Best credit card to get for a student?

Atty

Golden Member
Aug 19, 2006
1,540
0
76
Before you come in and comment that its a bad idea, etc, etc. I've been very responsible with my money ever since I got a part time job in high school, always pay my bills on time, and plan to only use this to build my credit. I'll use it for my everyday purchases only, that I would otherwise use on my debit.

Anyway, I'm looking at what cards to get, and I have no idea what to look for.

Can anyone help steer me into the right direction?

Looking at the Discover Student card here: http://www.discovercard.com/student/?hcmpgn=0801_hpu_cc_student_det

Should I just go for it, pay my bills on time, and worry about more advanced things (cash back, etc) later?
 
Dec 10, 2005
24,308
7,174
136
I'd go for a credit card that people actually take, like a Visa or a MC.

https://www.citicards.com/cards/wv/...GE&cType=constituency_detail&FromResultPage=Y

If you don't mind ThankYou points (you can convert them to gift cards, plane tickets, etc...) the Citi Forward or the mtvU card might be options. The Dividend cards in the link used to be better when I first opened mine a few years ago, but kind of suck now.

Please remember to pay it off in full every month. Don't spend money you don't have. You don't want to get in debt with a CC - the interest rates tend to be absurd.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
You should get it and not use it. I wouldn't bother using it in place of debit, it sets a bad precedent. So who cares about points, that will start addicting you to the stupid notion that everything you can put into the car you should. And you _will_ spend more than you ought. This is a statistical fact that influences the majority of people. Just get one, use it every few months, keep it in your wallet and forget it. That is quite frankly all you need to do to get your foot in the door of credit.

Building credit from scratch, once you can get started with a credit card is *very* easy. You can have a 700+ from nothing in no time at all and then you never again need to worry about building credit, so don't overthink it.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I got the Citi Forward card exactly 1 year ago as my first credit card..
I don't mean this at you at all but:

http://www.citiforward.com/usc/forw...F05064624E4E435686BE2D0782EBC7A9#/?screenId=0

Holy sh*t it's like its customers are little children. Best behavior, spend 3 billing periods paying on time? Congratulations, you are all growns up and you're all growns up and you're all growns up. It's like the Chris Rock skit about the guy who takes cares of his kids--does he get a cookie?
 

Atty

Golden Member
Aug 19, 2006
1,540
0
76
You should get it and not use it. I wouldn't bother using it in place of debit, it sets a bad precedent. So who cares about points, that will start addicting you to the stupid notion that everything you can put into the car you should. And you _will_ spend more than you ought. This is a statistical fact that influences the majority of people. Just get one, use it every few months, keep it in your wallet and forget it. That is quite frankly all you need to do to get your foot in the door of credit.

Building credit from scratch, once you can get started with a credit card is *very* easy. You can have a 700+ from nothing in no time at all and then you never again need to worry about building credit, so don't overthink it.
Instead of using it as my debit card, maybe I'll just use it for my car insurance. $80 a month bill I pay every month regardless, and I make more than enough each week to pay it off months in advance.

I wouldn't even keep it with me if I didn't have to, just set it up to auto charge each month.
 
Dec 10, 2005
24,308
7,174
136
Instead of using it as my debit card, maybe I'll just use it for my car insurance. $80 a month bill I pay every month regardless, and I make more than enough each week to pay it off months in advance.

I wouldn't even keep it with me if I didn't have to, just set it up to auto charge each month.

No reason to not use a CC in place of the debit card. In fact, I think using the CC is a better option* - better protection from fraud, bad merchants, etc...


*provided you are responsible with it. If you're not capable of responsibly managing your finances, forget it.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Instead of using it as my debit card, maybe I'll just use it for my car insurance. $80 a month bill I pay every month regardless, and I make more than enough each week to pay it off months in advance.

I wouldn't even keep it with me if I didn't have to, just set it up to auto charge each month.
Actually that would be perfect. I have three cards. Two I use every 6 months as a keep-alive, the other I use for online purchases only and if there is a temporary cash flow situation (a few days). But I am off the credit card bandwagon and use debit for all I can (I am paid into and pay bills out of a primary debit account and move small bits of money to a second one--that second one is the only one I carry around in my wallet, this protecting me against more than 200-300 bucks maximum at any one time if my wallet is ripped off me).

http://www.creditcardguide.com/creditcards/credit-cards-general/spend-credit-cards-194/
Studies have shown that consumers, on average, spend 12-18 percent more when they go shopping with credit cards instead of cash.

http://amateurassetallocator.com/2010/02/25/do-credit-cards-increase-your-spending/

Do you know any 12-18%; rewards cards? Me, neither.
 

busydude

Diamond Member
Feb 5, 2010
8,793
5
76
Skoorb has pretty much nailed it. I applied for a credit card with the same mindset as yours but ended up as what skoorb just mentioned in post #3. I maxed out my credit card 4 months after getting it. Mine is a citi platinum select, with used to have a very low APR, last week I received a letter from them stating that they are about to increase my APR threefold. Now the options I have:

1. To cancel the card.
2. Keep using the card and pay exorbitant interest.

I haven't taken any decision as of yet, but leaning towards option 1.

