First Credit Card... Tips?

[Rhonda the Sly]

I'm way too old to not be accruing some type of credit and, moreover, my debit card is expiring soon, so I figure I need a CC.

I don't really have any needs, I just want to avoid fees as often as I can. If I'm rewarded for anything, cool. I have some savings and my wages outpace my spending pretty good, so I don't imagine I won't have to worry about any balances, short term.

Honestly, I was thinking of just going with my bank's card option. What say you, ATOT?

 

[lxskllr]

Looks as good as any. I'd go with a credit union though. Open an account, and get their credit card. You can then compare it with the for profit bank, and they'll probably be better. You can then close the bank account. Otherwise, any card you get should be paid off every month, especially if you're dealing with ridiculous interest rates like that card you linked.

 

[Vinny N]

Try for an Amex, even if it's just a charge card. The backdating is invaluable and will help you keep your AAoA up if you open additional Amex cards later.

Other than that, go for rewards cards without annual fees (unless the math shows you will recoup more than the annual fee with your yearly spending).

Really there's a wealth of information at http://ficoforums.myfico.com/t5/Credit-Cards/bd-p/creditcard

 

[Drako]

Yes.

 

[Kadarin]

Get credit card. Use credit card. Don't go overboard. Pay your cc bill.

 

[boomhower]

Do you have any credit history at all? If not your options are going to be severly limited. If you have none get in with a credit union that offers a secured card. You put money in a CD or other product and the CC balance is based on that. It reports and your credit score will improve. If you have some credit history already read on.

Become a member of a credit union and get a Visa card. It will most likely be a vanilla card with no cash back but a low interest rate if you would ever need to carry a balance. The above American Express suggestion is good for reasons listed but they aren't a good idea for an only card because of limited acceptance. (have one and love it but have to carry a back-up, same for Discover) (my CU card is with DCU @ 8.5%)

If you want a cash back card the Chase Freedom is a solid option. Discover offers similar rotating categories at 5%. I also like my Sallie Mae card for 5% at Amazon and solid rewards on gas. American Express Blue Cash Preferred is also in my wallet.

Get rid of the big bank and get a credit union regardless.

 

[Exterous]

Try for an Amex, even if it's just a charge card. The backdating is invaluable and will help you keep your AAoA up if you open additional Amex cards later.

Eh - I'd say that depends on the acceptance in your area. There are a lot of places around here that don't accept it so I don't like using Amex as an every day card.

I'd also say 'invaluable' is a bit of an over statement as things like on time payment count more and AAoA has negligible effects later on. My AAoA has been dropping rapidly but has been more than offset by on time payments

 

[Elixer]

Get credit card. Use credit card. Don't go overboard. Pay your cc bill.

In other words, don't act like the US Government... and you should be good.

 

[Born2bwire]

Do you have any credit history at all? If not your options are going to be severly limited. If you have none get in with a credit union that offers a secured card. You put money in a CD or other product and the CC balance is based on that. It reports and your credit score will improve. If you have some credit history already read on.

Become a member of a credit union and get a Visa card. It will most likely be a vanilla card with no cash back but a low interest rate if you would ever need to carry a balance. The above American Express suggestion is good for reasons listed but they aren't a good idea for an only card because of limited acceptance. (have one and love it but have to carry a back-up, same for Discover) (my CU card is with DCU @ 8.5%)

If you want a cash back card the Chase Freedom is a solid option. Discover offers similar rotating categories at 5%. I also like my Sallie Mae card for 5% at Amazon and solid rewards on gas. American Express Blue Cash Preferred is also in my wallet.

Get rid of the big bank and get a credit union regardless.

I'd second the credit union. My friend had a lot of trouble getting a credit card. Being an international student, she did not have any credit history nor could she ride on the coattails of her parent's credit history. When I finally got her to go to a credit union, she was able to even get an unsecured card. Being with a credit union and being able to actually talk with someone to work out the credit line makes a world of difference. Without a good credit history, you will probably have a hard time getting approved by just filling out an online application.

If you think you can get an unsecured or secured line easily, then check out http://www.bettercreditcard.com/ to compare different reward cards. They have lists of all kinds of cards and lines.

 

[bryanl]

Pay your first bill immediately to learn how long processing takes, since some inefficient or disreputable credit card issuers are slow to credit accounts, perhaps to generate late fees.

Most cards offer free extended warranties, and Amex and Visa provide better service for them than Mastercard does. For travel outside the US, Amex is superior to everything.

Amex and traditional financial institutions (banks, credit unions) on averagebetter service than credit card-only institutions (Capital One)

Before applying for a card with an institution where you have deposit accounts, look into 'right of offset.' which means the bank can withdraw money from such accounts to pay for credit card charges. That could matter if you need to disputed a charge.

 

[Schfifty Five]

Look for a southwest CC bonus sign up. There are some where you can get 50K points bonus for spending like $2,000 over 3 months. That 50K points can be used for 2 flights or $500+ in GCs. Not bad for a sign up bonus.

Also look for a card with no annual fees.

