Sunday, November 14, 2010

Credit & my first credit card?

I am a freshman in college, and was just wondering about credit %26amp; credit cards. How does it all work? I'm 18, btw.

I can't do anything without credit, so how do I build credit? Do I have to get a credit card? I know with credit cards you really should pay it all off every month when you get the bill, and not just the min. payment, but thats about it.

*Please, no ridiculously long copy n pasted answer. Thanks :)Credit %26amp; my first credit card?
Do you have a bank account? If so, try your bank. They know your history, know your finances and may be able to give you a prepaid credit card much like a prepaid cell phone. Credit %26amp; my first credit card?
Well the easiest way to build credit is to get a credit card, obviously. I agree it is almost impossible to get through life without establishing some kind of credit, and it's hard for people to give you a chance to build your credit when you don't have any credit. However, Capital One is pretty good at giving people their first credit card without having any previous credit. That's who I got my first one through. Your starting credit limit will only be $300 probably, but if you pay your bills off the first 3 months, it jumps up to $500, and so on. I still use Capital One and I would recommend you to try them out.
You should start out with a store credit card, like Sears or JC Penney or whatever you want. It is easier to build credit that way. You are right, it is better to pay more than the minimum payment, or if you can, pay it all in full each month.

Buy a few items on your credit card and pay them off. Keep doing that and eventually, you will have a good credit score. Be careful to not spend more than you can pay off in a month or two. Having a balance month after month adds more interest to your balance. If you pay your balance in full each month, you will not accrue more interest charges.
i found when i left university i had about 6 or 7 credit cards. they throw them at you when you're young and impressionable. just be careful with them. you're right, using it here and there, paying it off (more than the minimum), it actually helps to establish your credit if you carry a balance but beware you'll be paying interest and if you're a 'good' card holder, like i've always been, they will up your limit on you.

i'm over 30 now and drowning in debt, with a house a kid and a baby on the way and it's a nightmare. just be smart about it. it's good to have in case you need it but try not to get suckered in.
To build credit you'll have to get a credit card first. A good credit rating is based on a number of factors:

-Paying your bills on time and paying off the full amount

-Not spending to your limit and definitely not going over it

-Keeping a healthy distance between the balance you carry and the maximum limit (some credit companies say not to keep more than 25% balance on your card on a recurring basis).

The better your rating, the better your interest rates will be for future cards and the easier it is to get loans, etc.
The best way to build your credit is to get a credit card and use it and pay for it. DO not borrow more than 30% of your credit limits and also pay off everything completely or pay more than minimum.

Since you do not have a credit, you cannot buy a car with good interest. So I would say the only option you can have is to have a credit card. You can get a regular credit card such as capital one or discover. BUT, you might have a hard time to get them since it is your first time getting a credit card. If so, you can ask your parents to co sign. OR you can talk to your bank to issue a credit card. It might not come with good rewards, but you can get a card without a lot of trouble.

Good luck. I am planning to get my first one from my credit union bank.

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