Hello. I am a college student with no credit history. I want to start establishing my credit history, so I want to apply for a small time credit card, like at Dillard's or Best Buy, or somewhere like that. I have a checking account that I keep in good standing. I rarely use it, because I prefer to use cash.
What is a good way to "guess-stimate" what my starting credit limit will be??
I know that how much money you have in your bank account has something to do with your credit limit, so should I put more money in my account, then apply for a card?
Also, since I am a student with no credit history, is it possible for me to get a credit limit over $100 dollars?? I think that a credit limit of $100 dollars is pretty pointless becasue I can just pay that in cash and not have to worry about all the fees, etc.
2007-12-20 07:36:51 · 6 answers · asked by ? 4 in Business & Finance ➔ Credit
First off, even the credit companies dont have access to your bank account, so the balance you maintain is not relevant. Secondly, I would recommend applying for a visa or mastercard instead of the department store card as the interst rates are usually signifigantly lower. The other benefit is that you can use the card anywhere, instead of at one particular store.
Most student cards start off at $500.00, but that does not mean that you have to spend that much on it every month.
Only make necessary purchases, but try to use your card even for something small once a month to establish a payment history and therefore a credit rating.
Once you finish college and are working in your career, you may find that you need credit to cover bigger expenses, like a new car or eventually a mortgage. Even a small credit card limit will help you achieve this.
You stated " I think that a credit limit of $100 dollars is pretty pointless becasue I can just pay that in cash and not have to worry about all the fees, etc." If you pay your balance off each month by the due date, you will not pay any interst on your purchases. And while some cards have a small annual fee, there are plenty of cards that dont, so shop around for the best card for you.
All the best
2007-12-20 16:55:57 · answer #1 · answered by sparrowHLR 1 · 0⤊ 0⤋
The creditors and credit card companies have no idea how much money you have, so that has nothing to do with applying for a card. I think you're smart to start building up some credit. Being that you're young and have no credit history, they will probably start you with a low balance, but I don't think as low as $100. They'll probably start you around $500 or $1000 actually. Then as time goes by, they may slowly increase your credit limit. I do have one piece of advice for you. Don't go opening tons of store credit cards, even if you get rewards or 10% off your first purchase, etc. Every time you apply for a new card, your credit score is checked, which also slightly lowers your credit score. Be smart and be sure to pay off your bills every month. You don't want to go into debt and a good credit history will help you out tremendously when you're ready to buy a house or a car, etc.
2007-12-20 07:47:52 · answer #2 · answered by crabbyone 5 · 0⤊ 0⤋
Your available credit is 1500. That's your credit limit ($2000) minus your balance of $450, rounded off to $500. Sound right. I have a Macy's card too, and this is not a good credit card. The only reason I have it, is because you sometimes get a decent discount by using the card there.
2016-05-25 04:58:50 · answer #3 · answered by virgina 3 · 0⤊ 0⤋
Most cards that you get will not charge a fee if you pay it on time. So get one with $100 limit and use it, but pay it off when it is due. Don't buy things you don't buy now. Someday when you want something you don't have the cash for you will have some credit built up, and you will be able to request a credit increase--they will probably increase your credit without you even asking.
2007-12-20 07:42:00 · answer #4 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
Your credit limit will be based on your credit history + your income. So if you have no credit history and a low income, your limit will be lower at first, and as time goes on they will raise it (if you maintain your accounts very well).
Typically for a credit card, $250 is the lowest I've heard of, with $500 being more standard.
All the best to you :)
2007-12-20 07:44:06 · answer #5 · answered by myacumen.com 3 · 0⤊ 0⤋
You bank balance has nothing to do with your limit.
DON'T DO IT!!!! There is no need for you to start screwing up your finances. PAY FOR WHAT YOU NEED.
www.daveramsey.com
2007-12-20 07:40:41 · answer #6 · answered by Anonymous · 0⤊ 1⤋