So I'm behind on the times. For everything. I didn't get AOL until 7th grade while all my friends had it in 5th. I didn't get a cell phone until the summer after freshman year while all my friends got them in high school or earlier. (Diana notwithstanding, who I believe got hers just as late as I did.) And I don't have a credit card.
Until now?
In the face of a growing number of purchases I'd like to make online and an increased sense of annoyance with having to listen to my grandmother's spiel about how I need to take better care of my money every time I ask to use hers, I'd like to get my own credit card. However, I am woefully ignorant to how the credit card application process works, what fees will be associated, what sort of plan would be best for me, etc. So I'm going to go ahead and list out a few questions of mine. If you've got time to answer any of them, that'd be great. And I'm sorry for how ridiculously novice they may be. My grandparents aren't very helpful with any information at all and I'd like to avoid reading through the fine print on these various websites.
- Do you have any particular cards which you would recommend, for or against?
- I've heard good things about CapitalOne; does anyone have experience with them?
- What sort of plan is best for a person with no prior credit history?
- What the hell is APR, and what sort of range should I be looking for in a credit card?
- Does it matter what bank you're affiliated with when applying for credit cards? (For example, I use Bank of America; are there particular credit cards which are recommended for my bank, or is that irrelevant?)
3 comments:
I'd recommend the Citibank Dividends card. It gives a flat 1% back on everything, 2% back on grocery stores, drug stores and gas, and a bunch of other online discounts.
https://www.bonuscashcenter.citicards.com/
I don't really know anything about banks and credit history...I actually had and still have a plain Capital One card that doesn't do much but give me a credit history that dates back to when I was 16.
There are lots of other cards though...so check out the rewards system on those and see what works for you. I just like getting cash back (after you accumulate $50, which I've done twice, eek) versus points to be redeemed elsewhere.
APR doesn't matter if you plan on paying off your credit card in full every month. If you plan on leaving a balance as a practice well...then you'd have to look at that. :-)
Also I got my cell phone after Thanksgiving sophomore year so I got you beat by a little. :-) I think Keith got his a year and a half after that...
I have had an American Express Blue for Students card (soon to be switched to 'real world' Blue) for several years now, and I would highly recommend it. I also use a Chase MasterCard where AMEX is not accepted, and it has worked fine. Bank affiliation does not matter (I have a Bank of America checking account).
Rewards and cash back are cool, but they usually dont add up to much. Most credit cards have some kind of rewards program in order to be competitive. It is important to find cards without annual fees or high APRs - watch out for low introductory rates that balloon after a few months.
The most important thing about a credit card is to pay your bill regularly. Pay in full each month and you will never have to pay interest or fees. ALWAYS pay the minimum balance, and whatever you can afford on top of that.
Also, having multiple credit cards, even if you never use them, is good for building credit, because it keeps your monthly balance to credit line ratio low, which is important to lenders.
I hope this is helpful. Good luck.
-Chris
Don't know if you're still reading these comments, but here's my $.02. Easy paperless/online banking is very important--anything that makes it easier for you to pay your bill on time is a huge plus. Most credit cards offer online banking services for free, but I've found Chase and CapitalOne to be especially easy (if you have a checking account). Paying your bill is as simple as a few clicks. And if you're the forgetful type and you keep a cushion in your checking account, having your credit card automatically withdraw the monthly minimum payment is a GODSEND.
Post a Comment