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Getting my first credit card...

Red Storm

Red Storm

Lifer
... where to start?

I've been living off of my debit card just fine, but I want to get an actual CC to start building credit a little faster. Problem is I don't know what's a good one to get. I know I should be looking for one with no annual fee and a low interest rate, but what's considered a low rate? I am technically still a student if that matters (for getting "student" branded cards).
 
find a local credit union that offers CC's
become a member, deposit nominal sum
apply for CC from credit union
pay your bill every month in full

profit!
 
I love my Amazon rewards card. It was my first credit card as well. My interest rate isn't great because my credit score isn't great, but there's no annual fee and the rewards program is good for anyone who shops a lot on amazon.

It gives you 3 points per dollar on amazon purchases, 2 points on gas, 1 point on everything else. You can use the points to pay for Amazon purchases, or if you let them build up you can get cash for them or apply them toward your statement balance. If your credit history is better than mine I think you can get as low as 13% apr. Mine is 21%, but I haven't paid any interest yet because I pay it off every month.
 
Use it to pay for gas... something you know you can pay back....

I have several credit cards but they are used for different things...

I only use 1 when I travel, and its marriott rewards, but I travel alot for work, so I make out big time.... .
 
For all that is holy, do not carry a balance! It's so easy to pay off $200 instead of the $435 on the card, then next month its a bit more... Before you know it you CAN'T pay it all off in a month.

But the balance is so low, interest isn't much, I might as well grab that 2500k etc... Well now it's $1000... And it snowballs from there!

Personally, I think I've paid more than $3000 in CC interest by racking up a card to $7500 due to job difficulties, schooling, etc, and then it was impossible to pay off... Needed family help to get rid of it!

Now I seem to be doing it all over again, although I've cut myself off now that I see the balances totalling $5000 again 😡

How it gets there is a mystery!
 
My first one was Citi Driver's Edge a few years ago. It was a student card I believe. It was nice because it started you out with a $3000 limit, but with a high 30% apr. However, I've since been bumped up to $4600 and apr is down to 13%.
 
Chess said:
Use it to pay for gas... something you know you can pay back....

I have several credit cards but they are used for different things...

I only use 1 when I travel, and its marriott rewards, but I travel alot for work, so I make out big time.... .
Click to expand...

This. You can build up a lot of credit using your card this way. I had one for years that I used strictly for filling up at the gas station, then would essentially pay off my "fuel bill" once each month. It may not seem like it, but it really will go a long way to building up your credit once you have it for awhile.
 
FoBoT said:
find a local credit union that offers CC's
become a member, deposit nominal sum
apply for CC from credit union
pay your bill every month in full

profit!
Click to expand...

This. Treat your CC like it's a debit card. It's not an infinite source of free money. Pay it off in full EVERY month. Don't let yourself become an indentured servant to the bank. They don't want you to pay your bills. They want you to pay the minimums so you'll be a slave of theirs for life, and a good chunk afterwards.

Start with a low limit. Say $500. That prevents you from getting into too much trouble. If you travel, go with $1000 so there's room for security holds on car rentals and hotels. The bank may try to offer you a higher limit. Tell them no, you don't need it. You have to be mindful of predatory lending. These big limit cards are what really screw stupid/ignorant people over.
 
Paying for gas doesn't really help as I take public transportation every day for work, so I actually don't use much gas at all.

I'm not looking for a card to go on a shopping spree. I'm pretty strict with what I buy, if I can't buy it in full I don't get it (notable exceptions being the condo and car).

As for things like rewards, the only rewards that really interest me are airline miles as I do like to travel, however that is by no means a priority. Is it better to get a CC with the bank I have a checking account open with? Or should I not factor that in and just look at the cards only?
 
Meh, screw the interest rate get a card that gives you the perks that fit your needs/desires then treat the CC as a debit card (IE no cash in the bank no swipity-swipe).

Annual fee is usually best avoided but depending on its perks it may pay for itself and more. Example Amex $75 annual fee but gives 6% off groceries so if you spend more than $105 a month on them the fee is effectively negated.
 
Red Storm said:
Paying for gas doesn't really help as I take public transportation every day for work, so I actually don't use much gas at all.

I'm not looking for a card to go on a shopping spree. I'm pretty strict with what I buy, if I can't buy it in full I don't get it (notable exceptions being the condo and car).

As for things like rewards, the only rewards that really interest me are airline miles as I do like to travel, however that is by no means a priority. Is it better to get a CC with the bank I have a checking account open with? Or should I not factor that in and just look at the cards only?
Click to expand...

