24 Looking to build Credit... What are some good tips on your first Credit Card

[the nomad]

I'm starting late but this year i really want to start building my credit up however i don't have many friends who are exactly responsible with their credit and want to hear from some people in my age group what companies offer the best deals

Won't be wise or legitimate in this era or economy. You're too young banks and lending institutions stopped risking investments on people under 35.
My banker told me that in this day and age your credit comes from how fast you're able to make money. Your bank looks at that when determining loans.

I wouldn't want a loan in this economy either. I enjoy my financial freedom. 

I've gotten one $20,000 loan to start up my business and paid it off in 16 months.

 

 

[lyonbc1]

Just be responsible OP, set a reminder on your cell phone 5 days before the due date for your CC and use it as a debit card....I only use mine when I have the funds available in my checking to pay it off....got my first student card when I was 18, four years later I have never paid interest or a late fee... that some of you turn down the free money, I've gotten over 100$ in rewards the last year....Chase gave me a 350$ check when I used my Freedom card the first time (no min purchase price either I bought a pack of gum ). You can save your own money AND use the rewards, that way you get the best of both worlds, yeah credit isn't the end all be all but let you miss a payment or get some dings on that credit report...Good-great Credit (720+ or so) is NEVER a bad thing.

The rewards are like using Ebates, yeah I may only get 5% back but if I got one penny back on a purchase I made thats still 1 cent more than I had prior, plu if you use it for gas, groceries that 3-5% adds up in a few months

 

[crcballer55]

im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling

Why not just keep an emergency fund instead?

 

[a55a5in11]

[QUOTE url="/t/521602/24-looking-to-build-credit-what-are-some-good-tips-on-your-first-credit-card/30#post_17019455"]
im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling

Why not just keep an emergency fund instead?
[/quote]

I did have one, and I still have one. Having a CC will be an extra form of security. What if my transmission goes out? What if I get hurt playing basketball and will be out of work, to many what ifs can happen to just say that an emergency fund will save you.

 

[osek206]

Creditboards.com/fourms

Read the success stories, read the newbie fourms and begin to change your life. That website is all you really need.

 

[moneymarv3480]

why would jobs check your credit score tho? You can get a mortgage without a fico score. Look up manual underwriting.

I think it's more of a responsibility indicator... If your job requires you to use a company CC (for travel expenses for example), you are responsible for submitting an expense report that documents every transaction by a certain time so that the company doesn't get slapped with late fees.  So in essence, it's your responsibility to make sure the bill gets paid on time.  If you don't make sure your own CC bills aren't being paid, how can a company trust you to be responsible with theirs?? Just my theory

 

[crcballer55]

im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling

Why not just keep an emergency fund instead?

I did have one, and I still have one. Having a CC will be an extra form of security. What if my transmission goes out? What if I get hurt playing basketball and will be out of work, to many what ifs can happen to just say that an emergency fund will save you.

What will a credit card do that an EF won't? You're still going to have to pay for it one way or another. The only difference is that the CC will end up costing more. A Transmission should only cost a couple thousand. A proper EF of 3-6 months of expenses should easily cover it. Sports injury? If you don't have insurance, your CC probably won't be nearly enough to cover it, plus, you're going to be paying at least 18% interest on any charges too.

An EF isn't meant to cover EVERYTHING. That's why it's important to supplement it with various forms of insurance i.e. homeowners, life, disability, medical, etc.

 

[freshpairs]

I have a us bank CC with a $1300 limit for 6yrs now. Started at $500. Never paid min or in full but paid the statement balance to not get hit with APR. Only spend about $200 in gas a month. My scores at 774

 

[jrdnsrnss]

Off topic but to any bank heads in here, what are the advantages of going with USAA? I'll be in the military soon and was told to open an account with them. Currently with Wells Fargo.

 

[a55a5in11]

[QUOTE url="/t/521602/24-looking-to-build-credit-what-are-some-good-tips-on-your-first-credit-card/60#post_17024137"]

im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling

Why not just keep an emergency fund instead?

I did have one, and I still have one. Having a CC will be an extra form of security. What if my transmission goes out? What if I get hurt playing basketball and will be out of work, to many what ifs can happen to just say that an emergency fund will save you.

What will a credit card do that an EF won't? You're still going to have to pay for it one way or another. The only difference is that the CC will end up costing more. A Transmission should only cost a couple thousand. A proper EF of 3-6 months of expenses should easily cover it. Sports injury? If you don't have insurance, your CC probably won't be nearly enough to cover it, plus, you're going to be paying at least 18% interest on any charges too.

An EF isn't meant to cover EVERYTHING. That's why it's important to supplement it with various forms of insurance i.e. homeowners, life, disability, medical, etc.
[/quote]
Damn bro why the hate. I mean if want to be in your 40's with no credit history trying to get a house what you gonna do? Pay that out in cash too homie?

 

[ag 47]

Same boat. Got my first credit card about 4 months ago. Been buying gas/groceries/and smaller miscellaneous stuff and paying the balance off in full to avoid interest payments. Not sure how quickly this is building my credit, but it is certainly a start.

 

[nikeairforce1]

I've been paying my credit card statements in full every month for 2 years. You're telling me I should actually pay the minimum or above the minimum to build my credit? I always thought not making full payments was taboo.

iLLest!

