Credit Card?

[CATCH17]

What is a good credit card for a newbie like myself to start out with?

Im just basically looking to build credit. I don't want to charge everything I buy with it or anything like that.

I just know it is hard to get bank loans without a co-signer even if you have a job that pays enough for you to easily make a payment unless you have an established credit history.

So i've taken out smaller loans with my bank, i've actually payed off a 8000 dollar loan before for a vehicle, and a school loan as well.

Any advice would be appreciated.

 

[YosemiteSam]

Do you own a CC at all?

The most important thing to consider is APR and fees. Don't go for all that rewards crap. They aren't worth it unless you charge tons of money on it. What I mean by that is, we had a miles card, charged six figures in home renovations on it, then use the miles for two round trip tickets to Rome, Italy.

Most of those reward cards either charge an annual fee to have them, or have a higher rate of interest.

If you can't get one of the lower APR cards, then try to get a store or gas card and use it. Pay it off every month, then in a few months try again.

 

[Doomsday101]

What is a good credit card for a newbie like myself to start out with?

Im just basically looking to build credit. I don't want to charge everything I buy with it or anything like that.

I just know it is hard to get bank loans without a co-signer even if you have a job that pays enough for you to easily make a payment unless you have an established credit history.

So i've taken out smaller loans with my bank, i've actually payed off a 8000 dollar loan before for a vehicle, and a school loan as well.

Any advice would be appreciated.

My 1st card was a Sears card. It is easy to get credit cards from big department stores. You buy items you can easily pay off .

 

[CATCH17]

Do you own a CC at all?

The most important thing to consider is APR and fees. Don't go for all that rewards crap. They aren't worth it unless you charge tons of money on it. What I mean by that is, we had a miles card, charged six figures in home renovations on it, then use the miles for two round trip tickets to Rome, Italy.

Most of those reward cards either charge an annual fee to have them, or have a higher rate of interest.

If you can't get one of the lower APR cards, then try to get a store or gas card and use it. Pay it off every month, then in a few months try again.

When you say fees, what kind of fees are we talking about?

Are they going to want a yearly payment like im apart of a sams club or something?

I cant just sign up, get a card, pay the APR/monthly payment, and void the card when ever I want after it is payed off?

 

[CoCo]

When you say fees, what kind of fees are we talking about?

Are they going to want a yearly payment like im apart of a sams club or something?

I cant just sign up, get a card, pay the APR/monthly payment, and void the card when ever I want after it is payed off?

You can do exactly that.

Just make sure you read the fine print. Personally, I would never pay interest on a credit card so the interest rate they charge doesn't matter much to me. I just use the card for convenience, and pay it off each month. Since my card has a 25 day grace period I incur not a single penny of extra cost (interest) on my no annual fee card. Its convenient & free for me.

There are cards with annual fees (yes, similar to a membership fee) but I wouldn't get one unless it had bells and whistles that made that fee worthwhile to me. And it could be worthwhile (see nyc example above). Just understand all the specifics of the card and how you plan to use it. Then let common sense be your guide.

One last word of advice. Establish a life principle of never financing your purchase if you can possibly avoid it. Most of the time people do so only because they cannot delay gratification. Makes you a slave. Don't become a slave.

 

[CATCH17]

You can do exactly that.

Ok who has the best card to do that with?

 

[YosemiteSam]

When you say fees, what kind of fees are we talking about?

Are they going to want a yearly payment like im apart of a sams club or something?

I cant just sign up, get a card, pay the APR/monthly payment, and void the card when ever I want after it is payed off?

Some cards charge annual fees. Say the Delta SkyMiles American Express.

You can find many cards that do not charge annuals fees. I don't recommend canceling a credit card though. Well, unless it is determintal to your financial future. Canceling a credit card has a negative effect on your credit.

 

[JohnnyHopkins]

have ours through our Bank, which is nice because it is synced up with our checking/savings accounts when we log into online banking and they give us preferential rates because we have a fair amount invested with them.

 

[YosemiteSam]

have ours through our Bank, which is nice because it is synced up with our checking/savings accounts when we log into online banking and they give us preferential rates because we have a fair amount invested with them.

No they don't. They are just telling you that. SUCKER! :laugh2:

 

[CoCo]

Ok who has the best card to do that with?

I just have a plain old Visa through my bank. I don't think there is a "best one" in this no frills category.

Go to your bank, tell them the specifics you're looking for (no annual fee, grace period, etc.) and see what they have. I suspect you can easily get a basic card like mine.

 

[JohnnyHopkins]

No they don't. They are just telling you that. SUCKER! :laugh2:

I have shamed myself.

 

[CATCH17]

Some cards charge annual fees. Say the Delta SkyMiles American Express.

You can find many cards that do not charge annuals fees. I don't recommend canceling a credit card though. Well, unless it is determintal to your financial future. Canceling a credit card has a negative effect on your credit.

Wow that is so dumb.


My brother, who is 19, actually applied for a loan at a car dealership.

Well he got denied, of course, but it actually showed up as a negative on his credit report.

 

[Signals]

What is a good credit card for a newbie like myself to start out with?

Im just basically looking to build credit. I don't want to charge everything I buy with it or anything like that.

I just know it is hard to get bank loans without a co-signer even if you have a job that pays enough for you to easily make a payment unless you have an established credit history.

So i've taken out smaller loans with my bank, i've actually payed off a 8000 dollar loan before for a vehicle, and a school loan as well.

Any advice would be appreciated.

