So it's finally time I apply for a credit card. Yes, I'm 22 with no credit history...

Well I have narrowed it down to these cards:

Link: City Forward

Link: BankAmericard Power Rewards Visa Signature Card

Link: Citi CashReturns MasterCard

Thoughts, opinions, other options? any help would be greatly appreciated.

Thanks in advance,

Oscar

 

Are you planning on carrying a balance on your card?

 

If there's any that fit your criteria, I'd look for an AMEX. Just my .

Personal experience has shown me that they are way above others in terms of customer service when you need it.

Otherwise, without doing research on the ones you posted and without info, I'd just say the last one. Cash back rewards are always nice.

 

Balances are a definite no-no, I plan to pay my balances off in full every billing cycle. So I figure the APR is null/void since it'll never be applied.

The BofA card offers cash rewards as well and they also have another card that is strictly cash rewards only.

 

Well I am probably going to sleep soon so I'll just put this advice down now:

If you're planning on carrying a balance, you should avoid reward cards. They generally have a higher APR (that's how they pay for those rewards...)

If you just want to put purchases on there and pay off in full at the end of the month, pick the card that gives you the rewards you are most likely going to use.

AMEX is a good company in that they do take care of you like TSX said. I have been a long time AMEX user. But the only downside is that you pretty much have to carry a second card because not all places accept AMEX. It would embarrassing to not be able to complete a purchase (I've had it happen before). The same goes for Discover, although in my opinion, Discover has the worst service too (so none of the perks).

 

Your last point is precisely why I didn't list an AMEX card. I might consider one after I get started with my first card though. I noticed most AMEX cards offer better rewards and APR's but it might be more difficult to qualify?

The card will see heavy use. I plan to carry little-to-no cash now, and I'll be swiping my Debit card less often to build credit through the CC.

I considered getting an AMEX and using my Debit as a back-up but I can't decide.

 

AMEX does require a little bit more stringent requirements to obtain. The one you would want to try to get through them is one of the Blue cards.

I really don't see the reason for the existence of debit cards. You get none of the protection of a credit card and none of the credit building benefits. But merchants love them because the transaction fees are lower, so I think that's the big push for them.

Cash back rewards are kind of piddling and just icing on the cake. My AMEX Blue cash is a cashback card and the extra money once a year is a nice bonus, but I also spend a lot on my card. In order to click into 5% CB on "everyday" purchases and 1.25% on everything else, you have to spend more than $6,500 a year on the card. Before the $6,500 threshold, the rewards are 1% and .5%, which is nothing. Other cashback cards are set up similarly.

If you don't spend much, you might be better off with a rewards card that gives you points or miles or something similar. But its all dependent on what you're looking for.

 

You can also look into credit unions as well, usually they'll try harder to get you to be a customer. I have Wells Fargo VISA, and I would tell you to stay far away from Bank of America b/c of their crappy customer service and system.

 

You have two Citi cards and a BOA card chosen. That's three ugh's from me. Here's three alternatives:

Schwab VISA

Fidelity AMEX

Capital One No Hassle Rewards MasterCard

Before you start, you may want to go to CreditKarma.com and Quizzle.com and check your credit scores for free. That may determine what kind of credit card offer you get, regarding interest rate, annual fee or maybe even security deposit. You may not qualify for a top-tier card right away.

 

Thanks for the tips wackjum.

It would be convenient to have a BofA card though

Anachostic - Thanks for the links! I can tell you right now, I have zero credit. I paid off my car through my dads credit and I've never had a credit card.

 

Everything adds (or detracts) from credit scores these days. Do you pay your own cell phone bill for example?

 

Nope, we've had a family plan since I was ~15, I kick my parents down with my cut of the bill.

 

I know some must like it, otherwise they wouldn't be the company they are, but from personal experience, avoid Capitol One like the plague.

 

The Capitol One cards also have annual fees, are they worth it?

 

Usually no. If you get one of the privileged cards like the Amex charge cards, they can have benefits but those are narrowly tailored. I used to use an amex gold, which had an annual $150 fee but gave me 1 for 1 miles on every dollar spent (there's also access to lounges, etc). I don't travel as much as I used to, so there was no point in it anymore for me.

In your position, I would say no. There are so many credit cards out there that have no annual fees.

 

Get any fee-free Visa or MC credit card now, preferably in response to a pre-screened offer or from a credit union.

Worry about the other features, like points and rebates, on the next card in 6-8 months after you get the first one.

 

^ BofA said I'd be able to add rewards to my card down the road if I opted for a standard CC.

 

What is your experience?

The fees apply for a high-risk cardholder. They would probably be the same for any other bank.

 

I can agree with this.

 

I got my second CC through them (first one I "heavily"/regularly used). I only had a $1000 credit limit. Understandable. I got it about 4-5 months before heading off to college. Always paid in full and on time. College time came around and I had a LOT of expenses I was having to pay for.

Leading up to this time, every payment I made had a 10 day "holding" period. Take this for example.

Say I had used $800 of the $1000 credit line I had. I paid in full usually the day of or after the statement was ready online. That $800 would not be freed up until another 10 days later. So for 10 days, I would only have 200 dollars of credit. Which I could otherwise deal with, but a big reason I had the card was for the rewards. I couldn't get the reward points if I didn't have the credit line to use it. Sure, I had my debit card (which I had to use alot during that time), but again, I wanted the rewards from the card.

After calling their excellent customer service in most likely India and inquiring about these holds constantly being placed, their justification was that they were "still determining my payment history". At this point it was 6-7 months I had been using the card; again, paying in full and on time.

I just found it extremely frustrating that all that credit was locked up for a week and a half until they were "sure it cleared".

I switched to AMEX in a heartbeat.
Their customer service is 10 fold better IMO. And as far as payments go, your credit line is opened up the second you click "submit payment".

Maybe I'm just being picky.
I found them to be extremely inconvenient however.

 

Thanks for the explanation. I'll keep that in mind as a potential drawback to a card if running close to your limit. Speaking of which, having an 80% credit utilization was killing your credit score, even if you were paying on time. Aren't you glad those days are behind you?

 

Thanks for all your input guys, I really appreciate it...


I just applied

 

Cool!
Are you getting an "instant" decision or a mailed one?

 

Mailed.

 

interesting about capital one.

ive had them since about when i turned 18 back in 2002. started off iirc with a $500 limit.

never heard of such a hold like that before. And yes it was always paid in full when the bill came.
also i dont have any annual fees with mine

anyways i recently got the AMEX card with my costco membership and have been using that since they have the cashback rebate.

question is it wise to still use my capital one card? or just leave it at $0?
i dont spend all that much every month so im just putting some charges on the amex and some charges on the captial one card and paying them off in full when the statement is available

im keeping the captial one visa since amex isnt accepted everywhere.

 

It's never good to have a CC account that just sits idly for a long time.
A month of no use isn't going to really do much. However, using it a little every month and continuing to pay it off is going to be in your scores best interest.

 

Approved & activated

It'll be put to good use at Disneyland tomorrow!