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TheMosco · May 1, 2008, 07:32 PM

So I just finished my last college class on Tuesday. I start work in about a month. I have never had a credit card, but figured i should get one.

I don't have much comparably in terms of college loans and I will be living at home for a couple months. My salary is very good. I am looking to not get screwed.

Is there any reputable place online to compare different cards? I thought I found some place a couple weeks ago, but now I can't find it.

turtle777 · May 1, 2008, 11:40 PM

First off, if you haven't started building your credit score through other means (loans, secure credit cards), you will have a hard time just picking *any* credit card, because many lenders won't trust you.

I'd start with two secure credit cards (where you have to make a deposit), and then use them once a month just to have activity on them. Pay them off immediately, and after a year or so, you can turn them into regular cc's. That''s help you credit score, and then you can start going for better cards in terms of terms & conditions.

-t

phantomdragonz · May 1, 2008, 11:52 PM

try to get a "student" card, I had basically no credit, and I got one through chase... I use it and they keep upping my limit, I pay it off on time and usually in full (although this last holiday season I had a $400 balance it seemed at all times)

anyways I went from a $1000 limit to a $4500 limit in like two to three years, they just keep upping the limit... I get pre-approvals in the mail all the time, but I only have ONE credit card and I never spend more then I know I can pay off (within reason)

I plan on buying a car this summer and getting a small loan ($4-5K) on a $9k car, hopefully this will help my credit out a lot, it's kinda scary how good credit in the future will make life a lot easier!

get one, and build some credit!

-Zach

Lateralus · May 1, 2008, 11:59 PM

I had the hardest time getting approved for a CC.

But I finally caught some traction when Target approved me for one of their cards. Which was then followed by a Wal-Mart card. Which was then followed by a NewEgg Credit Account.

And then... the light shined; Got approved for Amazon's Chase Visa card. Not only do I love it for being my first card, but I love the benefits of using it; $25 Amazon credit upon approval, decent interest rate (14%~), 1pt for every dollar spent anywhere, 3pts for every dollar spent on Amazon, and a $25 Amazon gift card for every 2500 points.

And a $2,000 limit right off the bat.

turtle777 · May 2, 2008, 12:05 AM

Btw, one of the best methods to build credit is to get a small loan, even if you don't need it.

Get a $ 300 loan from your bank, put it into a savings account and pay it off over at least 12 months. That'll build you some great credit history.

-t

torsoboy · May 2, 2008, 01:33 AM

Originally Posted by phantomdragonz

I get pre-approvals in the mail all the time, but I only have ONE credit card and I never spend more then I know I can pay off (within reason)

You may want to re-think that strategy... most anything you want to buy will look for two or more lines of credit that you have had over a long amount of time. One is okay, but two is better.

Just FYI.

Railroader · May 2, 2008, 10:38 AM

Laminar... paging Laminar...

Zeeb · May 2, 2008, 10:49 AM

It's a good sign that you managed to resist credit card offers up to this point. Those companies market to college students pretty aggressively. I think turtle's advice is good about getting a small bank loan and building it up that way.

Once you have credit cards, its very easy to get caught up in the debt culture and banks convince you that it is responsible for you to "build" credit by opening credit card accounts. A relative just went on an expensive vacation and lo and behold--her car broke down when she got back. Of course she didn't have any money to fix it. She said she "needed" that vacation.

Sorry, got on my soapbox again.

You sound responsible, I'm just venting. Credit is evil. All you need is money to pay for stuff.

A link for you:

Regulators zero in on credit card reform - May. 2, 2008

Dakar the Fourth · May 2, 2008, 10:53 AM

Originally Posted by Railroader

Laminar... paging Laminar...

How quickly we forget.

CMYKid · May 2, 2008, 11:11 AM

You probably do NOT want to go to the trouble and expense of getting TWO collateralized cards, however having one isn't a bad way to go if you have absolutely no other options. DO be sure to get one that converts to a standard card after a guaranteed period of on-time payments.

Your better option would be to hang on to your student status, or at least pretend to, and pick up some credit card apps from around campus. Even in the current economy credit card companies absolutely love to give cards to students because overall their parents tend to pay them when the students are otherwise unable.

Probably the most comprehensive site I've seen lately best for comparison of available cards, including secured cards, is CardWeb.com, Inc. - The U.S. Payment Card Information Network - CardWeb.com, Inc.

--------
...annnd apparently they've changed things there but you can go directly to the comparison section at CardTrak.com - Search Card Offers

Zeeb · May 2, 2008, 11:44 AM

Originally Posted by CMYKid

Your better option would be to hang on to your student status, or at least pretend to, and pick up some credit card apps from around campus. Even in the current economy credit card companies absolutely love to give cards to students because overall their parents tend to pay them when the students are otherwise unable.

Those CC companies also know students are more likely to use them on impulsive purchases-- and become comfortable with the idea that luxury consumer goods are actually "needs".

