Which is the best credit card for someone who is new to credit?
andrewharley89 asked:
Hi, I’m 18 as of October, and I’m wanting to work on building my credit since the only thing is my bank account since I was 12. I want to get a card with a decent APR without any large monthly (or hidden) fees. I will probably only use it as a gas card but I was wandering if some one knew which one I should get. Also I’m planning on taking a loan from my bank and pay the loan off with the same money that I borrowed, with the added intrest. If you have any other Ideas, feel free to post them. Thanks for your help.
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Hi, I’m 18 as of October, and I’m wanting to work on building my credit since the only thing is my bank account since I was 12. I want to get a card with a decent APR without any large monthly (or hidden) fees. I will probably only use it as a gas card but I was wandering if some one knew which one I should get. Also I’m planning on taking a loan from my bank and pay the loan off with the same money that I borrowed, with the added intrest. If you have any other Ideas, feel free to post them. Thanks for your help.
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August 24th, 2009 at 12:26 pm
The “Green” American Express Card is the one you should get.
Because while it will help you to develop credit, you have to pay off the entire balance each month. Pretty low interest rate.
The reason I suggest this, is because it accomplishes your goal, to start a credit history, while not permitting you to inadvertantly bury yourself in debt.
Then you don’t need to take a bank loan to pay off any debt. Doing that would not help your credit rating grow anyway. Because if you don’t maintain a monthly relationship with your credit card, you will have a lower credit rating with THEM.
August 26th, 2009 at 11:06 am
You should look into Citi card for College Students. Go to their website and choose cards for students and they have several nice options. This was my first card and I still have it. They started me off with a year of no interest and the rate is fairly low. Whatever you do, DO NOT pay to have a credit card! You should only get credit if you deserve it.
August 29th, 2009 at 4:16 pm
Check bankrate.com for credit card info and select what works best for you. Get one with NO annual fee and preferably a CASH BACK bonus. Of the major cards, Visa is probably the most commonly accepted.
Not sure why you want to take out a loan just to repay it. You will have bills of all sorts if you are on your own–utilities, rent, etc. and those affect your FICO. Taking out a loan just to do it really doesn’t make any sense.
and other resources on that myfico site is what you should look at as that is THE site for credit score info because practically everyone uses FICO.
August 30th, 2009 at 7:34 pm
your apr will be high because you have no credit but any of the know names are good. mastercard, visa, american express, just choose the right bank. bank of america is cool. dont do fifth third. ask the banks in your area about which card they have and for some brochures. check out the card websites to see which one u like best.
August 31st, 2009 at 9:17 am
check out here you are able to compare all major credit cards side by side.
September 3rd, 2009 at 8:20 am
Why do you want a credit card? Seriously?
You’ve heard of “buy now, pay later”?
With credit cards today, it’s more like “buy now, pay forever”.
Save up your cash.
One way a lot of people have become poor has been throwing away money (especially on interest charges)
September 6th, 2009 at 7:50 am
The best way to use a credit card is for it to be a good rewards card, funnel most of your normal spending through it, and always pay it off in full every month. That way you’ll build your credit quickly, avoid interest, and earn great rewards.
Note that if you use this strategy, then the APR (annual percentage rate) doesn’t matter much because you’ll never be paying interest. Instead, what matters most with this strategy is the rewards structure of the card.
If you’re a college student, then you can get a good student rewards card such as the Citi mtvU card, Citi Driver’s Edge for Students, or a Capital One Student Visa.
If you’re not a college student and have limited/no credit, you could look at some of the Capital One cards for people with no/limited credit. Also, Orchard Bank is an option.
You can use this rewards calculator to see which rewards card will pay you the most for your normal spending profile: