Oppo, I need a credit card.

"If only EssExTee could be so grossly incandescent" (essextee)
04/27/2015 at 12:09 • Filed to: finance

I’ve never had a one before but I need to get one so I can start building credit history. I don’t care about rewards or airline miles or anything like that, I’m just looking for something with low interest and flexible payment schedules. Does anyone have some recommendations for a good “beginner’s” card?

DISCUSSION (37)

getFuckedHerb > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:12

You planning to pay it off every month, or carry a balance? Do you have any credit or absolutely none?

If only EssExTee could be so grossly incandescent > getFuckedHerb
04/27/2015 at 12:13

Absolutely none, which, if I ever need to take out a loan or something, can be just as bad as having bad history. I intend to pay regularly.

Tim > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:15

If you have no credit the cards may suck as far as % rate, but the longer you have credit history the better. I still have my first card from College and now I’m in my mid 30’s. I just put a couple bucks on it every few months to keep it active.
I’d say, get an Amex and a Visa. Use the Amex for any electronics purchases due to the extra warranty that comes with using Amex.

For Sweden > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:15

Try to get a no-fee cashback card, like a Discover or Capital One Quicksilver.

getFuckedHerb > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:18

if you intend to pay it off monthly and you have no credit the requirements are pretty simple:

No annual fee (this is important, this will be your longest standing credit account, you will want to keep this card for years to keep the credit karma gods happy) so don’t close this account once you get some credit and have better offers, just cut the card up and leave it be.

Someone to give you one (since you have no history).

Assuming you have a decent income it shouldn’t be hard to find one that works. I suggest you ask whatever bank you have your debit card through if they have one in house (often better rates and because they know your checking history will give you a slightly higher limit).

Sn210 > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:19

I started with a Discover student card or something. No annual fee, decent cash back program, and you can use your rewards as payment on Amazon. My limit was like $500 or so to start out, but I never racked up more than half my limit. If you're only using it to build credit, keep your balance in a range where you can pay it in full each month, then you won't have to worry about paying interest

Converse > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:20

If you have none, a prepaid credit card is not a bad way to build credit.

Also, you could become a cardholder on a loved one’s credit card (Parents, significant other, etc.) as it builds your credit, does not hurt you if they don’t pay it off as badly (if at all) and gives you access to a better credit line on your own.

From my experience, Chase was the best at accepting very little credit history as I only had a car loan at the time that they approved me.

CreditCards.com is great for showing all credit cards out there and breaks down by what you’re looking for (rewards, miles, 0%, no annual fee, etc.) and also shows what credit score they accept on average.

Rico > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:21

Look at student credit cards from Discover as well as Capital One

http://www.creditcards.com/ - Great site to compare fees and rewards.

Also see if you have a local credit union you can join and get a secure card which is essentially a credit card you put money on just like a debit card, that’s how I started building credit.

How old are you?

djmt1 > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:25

I’m in a similar position. I’m 21 and have never had a credit card but I have ample income and plenty of savings and I was wondering whether or not it would be wise to get a credit card mainly for my various subscriptions and hope to build up credit that way.

Sn210 > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:25

Kinja'd!!!

Double post, thanks Kinja!

GTI Sprinks > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:26

Assuming 0 credit history, some banks will make you do a super-limited credit card wherein you give them a few hundred dollars and that few hundred is your credit limit. After a year or so it converts to a normal credit card and they return the few hundred back.
I did this method for a year (or more, can’t recall exactly), buy a few things here and there, pay off the balance, rinse repeat. I’m now sitting comfortable balancing 4 credit lines maintaing good credit (and rising according to annual credit checks).

desertdog5051 > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:26

Check with your bank or credit union. Most offer credit cards. They usually will work with you.

Rico > djmt1
04/27/2015 at 12:28

Yes start now, as you are already behind the curve. Even if you use it to buy gas only just use it and pay it off. Credit history is a very important factors in determining credit worthiness when it comes to get a loan for a car or house.

