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[tedtropy]

There any particular credit cards I should look into? I'm 22 and all I've used up until this point is a Visa Debit card and cash, and figured I better get the ball rolling on this whole 'building credit' thing that all the old farts seem to clamor about. What kind of average ARP should I be looking for? Citi is offering a 'college student' card with 6 months 0% APR and all the usual security features and fraud protection. Any advice would be appreciated. Thanks. By the way, here's the fine print of the card I mentioned...

Introductory rate of 0.0% for 6 months from date of card membership on purchases, cash advances and balance transfers. After the promotional period, the standard APR for purchases will be applied to all remaining purchase and balance transfer amounts; the standard APR for cash advances will be applied to all remaining cash advance amounts. (As of December 17, 2004, the standard variable APR for purchases: 15.24%; the standard variable APR for cash advances: 20.24%.) However, if you default under any Card Agreement, we may immediately increase the rate on all balances (including any promotional balances) to a variable default rate of 29.24%. The minimum finance charge is $.50. The transaction fee for cash advances is 3% of the amount of each cash advance, but not less than $5. The transaction fee for balance transfers is 3% of the amount of each balance transfer; minimum of $5.00 and $50.00 maximum. However, we will waiver the balance transfer transaction fee on balances you transfer in response to this offer. The annual membership fee is $0. Subject to credit approval. Additional terms and conditions apply.

 

[Nerevar]

don't worry about APR. If you're young, you shouldn't be carrying a balance on your credit card in the first place. I'd recommend AmEx, because you're not allowed to carry a balance with them at all and they are very good for your credit rating, but I doubt you can get one without a steady high-income job (which most college students don't have). Keep in mind that you're going to be hard-pressed to find a card with a low montly rate with little income. My girlfriend's first card was a discover card, and that was pretty good for her credit, so you might want to look into that too.

 

[tedtropy]

don't worry about APR. If you're young, you shouldn't be carrying a balance on your credit card in the first place. I'd recommend AmEx, because you're not allowed to carry a balance with them at all and they are very good for your credit rating, but I doubt you can get one without a steady high-income job (which most college students don't have). Keep in mind that you're going to be hard-pressed to find a card with a low montly rate with little income. My girlfriend's first card was a discover card, and that was pretty good for her credit, so you might want to look into that too.

Yeah, I've got the usual crap part-time income of a college kid. Honestly, I'm just looking to throw my tuition and some of those other unavoidable big expenses on the card. I've gotta buy four new tires for my before too long, as well. I've gotta blow the money anyways, so I figure I may as well use it to help my credit at least a little. I realize a credit card payment's not exactly going to cause my rating to shoot up, but since I don't have and can't afford housing/electrical bills, it seems better than nothing. Do you think Discover is going to be a better choice than Visa, Citi, etc?

 

[mashoutposse]

1) Get two or three student cards from prime banks/financial institutions (like Citibank, Bank of America, MBNA, Chase, and AMEX).

2) Use them responsibly for six to nine months. NEVER be late or exceed your credit limit. Use them as you want, but ensure that you can comfortably keep the balances at no more than 10% of the total limit by the end of the billing period.

3) Call the companies to get non-student cards. Make sure your balances are low or zero. Use these new cards responsibly; never cancel them as these cards will be used to establish the age of your credit history.


You will have excellent credit within a year guaranteed. Say hello to high credit limits (in 2-3 years), (after that 1 year period) sub-5% credit card APR, 0% balance transfers (ditto), easy non-dealer low APR car financing (when you get higher limit cards), etc.

Some tips...

-DON'T cancel cards. Simply be selective from the start (forget Capital One, Providian, Orchard Bank, etc. -- stick with the prime lenders mentioned above)

-When you get new cards, don't be afraid to ask for a bigger limit/better terms right off the bat.

-If your parents have long history cards with big limits, low balances, and no late payments in the last decade, ask them to put you on as an authorized user. This is the quickest way to AAA credit. Their 10-15 of perfect history on that card gets added to your overall credit profile as if it is yours. Again, do this only if they've been "perfect." If they've ever been late, it's not worth it.


Excellent credit is easy if you're responsible. Getting big limits and low terms has almost been a game to me. Good luck...

 

[Nerevar]

Yeah, I've got the usual crap part-time income of a college kid. Honestly, I'm just looking to throw my tuition and some of those other unavoidable big expenses on the card. I've gotta blow the money anyways, so I figure I may as well use it to help my credit at least a little. I realize a credit card payment's not exactly going to cause my rating to shoot up, but since I don't have and can't afford housing/electrical bills, it seems better than nothing. Do you think Discover is going to be a better choice than Visa, Citi, etc?

