What is the best credit card to open for establishing credit?
I’m a college student and have no established credit. I’ve had a debit card for about 6 years, but I’d like to open a credit card to start building credit. I’ve researched MTV and Citi bank Visas, Discover, and American Express, but am still not sure what the best option would be. I plan to use my card sparingly and pay it immediately from my debit account.
July 1st, 2010 at 5:03 pm
You don’t have to have a credit card to establish credit and paying a credit card off every month doesn’t establish credit. They want to see you can make regular payments over a period of time without being late! You can purchase a car or other item and make payments on it and it will establish your credit. You have to be so careful with a credit card, they are out to get you and get as much money out of you as they can! So if you do decide to get one, read the fine print and follow every rule or you can have yourself a bunch of big problems before you can ever get the credit established!
July 1st, 2010 at 5:07 pm
Best to start off with whatever your own bank is offering. If you plan to be a full payer it shouldn’t cost you anything whichever you choose.
But you are known to your own bank so this should help ensure you get approved. Decline rates are in the region of 50%, so this is worth thinking about!
July 1st, 2010 at 6:04 pm
If you don’t have good credit , don’t apply for regular credit card. That will ruin your credit score.
You should start with a bank secured credit card to build the score.
check the articles below,
http://www.cashorcredit24.com/how-to-build-credit-score-if-you-dont-have-credit
http://www.cashorcredit24.com/how-to-use-secured-credit-cards-to-rebuild-your-credit
July 1st, 2010 at 6:58 pm
go with chase
you can go here to compare them, pick one that is right for u
http://www.bestcreditrates.net
July 1st, 2010 at 7:26 pm
Apply for a card for people with LITTLE OR NO CREDIT… not bad credit.
And, all the companies you just listed are the wrong companies to apply with, because none of them will work with someone like you. Discover, American Express, etc are for people who drive $30,000 vehicles or more expensive cars than that. I mean, these are credit cards for people who don’t need the money on the card.
So you either need a pre paid card, like Meta bank, Bank first, or Juniper. Or you need a secured Orchard bank card. Orchard bank is easy to get and they usually start people out with about $300 or $500 on the card. http://www.consumercreditsite.info
July 1st, 2010 at 8:19 pm
Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments – credit-report-score.10001mb.com
July 1st, 2010 at 8:21 pm
That’s a great question! Planning your finances at such a young age is wise.
We live in the most “marketed to” society in the world. Electronics, cars, fast food, you name it, it is marketed to you on a daily basis (thousands of times!!). Banks are no exception. They market to you as well. In fact, they probably do it better than anyone. Perhaps you never though about it, but credit and credit scores are bank marketed products as well. Have you ever asked yourself, do I really need this CD, or do I really need these jeans? Believe it or not, it is legitimate to ask yourself, do I really need credit? (Gasp! What did he just say???) But how would I ever get a home loan? Believe it or not, there are lots of lenders who offer home loans without using credit score lending. It is called manual underwriting. The rates are as competitive as those who require a credit score. What about a car loan? Cars are relatively easy to save for over a 2-3 year period if you set back the equivalent of a car payment each month.
The second thing most young people never think about is the importance of building their net worth. Check out the links below and see how easy it is to save and retire a multimillionaire simply by putting away only $40 a week. Yeah, its old fashioned, it simple, its common sense, but how many people do you know that do it?
Becoming wealthy in this country is easy. You can do it! Its not hard! Good luck! Youth is on your side!!
Saving at an early age:
http://www.blawcenter.com/The_Money_Tree_10-28-07.pdf
Credit scores:
http://www.cbsnews.com/stories/2005/10/18/earlyshow/living/money/main951008.shtml