UnsanePyro

I was just reading a thread in ramblings about someone who was in the middle of paying off their credit card debt on six cards . I was thinking, that I Should get myself a card so that I can start building my credit for later on in life.

I'm 18, and a senior in high school. I've got a steady job, and have never personally ran into any finincial problems trying to scrounge up money for anything important, I'm pretty good at managing my own and budgeting myself also.

I've got a checking account with my name on it, with a debit card (Visa) but that won't help my credit score correct?

What should I look for in a card? I really don't know and haven't talked with my parents much about it (they have had problems with credit cards before). Would a card from a local gas station I frequently use be a good bet if I Get some sort of return on purchases made there? Or is that just a marketing scheme that doesn't really work well in real life?

Should I stick with Visa/Discover/Master Card/American Express because of their generally large acceptance? Is there even another good option?

Also, is there a good site online where I can keep track of my credit score, and learn more about building it up. It seems like there were differing oppinions in the other thread about what is good for your credit score and what doesn't really effect it.

UnsanePyro

:bump: I'm suprised that no one has had any advice for me yet

TLProspect

Hey, I was in the same situation as you not too long ago, and here are some tips:

Pay close attention to ALL the fees, which can include annual, introductory, application, etc. Bankrate.com is an awesome resource to read over reviews of credit cards and see who is offering what.

It is probably better to have a VISA/MC/AMEX, etc than a gas card, but the reason people recommend getting a gas card or dept. store card first is because there are less opportunities to use them (for people that might go crazy with their credit) and also because they are easier to get. I wasn't able to get either a gas card or a dept. card because, of course, I had no credit at all. What I did, and a lot of people do, is got a secured Visa, which means I put down a deposit that they hold as colladeral ($100 deposit for me through Bank of America). The deposit is usually refundable after a year, but not all secured cards are the same. Some require that you put down at least $300, and whatever you put down is the amount of your available credit. If you are anxious to build good credit early and you can't get a normal, unsecured card (no deposit), then a secured card might be a way to go.

F900

OK i'll help you.

First question is do you have any credit you know of that reports to the credit agencys like an installment loan ( car loan), your debit card will do nothing for you to build up your credit....

lets start here 1st and then we can find you a credit card that will help build up your credit ...

doopstr

Once you get into college credit card companies will beg you to take their "student cards". So there is no problem at all in getting one of those. Keep it for 6 months to establish credit. Then find something better.

Hell, you can just go over to the student center of your local community college right now. Those places are loaded with credit card applications.

UnsanePyro

Actually, I think theer may be. There is a $5000 loan out on my car right now, in one of my parents names (I was 17 when we got the car/loan). But I believe I am co-signed on it? Would that do anything?

virtualbong

A Student Credit Card is your best bet. My Dad worked at Digital before it went away and they had their own credit union. I got a student credit and check card thru them and have never had any issues. No annual fees which is perfect for someone like you. The credit union I belong to is Digital Federal Credit Union. You should check it out: www.dcu.com

HKD LA

I got a credit card the other day and I just turned 18. My parents don't really care cause i think i've prove to them that i can handle myself and manage my money. I signed up for a student credit card from my bank and they gave me a $500 credit line, which is perfect. I've got enough money to buy an airplane ticket if anything were to come up when I go to college. Haven't used it yet, but sort of afraid of using it cause i don't want to get into trouble with it.

Being in your position I would get a student credit card and decide on a credit line of 250-500 to try to keep yourself out of trouble.

kensteele

Honestly, if I had to do it all over again, I wouldn't even look twice at a credit card. Build your entire life on a cash basis and live free and happy. For nearly everything you could ever want or need (except maybe a house), cash will do all the talking for you.

What I mean is it is better to have $5000 cash in the bank than $5000 in credit line for an emergency.

My 2 cents.

zamo

There are benefits with credit cards:

Rental Car Insurance
Extended Warranty
90 Day theft Replacement
Ticket Travel Insurance
Etc.

My idea of credit cards, they should be used for CONVENIENCE, not for credit.

Pay them in full and maximize these benefits.

doopstr

The thing I like about credit cards is the availability of emergency funds.
I generally don't carry a lot of cash on me and I don't cary a debit card so if something happens that I find myself needing car repairs or even an overnight stay in a motel having the CC is great. Everyone takes a Visa or Mastercard these days.

It’s not that I don’t have cash elsewhere it’s just that I don’t have access to it at 10pm.

Oh and before you ask. I don't have a debit card because I found it screwed up my budget. It's hard to budget when getting another $40 out of the bank is so easy. Plus the fees on those cards suck.

virtualbong

Adam_Schwartz

My take is that if you get a card, get one that pays you money. You will have to really be aware that you should use your card to buy things you would buy on your debit card or with cash, not things you cannot afford. We have 2 main cards, a Discover and a Citi. In your case, I think the Citi would be a good choice. Pays 5% back on gas, groceries and drug store purchases and 1% on all other purchases. Those are things you buy most often, so why not get some money back for buying these things?

zamo

Indeed, I got an AMEX with 1% ~ 3% back which I pay in full each month. A check is cut each February. I also got a Chase Perfectcard, which gives me back the rebate as a CREDIT back to my balance at the end of the next billing cycle. So each time I pay in full I just take the rebate before sending the electronic payment

Adam_Schwartz

Right on, people like us are probably in the minority, or CC companies would go under. We always pay off our balances in full, so we end up netting some gain for what we buy.

zamo

Unfortunately yes. Credit card companies do not want people like us.

To tell you the truth, I rolled 4 grand balance from my Nissan Loan into a Citicard at 1.9% APR till the balance is paid in full. Guess what, I made the fee-free transfer after I paid the previous balance in full. And guess what, I am not using that card anymore. And yes, ~2% APR is the lowest I could get in the market until the balance is paid in full. Citibank is always is pushing me to use the card; i just answer

2% is like ~20 bucks per $1,000 borrowed per year. That is not bad at all.

F900

It helps, and it sure is better than having nothing ....

Take Zamos advice... live by those comments and you can't go wrong...


I'll find you a non-secured credit card you can apply for, and you should get approved, won't be for alot, but over time the CL will increase and you will start to build up credit.

BTW have you ever got your credit report ?