Good First Credit Card?

[v10_viper]

What's a good first credit card to get? I'm 19 right now was denied a house loan because I have no credit history. I've gotten a ton of offers in the mail but never wanted to get a credit card, and as soon as I have a house loan it will probably not be used. I suppose I do want to get one though so I can attain a credit history, and a good one at that. I liked the Chase Platinum MasterCard but I have to fill in what college or uni I attend in the application and I'm not in college. I plan to attend WyoTech but not for a few years.

[93rollaracer]

I got a student Mastercard through Key Bank. $500 limit so you can't fuck yourself in the ass too bad and the interest rate is normal. You're not gonna be able to do much better than a $500 on your first card, so if there's a Key Bank near by, I'd suggest going with that.

[TexasF355F1]

Go to the bank you have an account at. If not I'd recommend Bank of America. They're an excellent bank and if you have any discrepencies or you become the unfortunate victim of fraud they do a great job of fixing everything. It happened to my mom and they were great.

That's where I got my first card from when I was 15. It was set at a limit of $500, I would get no more than $1000. That's a good starting point. I've always paid mine off every month, but it's not the best thing to do for your credit. I was get in the habbit of paying it off first, then every once in a while not paying it off completely, and then pay the next month or following month off.

Just be careful with it and watch what you spend. Look at interest rates as well.

Get your life going on the right track.

Edit: Looks like 93 and I have a similar trend.

['97ventureowner]

Check with your local bank or credit union, especially if you are a member. Credit unions operate a little differently than banks and tend to be a little more lenient in their requirements. Above all don't start off with a high credit limit like previously posted. Let your good credit handling and on time payment history be a guide to future limit increases. Watch out for the rates, especially the "regular" APR, the default rate, and any associated costs involved with the card such as convenience check charges, over the limit fees, late payment fees. A lot of these fees differ from card to card so it pays to shop around. One trend that the credit card industry is using now is using the excuse of being late in paying one of your other cards or other bills to raise your APR to their default rate which is usually significantly higher. This can look bad on your credit report and hurt you in finding employment, insurance, or housing. I've also noticed some of my card issuers are quietly raising a lot of their rates for other charges like the ones I listed above. This is how many credit issuers make the real money. Some states have websites with banking info as to the issuer of the card and their current rates and fees. This is a good comparison tool. But try your local lending institutions first as they tend to have lower rates and fees, especially if you're a customer.

Edit: One credit issuer you could also try is Citibank. They are the biggest card issuer. They also have bought out other card issuers such as gas companies. My wife and I have about 5 cards issued through Citibank, and they too also have a great fraud detection dept. Last year I received a call about my AT&T card (issued through Citi). I hadn't used the card in 3 years and they were alerted to some suspicious activity. I confirmed I hadn't used the card recently, and they immediately closed the account, sent me a new card and notified the 3 credit reporting agencies to put a "fraud alert" on my file.

[thadrawr]

the first card i got when i was 18 was a capital one card that started with a $100 limit and in 6 months i got the limit increased to $1000. pay it on time and then it dosent matter who you go through. try to find a cash back or some sort of rewards since everyone offers that now.

[lamehonda]

Originally Posted by TexasF355F1

That's where I got my first card from when I was 15. It was set at a limit of $500, I would get no more than $1000. That's a good starting point. I've always paid mine off every month, but it's not the best thing to do for your credit. I was get in the habbit of paying it off first, then every once in a while not paying it off completely, and then pay the next month or following month off.

I took a banking class in my last semester of school. We had a section on personal credit. You don't have to carry balances over to the next month as long as there is activity in the account. The credit card companies are the only ones who won't like what you are doing even though they are still making money off your purchases through the fees they charge the vendors.

The best number of credit cards to have for your credit score is two. You will initially hurt your score because have new debt accounts is a negative. Once you have had them for a year or two, they will really start to help. An auto loan is another way to prep your credit for home purchase, if you really need an excuse to buy another car.

[fredjacksonsan]

1) Look for no annual fee

2) Keep the limit low, and pay it off every month. (I knew a guy that used it only for gas, and sent them a check each payday to cover the gas receipts. Built up his credit/good payment history quickly)

3) If you follow the above, the interest rate doesn't matter. Just don't get into the habit of thinking it's free money - it's not.