Do not apply for a card! Do not accept a card! Put your money someplace where someone else pays YOU interest, not the other way around. Always be the lender, not the borrower. If you include this one principle into your financial strategy it has the potential of making you very wealthy as you grow older, ignore it and do the opposite, someone else will be wealthy not you.

What you should do is ask who is living debt free here, and then send a PM and ask them how they got that way.

Good luck with your future.

 

[CoCo]

Do not apply for a card! Do not accept a card! Put your money someplace where someone else pays YOU interest, not the other way around. Always be the lender, not the borrower. If you include this one principle into your financial strategy it has the potential of making you very wealthy as you grow older, ignore it and do the opposite, someone else will be wealthy not you.

What you should do is ask who is living debt free here, and then send a PM and ask them how they got that way.

Good luck with your future.

I agree with your advice with one modification.

Its just fine to own a credit card. You can make it work FOR you. Many end up being slaves to it but those with understanding and self-discipline can absolutely make it work for them.

For me, its simple convenience in some circumstances but always at no cost to me. No annual fee, and I pay off any balance every month so there are no finance charges. Not a penny extra from what I'd have paid in cash but with a more convenient audit trail so that I can track exactly how I spend my money. That also means I delay gratification, and do without, A LOT.

On debt free living, I agree it absolutely has its place, its power and appeal. But young people should also understand its a spectrum and not an absolute. It can be a goal to work towards. It can become a discouragement to some taken to an extreme.

Creating a financial plan for your life can be exciting. But it should be personal in the sense that its based upon your circumstances, your choices and goals and your self-discipline.

 

[Tusan_Homichi]

Do not apply for a card! Do not accept a card! Put your money someplace where someone else pays YOU interest, not the other way around. Always be the lender, not the borrower. If you include this one principle into your financial strategy it has the potential of making you very wealthy as you grow older, ignore it and do the opposite, someone else will be wealthy not you.

What you should do is ask who is living debt free here, and then send a PM and ask them how they got that way.

Good luck with your future.

I disagree with this. You need credit history and a single, low-limit credit card that you can pay off easily is a good way.

 

[Signals]

I disagree with this. You need credit history and a single, low-limit credit card that you can pay off easily is a good way.

I'm not surprised you feel this way, in fact, when I was making this post I was thinking probably 90% of the members on this forum probably disagree with me. I'd be willing to bet that over 90% on the people on this board are also in debt.

Contrary to popular belief, a good credit rating is not an asset, It's a liability because it requires you to have debt in order to develop and maintain a good credit rating.

If I walked into a bank to apply for short-term low-interest loan and my credit rating was zero, but I had assets in the form of real estate and savings I don't think my credit rating is going mean a hill of beans to the bank loan officer.

Again, the principle is; in order to succeed you need to be paid interest not be paying interest.

Read that sentence again. See how much sense it makes? why people believe the opposite of this is a mystery to me.

 

[StanleySpadowski]

I disagree with this. You need credit history

And I disagree with this. You may want a credit history but you do not need one.

 

[CATCH17]

Wow there is a lot of good stuff in here to consider.

Signals, do you consider yourself an extreme penny pincher?

Im not trying to insult you or anything I just would like to know if you live a lifestyle that allows any luxuries what so ever?

In your opinion should I not worry about trying to build any credit?

I want to be smart with my money, save it, and all that other good stuff. And I will.

But at the same time I dont want to just sit on all of it and never spend a dime.

 

[Kevinicus]

Do you own a CC at all?

The most important thing to consider is APR and fees. Don't go for all that rewards crap. They aren't worth it unless you charge tons of money on it.

Completely 100% disagree. I NEVER worry about APR or any fees and love the rewards. If you're smart and pay your cards off in full every month then you don't have any interest to worry about, so all the rewards are 100% free. Most of my Blu-ray collection has been free because of the rewards from my main credit card.

I say find one that has rewards that would benefit your interests and pay it off in full every month. And the only time it's ok to not pay a card off in full is if you have 0% interest (This is usually at places like Best Buy) but you must be sure to not be late on your payments. Use the computer, set it up automatically so you can't forget.

 

[Signals]

Wow there is a lot of good stuff in here to consider.

Signals, do you consider yourself an extreme penny pincher?

Im not trying to insult you or anything I just would like to know if you live a lifestyle that allows any luxuries what so ever?

In your opinion should I not worry about trying to build any credit?

I want to be smart with my money, save it, and all that other good stuff. And I will.

But at the same time I dont want to just sit on all of it and never spend a dime.

I don't consider myself to be a Scrooge or a spendthrift. Money should be double-edged, meaning that it takes care of your day-to-day needs as well as your future goal needs.

I know it's not the socially hip thing to do, living within your means, but you need to avoid paying interest on something because you want it now and can't afford.

You're better off biting the bullet and now and building in some self-discipline, than you are charging up a credit card and paying interest on it and being enslaved and in bondage to a creditor.

The reason lending institutions say having a good credit rating is important is because they want you to be in debt while they become wealthy. In other words they approve of you being in debt by saying you are credit worthy.

You can go to any bank's website, click on their credit cards links and read all about how special and important their credit cards to your financial future. But that's a bunch of bull, it's really important to their financial future, not yours.

I don't know if you're much of the book reader but I would recommend getting your hands on a copy of a book called: Rich Dad Poor Dad by Robert Kiyosaki. If you can wrap your mind around the concepts in that book and apply them to your life you will be well on your way to a stable and solid future.

Rich Dad.com