This post is just to warn you to not make the same mistake as I did.
 

AznAnarchy99

Lifer
Dec 6, 2004
14,705
117
106
I don't mean this at you at all but:

http://www.citiforward.com/usc/forw...F05064624E4E435686BE2D0782EBC7A9#/?screenId=0

Holy sh*t it's like its customers are little children. Best behavior, spend 3 billing periods paying on time? Congratulations, you are all growns up and you're all growns up and you're all growns up. It's like the Chris Rock skit about the guy who takes cares of his kids--does he get a cookie?

Heh I get a cookie for doing what I should be doing in the first place LoL
 

deadlyapp

Diamond Member
Apr 25, 2004
6,609
714
126
I started with a chase rewards card with a low max - only $500. It was a good starter card and I would have been fine with just it, but several bad decisions that I've made over the past allowed me to open more cards, with much higher limits, and some with substantial perks (no interest purchases for 2.5 years), that have caused me to get into significant debt. I should have them all completely paid off in about a month or two, but it's definitely been bad to have balances sitting on all my cards.
 

RSaylors

Member
Sep 28, 2004
121
0
76
to watch out for:
annual fee, 'minimum' interest charges and 'grace' periods that are shorter than the month is long.

to build credit:
credit is based off of the kinds of debt you have and your debt to maximum credit utilization ratio.

Maximum credt untilization, though, means how much you have ever spent with your credit line.

For example, if you have a credit limit of $800 and owe $80 that's 10% utilization right? Not when calculating your credit rating. It is only 10% utilization IF you have charged all $800 to the card in the past; If all you have ever charged to the card is $80, then that $80 is 100% utilization.

There are diminishing leading to negative returns for having ever more accounts; in the end you are best having 3 credit cards(or other revolving debt). Each one hurts your credit score, so either space them out 18 months apart or get them all at once and know your credit will be dinged hard.

Further: your credit score is not just about your credit cards, the utilization of other kinds of debt, such as a bank-loan for a car counts for you too. This also look at your utilization rate. Further a loan less than 18months is not reported.

or, as you probably already know, you could just not have a credit score.

Having a credit score of 0, meaning you don't barrow money, means that when you go to a bank they will have to manually under-write you; though this takes thinking on their part, it will mean that the kind of loan you can get for your house will be based on your true financial standing, not some BS number used to fake-out banks and get yourself into way too much debt.
 

DanDaManJC

Senior member
Oct 31, 2004
776
0
76
You should get it and not use it. I wouldn't bother using it in place of debit, it sets a bad precedent. So who cares about points, that will start addicting you to the stupid notion that everything you can put into the car you should. And you _will_ spend more than you ought. This is a statistical fact that influences the majority of people. Just get one, use it every few months, keep it in your wallet and forget it. That is quite frankly all you need to do to get your foot in the door of credit.

Building credit from scratch, once you can get started with a credit card is *very* easy. You can have a 700+ from nothing in no time at all and then you never again need to worry about building credit, so don't overthink it.

I got a credit card my senior year in high school so I could start building my credit... I have used the card in place of my debit card and I simply have not had an issue of over spending. Frankly, it just depends on the person... I've personally just always been a bit too stingy with my money --- but that ended up serving me very well through the bulk of my time in college.
 

NinjaTech

Banned
May 14, 2009
279
0
0
A credit card with a large ballance on it that someone else has to pay for would be my preference.
 

deadlyapp

Diamond Member
Apr 25, 2004
6,609
714
126
to watch out for:
annual fee, 'minimum' interest charges and 'grace' periods that are shorter than the month is long.

to build credit:
credit is based off of the kinds of debt you have and your debt to maximum credit utilization ratio.

Maximum credt untilization, though, means how much you have ever spent with your credit line.

For example, if you have a credit limit of $800 and owe $80 that's 10% utilization right? Not when calculating your credit rating. It is only 10% utilization IF you have charged all $800 to the card in the past; If all you have ever charged to the card is $80, then that $80 is 100% utilization.

There are diminishing leading to negative returns for having ever more accounts; in the end you are best having 3 credit cards(or other revolving debt). Each one hurts your credit score, so either space them out 18 months apart or get them all at once and know your credit will be dinged hard.

Further: your credit score is not just about your credit cards, the utilization of other kinds of debt, such as a bank-loan for a car counts for you too. This also look at your utilization rate. Further a loan less than 18months is not reported.

or, as you probably already know, you could just not have a credit score.

Having a credit score of 0, meaning you don't barrow money, means that when you go to a bank they will have to manually under-write you; though this takes thinking on their part, it will mean that the kind of loan you can get for your house will be based on your true financial standing, not some BS number used to fake-out banks and get yourself into way too much debt.

