credit card..

[qwe7791]

I know there is a thread about credit cards by another user, but I didn't want to hijack his/her thread.

So I've been thinking of getting a credit card solely for the purpose of establishing credit, so I don't really care about the awards. I plan to use it to make small purchases (groceries, gas, etc) and pay it off immediately at the end of the cycle. I also want to have a limit of $500-$1000.

Thanks!

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[MedPR]

I know there is a thread about credit cards by another user, but I didn't want to hijack his/her thread.

So I've been thinking of getting a credit card solely for the purpose of establishing credit, so I don't really care about the awards. I plan to use it to make small purchases (groceries, gas, etc) and pay it off immediately at the end of the cycle. I also want to have a limit of $500-$1000.

Thanks!

Don't pay at the end of the cycle. Pay before your statement cuts, which is different than the last day of the cycle and the day your payment is due.

Check out myfico dot com.

Sent from my SGH-T999 using SDN Mobile

 

[AestheticGod]

If you have zero credit, get $500 and get a "secured credit card" or something. You'll use this for about a year and than you will have some credit to get a real credit card with like 5k limit. That's like the easiest way i know.

 

[BABSstudent]

Check you bank for their credit cards. I initially got a $500 limit card from Wells Fargo and now it is a $10,000 limit a few years later. They automatically up the limit every year if you stay in good standings. This is awesome for the purpose of paying for interview flights, attire, hotels and cab rides.

It even comes with a point system so I make a little back for using it. I even pay it off every month so it doesn't cost me a thing.

I have even heard of people getting a card with a specific airline and then getting airline miles. They can cost like $90 a year, but the miles are worth like 6 flights and you can redeem them for such.

 

[Shenanigan]

I know there is a thread about credit cards by another user, but I didn't want to hijack his/her thread.

So I've been thinking of getting a credit card solely for the purpose of establishing credit, so I don't really care about the awards. I plan to use it to make small purchases (groceries, gas, etc) and pay it off immediately at the end of the cycle. I also want to have a limit of $500-$1000.

Thanks!

Is there a question attached to this thread? Do you want suggestions or are you asking if it's a good idea?

When you get a credit card and stay in good standing they will up your limit beyond the 500-1000. Beware of "introductory" interest rates. Often they revert to a higher rate after a year or if you don't make 1 payment on time they automatically change they rate from something like 17% to 30% so don't carry a balance and be responsible paying it off to build credit. You really need to scour the fine print. Also, always pay bills on time for utilities, cell phone, etc because those will hurt your credit rating for years if you miss more than one or two and get reported.

 

[Freesia88]

The circumstances may be different but this thread has some pretty good things to think about re Credit Cards

http://forums.studentdoctor.net/showthread.php?t=969415

 

[OwlPower22]

I did a joint account with my mom because she has great credit. I still build credit that way.

 

[BABSstudent]

I did a joint account with my mom because she has great credit. I still build credit that way.

Not recommended for everyone. Accidents happen and even people with good credit can mess up from time to time. I would hate to have my credit go down because my mom forgot to pay a bill.

Or worse, have her declare bankruptcy.

 

[235009]

get a chase freedom card or something similar that lets you convert those magical points into cash. 1% cash back is the standard. dont get one of those cards where you have to spend a certain amount before getting the cash back...that's absurd.

Don't pay at the end of the cycle. Pay before your statement cuts, which is different than the last day of the cycle and the day your payment is due.

huh? this doesn't matter at all. my suggestion is to set up automatic payments that way it's impossible that you'll ever miss a payment.

 

[kami333]

One thing I realized a few years ago is if you have a bank card that is debit/credit and use it occasionally as credit you may already be building credit.

No it doesn't.

 

[Shenanigan]

No it doesn't.

Looked it up and you're right, I had assumed that to be true. Now I'm not sure how I magically passed a credit check that requires a good score when I had absolutely 0 credit history...

 

[Bacchus]

Get a student card. I had this card: https://creditcards.citi.com/credit...atinum-select-visa-card-for-college-students/ until it converted to a normal credit card (aka they took the "student" designation away from it).

I have a $3000 limit which I haven't requested to increase and I have a 12.24% APR. I usually get a rebate check every few months for $50 depending on how much I'm using the card.

