I am a beginner on getting a credit card and need help!?

Question

I'm planning on applying for a credit card. So I need to know the ins and outs of getting one. Like pros and cons, what to look for when getting one or which one is good to get. I also need to know what annual plans and fees are and those kind of stuff. Help would be much appreciated.

Answer 1

Most everyone on here is telling you that credit cards are a bad thing. I'm not going to do that. I'm going to let you decide for yourself after I tell you what makes up your credit and how it works.

Payment history- 35%
Total debt owed vs. available credi-30%
Length of time establishing credit-15%
Types of credit established-10%
Inquiries and new accounts-10%


Ok, with that said, you now know what makes up your score. Now, I'll explain a little more about credit cards. People have this misconception that credit cards are bad. Credit cards are an inanimate object just like guns, that get a bad rap when they fall into the wrong hands. Hopefully with what I'm about to say will shed more light on this and give you a much better understanding.

Some things that you should know is that you have to make a careful choice on which credit card to apply for. Do your homework. Reason I say this is that anytime that you apply for credit, whether you're approved or denied, a "hard inquiry" is created which can lower your score. It's important that whatever credit you apply for, make it count. It's no sense in applying and getting rejected for card after card. It's good to try to find a card that doesn't have an annual fee or a low one worst case scenario. Also, finding a low or 0 percent introductory interest rate is good. Citi, Bank of America, American Express, Chase, are some of the better companies. Stay away from First Premier, New Millenium, and Tribute. These cards charge a lot of ridiculous fees that eat up the available credit on the card even before you get it in your hands. Captial One and HSBC aren't too bad either, they're more of the mid-range credit card companies.

Now what I'm about to tell you is more valuable than anything that you will ever spend on whatever credit card you will end up with. If most people followed what I'm about to tell you, chances are, credit cards wouldn't get anywhere near the bad rap they get. Credit cards are considered revolving accounts, meaning that when you spend, you pay back, and then you can do it again. Just because you have a $1000 limit doesn't mean that you should use all $1000. In fact, you should only spend what you can pay off either every month or in a couple of months. Remember, not only you have to pay back what you bought with the card but after the grace period, you're not paying more in interest, so it's important that you spend what you can afford. I agree that people shouldn't have credit cards especially if they don't know how it works. I work as a credit analyst and underwriter so I basically make the desicion whether or not someone gets approved or declined when an application needs to be manually reviewed.

Some of the benefits to credit cards are the purchase protection benefits (electronics mainly) that some offer, being able to rent a car without having to wait for a refund if renting with a debit card, making online purchases, and making hotel reservations are just a few things . Now some of the disadvantages are paying a lot of interest when you've maxed out the card, meaning you're throwing away money, increasing the risk of credit card fraud and indentity theft if your wallet or purse gets stolen and it falls in the wrong hands, and the possible legal matters of the credit card suing you in court if you become seriouisly delinquent.

I'm not trying to scare you with that last comment I said, I'm just being real. It CAN happen. That's why it's important that you spend what you know you can pay off every month. The credit card companies won't tell you that, because they won't make any money off you that way if you do it. You don't have to let them make money off you too. An example of this would be no matter how much the limit is, treat the card as if it only had a $100 limit, and you're going to spend $20-50 every month and pay if off on time. Do this every month. This way, you're not only building credit by showing activity, but you're not going into debt while you're doing it by not maxing out the card, and racking up interest and fees for paying late and/or going over the limit.

A good "trainer" credit card is a "secured credit card" Major banks like Citi, Bank of America, Wells Fargo, and US Bank offer these. These are much easier to get than regular credit cards being that you have to place a deposit upfront that usually determines the amount of credit you get. For example, you place $300, your credit line would be $300. The deposit isn't used unless the account becomes seriously delinquent, then it's taken as collateral. The good part about this though is that by adding to the deposit, you increase the credit line which gives you more control and usually the deposit is linked to a savings account or a certificate of deposit which gains interest while you're building credit. As long as you pay on time and not max out the card, usually anywhere between 9 -18 months, the card converts to a regular card and you get the deposit back with interest. Being that you would have put up your own money for a secured credit card, it provides additional incentive and motivation to discipline yourself with the card since it's YOUR money at stake. So that's another option for you. The annual fee on these are fairly low, so it makes it affordable. I posted links to these for you to check out.

I know that I gave you a lot of information, hopefully you'll do your research and find the one that's right for you!


Good Luck!

