculous debt. Not using a credit card, however, can seriously hinder your ability to obtain financing on other things, such as a car or a mortgage. This even applies to having a card and not using it. Whatever card you end up getting, make sure that you use it, and pay it off, each month. While a high interest rate can look scary, it's only a problem if you don't pay what you owe. With a little bit of responsibility, smart credit card use can end up saving you thousands of dollars down the line due to better loan and mortgage interest rates.
 
Credit cards also offer perks that cash doesn't: extended warranties, buyer protection, insurance, etc.

Credit cards are not evil, but in the hands of irresponsible people they can be problematic. Just resist the urge to spend more than you can pay back and you'll be fine.

For the OP: Maybe start with a small local bank. If you have money, you can get a secured credit card with a low credit line (the bank may ask you to keep a money market account or something similar with a balance in it, as security for the card). This way you're teaching yourself not to spend more than you can pay back, and also getting credit history.
 
Get something with a good rewards program, but make sure to pay it off at the end of the month. I put everything on card so I can get points for it. I've gotten over $1000 in cash back from my Wells Fargo card and tons of stuff from Best Best from my BB Mastercard.

Also, American Express has a card with 0% interest for a year as long as you pay the minimum balance every month which I used to finance my wife's wedding ring.

But yeah if you shop a lot at Amazon or Best Buy, get their rewards cards. Otherwise something from your bank.
 
Yeah, I'd say if you have a savings account or something with a bank, see if you can get a credit card through them. If it's anything like mine, it can link in with your bank account online so you can view all your financials in one place, pay it off easy, etc.
 
Yeah, living today without a credit card is really terrible advice. If you want to get left behind, continue paying cash for everything. Cash flow or not, most people will never have the money to purchase a home with cash money upfront. That said, people who have no credit score, or a poor credit score, also do not stand a chance at getting a mortgage.

The TRUE solution is getting a credit card, and whatever else you need, and being responsible with it. Responsibility is something that needs to be learned, not avoided.

I used Capital One when I first started. I turned 18 and applied for one online. I got a card with a $250 limit. After a few months of using it and paying it on time, I got an update that they increased the limit to $10,000. You have to be very careful that you understand the rules of the game and that the money is not really yours and available for the taking. You should do your research on credit scores to get a better understanding of what they mean, how to achieve a better score, and factors in determining a score.

Also, stay around 40% or less when using the balance of a credit card, even if you can pay it back each month. It reflects negatively to max out a card and pay it back immediately. It will look better to have spent $200 on two different cards that have a balance of $500 each versus a balance of $400 on a single card with a limit of $500.

Anyway, you need a card if you plan on living on the grid. Start low and they will bump you up quick. Don't be enticed with introductory rates. Look for one with perks you like, such as cash back, flyer miles, reward points, etc. If you use Amazon a lot, or ebay, etc, they usually offer other perks for using their cards, so look into them too. Interest rate is important, but most will be close to the same after the introductory rate ceases.
 
PS - If they raise the limit and you don't want it, you can call the credit companies and have them lower it back to where you want it. I had no need for $10,000 :)
 
A good way to establish credit and avoid the temptation to overspend is to get a card for either a department store like JC Penney or Kohls, or a gas company like Shell or Marathon.
 
[quote name='Retom7'] That said, people who have no credit score, or a poor credit score, also do not stand a chance at getting a mortgage.[/QUOTE]


Does the 08 housing bubble ring any bells?
 
If your goal is to build credit, you may want to just go with a lousy student credit card. you will wind up with a maximum balance of something like $500, but it will allow you to build up a credit history.

All the doom-and-gloom regarding unsafe use of credit is completely true. If you ever want to get a home or car loan at a reasonable rate, though, you're doing the right thing by by getting one to build a positive history.

It can be a really dangerous thing... getting a credit card. Just remember it isn't free money, and there are consequences and fees for not managing it correctly.

[quote name='retom7']PS - If they raise the limit and you don't want it, you can call the credit companies and have them lower it back to where you want it. I had no need for $10,000 :)[/quote]

Just because you have access to $10,000 in credit doesn't mean you have to use it. One of the more weighted values in the determination of credit scores is the ratio of available to used credit - having a lot available, with a small amount used is a good thing.
 
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I would highly suggest the Citi Forward Card..

8500 points signup bonus (=~$85) with electronic statements and $250 in first 3 months.
100 points for paying on time and staying under your credit limit every month.
5 points per dollar spent on BOOKS, movies, music, and restaurants (I think all amazon purchases count at the 5 pts/dollar rate!)
1 point per dollar on everything else.