Could still use it for normal monthly expenses like groceries. I just used gas as an example, but using it for any normal expense like that will work as you're always using it and always paying it off that same month.
 
IcePickFreak said:
Could still use it for normal monthly expenses like groceries. I just used gas as an example, but using it for any normal expense like that will work as you're always using it and always paying it off that same month.
Click to expand...

Oh definitely, I thought you meant get a gas station card.

A question on balance transfers. All the examples I find online describe it using two credit card accounts. I'll only have the one (in addition to my checking and savings), so do I need to worry about this?
 
Red Storm said:
Oh definitely, I thought you meant get a gas station card.

A question on balance transfers. All the examples I find online describe it using two credit card accounts. I'll only have the one (in addition to my checking and savings), so do I need to worry about this?
Click to expand...

I would think you only have to worry about this if you have more than one credit card with one having a higher interest rate than the other. Since your goal is to never pay any interest anyway, I wouldn't concern myself with it.
 
Here's a bit of advice.

Get the highest interest rate possible. That way, you won't want to to keep a balance and it might make you spend within your limits.

But seriously, if you are financially responsible, doesn't make sense to only go for the lowest int rate card since you should be paying it off completely each pay cycle.
 
Red Storm said:
... where to start?

I've been living off of my debit card just fine, but I want to get an actual CC to start building credit a little faster. Problem is I don't know what's a good one to get. I know I should be looking for one with no annual fee and a low interest rate, but what's considered a low rate? I am technically still a student if that matters (for getting "student" branded cards).
Click to expand...

Go to this discussion on slickdeals Something with rewards is a good thing. I use my CC all the time and used to pay it each paycheck but now only once a month since they will not let me pay until they show my purchases. but i love the rewards which i usually spend on Home Depot, Amazon, or Target gift cards.
 
if you can get in:

Pentagon Federal Credit Union Cash Platinum card

USAA Cash back card

Go for a cash back card. If you like me interest rates don't matter because you always pay the full amount. Set it up to automatically pay off the full amount. Instead if your like me what matters is the cash back rates.
 
I recently got my first credit card too. $1,000 limit, 21.5% interest, and 1% on everything (not great but I'm building credit here.) Last month my balance was $35.50 and this month it is $671 (expensive valentines day, a lot of dinners with girlfriend, started traveling twice as much for work, etc) but I have the cash to pay it off in full. And when my tax return hits in a few days that is what I'm going to do, make a payment on it a month before it is due.
 
Atty said:
I recently got my first credit card too. $1,000 limit, 21.5% interest, and 1% on everything (not great but I'm building credit here.) Last month my balance was $35.50 and this month it is $671 (expensive valentines day, a lot of dinners with girlfriend, started traveling twice as much for work, etc) but I have the cash to pay it off in full. And when my tax return hits in a few days that is what I'm going to do, make a payment on it a month before it is due.
Click to expand...

Cool. How exactly do the payment due dates work? Is it a set number of days after a purchase, or is it a set calendar date each month?
 
Don't let a balance accrue. I know someone who, until recently, had $100K in CC debt and the interest payments every month were killing him.
 
Red Storm said:
Cool. How exactly do the payment due dates work? Is it a set number of days after a purchase, or is it a set calendar date each month?
Click to expand...

With my card they'll send you a statement with the balance you had the day the statement was created and a due date. Pay the entire balance before the due date to avoid paying interest. Pretty easy.
 
Red Storm said:
Paying for gas doesn't really help as I take public transportation every day for work, so I actually don't use much gas at all.

I'm not looking for a card to go on a shopping spree. I'm pretty strict with what I buy, if I can't buy it in full I don't get it (notable exceptions being the condo and car).

As for things like rewards, the only rewards that really interest me are airline miles as I do like to travel, however that is by no means a priority. Is it better to get a CC with the bank I have a checking account open with? Or should I not factor that in and just look at the cards only?
Click to expand...

Look into the Chase cards then... they have pretty good cash back options......

Going with a MR or SWest Rewards CC its not worth it.... 🙂
 
Intel17 said:
Don't let a balance accrue. I know someone who, until recently, had $100K in CC debt and the interest payments every month were killing him.
Click to expand...

I had 10k CC debt, and I was paying >$250/mo in interest alone! Talk about being in a depressing hole...

I seem to learn from mistakes 🙁 And not quickly 🙁
 
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