Need help choosing a credit card

[daba]

Hi folks,

Believe it or not I've never owned a credit card. I've made all my purchases either in cash or with my debit card!

So, I believe now is the time to choose a credit card. What I usually spend money on is, in order of increasing frequency:

1. Dining (daily)
2. Buying groceries/stationery
4. Buying gas (biweekly)
3. Paying bills (internet, gas/electric, monthly)
5. Purchasing electronics and other entertainment/necessities (every few months, in bursts, most of the time online)
6. Clothing (yearly)

Because I can't really choose, I'm thinking of getting a Southwest or a United or some sort of program which allows me to accumulate miles, since I plan on travelling. Anyone have any suggestions? I'm really rather clueless when it comes to credit cards.

Thanks in advance.

 

[amol]

The trick is to spend less than what you make.

As for travelling - do you plan on travelling domestically, internationally, or both?

 

[kranky]

With no credit history, you probably won't get your pick of credit cards. Hopefully you have had a bank account for a while. See if you can get a CC from your bank even though it won't offer any rewards. You need to get some credit history started. Whatever you do, don't send out a bunch of different applications hoping that you'll get at least one.

You might need to wait a year or more before you will be able to get any card you want.

 

[Plasdom]

ir a target or meijer card

 

[HardcoreRobot]

without a credit history you will be lucky to get a card with any rewards at all

 

[akubi]

if you are a student you can get student versions of amex blue or citi dividend plat

 

[Kipper]

Originally posted by: akubi
if you are a student you can get student versions of amex blue or citi dividend plat

HIghly recommend the dividend card...HIGHLY.

 

[sonoma1993]

try to find a creditcard with low interest rates. for people with no credit, interest start out somewhere between 17%-29%

 

[kranky]

There's a student version of the Citibank Dividend Platinum card? That's what you want if you can get it.

But if you get turned down for that, go to your bank and get their card. Don't keep sending in applications for other cards because a bunch of declined applications won't look good on your credit history. I'm assuming that your bank will be much more likely to give you a regular credit card (not a secured card) since they already have an account relationship with you.

 

[daba]

I've had my bank account since 2000.

 

[RossMAN]

With no credit history, you probably won't get your pick of credit cards. Hopefully you have had a bank account for a while. See if you can get a CC from your bank even though it won't offer any rewards. You need to get some credit history started. Whatever you do, don't send out a bunch of different applications hoping that you'll get at least one.

You might need to wait a year or more before you will be able to get any card you want.

Agreed unless they have a parent to co-sign for them. Also remember most airline credit cards have an annual fee of $40 - $100 per year, the average is around $60/yr.

There's a student version of the Citibank Dividend Platinum card? That's what you want if you can get it.

Yes there is and $0 annual fee.
http://www.citibank.com/us/cards/cardserv/dividend/index.jsp

But if you get turned down for that, go to your bank and get their card. Don't keep sending in applications for other cards because a bunch of declined applications won't look good on your credit history. I'm assuming that your bank will be much more likely to give you a regular credit card (not a secured card) since they already have an account relationship with you.

As a first credit card I would recommend going to your bank and applying for a SECURED CREDIT CARD which virtually guarantees you will be approved. Deposit $500 - $1000 and 1 year later, you can apply for a regular unsecured cc then close your secured cc and get your deposit back plus interest earned. After 1-2 years then you can begin picking and choosing which cc's you want.

 

[EKKC]

dont spend unless u already have the money in the bank
dont spend money thinking you'll be getting paid soon
dont spend money on useless crap
dont spend money to impress girls
never leave a balance on the card and always pay off the total amount (not the minimum)
whenever you paid late (by accident of course) talk to the cc company and try to sort it out so it wont reflect bad on you. tell them you've been paying on time in full every month

in 3 years your credit will be sky-high

 

[frankie38]

Use citibank or Chase. These are top tier card issuers. Once you have a card with them, this will look good on yuor credit report.

 

[nakedfrog]

Never carry a balance greater than 49% of your limit.
Capitol One will probably give you a card with a $300-500 limit unsecured with a 19.99% interest rate, and probably $72 in annual fees. They're not too bad as far as giving CCs to people without credit, and have half decent customer service.

 

[kranky]

RossMAN, don't you think it's worth asking your bank for a "regular" (i.e. non-secured) card first? I figure you can always go to the secured card as a fallback position.

