About to turn 18 and I want to establish credit. What's the best deal on credit cards?

Question

I've already been getting credit card offers in the mail and I have no clue which is the better deal. I don't understand anything really about interest and APR or anything... Can anyone help?

Answer 1

Check the interest on each credit card before using it. It can vary alot. We found Chase is pretty good. Sears is horrible as well as alot of others.

Answer 2

Sometimes when you first start out you dont get the best deals on interest. But you dont have to worry about that if you use the card and pay it within the 30 days. Now I know some credit reports dont count the credit unless you actually use it and pay on the balance. I know one person, used the card only to the amount they knew they could pay by the end of the month, then she paid all of it but 10.00 to leave a balance, there was little to no interest yet it clicks in creating credit. Try store charge cards they are easier but BECAREFUL credit can be the worst thing that could ever happen to you,no one thinks while they use it that is has to be paid back and it piles up fast.
APR is annual percent rate... each state has a maxium of APR on charge cards such as Indiana could be 19.5 percent while Ohio could be 23% this is the highest they could charge you. But if you become good with your credit companies will offer you better deals. Never take a card that has an annual fee. there are SO many companies trying to dump charge cards on you that i would be patient and wait for the one that has NO fees.. what an annual fee is they will charge you a fixed amount (could be 50.00 could be 100) each year just to have the card even if you dont use it.
now back to APR. lets say you get a 20.%APR. you get your first statement and you have 100.00 in charges..Now if you pay it all off there is no interest. But lets say you paid only 50.00 ...now you have a balance that will be left of 50.00 that you did not pay. So what they do is multiply 20% to the 50.00 which is $10.00 then they divide by 12 (that is where the annual comes in annual means 12 months) 10..00/ 12 = .83 .. your interest on that 50.00 will be 83 cents...
another way is if you buy a car, you might need a co-signer but it is good credit..even if you have all the money in cash. by getting the loan making so many payments will create credit.. yes you end up with paying some interest and would be cheaper not to but you are building credit
good luck and never finance more you can repay.. that is the KEY

Answer 3

If you can be really be financially responsible and pay it in full every month you don't have to worry about APR or interest and you can actually make money from the credit card companies. Paying in full every month will give you good credit. The way to make money is use cash back credit cards. I have a Chase card that gives me a straight 5% cash back on grocercies, gas, and drug stores and 1% on everything else. I don't think there is anything that good available to new applicants but there are many reward cash back cards out there. Look around.

Another thing you can do if you want the best 'deal' to make money from credit card companies is get as many as possible with 0% APR introduction perdiod on purchases. Buy everything with these cards. Then only pay the minimum but have the money to pay off the balance when the 0% APR runs out in a high yield savings or money market account. I would recommend HSBC's online savings account, currently at 5%. This way you make interest on the money you owe them. You just have to make sure you don't spend it on something else before the introductry period runs out, else you're screwed. You could also do a balance transfer into your savings account, but they will charge you 3% transfer fee which is not worth it IMO. Also, this will hurt your credit at least temporarily.

Answer 4

Start by looking over the disclosures chart they always send with the offers. The only two I really look over is the APR and "method of computing the balance for purchases". The "APR" is your annual percentage rate...usually anywhere from 9.99% to 18.24% or more. It's kind of like when you get a loan, and the charge you interest. The APR is kind of like interest on your charges. When you get your first credit card it may be on the high end. After you have established yourself with a company, you can call in and tell them to lower it because you have a good history or you will cancel it and/or go with a better offer (and don't be afraid to switch credit card if you do get a better offer). I don't really know too much about the "variable APR"...just try to make sure that is as low as possible, too. The "method of computing balances" should be an AVERAGE daily balance. You DO NOT want a two cycle daily balance, because that is like getting charged twice for an interest rate.
You can find good ones without a membership fee. Keep your purchases small and pay them off regularly or entirely at once if at all possible. When you get your bill, and if you can't pay all of it, pay more than the minimum payment, because most likely all that minimum payment is, is interest not principle. And you want to pay off your principle (your purhases). Just keep in mind that while the money may be in your bank, you still owe that much on your card. If you are responsible with it, you can make it work.
Another way to establish good credit, is to look into financing. Go to the bank and look into taking out a VERY small loan, just to build credit. You can also finance things like furniture.
Good luck!

Answer 5

If you want a credit card simply to establish credit, I really recommend only spending money that you already have, and always paying off your card completely, every month. You don't want to start debt at such a young age. So many people do.
Anyway, even though you are getting offers that might say you are approved, you many still get turned down if you try to apply. There aren't many options if you have no credit at all. A good way to start credit is to get a card that is specifically for a store that you shop at a lot. There are also options out there for students, if you are going to continue school after you finish high school. Most credit card sites can tell you the information about student cards. Just remember, if you always completely pay off your balance every month, your APR doesn't matter.

Answer 6

The best thing you can do to establish credit at the age of 18 is get a gas credit card and pay it off monthly.

The fact that you are asking about interest rates means you are already off to a bad start. Your credit card should ALWAYS be completely paid off every month (it doesn't matter what the interest rate is or what anyone else says) or it could lead to really bad habits and kill your credit.

Also, get your parents to put your name on their credit card (authorized user) and then hide the card in a place you will never find it.

Answer 7

it is going to be extremely demanding to get a mastercard devoid of credit. I too became 18 once. yet in case you'll opt for to start up installation credit then I recommend once you bypass to school then get a student mortgage although the finance dept of the college. only a small volume would artwork, yet having an installment account on your credit seems tremendous. so as that stands proud as the fashion to bypass. in case you get a mastercard think about to be truly careful because earlier you recognize it the cardboard will be maxed out. (my boyfriends brother is at this degree, even although he's a lifelike baby, a mastercard became only too a lot for him to take care of, even although he makes good funds and has inexpensive lease) so it might want to destroy out from you. you'll want a bank account and a job. once you get contained in the invoice you both deliver in a verify (they contain the envelope, you contain the stamp) or you will pay it on line. Definately do your analyze on diverse charge playing cards. do no longer verify in for some thing with an annual fee. you'd be able to start up your credit with a secured mastercard by your father and mom banks, they could bypass with you that would help you. A secured card is funds that you position as a deposit. So in case you supply them $three hundred then your credit decrease will be $three hundred. yet again, be secure, and if you're searching to only set up credit i'd recommend a small student mortgage than a mastercard. a lot less worry that way, and ultimately you receives the mastercard delivers rolling in that you will be able to look over and settle on on that may artwork proper for you.

Answer 8

Do like being a slave ? Banks/ credit cards are Pimps.
You do the work they take your money.
visit DaveRamsey.com to learn before you get shafted.
Learn cash is king, Debt is for slaves.
You could become a millionaire as long as you stay away from Ccards. Why do banks have Big Buildings
same Reason Pimps have bling.

Answer 9

A debit card that's tied into your savings account. So you can only spend what you have in your account. As interest rates are way to high on all credit accounts.{ Its like a prepaid credit card }

Answer 10

Capital One is a good one. Look into that one but be careful when i was 18 i got a few and got very irresponsible with them I had to file bankrupcy at the age of 21.