credit card virgin?

Question

what would be the best credit card for me to get?
ive never had one and i dont know all about the tricks and such
i mainly want one to build credit, im not going to go crazy and end up in debt, or at least thats my plan :)
so i guess i want one with obviously the lowest interest and no annual fee, i dont really care about the limit
any help would be greatly appreciated, thank you

Answer 1

Start with your bank. You may have to go with a secured card -- you deposit $x as collateral for the credit card limit. Use the card and pay it in full every month. After 6 months, you can probably get a regular credit card.

The most important thing to remember is only charge what you can afford to pay in full and on time every month. ALWAYS make sure your payment will arrive before the due date.

Answer 2

Really, you should just look at those simple things like the annual fee and the card's normal APR (don't think too much about the introductory APR, that's just a bonus, not a reason to decide on a card).

I don't think there are any companies famous for being bad, so I'd say pick the card based on the numbers.

As for the tricks:

1) cash advances (including the fake checks they send you, and sometimes balance transfers--check the details) are bad. In addition to having interest at the worst rate that card offers, there is usually a three percent fee just for taking the advance.

2) default APR: pay your bill late, and your interest rate goes to the maximum allowed by law.

3) over the credit limit: they'll let you max out your card, and charge you $30 when you do it, and another $30 each month until you have the balance back below the limit. If you ever go over the limit, quickly make a payment big enough to put you far enough below the credit limit that next month's interest won't put you back over the limit again.

4) Credit protection programs--would you like to almost double your interest rate so you have limited protection against unemployement? Didn't think so. Say no to all of these offers, they are always even worse than they sound.

And the tricks you'll pull on yourself:

1) spending money you don't have. Before you go buy that new TV, think about how long it will take you to pay off $1800. You can probably afford it, but if you don't think you can pay off a purchase in six months, start saving the money for it and buy once you have half the money saved up--you don't want to pay $3000 for that TV because it took you four years to pay it off.

2) If you use a credit card for ordinary expenses, like gas or groceries, pay those amounts off immediately. If you don't, you don't have a real idea of what your monthly budget truly is, and you can get into trouble because you don't really know how little money you have.

3) Companies that allow online payments are great--you can set them up to always take the minimum payment due on the due date so you are never late. You should also make additional payments to get your balance down or paid off, but the automatic payments stop you from getting the dreaded default APR.

Answer 3

The easy answer is which ever one you can get with NO annual fee. Since you are just starting to build your credit history then ANY creditcard will serve that purpose. I would talk to your bank and apply for one thru them and then use the card. What I mean by that is just having a creditcard will not build your credit rating. Creditcard companies make 80% of their profit from late fees and interest charges. If you get a card with no annual fees and never use it then you will not be building credit. What you need to do is make a habit of using the card for purchases that you are currently making with cash and then pay the card off IN FULL every month before the due date on the bill.
The longer you have and pay the bill IN FULL the better your credit rating will be and the higher the limit they will extend to you.
Building credit is a good idea but failing to manage your credit card debt is one of the biggest pitfalls you can get yourself into. ALWAYS, ALWAYS, ALWAYS know that you are paying the card off in full EVERY month and you will be on your way to good financial management. Leaving a small balance on the card is the road to more pain and stress then you want to learn about.

Answer 4

Ask your bank for help, if you want to build credit try doing it with your own money. I believe they have plans where you can put a certain amount of money in a savings and they issue the card to you. When you pay the bill it gives you credit.