First credit card??

Question

I am in college now and I'm going into my juinor year, but I have yet to sign up for a credit card. Honesely I'm kind of afraid becuase everyone tells me "Don't get a credit card like I did you will ruin your credit forever" Now I know the basics, don't buy anything you can't make a full payment for at the end of the month. But what would be a good credit card to get? I keep getting all there words thrown at me like APR and credit score and such.

So I'm asking what would be a good kind of card for me to get to start building good credit?

Answer 1

The "don't buy anything you can't pay for at the end of the month" thing is good.

The best card might be, say, a student card from a larger bank. Ideally, a card that no annual fee and a low interest rate is best. If you pay what you charge at the end of the month, and if you keep charges well below your credit limit, you should have no problem.

What often happens with students is they get the card, can't resist the temptation of feeling as if they can buy stuff "free" with it, and then can't pay it. Student incomes aren't always very stable. The other thing that can happen is if you, say, get a beginner's card with a high late fee and high over-limit fee, and if you allow the balance to go too close to the limit; something like your payment's being delayed in the mail could run you up a late-fee, which could push the balance over the limit and get you an "over-limit" fee. At this point, with an average fee being around $30 or $35 you could have an extra $70 dollars on your card and be expected to pay that right away along with your regular payment.

If you don't have, say, the $100 required then the card next month will get yet more fees added to it. Within a very short time you could go from, say, a balance of $275 and a credit line of $300 to being expected to come up with about $200 immediately. You can swear that you won't let this happen, and you can be very careful, but it is entirely possible for there to be something like an error in your bank account or some other thing you didn't expect that can cause this chain of fees to begin snowballing.

Many, many people who get in trouble didn't get in trouble because they were careless; but rather, because some minor problem with a payment happened and they could never catch up with the snowballing fees.

You could prevent this type of unexpected disaster by putting $200 in a savings account and not touching it unless some unexpected mishap occurs. If one did and you can pay up the fees immediately the snowballing doesn't happen.

Answer 2

The best credit card for you would be the one with the lowest intrest rate. But if you plan to pay your balances in full when you get you statement then it is not a big deal witch one you get. As long as you do not have a balance you will be fine and in time you will build a good credit score. So any credit card will do. You may want to look into prepayed credit cars out there... Even if you max it out you will not get in trouble. Good Luck and be happy always !

Answer 3

I too suffered from creditcarditis during my college years and almost 10 years later Im still in debt, why not get prepaid credit cards which helps build your credit but you only spend what you have. Or get a card with a very small limit like say 500.00 and keep it for emergencies only. Good Luck in college they are the best years of your life, spend wisely it will effect you for many years.

Answer 4

I would get one card, probably a Mastercard or Visa. You probably should not have a problem getting approved for one, but you may not have a very high limit to start out with. If you know the most important lesson of managing a credit card, ie don't buy what you cannot pay for, then you should be safe to begin using one. You don't have to even use it for everyday expenses if you aren't comfortable, but it can make life simpler if used responsibly.

Answer 5

I wish I never got one - It makes it too easy to justify unjustifyable purchases...and creates an unjustified amount of debt...

The most important thing you can do with a credit card to get good credit is to pay the bill a week early every month so you never have a late penalty and have fees and interest rate go up.

Answer 6

There are two personal finance authors you should read. Dave Ramsay (The Total Money Makeover) and Suze Orman. (9 Steps to Financial Freedom). Suze will teach how to build excellent credit and help you understand all the buzz words. Dave Ramsay will teach you how to live without any debt. Credit is not really necessary. We are just taught that it is needed. It sounds like you have done a great job living within your means. Maybe you should consider financial freedom. It is a lot easier to live without being a slave to a creditor.

Answer 7

I would suggest going to your local credit union. Working with a credit union you are less likely to be hit with enormous fees or have them jack your intrest rate up to 20% because you are one hour late with your payment. Also working with a credit union they are huge on education - they would be happy to answer any of your questions and give you information on how to build credit using your credit card (and not just basic information like dont buy what you can't afford).

I use to do presentations to high school students on how to use credit cards wisely - - you can email me if you would like more information or more specific information.

Answer 8

Go for any card that has no annual fee. Things like interest rate, overlimit charges, late charges, and other such nuisances will not affect you if you use the card as you should: keep within your limit, and always pay your bill in full and on time.

Answer 9

I would apply for a capital one, either Visa or MasterCard. They have a program designed especially for students. Make sure that you don't over spend, make your payments on time. And in about a year you should have a pretty good credit rating. You can even apply on the Internet. www.capitialone.com

Answer 10

No shifting money on your Capital One card won't supply help to easily yet. you merely could desire to pay as much as you probably can in the direction of your financial enterprise of usa card each and each month and don't use it in any respect. Clip coupons, downgrade your cable or cellular telephone kit, consume mac and cheese a pair nights a week. you would be taken aback how plenty greater money you will could desire to positioned in the direction of your mastercard bill. it relatively is the superb thank you to pay it down. regarding the Avon account. it's time to talk on your mom. tell her you have chose her to pay that off NOW it hurting your credit quite in the event that they are calling you b/c she is previous due paying. you additionally can call Avon and see in case you will be taken off the account you may elect your mom's permission to do this yet once you're you able to could desire to and quickly.