What credit card should I start with?

"Chuck 2(O=[][]=O)2" (pompei426)
12/28/2015 at 11:27 • Filed to: None

Hey guys! I know it’s not car related, but you all are a smart bunch and I know you can help me out. I’m 21 and probably should have had a credit card 4 years ago, but I hate credit. My mother relies on the plastic too much and that made me stay away from them. But, I am now at the point in my life where I need to establish credit to be able to do more adult things. So, do you guys have any recommendations for cards and could you explain why they are a good choice? I’m an economics major so I should understand most of the terms, but I don’t want to get killed with hidden charges. I will note that I plan on paying off my card every month with my debit card, so I don’t think the APR matters too much, but I could be wrong. Any info will surely help. Thanks in advance!

DISCUSSION (14)

cazzyodo > Chuck 2(O=[][]=O)2
12/28/2015 at 11:29

I started just with an Amazon one...it was my first card a few years ago and I really only used it for Amazon purchases.

I suggest this website , though, for some insight on cards.

Tripper > Chuck 2(O=[][]=O)2
12/28/2015 at 11:31

If you plan on paying it off every month, the APR is no big deal. For that reason I would go with an AMEX that accrues cash points (or miles if you travel often) and does not have annual fee (should not be too hard to find).

Supreme Chancellor and Glorious Leader SaveTheIntegras > Chuck 2(O=[][]=O)2
12/28/2015 at 11:32

I will watch this comment section as Im in the samr boat you are except for some god unknown reason everytime some company sends me “HEY GET OUR CREDIT CARD!” They shoot me down even though I have an okay credit history

My citroen won't start > Chuck 2(O=[][]=O)2
12/28/2015 at 11:33

I guess nowadays you need to search for the ones that provide benefits that match whatever it is you do/spend money on. I just get the best ones my bank accounts allow.

Vintage1982Benz > Tripper
12/28/2015 at 11:36

If you really will be paying off each month, AMEX is the way to go for the reason Trip states above.

Vintage1982Benz > Chuck 2(O=[][]=O)2
12/28/2015 at 11:39

I’d say it depends who you bank with. I know I started when I was around your age with my school credit union, and they tend to have lower rates and generally treat their customers better.

If you are not part of a credit union, AMEX offers great rewards points that are not tied to any specific airline, etc - so you can use them on hotels, rental cars, airfare, just about anything.

I’ve also used a Capital One Venture card for about 5 years now, and their rewards system works much like AMEX.

Azrek > Chuck 2(O=[][]=O)2
12/28/2015 at 11:43

I maintain a few credit cards. One usually holds my balance and every few months I transfer it to another card with no APR or low APR. So I’ve tried out a few cards and canceled many others.

Starter Card I recommend Citi Bank, they have some good cards to start that’ll give you low APR and one of the cards I have from them lowers my APR every few months for not missing a payment. I have my cellphone bill on this card and nothing else, so I have a balance and pay it every month.

Old man card: Chase Sapphire. This card rocks. First of all, the card is made of metal. Yup, metal. It has 0 International Transaction Fees, so I use it all over the world. And when I call the bank to discuss my card, a person picks up immediately. I got stuck somewhere once, called Chase, had them get me a flight and walked up to the Airport and flew out. It is comfortable...even if I don’t always use all their perks.

Andy Sheehan, StreetsideStig > Chuck 2(O=[][]=O)2
12/28/2015 at 11:51

I deeply regret getting a credit card. I have no doubt it has improved my FICA, but I’ve paid interest out the nose. I had to pay for a major car repair years ago, and I’m still paying that crap off. I don’t even have that car anymore. Thankfully, I’m finally making progress on it now, but it was minimum payments for a long, long time, and I was basically fighting the tide.

I got my card through a local credit union. I started with a very low limit, something like $400, and only used it occasionally, paying it off on time. When the repair came around, I raised the spending limit.

So if you want to raise your FICA, you don’t need a huge card, just a token amount. Just make sure you have a good emergency fund in savings when you get it. Otherwise the temptation to use it for emergencies will always be there, and you’ll pay for it.

Sweet Trav > Chuck 2(O=[][]=O)2
12/28/2015 at 12:04

I have a Capital one card that helped me build my credit, they have a built in credit tracker.

XJDano > Chuck 2(O=[][]=O)2
12/28/2015 at 12:06

I started with a gas card from QT. You have to buy gas so this was my start. Having a decent paying job right off the bat helped also.

I then got a few other cards and eventually wound up with $8,000 on it and paid that off this year (which I started charging around 07). It was exactly like free money when we were dating. I still keep the card for work expenses but I try to pay that the following week when I get paid. I was lucky as it was a low APR of about 9.5% unlike some of the other cards I had around 22%.

You just have to very careful not to take this “FREE” money as it can bite you in the end.

Wobbles the Mind > Chuck 2(O=[][]=O)2
12/28/2015 at 12:35

Anything that has No Annual Fee , Rewards Points, and a sign up bonus that involves spending no more than $500 within 3 months .

Chase Freedom Card will give you $150 (15,000 pts) after spending $500 in 3 months. You get $0.01 (1pt) back on all purchases, and $0.05 (5pts) back on purchases that are within whatever category they have going. For 2016 the categories are:

Gas - Jan, Feb, Mar
Grocery (excluding Walmart and Target) - Apr, May, Jun
Restaurants - Jul, Aug, Sep
Holiday Shopping (which is usually Amazon and some other sites) - Oct, Nov, Dec

Note that the limit for 5% back is $1,500 (150 pts), but you won’t hit the limit unless you’re spending $1,500 on one thing during a 3 month period (and even after, you still earn 1% back).

I recommend this type of card because they help you learn how to live day to day on a card and prove whether or not you’ll pay off the balance Week to Week . Other cards tend to be focused on travel, business, balance transfers, or require a fee in order to be any real benefit. The criteria I listed at the top will get you cards that tend to keep the credit lines small ($500 to $1000 I think) which is what you want to begin with.

I’ll write a full post on living with credit cards that way this more sense. The Chase Freedom Card seems to be the best value in this category currently (and honestly has been for at least 3 years now) and is one I’ve been using for years and was my first real credit card.

AMGtech - now with more recalls! > Chuck 2(O=[][]=O)2
12/28/2015 at 16:42

The higher the [APR] number the better!

wkiernan > Chuck 2(O=[][]=O)2
12/28/2015 at 18:25

After years of rejecting credit cards I got my credit history started with a gas station credit card. They’re easy to get and if you keep the balance low the interest is minimal. And I was going to spend the money anyway, it wasn’t like getting a credit card and then deciding to go on a spending spree and ending up deep in debt. After paying my credit card bills on time for a while I started getting offers for general-purpose credit cards in the mail.

Shour, Aloof and Obnoxious > Chuck 2(O=[][]=O)2
12/28/2015 at 18:27

Credit cards aren’t the only way to build credit. Live on your own, pay your rent and utilities on time. Get your own cell phone, not prepaid, and pay the bill on time. Maintaining ACCOUNTS and not being more than 30 days behind on paying them boosts your score. They don’t have to be credit accounts - each utility is an account.

I have ONE credit card, but my credit score is 740 (Experian), because I pay that card, as well as my insurance, cell phone, electric, gas, water, and gym membership on time. And thanks to doing that for three years, I'm now paying my mortgage every month on time. That credit score got me a 3.75% rate, with only the one credit card.