When it comes to auto credit limit increases, my Discover card has been the best.
I love using my credit cards and milk them for all I can. Like others here, I have a credit score in the 750+ range at the age of 22. I have used my cards since high school with zero issues.
When it comes to CCs, this thread from a while back was pretty good:
http://forums.studentdoctor.net/threads/building-credit-getting-a-credit-card.1054683/
Here is my take on them....
DO NOT EVER MAKE LATE PAYMENTS. ALWAYS PAY OFF THE BALANCE IN FULL. If you do that, there is
no reason not to have one. Not only are they immensely more convenient to use than cash, but you need to be building credit. Plus, if you get a card with good rewards (all 3 of mine have great rewards), you can do a lot with the cash back. You can also save good money by using the "online stores" that CCs offer. I am not a big spender and always spend well below my means. Even with my minimal income and spending, I rack up about $250/year in rewards. Is that a ton of money? No... but it's better than nothing at all, which is what you get by using cash!
Even as a very young person, I have a credit score in the "excellent" range. The only thing holding my credit score back is the age of my credit history--it's still very young. I'm confident that once I've had my cards for just a few more years, I will be in the 800+ score range. So, by the time I graduate dental school and actually need to be taking out non-government loans (car, house, practice, etc.), I should be able to get awesome interest rates.
If a person is just starting out, from what I understand, their parents could add them as an authorized user on their card. This would get them an instant credit score. However, a person shouldn't consider doing this unless their parents have excellent credit and no delinquencies. I am not an authorized user on my parents' card because I don't really need the boost in score, but I was talking to them yesterday about adding my younger brother so he could more easily qualify for a card at some point. He's just 18.
Basically, as I understand it, you can get on your parents' card for a month or two, get an excellent credit score, and then easily qualify for a card of your own. At that point, your parents could drop you as an authorized user. Your score will drop, but at that point, you'll have a card and will be able to build credit just like anyone else.
Also, I've read that making multiple payments throughout the month on your credit card can help boost your credit limit, so I do that, too--and I think it has worked. It's incredibly easy... though I have automatic payments, anytime I go online to check my card statement, I just click a button and it pays it.
I have credit limits that are honestly sort of ridiculous for someone with my income, but like I said, it has caused no problems for me. It is also
very helpful because my credit utilization ratio is extremely low. This is one of the biggest determinations in your credit score. You want your utilization to be very low.
Unlike lots of other things in finances, credit cards are actually pretty easy to research and understand. I'd begin by making an account at creditkarma (yes, they are legit). Though they can only estimate your credit score, they are a fantastic tool and are free! I find that the score they estimate for me is always within 5-10 points of my actual credit score.
I also would apply for just one card to begin with. If you apply for a card for which you are not pre-approved, the credit company is going to do a "hard pull" on your credit history. This negatively impacts your score, but it is a necessary thing in the beginning. Conversely, if you apply for a card for which you are pre-approved, they only do a "soft pull" and your credit score is not negatively impacted. So don't just go crazy with the applications--the hard pulls stay on your credit report for 3 years, but I think they are only figured into your score for 2.
Sign up for something with good rewards and no annual fee. I highly recommend the Discover it card. (
https://www.discover.com/credit-cards/student/) The cashback bonus is fantastic (1% back on everything, 5% back in categories that revolve quarterly, and the shop discover store which allows you to get cashback on online purchases). Beginning recently, they even give you your FICO credit score for free on your monthly statement. I have had a Discover card for longer than anything else... and in the beginning, they were the only card that would approve me.
I recently signed up for the BankAmericard Cash Rewards Platinum Plus Visa. It's good because you get 3% back on gas all year round. (Discover usually has gas as a 5% bonus category during one quarter of the year. During that quarter, I use Discover... but I use the BankAmericard for gas at all other times.) The card also gives you 2% back on groceries, and has no annual fee. If you redeem your cashback as a statement credit into your BofA account, you get an extra 10% on what you redeemed.
I still greatly prefer my Discover, though, and would choose it if I only had one card. The free FICO credit score is very useful. The 5% categories are good, and the ShopDiscover store is great. I make online purchases all the time
just to get the extra cashback. All you have to do is link to the store's website through its ShopDiscover page, and you get an extra % back (usually 5%, but sometimes more!).
For example, WalMart is on ShopDiscover. I got my brother an XBox game for Christmas. Sure, I could just waltz over to WalMart and buy it. However, I made the purchase
online through ShopDiscover. I got 5% back on the game that way. WalMart has an "in-store pickup" option, so I just went over immediately and picked up the game from the customer service area. Took me maybe 10 seconds extra, and I got 3 bucks back. Is that a ton of money? No. Is it worth a few seconds of my time? Oh yeah! Those 3 dollars add up.
I have also used ShopDiscover for buying a Macbook Pro. 5% back on a 3k purchase is significant!!
You can redeem your cashback bonus as either a direct statement credit or for partner giftcards. If you redeem for a giftcard, you get extra money. For example, $45 cashback dollars can be redeemed for a $50 gift card at Starbucks. Some stores have even better deals--$40 cashback dollars gets you a $50 giftcard to Brooks Brothers. Tons of major companies participate in both ShopDiscover and the cashback redemption program. It's nice!
I am not a guru on this by any means, but I think credit cards--and particularly the rewards you get by using them and having a good credit score--are really interesting and convenient.