Well, if you're throwing your tuition on there, that might be a different case. I don't really remember what Discover's policy is, but Visa / Mastercard will put a cap on your monthly spending, so I really don't know if you'll be able to. Plus, there isn't a credit card out there that will give you an interest rate that will match a good student loan, so I don't know if it's worth it. I'm one of those people who's general advice is to avoid carrying a monthly balance on a credit card, but if you can't avoid it I guess then you'd be better off finding a card that offers a good APR. Remember that your credit rating is affected by more than just carrying a credit card though, so don't shoehorn yourself into getting a credit card and racking up debt due to the ungodly high interest payments that most credit cards have.

 

[tedtropy]

1) Get two or three student cards from prime banks/financial institutions (like Citibank, Bank of America, MBNA, Chase, and AMEX).

2) Use them responsibly for six to nine months. NEVER be late or exceed your credit limit. Use them as you want, but ensure that you can comfortably keep the balances at no more than 10% of the total limit by the end of the billing period.

3) Call the companies to get non-student cards. Make sure your balances are low or zero. Use these new cards responsibly; never cancel them as these cards will be used to establish the age of your credit history.


You will have excellent credit within a year guaranteed. Say hello to high credit limits (in 2-3 years), (after that 1 year period) sub-5% credit card APR, 0% balance transfers (ditto), easy non-dealer low APR car financing (when you get higher limit cards), etc.

Some tips...

-DON'T cancel cards. Simply be selective from the start (forget Capital One, Providian, Orchard Bank, etc. -- stick with the prime lenders mentioned above)

-When you get new cards, don't be afraid to ask for a bigger limit/better terms right off the bat.

-If your parents have long history cards with big limits, low balances, and no late payments in the last decade, ask them to put you on as an authorized user. This is the quickest way to AAA credit. Their 10-15 of perfect history on that card gets added to your overall credit profile as if it is yours. Again, do this only if they've been "perfect." If they've ever been late, it's not worth it.


Excellent credit is easy if you're responsible. Getting big limits and low terms has almost been a game to me. Good luck...

Yeah, my parents have immaculate credit, so I'll be sure to check into that. I think I'll go ahead and sign up for that CitiBank card I've been looking into as well. It's from one of the prime banks you mentioned, has no annual fees and all the usual security features, plus it's supposed to come with some student discounts. I appreciate all the advice so far guys, thanks!

 

[mashoutposse]

Yep, sign up for the Citi student card. And definitely get added to your parents' accounts.

Another card to look into:

http://www66.americanexpress.com/ca...12987/b/3/0173283201/017093933383/22/n&from=7

It's a credit card (revolving balance) as opposed to the classic Amex charge card (must pay in full every month). Use it with the Citi card and upgrade to (or reapply for) standard Amex Blue in 6-9 months. You can get an Amex Gold Charge in 12 months or so if you are interested in building a relationship specifically with Amex.

Another tip: Don't automatically dismiss credit card promotions from these banks. Consider each one; they tend to be genuinely great deals. Actually, I tend to look at all deals from reputable companies... Best Buy in particular has treated me great. The sales guy got me to break down and buy their $10 Reward Zone membership; now I have $1k in BB gift certificates in two months.

 

[StoOgE]

Im going to be your best friend.. I used to be a credit analyst for a top 10 fortune 500 company

1) Get a couple of credit cards from reputable companies.. you should get student cards.. Wells Fargo, Bank of America, Capital One, Chase, etc. You will have high APR's on them but no anual fee's. Take each of these cards and set up an automatic payment.. you NEVER want to be late. Go spend about 200-300 dollars on each card and then cut them in half. DONT pay them off in one payment, credit rating is based on your ability to show that you can consistently make payments. So set up the automatic payment for 25-30 bucks (not the minimum, because you'll never pay if off that way.

2) Get these cards in your own name, getting them with a cosigner will sorta deflect how much it helps your credit rating.. only get a cosigner if they wont give you a card by yourself.

3) Get a car if you can afford it. You might need a cosigner for this, but after about 6 months you can refinance it in your own name...

4) Late payments and overages will hurt you, but a little secret is you have a 30 day window before it hits your Credit Rating.. I still dont suggest it, but if you accidently do one of those things dont freak out.. even a ding or two on your credit rating wont kill you.. there are very few people with perfect credit.

5) Make sure that you pay your bills on time. Most people dont realize that making late payments on things like phone bills or even electricity can hit your credit rating. Not everyone can or will report to the credit ratings bureau's, but its best just to pay everything on time.

6) When you graduate and get a job buy a house. A mortgage with on time payments will do more for your credit ratings than anything else.. Get something small that you can afford (3-3.5 times your anual sallart).. maybe a condo. Something to keep for a few years then sell (or lease).