The future you will thank you.

deekster_caddy > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:28

I have a Chase Freedom card for their occasional fuel rewards. I use it mainly for gas fillups. If you do that and pay it off every month you’ll have a good start. It’s also ‘safer’ to use a credit card for online purchases - you have more consumer protections than you do with a debit card. But be really careful, it’s easy to go overboard.

If only EssExTee could be so grossly incandescent > desertdog5051
04/27/2015 at 12:28

My bank is a small local affair with only three locations. I don’t think they offer a credit card.

themanwithsauce - has as many vehicles as job titles > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:28

Cash-secured cards give you the lowest interest rates when you have no credit. Especially if you go through a credit union. Typically you deposit your credit amount and you get a card with a credit limit of that deposit. I had one with 11% interest as an 18 year old because.....well technically it’s zero risk for them. They HAVE 500$ so even if you max the card and can’t pay, they just eat the deposit and close the card and you don’t get dinged.

MontegoMan562 is a Capri RS Owner > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:32

My CC is through my Credit Union for 2 reasons.

It’s really freaking easy because all my other money is there haha

Low FIXED rate.

It’s going to be hard to find, but never get a variable rate credit card, the rate will change based off the prime rate and can drastically effect any interest you may have to pay. A lot of people get in trouble with that.

Smallbear wants a modern Syclone, local Maple Leafs spammer > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:36

Best card for a beginner: none. Unfortunately they become necessary. Find a no-fee card and make sure to pay it off before the end of the month if at all possible; apparently that's more effective for boosting your score.

lonestranger > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:39

If you were in Canada, a fan of clever marketing, and easily impressed with pretty lights, the answer is clear:

TL;DW: it’s a credit card that changes to a reloadable gift card at the press of a button. “ Double Double ” is shorthand for two creams and two sugars.

Textured Soy Protein > If only EssExTee could be so grossly incandescent
04/27/2015 at 12:56

I’ve been happy with my Discover card because it’s easy to earn cash back, and I can then apply that cash back to purchases on Amazon, and I buy entirely too much crap on Amazon.

Eric @ opposite-lock.com > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:00

Get someone (or more than just one) that trusts you with really good credit (and that maintains low balances) to add you as an authorized user on their accounts. Make sure you trust this person as you can’t really take these entries off your report, either, unless they do it for you. Once you have that showing on your report, apply for a no-annual-fee card to use as your base card that you’ll never close (as mentioned below) to set the start of your credit history.

In my experience, Capital One plays the most in the worst credit situations and as long as you pay them off monthly and never get behind, they’re easy to deal with. Chase is also good, but they have a higher barrier to entry, so don’t expect to get one without some accounts with good history in good standing on your report. If you can land an American Express with no annual fee, that would be the perfect cornerstone/base card, but the barrier will be at least as high as Chase. I’d avoid Discover because they’re kind of useless due to limited acceptance. You really want cards on any of the following networks: Visa (most-accepted), MasterCard (at least 99% as accepted as Visa), or American Express (least-accepted). From there, I could help you with how to exploit your growing credit score...

If only EssExTee could be so grossly incandescent > Textured Soy Protein
04/27/2015 at 13:08

I don’t have a credit score. I’ve never had a credit card, and I’ve never taken out a loan.

If only EssExTee could be so grossly incandescent > MontegoMan562 is a Capri RS Owner
04/27/2015 at 13:12

I have a healthy amount of income, so APR isn’t a problem because I won’t be charging a lot to the card and am more than capable of immediately paying off what I do charge.

Dunnik > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:12

You may be forced into a secured credit card at first, which sucks, but it will build your credit quickly. Don’t forget you can check your credit score free (though they make it deliberately annoying, by usually requiring a form sent by snail mail).

As others have noted, avoid cards with annual fees, and other than an automotive benefits card (I have an Esso Visa, earn points to spend on gas, car washes, etc.) avoid benefit cards generally and go for cash back (% cash per transaction).

As for interest rates, watch out for low “introductory rates” which jack up after six months (unless you plan on abusing that by cancelling the card before the increase). Otherwise, don’t worry too much about interest rates: average rate is about %20, even with good credit.

For the first few months, you may wish to treat your CC as a bank card: i.e., only use it when you have money in the bank. This will ensure that your CC bill is $0 at the end of the month, which greatly increases your score.

