Credit Cards **Teach Me**

[xXped0thugXx]

Im 20 years old, college student, with a part time job (25-30hrs a week at crappy pay). I think its about time i start building credit (haha). I figure i'd apply get a low credit line and start from there. Here's the problem, i dont know what to look for. No annual fees is good, plus whats a normal APR? Any recommendations?


Tia

 

[AgaBoogaBoo]

Get one of those cards where you pay $200 and can then spend $200, that helps build credit since I've heard lots of people have trouble getting a credit card without any credit history. After a little while with a prepayed card, ask if you can move up to something where you don't prepay.

 

[mugs]

As a college student, I got tons of card offers... I just picked one that had no annual fee. Now I realize that card sucks. Now I have a Citi Platinum Dividend Mastercard or something like that... 5% cashback on gas, groceries, drug stores. 1% cashback on everything else. This one is for college students but I dont' think it has the 5% cashback. This is the one I have now.

 

[Turkish]

I don't think APR should be your priority. You should look for one with no annual fee and good customer service incase something happens.

Try to not hold balance. Seriously, pay your bills when they are due. That's the best way to build credit. Also, if you have been paying utilities on time, your credit score should already be building up.

I am almost 21 and I have a credit score of ~ 730 (which is considered excellent). Even funnier, I am in college and I don't have a job during fall/winter/spring.

 

[xXped0thugXx]

well what im thinking about doing is getting a card for my trip to london, then just paying it back when i get home.

Xiety you talked about utils. is this regarding living in an apt or am i just missing it (braindead with school work).

I think im going to apply for Citi Dividend Platinum Select
-0% APR introductory rate for 6 months?
-1% cash back
-No annual fee
-Dedicated 24/7 Customer Service

sound alright?

 

[Turkish]

Originally posted by: xXped0thugXx
well what im thinking about doing is getting a card for my trip to london, then just paying it back when i get home.

Xiety you talked about utils. is this regarding living in an apt or am i just missing it (braindead with school work).

I think im going to apply for Citi Dividend Platinum Select
-0% APR introductory rate for 6 months?
-1% cash back
-No annual fee
-Dedicated 24/7 Customer Service

sound alright?

Sounds cool.

What I meant with the utility clause was if you are paying your utility bills (power, water, garbage, phone, ethernet, etc.) on time, these all help you build your credit. They are small individually, but they add up and help you build credit Of course this is assuming you live in an apartment (not dorms)

As I said, don't slack off on payments. 0% introductary APR sounds cool, but I wouldn't recommend it...

 

[xXped0thugXx]

yes i live in an apt and pay all those bills *but* its with a friend who is 21 yrs old, and my best friend. In this case it was nothing formal, no agreements, contracts so in this particular case im not sure its doing anything for me. It's kind of like im just living with him not actually renting the place.


I dont think i have any credit history ::shrugs::

 

[Turkish]

Originally posted by: xXped0thugXx
yes i live in an apt and pay all those bills *but* its with a friend who is 21 yrs old, and my best friend. In this case it was nothing formal, no agreements, contracts so in this particular case im not sure its doing anything for me. It's kind of like im just living with him not actually renting the place.


I dont think i have any credit history ::shrugs::

Haha, yeah if all those bills are on his name, it's not doing any good for you On the other hand, if he was ever late paying it, it didn't affect your history

Oh well, we all start somewhere... good luck

 

[AgaBoogaBoo]

Like I said, get one of those prepay cards. Put as much in it as you can before you go on the trip

 

[dethman]

sign up at one of those stands and get a free tshirt.

 

[dragonballgtz]

You should start off by opening a bank account. I opened a checking account so I could get direct deposit. With my checking account I also got a Visa debit card witch is pretty cool.

Get like a store type credit card. Something like Best Buy or Amazon.com card. That why if you buy a lot of things from that certain store you could get lower monthly payments. Witch will make it easier to pay.

I have a musiciansfriend.com card and use it only when I buy form musiciansfriend.com. Once I bought a $199 set of cymbals. Instead of using my debit card and pay it all at once, I used my musiciansfriend.com card and paid a low monthly payment around $15 a month.