An alternative is the Citi mtvU card

Same as above except 25 points per month for paying on time.
Up to 2000 points for a good GPA (2000 = 4.0)

see forward: http://www.fatwallet.com/forums/finance/908171/
mtvU: http://www.fatwallet.com/forums/finance/523218/


EDIT: After reading some of the other posts I wanted to add this....

Credit cards aren't evil...you won't be a slave to the banks. Follow one simple rule: if you don't have money in the bank to back up a purchase you are about to make.....don't make it. If you don't learn self restraint with your money now, you are going to have life-long financial problems extending far beyond credit cards.
 
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[quote name='GuardianE']lol, this is terrible advice.

I would say to go for a Chase Rewards card. The Amazon/Chase is a permutation of the Chase Rewards, so it's probably a good option as well (depending on how much you shop at Amazon).[/QUOTE]
Who has there house paid for in this thread:D
 
Just a reminder, Discover isn't a flat 1% cashback.

From http://www.discovercard.com/more/faqs.html#q11

How do I earn Cashback Bonus?

You earn Cashback Bonus on every purchase just by using your Discover card.


  • You can earn 5% Cashback Bonus on category purchases up to the dollar amount of purchases specified in each program. Categories change throughout the year and include categories like travel, home improvement stores, department stores, gas and groceries. View the current 5% Cashback Bonus program details. You must sign up for each 5% program. As described below, category purchases in excess of the specified amounts will automatically earn up to 1% Cashback Bonus.
  • You can also earn 5% to 20% Cashback Bonus at top online retailers through our exclusive online shopping mall, ShopDiscover.
  • You automatically earn up to 1% Cashback Bonus on all your other purchases. You will earn 1% unlimited Cashback Bonus on purchases after your total annual purchases exceed $3000; purchases that are part of your first $3000 earn .25%. Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%. We do not include warehouse purchases or 5% category purchases in calculating your total annual purchases.
 
[quote name='Retom7']
I used Capital One when I first started. I turned 18 and applied for one online. I got a card with a $250 limit. After a few months of using it and paying it on time, I got an update that they increased the limit to $10,000. You have to be very careful that you understand the rules of the game and that the money is not really yours and available for the taking. You should do your research on credit scores to get a better understanding of what they mean, how to achieve a better score, and factors in determining a score.
[/QUOTE]

Care to tell me your secret to this? I've been hounding my credit card companies to raise my limit and the highest limit I have is $1,800. I got my first card at 18, am about to turn 21 and have never had a late payment and have always paid off my credit cards. I'm stuck using 2-3 cards every month because no god damn company will give me a limit I need (~$5,000 is what I need). Even BBY's Mastercard screwed me in the ass. I was thinking I was going to get a $1,500 limit or something around there and they throw $500 at me. What the hell can I do with that? My credit score is pretty damn good for having less than 3 years worth of credit, so I have no idea what these CC companies have against me.

[quote name='whymustiregister']Just a reminder, Discover isn't a flat 1% cashback.

From http://www.discovercard.com/more/faqs.html#q11[/QUOTE]

The 5% bonuses from Discover are pretty damn good. Just make sure you keep on top of what you get 5% bonuses from whenever you go out. This quarter's 5% gas bonus is awesome. I've gotten back like $10 or so so far from that. The ShopDiscover stores they have are also great. Barnes and Nobles is 10% cash back. Best Buy is 5%. There are tons of stores to shop from too. On top of the 5% or 10% cashback you get is also the 1% you get normally.
 
CC Companies are more cautious with who they give money to right now. You could be tagged as "high risk" despite your good payment record. It all depends on what percentage of your credit is being used as well as your age, occupation, education, income etc. Do you pay the CC off every month to a $0 balance?


Besides, going from a $250 limit to $10,000 in a matter of months on your first credit card is unheard of, especially at 18. Unless that persons income jumped dramatically in that period, it had to be an error on part of the CC company. Also, a factor in determining a credit score is the amount of revolving credit a person has available to them, so declining the $10,000 limit increase may not have been the smartest move, assuming the person had the self control not to live beyond their means.
 
^ When I was 19, I applied for an AmEx Blue and they started me out with a $10,000 limit, which I increased to $20,000 a few months later after reading a thread about online CLI requests on FT. Of course, that was back in 2007 before they started cracking down.
 
When I was applying for a credit card(Discover Student card) I got declined even after I resubmitted with my mother as a cosigner(she has good credit apparently).

I was pretty baffled after that but figured my best bet would be to get a secured credit card, but unfortunately I can't do that until next year when I turn 21.

;/
 
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