No credit, How do I start and what is a good credit card for a beginner\r?
I am 20 years old and after trying to get a card for a store I find I have 0 credit history. I have never owned a credit card and want to pick a good one to start bulding credit. Does anyone know a good card to go with that has low interest? Heck if you have any credit tips it would be helpful too…Thanks!
July 5th, 2010 at 5:01 am
Usually gas cards are the easiest to get.
You might try a Master card but Capital One has some really low interest rates. Ask for $500 and start charging and paying off the total balance each month.
The card company will soon get fed up and up your limit hoping that you will start paying interest
July 5th, 2010 at 6:01 am
Apply for a secured card. You put money in the bank and they give you a credit card with a limit of the amount you brought in. Say you bring in $500 they give you a secured card for $500. Most major banks and Credit Unions offer such a card and after paying on it for six months to a year they let the card become unsecured, (they let you have your money back).
Always pay off the card every month show you are a good risk and that you use credit wisely. Max it out once but only if you have the money to pay it off immediately. Then never use more than 30% to 40% of the limit.The more responsible you are with credit, the more credit you will receive, and soon the less you will need it.
Don’t worry about rate though it is important, try never to carry a balance so you don’t pay interest.
Good luck,
July 5th, 2010 at 6:46 am
There is NO SUCH THING as a good credit card. Paying interest is a BAD THING – ALWAYS. Get a freaking debit card & discipline yourself to save for the big stuff. I know that is not popular to say, but it is true. DH & I drew a line in the sand a few years ago & said “We’re never borrowing again.” Guess what: We have never done w/o anything. “Building your credit” is stupid. The only way to do it is to borrow substantially, pay it back regularly but slowly (pay lots on interest b/c banks like that) & keep doing it until you DIE! I personally am looking forward to the day in a few years when my house is paid for & I have a ZERO credit score b/c everything has been paid off for a good while. DH & I follow Dave Ramsey. The guy was a millionaire then lost everything. Now he is a millionaire again & hasn’t borrowed money in almost 2 decades. Sounds like a plan to me. Here are some good books for you to read if you want to be WEALTHY instead of just credit worthy.
Also, whether you are a Christian or not, you should know that (1) the Bible says the borrower is SLAVE to the lender & (2) God never told anyone in the Bible to do something for His glory & finance it w/ a loan or a bond issue!
July 5th, 2010 at 7:19 am
I would suggest this place, they do bad credit and no credit together:
http://www.creditcardsearchengine.com/bad-credit.php?af=123986&ac=700
also try :
http://www.creditcardsearchengine.com/?af=123986&ac=700
Good luck
D
http://www.stockmysite.com
July 5th, 2010 at 7:52 am
I would definitely recommend you read a book,visit a website or buy the program by Dave Ramsey. He has really helped us (a young married couple) understand finances, credit, budgeting to a point that it has changed our lives. Being young it’s easy to get in to debt fast and not realize the consequences until it’s much to late and you have too much debt and not enough money to pay it off. I understand the importance of building credit….cause these days without it you can’t do much. But, If I could suggest any card it would either be none at all or a secured credit card. I don’t know much on them but, I’ve heard they can build credit. I’d google it and see what you find. But, at least that way you aren’t building debt just credit. However, If you decide to go with an actual credit card I would recommend paying the balance off at the end of every month. I was advised at 19 to have your regular cash you were going to use to buy lets say groceries……pay with your card and send the cash/check in that same day. Hope this helps.
July 5th, 2010 at 8:17 am
Here are some tips that should help out. Get a checking and savings account, then ask if the bank you have your deposit accounts offer secured cards. how those work are that you set a savings account with a certain amount of money and then the same amount is extended in a line of credit, the deposit in the savings account is to guarantee that the credit card will be paid in the event you’re not able to pay. I would suggest not charging too much on the card and pay it off every month if possible. Normally after about a year of that, the account will convert to unsecured and you’ll be able to get your deposit back, plus interest. Another thing is this. (click this link) http://prbc.com/consumers
Anything that you pay everymonth can be reported as good credit. it’s similar to a traditional credit report but it shows how well that you pay. It’s a lot on information on the website for me to mention, but it’s worth it, trust me.
July 5th, 2010 at 8:53 am
the best way to build credit is to start out small.. my financial adviors told me to get a low interest loan from a credit union and make the payments on time; everytime, and that getting a bunch of credit cards at smaller department stores, is horrible for your credit, you should get one card you can use anywhere, and don’t let the balance get to be over 20% of offered credit. if you have a limit of $1000.00 don’t let the balance at the end of the month be over $200.00 That effects your debt to income ratio, which isn’t necessarily on your credit but lender’s will ask for that information. (how much you make in a month vs. how much you spend or owe)
July 5th, 2010 at 9:16 am
Way back when, my first ever credit card was with Sears – they probably still like newbies. Another alternative is to go to your bank or credit union and ask them to open up a credit card with a very small balance for you. If you have banked there for a couple of years, have no bad checks, returned checks, etc… they sometimes will consider you for a starter card.
Another fairly easy qualifying card to get is in a furniture store. They are underwritten by finance companies and usually can start someone off with a small card.
As you do start your credit, be very careful about managing it well. Do not use a card for purchases where you do not have the money to buy the items. Do not use them for short-term purchases with a long-term pay back. In other words, do not use a card to dine out and then just pay the minimum payments – pay those off as soon as you get the bill, NOT minimum payment. If you buy clothes, school books, etc… pay off in two or three payments max. Never charge more than about 50% of your open to buy, to maximize your credit scores. Never be late on even one payment, pay early. Do not get an overwhelming number of cards, just because you can.
The best scores come from those who receive credit and then use it sparingly, not to those who max everything out. Don’t apply for a new card more than once every three months, and limit yourself to a maximum of about three cards, a car note, and a housing payment. If you need more credit, upgrade the three cards until you have the limits that are comfortable. Look at upgrading your cards every year, until you’re established, by asking for a higher limit, or by replacing with a better term card. Close the old accounts out.
July 5th, 2010 at 9:42 am
Check secured cards, especially ones with lowest limits based on amount you deposit into the account.
There is a website that can be helpful.
http://www.creditcards.com/index.php?a_aid=1017&a_cid=1000
July 5th, 2010 at 10:25 am
Which Card is Right for You?
The answer to the above question depends on the whether the card is the first, second or third card.
For FIRST Credit Card
Here the card choice depends on your selection of the bank whose credit card you want to use or your most preferred promotional offer, without giving a thought to the brand on the card. Other than that, there is no difference between the two.