I followed all of thse when I was in college (I had a couple of late payments, and one overage on one of my cards as well, so dont freak out if you screw something up).. and my credit rating is in the high 800's at the ripe old age of 22. Anything above a 650 is considered decent, and being halfway responsible will get you there.

Random tips: having a cosigner for a card can be a good thing, but I dont recomend it.. because if your parents screw anything up with their credit it can hurt you. I would suggest you rely on yourself alone and not your parents to get your credit rating up. Also, every 3 months call your credit card companies and tell them you have been given a better offer by another bank.. make the new 'offer' reasonable and they will likely up your limits and lower your rates to keep your buisness. DONT CANCEL cards and DONT to balance transfers every 2-3 months. Balance Transfers are something you do when you allready have credit established, not when your building it.

 

[tedtropy]

Im going to be your best friend.. I used to be a credit analyst for a top 10 fortune 500 company

1) Get a couple of credit cards from reputable companies.. you should get student cards.. Wells Fargo, Bank of America, Capital One, Chase, etc. You will have high APR's on them but no anual fee's. Take each of these cards and set up an automatic payment.. you NEVER want to be late. Go spend about 200-300 dollars on each card and then cut them in half. DONT pay them off in one payment, credit rating is based on your ability to show that you can consistently make payments. So set up the automatic payment for 25-30 bucks (not the minimum, because you'll never pay if off that way.

2) Get these cards in your own name, getting them with a cosigner will sorta deflect how much it helps your credit rating.. only get a cosigner if they wont give you a card by yourself.

3) Get a car if you can afford it. You might need a cosigner for this, but after about 6 months you can refinance it in your own name...

4) Late payments and overages will hurt you, but a little secret is you have a 30 day window before it hits your Credit Rating.. I still dont suggest it, but if you accidently do one of those things dont freak out.. even a ding or two on your credit rating wont kill you.. there are very few people with perfect credit.

5) Make sure that you pay your bills on time. Most people dont realize that making late payments on things like phone bills or even electricity can hit your credit rating. Not everyone can or will report to the credit ratings bureau's, but its best just to pay everything on time.

6) When you graduate and get a job buy a house. A mortgage with on time payments will do more for your credit ratings than anything else.. Get something small that you can afford (3-3.5 times your anual sallart).. maybe a condo. Something to keep for a few years then sell (or lease).

I followed all of thse when I was in college (I had a couple of late payments, and one overage on one of my cards as well, so dont freak out if you screw something up).. and my credit rating is in the high 800's at the ripe old age of 22. Anything above a 650 is considered decent, and being halfway responsible will get you there.

Random tips: having a cosigner for a card can be a good thing, but I dont recomend it.. because if your parents screw anything up with their credit it can hurt you. I would suggest you rely on yourself alone and not your parents to get your credit rating up. Also, every 3 months call your credit card companies and tell them you have been given a better offer by another bank.. make the new 'offer' reasonable and they will likely up your limits and lower your rates to keep your buisness. DONT CANCEL cards and DONT to balance transfers every 2-3 months. Balance Transfers are something you do when you allready have credit established, not when your building it.

Some very good guidelines there. Some are beyond my means at the moment, but is still advice to live by. Heh, I think I'll print this out and throw it in the 'Finances' section of my file cabinet. Appreciate it.

 

[Tarazet]

I, personally, got a car first, with my dad as a cosigner. I'm not going to try and refinance in my own name, either, because I would never hope to match the 0.9% financing for 4 years that I managed to get this way, and I'm not even making the payments, anyway. I'm just paying for the insurance.

After I've had the car for about six months - it'll be another two months - I'll actually have a credit score, which I will check using Equifax, and then I'll look into getting a credit card from the bank that I've used since the beginning. If I still get turned down, then I'll go to Citibank, which is more convenient anyways because they're national and not just West Coast.

 

[StoOgE]

Oh, one more thing people dont realize... dont write hot checks. It doesnt hit your credit rating, but there is a system called check systems, you dont want to be on it. Banks wont open accounts for you and all kinds of stuff. Dont OD your bank account either. If you can set up a CC for Overdraft protection do so.

Sometimes when getting a loan a company will look at check systems to see if you have a bad history with your bank accounts. It generally takes quite a bit of fuckups (like owing the bank money and not paying it back for a few months) to get on check systems, but if you do you will pay for it big time.

and obviously, dont do any of this stuff (credit card, car, house) if you cant afford the payments. Getting in over your head will hurt you.. better to have no credit than bad credit.

 

[MoxManiac]

I got a grand stuck on my card cause of my car ((