N00b when it comes to Credit Cards

[RedArmy]

Title and summary pretty much say it all. I only need something with a limit of a few hundred dollars and no annual fees. I know they have deals for students currently in college, but is one better than the other or are they all basically the same except for what the reward points might go towards? I went to www.bettercreditcard.com as it was suggested in the IRC chat, plus I went to a few credit card forums but I didn't really learn anything I didn't already know.

Basically, I just want something I can use to pay off small things like gas and cell phone bills and what not, nothing extravagant. I figure I should start trying to build a credit history now so that down the road I actually have one incase I ever need to buy something of value.

Also, I'm not one to impulse buy, so having a credit card won't be my downfall. Thanks for the help ATOT, I :heart: you.

P.S. I searched for credit card in the search and went through many pages and found nothing.

 

[daggerr]

The Citi mtvU card is a fantastic student rewards card that I wish I could get. It is the *only* card available (student or other) that pays 5% rewards at restaurants, movie theaters, book stores, and video rental stores.

That's my personal favorite, but there are other good ones. You can use the rewards calculator mentioned in my signature to see how much various student rewards cards will pay you in rewards for your entered spending profile.

 

[Denithor]

Rewards cards are AWESOME. But ONLY if you use them correctly. Buy stuff. But make absolutely certain you pay the bill off - in full - every month - or they will bury you in fees & interest charges that so outweigh the rewards you'll scream for mercy.

In general, stick with the big vendors (Chase, Citibank, etc) and avoid the small issuers as their cards sometimes have funky rules & restrictions.

EDIT: Just for reference, I have three different rewards cards & rack up >$1000/year in cash rewards. Just this month I cashed in 10,000 points on my Chase BusinessCard for a $100 statement credit and next month I should have enough points for a $250 rebate check from my Chase Freedom card (great card - save up $200 worth of points & they give you $250 back).

 

[Farang]

What I did was when I was 18 I got an overdraft limit on my debit card from my credit union. They gave me $1k and something like 14%. Four years later I have $4k and 8.9% which is unbeatable for someone my age. If you are just paying gas and whatnot you don't need it to access ATMs so using a credit union should be no different than a bank, I would recommend this if you have a good one nearby.

 

[boomhower]

Try and get one from one of the big companies(BoA, City, Chase) and stay away from the lower end(Capital One, Merrick , etc.). Use it and pay it off monthly. For maximum score impact get both a couple of credit cards and store cards. It is best to have at least three reporting revolving lines of credit with a mix of regular credit and store cards. Keep the balances less than 10% of the credit limit. Any higher and it will negatively impact your score.

 

[RedArmy]

Will most of the bigger credit card companies still issue cards with relative ease to people with no credit history? I plan on getting a student card of some sort but on that one website it says for all of them that good credit is needed. I've gotten mail in the past for credit card offers but I just threw them all away and now I don't get any

 

[Denithor]

Originally posted by: boomhower
Try and get one from one of the big companies(BoA, City, Chase) and stay away from the lower end(Capital One, Merrick , etc.). Use it and pay it off monthly. For maximum score impact get both a couple of credit cards and store cards. It is best to have at least three reporting revolving lines of credit with a mix of regular credit and store cards. Keep the balances less than 10% of the credit limit. Any higher and it will negatively impact your score.

Seriously? Wowsers...how have I managed to hit an 807 then?



PS - Don't own a house & I thought that was pretty much mandatory to hit >800 rating?