[fredjacksonsan]

Originally Posted by lamehonda

.... An auto loan is another way to prep your credit for home purchase, if you really need an excuse to buy another car.

Good point...if you own your car outright, you can always see if the bank will extend you a loan on it, it's secured so they're likely to do so. Good alternative to getting a credit card; just don't blow the money you get lent and it will be easy to pay it off.

[Cl0ak]

Get it from your bank, I have wachovia bank, they set me up with a capital one $300 limit its over a $1000 now and I barely use it as I have other cards. 0% apr for 6 months, no yearly fee, just a few of the things I usually look for.

[highteknology]

i have a capital one credit card. it's the only credit card i have. i started with a $300 limit. I'm up to like 2 grand now. It's really low interest. basically follow all advice given already and you will profit from it.

don't be stupid though and be like some of my friends. they open a new credit card to pay off an old one.

[Igovert500]

All good stuff ^.

Just to add, alot of cards have offers now of 12 months or so of 0% interest. That is a nice incentive, but also take note of how much it rises after that initial year. For your first card, I would think 10% APR would be good. Also try and get a fixed percentage, variable can raise.

And again, definantly pay it off, and don't spend it like it's free money. You get better credit when you have more available credit...not used credit. IE, your score is better if you have a $2,000 limit and only have a $15 balance, then if you have a $6,000 limit and a $5,500 balance.

[ghostrx7]

i had a capitol one, started at like 300, went to three grand. maxed it out and apr went up to 20%!!!!! dont do like i did, make sure u have the money before u charge a bill that never goes away! luckily my gmother helped me out with the promise i never get one again! i use my debit card with visa logo now....

[blazee]

As others have said, your best bet would be to go through your bank or credit union. They usually have the best offers and higher limits. If that isn't an option then you should choose a card that you know will accept you, and only apply for that card. When you apply for a card they pull your credit history (or lack of), this shows up as an inquiry on your credit report. Numerous inquiries have a negative effect, because it looks like you're desperate.

Cards like Capitalone are usually a sure bet, however the downside is that they are slow to grow, and don't report the credit limit, so credit agencies have to use the highest balance in the credit limit field. This costs you a few points, because it makes it appear as though the credit limit is lower than it actually is. Generally, having high credit limits is a good thing (if you don't get stupid and overspend) because it shows that other companies trust you.

After you have used your first card for six months, apply for another card with a company that's a little better. Use these two cards to build your credit, you can add another one later on if you want. It's very doubtful that you will get a home loan until you have at least 3 years of history. 3 years is still considered short, but companies will be more likely to take a risk on you, granted that you have been responsible with your cards.

Whether you pay your cards off every month or not, doesn't have a direct effect on your credit. It does however have an indirect effect on your credit. Credit card companies keep an internal score of their cardholders. This score is kept in house and isn't based on your credit report or FICO score. This score is used to determine how much you're worth to them. Making a purchase and then taking a few months to pay it off, gives them a profit on the interest, and makes the score go up. Late payments, minimum payments, and high balances makes the score go down. Card members with higher scores can get the best rates and high credit limits. This helps your overall credit score. Especially if you have a balance on a card because the increased credit limit lowers you over all dept to credit ratio. I have a good history with my cards, and have called them ahead of time when thinking of purchasing vehicles and got 0% interest until it's paid off.


Car loans are a good way to build credit as well. And generally not that hard to get as long as you have a decent employment history at the same job or field. Again, you'll want to go through your own bank, becuase you're more likely to get better rates.

[l_eclipse_l]

I'm glad this was asked, as I am also 19 and looking into getting a credit card instead of always using my debit card. And thanks Blazee for that in-depth response. I'm sure everyone that reads that post is going to have a better idea of just how credit scores work.

[TexasF355F1]

Originally Posted by lamehonda

I took a banking class in my last semester of school. We had a section on personal credit. You don't have to carry balances over to the next month as long as there is activity in the account. The credit card companies are the only ones who won't like what you are doing even though they are still making money off your purchases through the fees they charge the vendors.

The best number of credit cards to have for your credit score is two. You will initially hurt your score because have new debt accounts is a negative. Once you have had them for a year or two, they will really start to help. An auto loan is another way to prep your credit for home purchase, if you really need an excuse to buy another car.

That's great info man. I took a credit class at work a few months ago, and they sort of said the opposite.

I will be finding out my credit score pretty soon since I'm buying a car in about a week.