Answer 2

Poeple think Credit Card = Trouble,
Which most of the time is True, but
I think they are "The Best Thing In The World"
thats if you know How to Use them,
Which most of us Don't.
ok So here is the Deal
If you consider your self
Responsible, Time & Goal Oriented, & not a Spend Thrift.
I think you are Approved for a Credit Card.
But First thing First.........
There is not rule that Should never & I mean Never Forget
If you don't have Money to pay Back at the Time
Do Not, I mean DO NOT use the Credit Card.
Eventhough, You might Say, that is exactlly the diffrence between Debit & Credit, but
Hey If you Don't want to End up like 6 out of 10 People
& Yes thats in American
So Trust me & "Just Go With this Advise".
Now, here are the ways to Start Building Credit.
1:- (Free Way - My Favorite)
If you want to Start Building your Credit for Free
Become an Authorize User with someone
But Only who has a Good, Let me repeat the key word
"GOOD CREDIT" (600 & Over).
and after a month or two you will be consider a risk
just like that person so that is why its important to
Make sure that the person You Choose has a
GOOD FICO Credit Score(600 or Over).
Then you can go ahead apply for one of your own
Now What Kind of Credit Card you Should Apply for
Now Thats an other Question!!!!
If You do go by this way, in the mean time, just
if you also want to see if you are ready.
You can buy those Pre-Paid Credit Cards from Walgreens
Untill the time it takes you to Creat some Credits of your own.
-
2:- (Its Takes Money to Make Money - )
Go to your Bank, & Ask them how you can build you Credit.
They will sign you up with a Starter Card
It Could be as little as $0 or as much as $50 Charge.
Depending Upon the Bank you Bank at.
-
I Learn all that from a Hard Way (Personal Experience)
Because No body Teaches that stuff here.
It Hurts Everybody in the Country
& Help All & Every Financial Institute in the Country.
Soon I will make a WebSite to Help Everyone
So they Don't have to Pay the price that I did.
-
I know it was Long & Boring,
But If you don't have time to plan for your Future now.
Trust me, Your Future doesn't look very Bright to me.
I know I know, they say, Its never too late to start.
But Trust me, It will be Expensive!
-
But Hey on the Good Side.
Who knows, You might win a 100 Million Dollar Lottery
then You can have all the Money in the World on you.
-
So Good Luck & let me know if I Could be any more Help!

Answer 3

This Site Might Help You.

RE:
I am a beginner on getting a credit card and need help!?
I'm planning on applying for a credit card. So I need to know the ins and outs of getting one. Like pros and cons, what to look for when getting one or which one is good to get. I also need to know what annual plans and fees are and those kind of stuff. Help would be much appreciated.

Answer 4

The most important thing to remember about that credit card is to only charge what you can afford to pay in full and on time every month. Carrying a balance is bad. You pay all that interest and get sucked into debt.

Try to get a card without an annual fee if you can. If it's your first card, you may have to get a secured card -- you deposit $X and that's used as collateral for your credit card.

Answer 5

stay away from credit cards. They make all the rules and can change the rules anytime they want.
Banks spend millions brainwashing people into thinking they need credit cards and a high fico (I Love Debt ) score to make it in todays world. Thats a load of crap. Pay as you go and you come out ahead with money.

Debt Free is the way to be.

Answer 6

Look at the terms and conditions. If possible, limit your spending to what you are able to pay back at the end of the month. Always pay attention to the dates the bills are due, the credit companies still believe you need to pay them back even if you don't receive the bill.

You are on the first step towards building your credit history. May I suggest a review of myfico.com. You can never start learning about credit scores too young.

Answer 7

From personal experience, credit cards are nothing but TROUBLE. They are too easy to use and too hard to pay back when the bill comes in with charges, interest, late fees, application fees, etc. are added. Then it becomes overwhelming and embarrassing. My advise, if you need a credit card to establish credit, then get one and only charge ONE item on the card, then IMMEDIATELY send a check to pay it off and never use it again. The one-time charge and current payment will make your credit score rise. Then, get the scissors and cut that card up. I'm not joking!

Answer 8

you have to make sure you make your payments on time and when looking for a card make sure you are getting a credit card that will giveyou a good interest rate and good rewards check out www.fastcreditcardapprovals.com here you will be abel to compare all major credit cards side by side, good, bad or no credit they have the right card for you.

Answer 9

Don't. Why do you need a credit card?

They just get you in trouble.

Answer 10

Mr Worry,

may i suggest a reading of '48 days to work u love' d.miller . a good book for going forward and plenty of fresh reference material.

the other one is 'total money make over' d.ramsey helps our folks retain their cash.
spending less and getting more value from their paychecks.

our associates have a mandatory read of the books.

understand u can live without credit slavery.
read 'the millionaire next door'