I'm thinking about getting a credit card, I have a job, in school, and 19 years old, any advice?

Question

I don't have any bills to pay, except a cell phone bill. And I'm sure I'd be able to keep up with the bill, any advice on what to look out for and what company to go with?

Answer 1

Maintaining a high credit score is so important. You qualify for lower rates on loans, mortgages, even insurance premiums. But, it is hard work and requires disciplne. It's easy to get a low score and it takes years to repair your credit.
Enough lecture - good for you! It seems that you have thought about this and made the decision. You will be cardholder with limited credit history, you will probably have to pay a very high rate, regardless of the company. I suggest that you pay off the card every month (keeping the interst charges down); however, carry a small balance, even $100, for the first few months. That way, the credit card company can see that you manage your credit well.
A couple of thoughts:
If you must carry a balance, always pay more than the minimum payment, even by a couple of dollars.
Never go over your limit.
Make your payment at least 7 days before the due date, even on line.
Always check that your payment has been posted.
After six months of ontime payments, call the company and ask for a rate reduction. If the operator says no, ask to speak to a manager. Ask their name(s) and titles. Continue up the chain of command till someone gives you a break.
Use the card for normal purchases, but do not start buying extras or going out for 19 or 20 meals a week ;-)

As for a company, get one with rewards. The GM Card gives you credit that you can use toward a purchase or lease of any GM vehicle. Capitol 1 has great commercials, but their customer service leaves something to be desired. Never accept a card with an annual fee or membership fee (you're not joining a health club).

Good luck with it!

Answer 2

Ok, being 21, I learn very quick, DONT ABUSE IT! It will haunt you, set your limit to $800 or $1000 limit and dont ever extend it. And pay more than the minimum. Don't buy worthless/useless things you will only use once, try to pay cash up front for everything-and the credit card is emergencies ONLY! best advice I can give to you. Shitty credit is not a good thing to have when you are young. :) Glad I could help you.

I just paid $5000+ off on all 3 of mine, and now I feel alot better. No more interest, fees stealing money from me, how you think companies make their money.

If you do get one, have a small limit like $250 at first, and when you use it, make sure you have money set aside to pay it off in full. This will build good credit! I have to do this, because I made one to many mistakes. If you get a credit card and want low APR% get MNA/Bank of America 7% or Capitol One 12% they are really good.

Answer 3

At your age, pretty much any credit card company will give you one. I got my first cc through Wells Fargo. You won't get a big line of credit, mine started at $800 when i was 18. But as you pay it off on time and stuff your credit line will increase. if you have an account at a bank already, you can get a cc through them. I'd recommend a Visa card because they are accepted pretty much everywhere. I also have an American Express card, and Good Times is the only place i have found not to accept it. Undoubtedly you will get a high interest rate, but it wont be a problem if you can pay it off each month.
Basically, go for it! just make sure you pay it on time and don't go over your limit.

Answer 4

Warren Buffet, the 2nd wealthiest man in the world, offered this advice on T.V.:

"Stay away from credit cards."

Many people recommend having one for emergencies, but the temptation of having access to the credit is too much to bear for many. If you can afford to pay with cash, do. If you can't, wait. Other than that, if you are determined to have one, find some with low interest rates (8% and lower) with NO annual fees... Capitol One has some decent offers (as far as credit cards go); you may also try your bank if you have a checking or savings account.

Some disturbing statistics about credit: http://carltoncalhoun.biz/

Answer 5

I have a credit card, but I pay it off every month. I'm very organized and record every transaction, etc. If you get a credit card, I recommend paying it off every month and never "spending" more than you make.

As for companies, mine is through my bank- Bank of America. Don't go with Capital One though. They don't report your credit limit to the credit bureau. Washington Mutual is usually easy to get a card from, but if you already have a bank account, I'd try with your own bank first. Besides, if you have online banking, it makes it that much easier to pay off since you can just transfer the money from your checking into the credit card each month.

Answer 6

go with a big company like bank of america or chase, so that if you go to get a loan later you will be able to show that you had good credit and loyalty to that company. Pay it off in full every month, or you will be so sorry in the long run.

Answer 7

a lot of people start a credit card with their bank but i suggest a company that has a low interest rate and a year before they start charging the interest(you know no interest payments till 2008 etc)and i like capital one....make sure the interest rate does not become a variable meaning that the interest rate changes makin it more or less and that can make u pay more at time...dont max ur card its not smart just replace sumthin u pay with money and pay it off monthly like use ur card for gas, and once u get the hang of it do as u please with card....

Answer 8

i would tell you, if you do a get a credit card go with a student card, like from capitla one. They are really good with interest rates and good with reporting it to your credit. On the other hand don'y missuse the card. Only buy things like plane tickets, hotels or major purchases, not misc stuff like clothes and food. These things are un nessacary uses for a credit card and becuase you have decent credit you want to maintain that and not mess it up. Credit theses days is everything,

Answer 9

Be aware of the interest rate. Sometimes banks give you a low interest rate the first year, and the rate jumps up to 22% after that (or something similar). That's just crazy. So my advice to you, if you do end up getting one, pay it off as fast as you can, and you won't have to face any interest charges and your credit history will grow! :)

Answer 10

Don't do it. I got one and was able to keep up with the bill. I thought the same thing. I won't have any problems. I'll only keep it for emergencies. Didn't happen now I'm in debt!