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I am a college student and would like to apply for a credit card to start building my own line of credit, to be honest i dont plan on using it at all, just for emergency type of thing. But if i do not make any charges on the card, can companies still charge me a fee??

2006-11-27 10:39:09 · 10 answers · asked by embabe232 1 in Business & Finance Credit

10 answers

It's for the convenience of having the card. If your credit rating is high (which it's not if you're a student) you might get one without fees.

2006-11-27 10:50:15 · answer #1 · answered by John's Secret Identity™ 6 · 0 0

many years ago I did just that...I got a credit card with a fee. It wasn't a heavy fee and it did help me. what you do is get the card...it will have an annual fee. pay the first year and make some small purchases with it and pay them off when you get the bill...no interest on purchases if paid within 30 days of the purchase.

Credit card companies want your business so after the first year...call the card company and tell them you want to cancel. they will ask why and tell them you don't want to pay the fee...and also tell them the interest rate is too hi. be sure to use the card a few times during that year so they can look and see that you have made purchases and paid them on time. they will most likely tell you that since you have kept your end of the deal that they can wave the annual fee and lower the interest rate at the same time.

It worked for me and it was the first step to establishing the good credit I have today...it's worth it for the first year...after that...you deserve a no annual fee credit card.

Good luck

2006-11-27 10:57:25 · answer #2 · answered by Kenneth S 5 · 1 0

It depends on the credit card you get. Some do not charge a fee if not used, some charge annual fees regardless of use. The fine print will specify if they charge or not. It should also be noted that in order for you to make a difference in your own credit history, you might consider small monthly charges, paid off each month completely. That way there will be no finance charges, but your credit report will reflect a good payment history.

2006-11-27 10:50:05 · answer #3 · answered by oakhill 6 · 0 0

You have to read the fine print, as some credit cards do charge a monthly fee even if you don't use it. To build your credit you should buy something once in a month or two and pay it off right away. Then you will build your own line of credit.

2006-11-27 10:49:40 · answer #4 · answered by mandm 5 · 0 0

Most companies these days are dying to get people just like you. NEVER accept a credit card that has an 'annual membership fee' attached. There are plenty that don't have such fees, HOWEVER, always look at their interest rates charged. Most of them are charging a 'variable rate' attached to the daily prime. A great rule of thumb! Try to avoid purchases that YOU can't pay off in six months or less. Also, check that they don't have a clause for early pay off penalty, some do. FINALLY, avoid paying the minimum monthly payments.
The best thing is to 'charge' only what you can pay in full at the due date.

2006-11-27 11:12:16 · answer #5 · answered by LifeRyder 4 · 1 1

It depends on the card. I've wondered this myself, since I've paid off my cards but still keep them open to mantain my credit history.

If you have good discipline -- buy one small item on the credit card a month -- gas, or use it to pay a bill. And then pay it off right away. It will build your credit score and most credit cards allow you to pay them on-line -- you can make the purchase, and then transfer the money from your bank account as soon as the charge goes through. That way, you don't pay the monthly fees. (Make sure your purchases are well before your bill comes due, or you will get charged the APR for carrying a balance.)

2006-11-27 10:47:31 · answer #6 · answered by dancinghawk_wolf 2 · 0 0

You should have no trouble finding a card with no annual fee. Inactivity fees are becoming more common these days. My advice would be to use the card 2 or 3 time a year for something you would have bought anyway. Check you account on-line a few days later and pay it off as soon as the charge posts to your account.

2006-11-27 12:59:52 · answer #7 · answered by STEVEN F 7 · 0 0

Get a card that charges no annual fee. See http://www.bankrate.com/ for credit cards.

2006-11-28 18:55:39 · answer #8 · answered by Steve R 6 · 0 0

Most cards have a yearly fee, and you will have to pay it in order to keep the card.

You can use it to make purchases that you normally would have paid cash for and pay off the bill in full every month in order to build up your credit rating.

2006-11-27 10:50:00 · answer #9 · answered by BoomChikkaBoom 6 · 0 1

confident, maximum enjoying cards value a cost for going over the cut back. some enjoying cards will enable a value to circulate by even tho it does placed you over cut back. Others won't. after all, you may surrender utilising that card and artwork on paying down the soundness. that's silly to throw away $30 for overlimit costs on suitable of the pastime you're paying by donning that large stability.

2016-12-10 17:19:47 · answer #10 · answered by Anonymous · 0 0

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