 

[xXped0thugXx]

Originally posted by: dragonballgtz
You should start off by opening a bank account. I opened a checking account so I could get direct deposit. With my checking account I also got a Visa debit card witch is pretty cool.

Get like a store type credit card. Something like Best Buy or Amazon.com card. That why if you buy a lot of things from that certain store you could get lower monthly payments. Witch will make it easier to pay.

I have a musiciansfriend.com card and use it only when I buy form musiciansfriend.com. Once I bought a $199 set of cymbals. Instead of using my debit card and pay it all at once, I used my musiciansfriend.com card and paid a low monthly payment around $15 a month.

yea i have a visa debit card, and a savings account, only problem with getting a credit card from a store is i dont really shop at one place, or at all, i rarely get stuff for myself especially at the same store

 

[xXped0thugXx]

edit: dp oops

 

[xXped0thugXx]

Originally posted by: AgaBooga
Like I said, get one of those prepay cards. Put as much in it as you can before you go on the trip

not sure i've ever heard of this

 

[brtspears2]

I suggest starting off with student only credit cards. If you got a checking account and some income, you can get approved. I remember when I was 18, I was able to get student credit cards with Capitol One and Verizon Visa. The limits will be low but just make your payments on time and you will be fine. 3 years later, I have flawless credit and able to get basically any loan I need without any hassle.

 

[Yossarian]

I don't recall utility companies ever being on my credit report.

 

[Turkish]

Originally posted by: Yossarian
I don't recall utility companies ever being on my credit report.

Well they certainly will be if you are a month late on those bills

 

[HiTek21]

I got the capital one student credit card when I turned 18 (basically the only company that would give me a card). They gave me a low credit limit of $200 but a few months of good history and they upped it to $600, then $1200 and now $2100. I'm waiting for another credit card with some rewards then i'm canceling the capital one card. It has a really high interest rate (19.6% or something along those lines) but it doesn't bother me because I pay it off every month.

 

[KingNothing]

Here's a question I have: Is it bad to have a large credit limit on your credit cards that you never use?

The reason I ask is I recently asked Amex to up my credit limit to 5,000 because I felt like it. I just wanted to see if they'd do it, and they did. So now I have 5k on that card, and 6.5k on my Visa. I almost never use my Visa, and I only charge a few hundred to the Amex and then pay it in full each month. I'm 21, no other credit history besides those two cards.

 

[challengelife]

check out lowcards.com

 

[mugs]

Originally posted by: AgaBooga
Like I said, get one of those prepay cards. Put as much in it as you can before you go on the trip

He wants to build credit, prepaid cards don't build credit as you're not borrowing any money. Unless you're talking about a secured credit card, in which case why would he do that unless he is unable to get a regular card? No need to tie up your money if you don't have to.

Here's a question I have: Is it bad to have a large credit limit on your credit cards that you never use?

The reason I ask is I recently asked Amex to up my credit limit to 5,000 because I felt like it. I just wanted to see if they'd do it, and they did. So now I have 5k on that card, and 6.5k on my Visa. I almost never use my Visa, and I only charge a few hundred to the Amex and then pay it in full each month. I'm 21, no other credit history besides those two cards.

It's not really good to have more credit than you need, because potential creditors will see how much potential debt you have and it'll count against you. At least, that is my understanding. The customer service guy at Discover was kind of surprised when I asked them to REDUCE my credit limit to $2000, because at this point I don't forsee ever needing more than that. And if I do, I have 3 other cards.

 

[Rkonster]

Originally posted by: mugs
As a college student, I got tons of card offers... I just picked one that had no annual fee. Now I realize that card sucks. Now I have a Citi Platinum Dividend Mastercard or something like that... 5% cashback on gas, groceries, drug stores. 1% cashback on everything else. This one is for college students but I dont' think it has the 5% cashback. This is the one I have now.

From what I understand, there is no difference between the college card and the real card. It is only in the approval process, and perhaps a lower credit limit.

 

[yllus]

From How to build good credit:

CardWeb.com Inc. keeps a list of bank credit cards available on a secured basis in the United States. Try that site first in your search for an appropriate starter credit card.