 

[Sphexi]

Get a free credit check through your choice of credit union, and then call and ask them if they have any offers for ccards for you. Companies like Capital One and Citibank deal with the credit unions a lot for such things, you could probably get one through Capital One with a limit of $500 and a decent APR, no annual fee. If they offer you a $7/month credit monitoring service, take it. They go into your report quarterly and add a lot of good info and it really does help.

 

[skimple]

Go with an Amex card. Either blue or green. You pay a fee on the green card, but the rewards program is better than any other. You can transfer rewards into many different airlines, hotels, stores, etc... If you go with a specific airline, you are locked in to getting tickets from them , which is not always so great.

Use it for daily expenses where you would use cash - groceries, gas, etc. The rewards add up quickly. Plus you have to pay off the balance each month so it's hard to get into trouble.

I've been to Hawaii twice using rewards for both the hotel and airline.

 

[dullard]

I'd say skip the airline miles plans.
1) They typically net about 1%-2% in rewards (not counting the signup bonus). Compare this to 1%-5% cash back for other cards. Thus, you can just buy the miles with your cash back and be ahead.
2) They typically charge an annual fee. Compared to a $0 annual fee, airline cards can be a big ripoff.
3) They often severely limit where you can go. What if you have an airline card for a specific airline and the location where you want to travel isn't covered by that airline? You are screwed and have miles that you'll never use.
4) Often there are limitations: blackout dates, minimum ticket purchases, expiration dates where you lose the miles. Heck the airline may be bankrupt and out of business by the time you accumulate enough miles.

Instead, just get cash from another credit card and buy the ticket you want with the cash. No limitations, no blackouts, no expirations, no hassels.

 

[RossMAN]

Originally posted by: kranky
RossMAN, don't you think it's worth asking your bank for a "regular" (i.e. non-secured) card first? I figure you can always go to the secured card as a fallback position.

Yes, most banks offer a "signature" (beginners) cc which has no collateral requirements. If they're declined, they'll probably receive a counter offer for a secured cc. It may carry an annual fee of $25 but that's a small price to pay for convenience.

Try regular cc first, if declined go for a secured cc. If you're declined again get a co-signer.

Profit!

 

[Rumpltzer]

CitiBank has a credit card that gives you American Airlines miles with no annual fee. They call it the AAdvantage Bronze card. No annual fee, 1 mile per $2 spent. You need 25,000 miles to get a round-trip domestic ticket on AA, and I'm pretty sure that the Bronze card has something like an annual 25,000 mile reward limit.

I mean to switch over to it every year as the renewal fee on my AAdvantage Gold card (up to $75 a year now!) comes up... they offered a $50 credit to me this year, though, so I'll keep it for another year.

I know very little about being able to get a credit card versus not. I applied for one as a college freshman and they gave me one with a $200 credit limit. I've never not paid off a card the same month the bill comes, and it seems I've never had a problem getting a card since that first one.

Good luck.

 

[dullard]

Originally posted by: Rumpltzer
CitiBank has a credit card that gives you American Airlines miles with no annual fee. They call it the AAdvantage Bronze card. No annual fee, 1 mile per $2 spent. You need 25,000 miles to get a round-trip domestic ticket on AA, and I'm pretty sure that the Bronze card has something like an annual 25,000 mile reward limit.

That is a great example of a horrible rewards card. The average "mile" is worth 2 cents, if you have a use for the miles. Thus you get 2 cents for every $2 you spend. Or the equivalent of a 1% reward. Many credit cards give well above 1% back, AND they give cold hard cash instead of a mile that you may never use.

 

[kranky]

Originally posted by: dullard

Originally posted by: Rumpltzer
CitiBank has a credit card that gives you American Airlines miles with no annual fee. They call it the AAdvantage Bronze card. No annual fee, 1 mile per $2 spent. You need 25,000 miles to get a round-trip domestic ticket on AA, and I'm pretty sure that the Bronze card has something like an annual 25,000 mile reward limit.

That is a great example of a horrible rewards card. The average "mile" is worth 2 cents, if you have a use for the miles. Thus you get 2 cents for every $2 you spend. Or the equivalent of a 1% reward. Many credit cards give well above 1% back, AND they give cold hard cash instead of a mile that you may never use.

Agreed with dullard.

 

[Mo0o]

Citi Plat Div > *

 

[Bullhonkie]

Capital One gave me a $500 limit card with no annual fee a few years back. I had no credit history, no income at the time, wasn't a student, and they still gave it right to me. Seems very easy to get a first credit card from them. I'd check it out if you're concerned about being turned down at other places and just want something to help build credit for a few years.