SVass · May 2, 2008, 12:55 PM

You should get an account in a local credit union or bank or S&L that allows transfers of money between accounts via the web. They should offer a credit card for customers and if you choose wisely, then you will get a warranty extension free for any goods purchased via the card. Some large employers have connections to local credit unions with automatic deposit of pay checks, etc. sam

phantomdragonz · May 2, 2008, 01:54 PM

my philosophy is that I only need one card, why have two? two may build my credit faster, but i dont want to deal with the hassle of another account nor with fear of identity theft. I have one card and I rarely hold a balance on it but I use it...

I plan on getting a small(ish) loan soon...

it seems like a dumb idea to get a bunch of cards just to "build" credit when one card is great for my needs, and the limit on that card is more then enough to get me out of a temporary "Sticky" situation (broken car, stranded, etc)

-Zach

torsoboy · May 3, 2008, 07:13 PM

Originally Posted by phantomdragonz

it seems like a dumb idea to get a bunch of cards just to "build" credit when one card is great for my needs, and the limit on that card is more then enough to get me out of a temporary "Sticky" situation (broken car, stranded, etc)

-Zach

However it seems to you, it is a good way to do it. If you can't handle managing two cards (paying them back, not overusing them, etc.) stick with one. But then get another line of credit... possibly a small loan like turtle777 suggested.

Sticking with a single line of credit will limit your haggling options on the interest rate when getting a home/car/business loan in the future. Think of it as building your credit on small amounts of debt that can be paid off monthly rather than paying a much larger sum later on when buying a home/car/etc. with an interest rate that will cost you much much more.

/off topic

cardtrak (CardTrak.com - Search Card Offers) is a great source when looking for a card.

turtle777 · May 3, 2008, 08:54 PM

Originally Posted by phantomdragonz

it seems like a dumb idea to get a bunch of cards just to "build" credit when one card is great for my needs, and the limit on that card is more then enough to get me out of a temporary "Sticky" situation (broken car, stranded, etc)

You need to be clear on WHY you get the card.

Is it for emergency use, or to build your credit score ?

You seem to mingle these two together.

-t

phantomdragonz · May 4, 2008, 01:25 AM

Originally Posted by turtle777

You need to be clear on WHY you get the card.

Is it for emergency use, or to build your credit score ?

You seem to mingle these two together.

-t

I got it for both... I use the card to buy expensive things (so I wont totally zap my bank account) and to be sure I have something to fall back on if I need it.

I try not to be wrapped up in the urge and need to "build" credit, I am thankful that it is a result and I am aware of its benefits but I dont chose to go overly out of my way to "build credit"

I hate being in debt, the only situation I plan on being in a large amount of debt is with a house, which is (hopefully) more of an investment...

-Zach

TheMosco · May 4, 2008, 04:11 PM

Originally Posted by torsoboy

cardtrak (CardTrak.com - Search Card Offers) is a great source when looking for a card.

Thanks, I will def check it out.

There are several reasons I am looking at a credit card. I use my debit card for everything now, and it just don't like lack of security. Credit Card companies seem to offer so many more services from fraud protection to extended warranties. Of course, building credit is also a goal, but I am not getting it just to build credit.

Lateralus · May 4, 2008, 04:23 PM

Best Credit Card Offers - Cash Back Rewards & Credit Cards Deals

Laminar · May 4, 2008, 05:04 PM

Originally Posted by Railroader

Laminar... paging Laminar...

I didn't even check this thread until today, because I figured it would be boring and I already admitted that my credit jokes were a failing running gag. But I think this has renewed my vigor.

FireWire · May 4, 2008, 05:28 PM

I think it would be a good thing to get a credit card, even if you don't really need it. First of all, you will actually save money, if you use it correctly. Most banks charge transaction fees each time you make a debit purchase or a withdrawal. Credit cards, on the other hand, don't charge you anything when you make transaction.

What I suggest is opening a saving account with a good interest rate (I use ING Direct), and wire the money you plan to spend on your credit card for the month to that account. Then use your credit card to purchase things you would normally have bought with your debit card (grocery, gas, etc). Then at the end of the month, transfer your money back to your regular account and pay off the credit card. That way, you save on bank's fee and earn interest at the same time!

Even better, get a CC with a good bonification program. Since I got my first credit card 7 years ago, I earned about 1000$ by doing nothing special...

Finally, I think it's important to build a good credit, even if you don't see the point now. You will eventually need to get a large loan (car, mortgage, etc) and your good name will come into play to score a good rate.

phantomdragonz · May 5, 2008, 12:14 AM

most U.S. banks do not charge any fees for debit transactions, most dont charge for withdrawals at thier banks ATMs and even fewer charge for cash back...

it's rare for me to carry cash, I use my debit for EVERYTHING day to day. the only time I carry cash is when I know I will need it and to pay parking meters (although those accept debit/credit now too!)

most everyone I know uses a debit card as a main form of payment...

I happen to work at a grocery store and see the amount of transactions that are paid with debit vs. credit vs cash... credit is still king, debit is close to it, and cash is far behind...

-Zach

I have had to replace my debit card every two years because it gets worn out, the signature part is currently completely gone on my card...