Credit Card

[avatar4321]

Im looking to get a credit card. Nothing too fancy. I want to build a good credit line. Ive never had one before. So I am not sure what to look for. What would be a good starter credit card? Preferably without insane rates. Should I look at something with "cash back" options or that provides miles for airline trips? I dont know where to start.

any ideas?

[Mr. P]

Get a Discover Card and a Master Card.

Discover is accepted almost everywhere and they do have cash back. Use the master card for the times Discover is not accepted.

Use both as a charge card NOT A CREDIT CARD..IE pay em off every month.

[Missileman]

Get a Discover Card and a Master Card.

Discover is accepted almost everywhere and they do have cash back. Use the master card for the times Discover is not accepted.

Use both as a charge card NOT A CREDIT CARD..IE pay em off every month.

While a good practice, it will do nothing to improve your credit score.

[Mr. P]

While a good practice, it will do nothing to improve your credit score.

That's incorrect..score is based on available credit and % that's used. The less used <30% the better. In other words a balance is ok as long as it doesn't exceed 30% but a 0 balance is even better.

[Missileman]

That's incorrect..score is based on available credit and % that's used. The less used <30% the better. In other words a balance is ok as long as it doesn't exceed 30% but a 0 balance is even better.

Maybe I'm mixing up credit score and credit rating?

[Kathianne]

From what I've been reading, the rules are changing, fast. Probably a good thing. Back in the day, before 'anyone' could get a card, much less with a $10k or more credit line, the first thing to do was take out a card with the lowest interest you could.

For a few months, use it sparingly and pay it off every month. Then buy something 'bigger' like $200, today probably a computer for $1000 or so and pay off double or so what the minimum said for a few months. Then pay off the balance, (i.e., minimize how much interest you are paying, while demonstrating your adherence and responsibility to paying off ontime and quickly.)

Now I know this is Mr. P's specialty, so listen to him well. Perhaps he knows what has occurred in the interim since I first established credit and what's happened since, and now the current changes.

I do know people that got 1 bank card, 'to establish' credit, paid it off monthly. Then when they went to finance a car or house were told their credit wasn't 'established.' Not sure what that meant at the time or since.

[Mr. P]

Maybe I'm mixing up credit score and credit rating?

Not mixed up..Score is the new term for rating..now they just assign a numerical score where they didn't in the past.

[Missileman]

Not mixed up..Score is the new term for rating..now they just assign a numerical score where they didn't in the past.

I was under the impression that you had to actually use credit to establish credit.

[Mr. P]

I was under the impression that you had to actually use credit to establish credit.

True, but you don't have to carry a balance to do so. Paying on time for CC charges is reported to the credit bureau and that will establish your credit over time. You are using credit, just not in debt.

[Kathianne]

I was under the impression that you had to actually use credit to establish credit.

So your understanding seems like mine? We seem similar within a decade of age.

I remember when I graduated from HS, Sear's sent me a 'pre-approved' application, while I was in college, I held a job. They denied me. A year later I moved back home to attend another university, I had to buy a car and my dad co-signed. After that, not a problem with credit cards.

Like Mr.P said, in normal circumstances I paid in full. However there were times; a vacation, a stereo system, that the purchase was 'too big' to pay off at once. So I took 2-6 months, but always paid more than minimum and on time.

While I never 'cancelled' my cards, after marriage I changed the name and work info, (I wasn't working). After the divorce I was freaking, but no fear, my 'credit' was excellent. Still is.

I'm hoping that after all these years, this summer won't wreck it.

[Mr. P]

So your understanding seems like mine? We seem similar within a decade of age.

I remember when I graduated from HS, Sear's sent me a 'pre-approved' application, while I was in college, I held a job. They denied me. A year later I moved back home to attend another university, I had to buy a car and my dad co-signed. After that, not a problem with credit cards.

Like Mr.P said, in normal circumstances I paid in full. However there were times; a vacation, a stereo system, that the purchase was 'too big' to pay off at once. So I took 2-6 months, but always paid more than minimum and on time.

While I never 'cancelled' my cards, after marriage I changed the name and work info, (I wasn't working). After the divorce I was freaking, but no fear, my 'credit' was excellent. Still is.

I'm hoping that after all these years, this summer won't wreck it.