 

[Via]

1) for God's sake, don't fall for one of those ripoff secured cards that leaves you with $400 in debt on a $500 balance with a 50% interest rate, a $120 annual fee, and a $20 transaction fee. Since you made your own AT account I assume that you're smarter than that.

2) Don't EVER take it out with you. If it's your first card lock that sucker up when you hit the town; you have no idea what social situations can do to the human psyche when it comes to credit. You'll end up being the big man after dinner when the check comes and pick up the tab, or you'll buy that unnecessary round of Jaeger shots just before close, or you'll make a CC tab and start treating some stuck up girls to drinks, or...... you get the point.

3) Always make sure you have money to play off the complete balance, no matter what.

 

[Imp]

Don't forget that every dollar you charge is a dollar you no longer have and need to pay back. If you can't pay it back within 30 days, you probably shouldn't buy it.

I lend my credit card co. free money by incurring negative balances...

 

[Exterous]

For travel outside the US, Amex is superior to everything.

That is highly debatable - well unless you consider being less widely accepted and paying a ~2.7% foreign transaction fee for every purchase on every Amex card* as being superior to the many Visa\MC no fee options that are more widely accepted

*excluding the platinum card which I don't think the OP would be eligible for anyway

 

[yottabit]

I don't think brand preference really matters with CC's because you aren't going to get good customer service anywhere IMO

I have two cards that have 5% quarterly cashback rewards in different categories and 1% all the time. It works out pretty nicely because one may be in a 5% period on say groceries, and one may be in a 5% period on gas or something. Sometimes it's less useful things like 5% cashback only at certain stores. But it's nice to get the extra cashback while you can.

Not sure if you can get that kind of rewards card with no credit history but it could be worth a shot.

 

[boomhower]

1) for God's sake, don't fall for one of those ripoff secured cards that leaves you with $400 in debt on a $500 balance with a 50% interest rate, a $120 annual fee, and a $20 transaction fee. Since you made your own AT account I assume that you're smarter than that.

Those aren't secured cards. They are unsecured, just a massive ripoff. Don't forget the additional fee to pay online or over the phone!

 

[olds]

See my sig.

 

[dullard]

1) Don't buy anything with the credit card that you wouldn't buy otherwise. The credit card is not to help you buy more stuff. It is to help you build credit, get rewards, have the safest possible transaction, smooth transactions that are otherwise a hassle, etc.

For example, I had a friend in high school who finally got his credit limit above $1000 and instantly bought an engagement ring (he was 18 years old). I asked him why so soon. His answer was since he had the credit limit. That is possibly the very worst reason to propose marriage that anyone has ever had. (The marriage failed within months).

2) Forget about rewards. I'm not saying get a credit card with no rewards. But once you get that card forget about them. Studies show people spend far, far more if they think about credit card rewards. They think "oh, I'll get a whopping 1% back, so I can afford this!" or "I can splurge on this since I'll get 50 airline miles!". Don't fall down that trap (see #1).

3) Pay the credit card in full. Don't pay the minimum. Don't pay between the minimum and the maximum. Pay the maximum. Every month. There is no better way to build credit. There is no other way to avoid interest or other costly expenses.

4) Pay the bill the day you get the bill. There is no "forgetting" that way. There are no fees for late payment that way. There is no interest to pay that way. If you don't have time to pay bills that day, don't get the mail.

5) Set up your credit card to have the minimum amount paid automatically every month (or set your bank to pay the credit card the minimum amount each month whichever you prefer). This guarantees that you have no late fees and guarantees that your credit score only goes up. But still see #3, and pay the full amount yourself each month.

 

[mmntech]

Pay your bills at the end of every month, in FULL.

If you see something you want but know you won't have the money for it at the end of the month, DON'T BUY IT.

That's really all there is too it.

Also, always examine every statement, and keep your receipts. Just in case there's any discrepancies. The banks do a good job monitoring for fraud now, but you shouldn't depend on them to catch everything.

 

[Jaskalas]

First Credit Card... Tips?

Just the tip...

 

[SheHateMe]

Max it out, and then pay it all back like a boss.

 

[sze5003]

Look into the discover it card. They have cash back every month based on certain purchases. I usually only use my cc when they have 0% financing offers.

 

[Rumpltzer]

When I had Discover and Amex, I was always wondering whether it would be accepted at places. Sticking to VISA and Mastercard nullifies that concern.

Lots of cards out there. There's no reason to be paying a fee on a credit card. It'd be better to get something that rewards you for whatever stuff you buy. Say, the Amazon VISA that'll offer something like $30 right off the bat and a percentage on Amazon, gas, and drugstore purchases. I use it on Amazon and/or gas when the Chase Freedom isn't offering anything better.


Pay it off. Don't carry a balance. Pay it off. Pay it off.

 

[AyashiKaibutsu]

I use amazon visa where it gives 2% or more and discover everywhere else and for things that are 5% (it rotates). I want an Amex blue card to round things out but they keep turning me down : ( Just funnel your money through them and make sure you're not spending more than you make in a month and you'll be fine.

 

[boomhower]

Amazon Visa is not the card to have for Amazon. The Sallie Mae card is. 5% back for up to $750/month. Also 5% back on gas and groceries(including walmart) 1% on everything else. It's a highly overlooked card.