You should pay off your whole balance each month to no incur interest charges. The crucial part is paying off 90%-99% of your balance BEFORE your statement ends. I'm not talking about your due date. I'm talking about the date on which your billing statement ends. The reason for this is that your bank will report whatever your balance is at the end of your billing statement to the 3 major credit bureaus. If you have a high credit utilization rate (higher than 30% of your credit limit), this will lower your credit score. So by paying your most of your balance BEFORE your billing statement ends, your bank will report a low credit utilization rate. This will increase your credit score. Then after your billing statement ends, you will still have a small balance that you owe. This is when you then pay off your entire balance (before the due date) so that you don't incur any interest charges.

As to why one should try and build credit? I'm doing it so that I can get in on credit card offers that have high bonus miles and points offers. You can fly free or make a bunch of money.

 

[ricky409]

This subject is always funny because everyone thinks they are the only ones that have the right answer...

there's different ways to build credit op... But the main objective is making payments in a timely consistent manner. No matter if its full or minimum... Pay on time and you'll be ok.

 

[crcballer55]

im 22 been living on my own with my girl for 4 years not, with no CC. it has sucked at times when things like random car problems start or emergency hosptial/dentist vists, but i has made me more responsible. i just finally got approved for a CC a couple days ago and its a great feeling

Why not just keep an emergency fund instead?

I did have one, and I still have one. Having a CC will be an extra form of security. What if my transmission goes out? What if I get hurt playing basketball and will be out of work, to many what ifs can happen to just say that an emergency fund will save you.

What will a credit card do that an EF won't? You're still going to have to pay for it one way or another. The only difference is that the CC will end up costing more. A Transmission should only cost a couple thousand. A proper EF of 3-6 months of expenses should easily cover it. Sports injury? If you don't have insurance, your CC probably won't be nearly enough to cover it, plus, you're going to be paying at least 18% interest on any charges too.

An EF isn't meant to cover EVERYTHING. That's why it's important to supplement it with various forms of insurance i.e. homeowners, life, disability, medical, etc.

Damn bro why the hate. I mean if want to be in your 40's with no credit history trying to get a house what you gonna do? Pay that out in cash too homie?

No hate at all. If you want to do it that way, that's your choice.

My point is that we have been told our whole lives that we must build our credit to buy the things that we want and protect ourselves from an emergency. The thing is that there are much better ways of doing it that will actually better protect you and help build more wealth.

And actually... I do want to be in my 40's with no credit score.

That means my home will finally be paid off. If I wanted to get another mortgage, I could always go the manual underwriting method with the alternative credit history report.

 

[blazersin2k3]

pay your balance in full each month and let those accounts age, don't fall for the dumb carry a small balance myth for increasing your credit score.

 

[trynafeelmink]

A lot of good info in here thanks NT... is there any cards ya'll can suggest as good "starter" cards

 

[g mat ic]

Does credit bureaus check your payment history? I ask this because if they do, then I don't see what's the problem paying your balance in full every month rather than having a credit utilization from 10%-30% each month.

 

[thejet]

Does credit bureaus check your payment history? I ask this because if they do, then I don't see what's the problem paying your balance in full every month rather than having a credit utilization from 10%-30% each month.

for Canada, yes. I don't know if the US is the same.

If you want to apply for a line of credit, loan or a mortgage here, we would always send a request with EVERY single detail such as assets and liabilities, the reason why you want this particular line of credit or loan, how are you going to pay for it and so on and so forth. This is very basic and everyone knows these particular steps.

However, the credit bureau can see your payments and how many times you were late. 30 days, 60 days and/or 3 months.

Even to things like your phone bill, cable bills and tax payments.

Just make sure you pay all those on time.

 

[trynafeelmink]

Anyone ever get a card from citi bank? how are they

 

[crcballer55]

Anyone ever get a card from citi bank? how are they

Out of all the cards I had, I liked it the least because the bill due date was never the same each month. At that time, the perks weren't that great either. Not to mention the fact I would never do business with Citi because of their reputation, but that's just me.

 

[jewseejay]

Get a Capital One Secure Credit Card.

Did this like 4 yrs ago... like a year n some months later called em up n switched to a dif cap1 "platinum" card that wasnt secured. 500 dollar limit. Like yr after that switched to my new card. With a 1500 limit i thi.k i dunno as ive.never had more than 300 on any one card. Cc intrest rates r scary b. Esp when ur first starting out. My credits n ok.shape now tho... ill be good.

So yea... secured card. Reg card. Utilities. Car note.

N that order and u should.b straight.

 

[thadocta]

im 20 and have had discover for a year.

i only use it sometimes but make sure to pay it off every month. because after the first 6 months the int rate jumps to a ridiculous 17or 20 percent.

treat it as a debit card and u should be fine.

 

[jo3y k]

this might help you pick one out:

http://www.nerdwallet.com/credit-cards/

 

[Deleted member 87369]

Question to da credit gawds. I'm looking to get a credit card but i've gotten denied when I applied due to no credit. I applied for a card about a month ago and got denied and their reason was that I had too many recent credit inquiries. What can I do about this? I got a letter in the mail about a Discover it card and want to apply for it but am afraid if I do that i'll get denied and it'll add on to my "recent inquiries".

 

[crcballer55]

Question to da credit gawds. I'm looking to get a credit card but i've gotten denied when I applied due to no credit. I applied for a card about a month ago and got denied and their reason was that I had too many recent credit inquiries. What can I do about this? I got a letter in the mail about a Discover it card and want to apply for it but am afraid if I do that i'll get denied and it'll add on to my "recent inquiries".

I think you answered your own question. Have patience grasshopper.