As a person who's never used a credit card before, I'm hoping someone can give me good advice on what my first credit card should be. Also, what's the best way to find out about my credit score? Again all answers are appreciated and I thank you.
2007-07-20 04:34:15 · 7 answers · asked by Mike M. 7 in Business & Finance ➔ Credit
stay away from credit cards. Credit cards are the finical words cigarette.
You spend more with a credit card than cash. When Mcdonalds started accepting credit cards the average transaction went from $4.75 to $7.00. when you use plastic it non emotional. When you lay down a Jackson to pay for it there is emotion so you tend to not spend as much.
when you use a credit card to pay for everyday things like gas and food then you know you are in trouble. Dont get hooked
2007-07-20 05:27:26 · answer #1 · answered by heybulldog 5 · 0⤊ 1⤋
Do NOT follow the 2nd poster's advice about Capital One. They do not report accounts to the credit bureaus correctly which can make your credit worse than it is. To find out your score, you can request your free credit report at www.annualcreditreport.com and pay an extra fee to get your score along with your report.
As for your first credit card, some say just to apply and see which ones you're approved for. I suggest that you first check where you do your banking to see if they offer secured credit cards. What that is you can think of it as building credit with a savings account, because that's pretty much how it works. A deposit is place upfront usually tied to a savings account that's used as collateral in order to get a credit line in the same amount as the deposit. The deposit gains interest while you're building credit. And you can increase the credit limit by adding to the security deposit. Make small purchases with it that can be paid off in full on time, every month to show activity. Usually after 9-18 months the deposit is given back and either the card changes to a regular one, or a better card is offered altogether. By that time, you may start receiving offers for other credit cards. I would repeat the process with another credit card company so that you're guaranteed a card and you don't have to waste points on your score when you apply and get denied. Also applying for a department store card like Sears or Target is okay as well.
I posted several links to some secured credit cards, my personal recommendations are CIti and Bank of America.
Hopefully this answer helps you,
Good Luck!
2007-07-20 12:19:26 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Mine are a Washington Mutual and a Discover, both have a great credit limit and low interest rate.
Which ever card you do get, follow these simple instruction and you will be fine.
Use it for everyday things like gas and food being careful never to exceed 30% of your credit limit in any given month and pay in full before the due date.
This will do two things. First due to the lag time between the billing date and the due date there will always bee a small balance for the credit card company to report, this will establish your payment history (35% of your score). Second it will keep your debt to credit ratio very low (30% of your score).
I have done this with two credit cards for the last 2-years and have raised my score over 150-points.
2007-07-20 12:15:21 · answer #3 · answered by ? 7 · 0⤊ 1⤋
For people just getting a credit card there is no right or wrong card though until you have proved your self expect to pay more interest. In a few months if you don't go hog wild and pay your bills on time and don't max the card out right away you can expect to get another card with better interest. Several (about 6) of my friends found a good card at this site
http://www.1-800BadCredit.com You will find lots of information on this site also. Good Luck
2007-07-20 11:45:43 · answer #4 · answered by Dewey K 2 · 0⤊ 1⤋
You should start with a department store charge card. Also you can go to your bank and request a "first time" credit card. If you are getting into your twenties you should do this soon. If you wait too long after turning 18 for your first credit experience it will have a negative impact on your credit rating.
For more information about your credit reports visit www.annualcreditreport.com it is FREE!
2007-07-20 11:41:24 · answer #5 · answered by sunrisecitycarpets 2 · 0⤊ 1⤋
This is a good credit card to start with, www.capitalone.com
To get your score go to www.equifax.com and purchase your credit report online for all 3 credit bureaus.
Good luck
2007-07-20 11:40:43 · answer #6 · answered by Gengis 6 · 0⤊ 1⤋
all you have to do is either call a credit card company there are tons of them you can find online bank of america is my faviorte or you can send them in one of the applications i bet you get some in the mail from time to time there are some websites that ask you if you want to know your credit score but they might make you pay to know your credit
2007-07-20 11:39:55 · answer #7 · answered by Anonymous · 0⤊ 1⤋