College Junior with no credit, never used a credit card, and will only be using it for gas purchases? Any sug?

Question

I don't need to get one, but I will be graduating in less than a year and I want to build credito.

Answer 1

I applaud your efforts to build good credit. I too did not get a credit card til later in life, actually right after I got my job. It's purpose was strictly to pay for gas, as I have a fairly lengthy commute and figured since I was going to be paying for gas anyway, putting it on the card and then paying it off would help establish a good credit history for later in life. I would suggest that you try to get a card that offers rewards such as cash back, since most of them do offer this these days. Some of them even offer better rewards for use of the card at gas stations, so this may work well too. Make sure to watch the fine print. You should be able to get a card with no annual fees and such starting off since you don't have bad credit. There are lots of cards out there that will do that and that can kill you quickly, even if you pay off the entire balance monthly. I have provided a link to a site that compares good credit cards for college students. The first few on on the list appear quite good. Just remember, the credit card isn't necessarily additional money, just an alternative method of payment. As long as you keep that in mind (and it sounds like you have had a history of being responsible) then you will be just fine. Best of luck to you.

Answer 2

Be very careful. Credit is very tempting. Im 24 and have been through alot with my credit. Its very easy to mess up and very difficult to fix.
If you are only using it for gas, then make sure thats all you use it for. Make absolutely sure you make at least the minimum payment each month. Some people suggest paying it all of each month. Do that if its at all possible. You just don't want to rack up a huge amount of bills, especially since you're still in college and probably don't work full time. Its very easy to say "oh, I will just put it on my credit card." Dont.
Do not get suckered into other credit offers (you will get tons when you start building credit) Find one with no annual fees and lower interest. Also, avoid store charge cards (target, jc.penneys, etc). Those have much higher interest rates.
If you can find one that has cash back or airline miles bonuses that is a plus, just watch your interest rate.
Keep these things in mind and live within your means and you will do just fine building your credit!
(PS CHECK YOUR CREDIT REPORT ANNUALLY!)

Answer 3

Since you are in college, I am guessing you get tons of the 0% APR introductory rate cards. I would read the fine print and look at the APR after the intro period. Make sure you select one w/o an annual fee. You will probably be accepted for a $500 limit. Just make sure you only use it for gas and pay the balance off monthly. As long as you make the payments on time, your credit limit will eventually increase and your FICO will slowly increase, also.

Answer 4

you should apply for a "student" credit card first. YOu can get them at a place like:
http://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/card_acquisitions/unsolicited/page/PFSCreditChooseCategory&cat=student

http://www.citicards.com/cards/wv/home.do

http://www.bankofamerica.com/creditcards/index.cfm?context_id=marketing_grid&category_id=2005



they are easy to get approved, but do have higher interest rates. Pay your balance in full each month, then in 6-12 months, you should have a LOT of offer rolling in with GREAT APRs, etc, and you are on your way to GREAT credit!