Another thing which increases your score is never using more than about %33 of the total limit, so if you have $1000 limit, use no more than about $300.

Lastly, once you build up your credit enough via the CC, apply for a Line of Credit, which has about half or less the interest of a CC. Good luck!

desertdog5051 > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:13

I got my first card through my credit union. They had one location. Call them and ask. You never know.

If only EssExTee could be so grossly incandescent > deekster_caddy
04/27/2015 at 13:13

I don’t intend to rely on the credit card, I’ve never had trouble paying for stuff with my own money. It’s gonna be mostly so I can build history, or to have for an emergency.

Rico > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:22

Do you have bills in your name?

MontegoMan562 is a Capri RS Owner > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:33

As long as you NEVER EVER EVER EVER EVER carry a balance that’s fine, but if you can find a low fixed rate card, why not get it?

Steve Zissou > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:37

If you plan on paying it off every month, you really don’t have to worry about the interest rate. There’s no interest charge if it’s paid of the same month it’s charged. Then, I would start thinking about something with no fee and a small cash back rewared. I have a blue cash card from American Express that I use for gas and groceries, then every once in awhile i have a cash back balance that can go towards that months balance. It’s just a little bonus, and works better for me than the “rewards points” cards where you have to buy something from their rewards store, because I would just buy useless stuff I don’t need that way.

vdub_nut: scooter snob > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:39

Go into the bank branch of your choosing, ask to sit with a banker, and see what they have for you. The bank I use (and now work for) offered secured cards (discussed elsewhere in this post) that I could upgrade and get my deposit back after a certain number of on-time billing payments. I can pay online, in person, by phone, or by mailing a check (via horse-drawn carriage I assume. Who does that?). I went from secured w/ deposit, to unsecured (no rewards), to having a decent rewards program, in less than a year, same physical card, same credit account (aka the credit bureaus see it as one long account, helping my credit score.)

I now have a baller card from anther bank in addition to that (crazy good rewards), and my score is going up rather quickly.

Ryan A. > If only EssExTee could be so grossly incandescent
04/27/2015 at 13:46

Go for cash back rewards. You’ll actually use them by redeeming it for account credit.

I’ve been happy with Capital One and Discover. Since this is your first card it is important that you keep it open even if you switch. Your credit history is largely based on how long an account has been open and active.

I’d suggest Capital One Quicksilver. You’ll get a VISA or MasterCard so it’ll work anywhere. They have a good website and customer service. Discover is good but. It everywhere accepts it.

If only EssExTee could be so grossly incandescent > vdub_nut: scooter snob
04/27/2015 at 13:59

Old people. Old people use checks.

If only EssExTee could be so grossly incandescent > Rico
04/27/2015 at 14:01

Nope. I’m not a homeowner, I use a prepaid phone, my health insurance is through my job, and I own my car outright.

Rico > If only EssExTee could be so grossly incandescent
04/27/2015 at 14:03

Bills in your name help with building credit history so I figured I would ask anyway. Even like a gym membership or netflix, anything that is recurring to show you gave financial responsibility can help determine credit scores.

vdub_nut: scooter snob > If only EssExTee could be so grossly incandescent
04/27/2015 at 14:09

Yes, yes they do.

God, they are just the fucking worst about it, too.

wkiernan > If only EssExTee could be so grossly incandescent
04/27/2015 at 15:09

Gas credit card. Easy to get, easy to not get over your head in debt with (since you won’t be spending any more on gas than you would anyway), and if works for you like it did for me, after a year or two of paying your gas card bills on time you’ll start to get offers for general purpose Visa/MC cards.

deekster_caddy > If only EssExTee could be so grossly incandescent
04/27/2015 at 16:42

I had to pay a car club recently by check. I was a year and a half late renewing my membership. I finally sent them a check from my bank’s website, I assume the bank then mails it to them. I have a checkbook but it’s hidden and I don’t want to dig it out. I paid for the previous, current and next year so I wouldn’t have to go through this again for a while. I asked them to consider taking paypal in the future!