Never had any problems. No cosigner necessary.

 

[Bacchus]

Get a student card. I had this card: https://creditcards.citi.com/credit...atinum-select-visa-card-for-college-students/ until it converted to a normal credit card (aka they took the "student" designation away from it).

I have a $3000 limit which I haven't requested to increase and I have a 12.24% APR. I usually get a rebate check every few months for $50 depending on how much I'm using the card.

Never had any problems. No cosigner necessary. Oh, and it has this nifty perk called Price Rewind where you register a product you bought with the card and for the next 30 days Citi looks for a cheaper price. I believe if it goes $25 or below what you paid you can make a claim within 3 months and get the difference up to $250 at a time and up to $1000 in the year.

 

[MedPR]

If you have zero credit, get $500 and get a "secured credit card" or something. You'll use this for about a year and than you will have some credit to get a real credit card with like 5k limit. That's like the easiest way i know.

Lol.

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[MedPR]

Seriously go to myfico forums. SDN is not the place for this

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[235009]

Get a student card. I had this card: https://creditcards.citi.com/credit...atinum-select-visa-card-for-college-students/ until it converted to a normal credit card (aka they took the "student" designation away from it).

i have this card too and like the chase freedom card more. with the citicard you have to get your rewards in multiples of $50 which is pretty annoying. otherwise they're very similar. the price rewind thing sounds interesting but i doubt it'll be very useful.

 

[Doctor Strange]

Lol.

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What's so bad about an SCC? I mean, sure it doesn't have like... any rewards, but it works for people that just want the credit-building aspect. :-/

 

[235009]

oops double post

 

[MedPR]

What's so bad about an SCC? I mean, sure it doesn't have like... any rewards, but it works for people that just want the credit-building aspect. :-/

It was directed at the part about getting a 5k limit after a year.

There's nothing wrong with a secured card, but as students we can easily get approved for an unsecured, which is much better and less complicated than secured.

There are a lot of misconceptions about credit and credit cards and myfico is an excellent place to get accurate info.

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[MedPR]

i have this card too and like the chase freedom card more. with the citicard you have to get your rewards in multiples of $50 which is pretty annoying. otherwise they're very similar. the price rewind thing sounds interesting but i doubt it'll be very useful.

Yea chase freedom, citi dividend, and discover more are all about the same. The categories differ each quarter (usually) so sometimes it can be beneficial to have more than 1 of the 3.

The cool thing ting about chase is you can get a way better reward rate if you have the sapphire preferred, freedom, and a chase checking account.

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[dextor2003]

Since the OP wants to use it mainly for everyday things (groceries, gas, etc.), I'd recommend the American Express Blue Cash everyday. 5% cash back on supermarkets, 3% on gas, and 1% on everything else. No annoying rotating categories. Also, small tip---buy Amazon/other merchants'/gas station gift cards from supermarkets like Kroger to get 5% back on the cards, i.e. essentially getting 5% back on all those gift card purchases as well (including gas if you get the cards!)

 

[NickNaylor]

my suggestion is to set up automatic payments that way it's impossible that you'll ever miss a payment.

I never give companies the ability to automatically deduct money from my bank account. Maybe I'm just paranoid but that sounds like an absolutely terrible idea.

(sent from my phone)

 

[235009]

I never give companies the ability to automatically deduct money from my bank account. Maybe I'm just paranoid but that sounds like an absolutely terrible idea.

(sent from my phone)

yes, you're paranoid.

also for everything except paying off your credit card bill you usually can give them your credit card number so they dont have direct access to your bank account. set the automatic payment date to be as late as possible and that usually gives you 2-4 weeks each month to review your statement before the payment is automatically made.

 

[thesauce]

yes, you're paranoid.

also for everything except paying off your credit card bill you usually can give them your credit card number so they dont have direct access to your bank account. set the automatic payment date to be as late as possible and that usually gives you 2-4 weeks each month to review your statement before the payment is automatically made.

Actually, that was wise advice. Credit cards are secure and you aren't liable for fraudulent charges. Theoretically, the same is true for debit cards and bank account withdraws, but it is a lot harder to get the money back once it's taken. I never use debit cards for this reason.