Don't cancel a card that'll hurt yer score !!..The best thing is to make a small charge (even 5 bucks) twice a yr to keep it active. The card companies are canceling cards now if they aren't used for 24 months.

[PostmodernProphet]

I use a Miles card from Discover for my business....no annual fee is important to me, plus airline miles (or cash reimbursement) adds up quickly....there have only been two times in my life that I didn't pay the entire balance at the end of the month, both times were when I paid the fees for the adoption of my two kids....

if you want to establish good credit, charge something each month, even if it is only $10....then, pay the bill BEFORE it is due.....

when each of my kids reached 16 I took out a credit card in their name jointly with mine....they were to use it to purchase all of their gasoline only....when my son turned 18 he went in to get his own cell phone...the salesman told him he would probably have to get a prepaid plan because he had no credit.....when he ran the application, his credit rating was higher than the salesman's......so, he had no problem.....

also, if you are married, make sure your wife establishes credit independantly of yours.....there are many horror stories of widows getting their credit cards cancelled the week of their husband's death.....

[glockmail]

Im looking to get a credit card. Nothing too fancy. I want to build a good credit line. Ive never had one before. So I am not sure what to look for. What would be a good starter credit card? Preferably without insane rates. Should I look at something with "cash back" options or that provides miles for airline trips? I dont know where to start.

any ideas? How can anyone live without a credit card?

Get one with no fees and cash back; pay for everything on it, pay it off at the end of each month and get a check from them at the end of each year.

[avatar4321]

How can anyone live without a credit card?

Get one with no fees and cash back; pay for everything on it, pay it off at the end of each month and get a check from them at the end of each year.

Easy, I buy what I have money for.

[glockmail]

Easy, I buy what I have money for.Then you'll have no problem managing a credit card, which you can then use to build an excellent credit rating and become a real estate magnate.

[Trinity]

How can anyone live without a credit card?

Get one with no fees and cash back; pay for everything on it, pay it off at the end of each month and get a check from them at the end of each year.

It's actually quite simple most banks issue you a debit card with your checking account. It works just like a credit card, except it comes right out of your checking account.

So for those of us who prefer to pay with cash, or purchase items online, can do so. Without actually having a credit card and paying all of their trumped up fees.

[KitchenKitten99]

go to BankRate.com
The site has a compiled list of ALL available credit card offers out there and you just plug in all your desired benefits and/options and it will pull up all offers that meet your needs.

[glockmail]

It's actually quite simple most banks issue you a debit card with your checking account. It works just like a credit card, except it comes right out of your checking account.

So for those of us who prefer to pay with cash, or purchase items online, can do so. Without actually having a credit card and paying all of their trumped up fees. Why use your own money when banks will let you use theirs for at least 30 days and actually pay you for it? Plus you get certain assurances with credit cards and they'll fight for you if what you bought is junk or never shows up.

[Mr. P]

Why use your own money when banks will let you use theirs for at least 30 days and actually pay you for it? Plus you get certain assurances with credit cards and they'll fight for you if what you bought is junk or never shows up.

That's it..a debit card is nothing more than an electronic check. The dispute process is totally different than credit cards...and a debit doesn't help yer credit.

[LiberalNation]

I have a $1000 credit mastercard from the bank. In my name but my mom sends in a check to pay it off every month. Funny how anyone will let anyone pay on an account but not withdraw.

[glockmail]

I have a $1000 credit mastercard from the bank. In my name but my mom sends in a check to pay it off every month. Funny how anyone will let anyone pay on an account but not withdraw.Good idea if it is acyually in your name because it will help you build credit regardless who pays the bills, as long as they gaet paid.

I tried to do the same for my son but ran into a slight problem. NC law doesn't allow the company to issue cards for under 18. So instead I put him as a second card holder on my account, but the bank wouldn't let me limit the credit line to $1000, instead insisting that they give me $20,000 or so. I told them that I didn't want that much so I canceled them and did a business card with him as an employee, and I can limit him as much as I want.

[chloe]

Don't get a credit card they are bad news.

[LiberalNation]

Good idea if it is acyually in your name because it will help you build credit regardless who pays the bills, as long as they gaet paid.

That was the idea, I'd get my apartment leases in my name as well but no one will let you sign one when you are unemployed, no credit.