I don't believe the bolded part is true. I've got a possible limit of somewhere around 30k, and that is exactly what my card utilization reflects, and I've never even gotten close to maxing a couple of my cards.
 

alkemyst

No Lifer
Feb 13, 2001
83,967
19
81
I don't mean this at you at all but:

http://www.citiforward.com/usc/forw...F05064624E4E435686BE2D0782EBC7A9#/?screenId=0

Holy sh*t it's like its customers are little children. Best behavior, spend 3 billing periods paying on time? Congratulations, you are all growns up and you're all growns up and you're all growns up. It's like the Chris Rock skit about the guy who takes cares of his kids--does he get a cookie?

I think like many things you miss the concept of that card. With the rates offered it's targetted at people that may not have the best track record of keeping their credit good.

Most that know how to balance their budgets think credit counselling is a joke...they think everything is obvious.

Many people need all the help they can get and if that 100 points gets them to send their $20 to Citi instead of blowing it on weed then so be it.
 

RSaylors

Member
Sep 28, 2004
121
0
76
I've got a possible limit of somewhere around 30k, and that is exactly what my card utilization reflects, and I've never even gotten close to maxing a couple of my cards.
To be clear we are both right. Although they can report your maximum actual credit, when you are starting off they tend to report only what you have utilized previously because that is all the must report; this helps lock you in.

But with 30k available you likely would not be hurt too much by then failing to report the full amount.
 

Sahakiel

Golden Member
Oct 19, 2001
1,746
0
86
My first card I picked up as a freshman in college. I went online and picked out a rewards card that I still use today as my dedicated online purchase card. The rewards program got canceled, switched to new, that got canceled, now I'm on the third program which is also no longer available, but the account is grandfathered so I stick with it. It's basically 1-3% on all purchases that are automatically applied as partial payment for next month's bill. Quite convenient with minimal hassle.

I have been pretty good with my credit cards all this time. Only a few missed payments early on when life got busy and I still wasn't accustomed to the idea of monthly payments. The key to avoid maxing your card is the same as anything else: be financially responsible. Always keep in mind how much extra funds you have to purchase discretionary items. Always have a good idea of how much of that money you have available and how much of that is earmarked for bill payments. Simply don't charge anything to your card you cannot currently pay in cash.

I think what really makes new users fall into debt is treating credit cards as temporary floaters. Instead, as you use a credit card, mentally allocate the same amount in your checking account towards the next monthly payment. As long as you keep in mind that all charges will be paid immediately out of your current checking balance, it should serve as a deterrent to maxing the card every month. Unless you're looking at a $2-500 limit, in which case, you probably will max it out often if you use it for all your expenses.

For a college student, I would look at a Chase Freedom card as a starter. If you have a Chase checking account, you get 10 cents back per transaction (7-11 hates me) and 1.1 cent back on every dollar you charge (so does McD's). I have a grandfathered Western Mutual account, so I have literally no maintenance at all for the either one (plus perks like free international wire). Still, I believe the requirements for maintaining a new Chase checking account are fairly lax. Even without a checking account, the credit card provides rewards about on par with other rewards cards easily accessible to college students. As you become accustomed to using credit cards (aka won't drown yourself in debt) you can then look around for other cards that may have better terms or perks, either canceling your old card or keeping it to better organize finances. For example: I use one card for online, one for everyday, one for special order, one for business expenses (that one's required, really). Also makes it easier to pick out fraud if you've got long lists of charges.

Generally speaking, Chase isn't the best in terms of customer service, but they aren't entirely unreasonable. They did allow the occasional forgiveness if late with payment, just don't expect one every 6 months. My biggest gripe is their inability to properly flag my card for overseas use. It's not a deal breaker since cash is actually more convenient, but it's still annoying enough I opened an account with Citi.
 

PieIsAwesome

Diamond Member
Feb 11, 2007
4,054
1
0
I've got a student account from Wells Fargo. Free checking, $700 limit credit card.

Same. Parents cosigned a couple of years ago and I got it. But now the limit has grown to $2400 on its own. Good, bad, I dunno. I pay off my balance, get reward points, and can manage everything online. Seems good enough.
 

Cogman

Lifer
Sep 19, 2000
10,277
125
106
If you want to build your credit, I would suggest getting co-signed on a car with your parents. I don't really suggest getting a credit card.
 

gorcorps

aka Brandon
Jul 18, 2004
30,740
452
126
I've had the Citibank mtvU card for a few years now and I've been quite happy with it. The reward points aren't as good as cash back, but I've gotten a ton of best buy gift cards using them which I've liked. The website is put together nicely and the customer service is solid. My starting limit was $1500 IIRC but it's been extended to ~$4500 right now. Until I lost my job offer all I used it for was a debit card and I paid it off in full every month. Never had any issues.
 

matas

Golden Member
Aug 8, 2005
1,518
0
0
I got a $250 limit cc from discover. Citi cards required me to show income, which I do not have on paper.
 
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