First credit card?!?

Question

Finally 18. Already have savings/checking accounts so im definately responsible enough. I want to start building up my credit and tips/suggestions. Im thinking of a student card and doing more research...

Answer 1

Good idea, but make sure you get a small limit. Maybe start off with a limit of only $200 or $300. It sounds like a small amount, but at least you'll get an idea of the payments and interest that you'll have to pay each month. Once you feel comfortable and you can afford more, than ask for an increase to maybe $500.

Remember one thing though--- If you have to use a credit card, it is the same thing as getting a loan. If you have to ask for a loan to get something, then you really can't afford it in the first place.

Answer 2

Awesome idea to stay with a small credit line ($200-300ish). Use it often or once in a while, but the smartest thing to do is make sure you have the cash to back it up. I started a few years ago, and have never had to pay multiple payments to pay something off, because if I have the cash, I'll buy whatever, say worth $100, and then when the bill comes, I pay it off in full. This will build trust with your credit companies, and build your credit score. My score is close to perfect now. The only two reasons it is not perfect is because I'm still young (22), and have minor school loans from college. Other than that, I just had good enough credit to qualify for a house in southern california. Keep researching and asking questions, you're very smart for doing so and off to the right path. Good luck!

PS. Almost forgot... This is extremely important! Please don't get ANY store credit cards, it's an instant red flag to credit companies checking your score.

PSS. Avoid "free credit scores" when you're curious about your score. Having them run your score automatically drops it by 4-5 points, and when done multiple times, you can easily ruin years of positive credit building! Any more questions, email me!

Answer 3

With no credit, you'll have to take what you can get. First, try your bank. They are much more likely to give you credit since you have history with them. Trying for a student card is the best option, as they are geared towards people with little/ no credit.

If that doesn't work, try capital 1 or providian. They are pretty forgiving of people in your situation. You may also try a department store or smaller chain store's in house credit...but they like to see a little history.

Failing all that, see if a family member will add you to their credit account as an "authorized user" but not give you a card or access. This will get you a score and credit history in 2-3 months, allowing acceptance of almost any small limit credit card.
If no go, then ask your bank or a small credit union for a 500-1000$ installment/personal loan. This will also give you credit.

Last Resort: Get a secured card through your bank (best) or with someone like Orchard Bank (worse).

Answer 4

Student cards are a good way to start building your credit. So if you are a student and have a job to pay back what you charge, you should be able to qualify for one. There are several banks that issue student cards, so be careful which one you choose. Stay with larger companies like Citi, or Chase or Bank of America. Watch the interest rate too. If you are late with a payment, your interest could double.
Good luck

Answer 5

SECURED CREDIT CARD..it has a set limit you pay the bank and they give you money on your credit card...no more than that. PLEASE do not get any other ESPECIALLY if your 18 otherwise youll be like me and still be paying off debts im 28