first credit card

[Dr_Girlfriend]

Quote:

Originally Posted by ClaireAvril credit cards = pure evil. i am serious. Get a prepaid credit card and use that.

You speak the truth! There's nothing wose than credit card debt. If you really want one and you have no established credit history, get a secure card through your bank. Your credit limit is determined by the amount of money in your savings account. That way you always have the funds available to pay it off. Also, it'll teach you discipline when using your card for things other than emergency purchases.

When I was first in college, I got an Amex clear card. Although I knew better than to buy things that I couldn't afford, I had NO willpower whatsoever. I've learned my lesson with that. Now my hubby and I don't use cards. We've kept only one account open. That card sits inside a ziplock baggie filled with water and is stored in the freezer. It's there just for emergencies and not for the "ohmygodilovethoseshoes" days.

I don't want anyone to have to go through the stress of getting themselves into debt that can easily be avoided. I hope this helps.

 

[COBI]

The only reason to pay to use your own money (i.e. secured credit card) is to build your credit. Otherwise, paying to use your own money is not generally a good financial choice.

If you're not trying to build credit, you can just get a debit card (debit cards will not impact your credit at all, so you won't establish credit by using it.) If you have trying to build credit, secured cards are for sub-prime and often have the following stipulations:
1. 50-100% of your deposit is available as your "credit line"
2. You have to come up with the initial deposit (generally $500-$1,000)
3. You will likely have to pay application, processing and annual fees.
4. Generally you will pay higher interest rates on the outstanding balance. That's right, you are not withdrawing your money, you are borrowing from them with your money as collateral in case you don't make your payments, so you get to pay interest, and because it is a "sub-prime" product, those rates are generally higher (and in many cases grossly higher) than a standard credit card.

These are just some of the reasons why a secured card does not make sense for someone who does not need it to establish credit particularly someone who qualifies for a nonsecured card.

 

[xxsgtigressxx]

Here's my advice: ONLY HAVE ONE CREDIT CARD. don't go opening up cards wherever. Every department store wants you to open one up and then you'll get a discount for the day (I worked for both Bloomingdales and Macys) and they are trouble! Extremely high interest rates. I have seen almost all of my friends get into horrible credit card debt and get harassed day in and day out. Only charge what you can afford, and on ONE credit card. I went with Visa for my first credit card (on my own, I used to have an American Express that was attached to my parents when I was younger) because Visa is accepted everywhere. Just be warned! especially with the economies slump that it is VERY easy to fall into crushing debt, ruin your credit, and be paying off astronomical bills for years to come + late fees and interest. Oh and sign up for the card protection (its a fee) but it basically protects you from interest fees, late fees, and credit damages if you lose your job.

 

[*Stargazer*]

Quote:

Originally Posted by COBI As far as ongoing services, I personally subscribe to "score watch" at myfico.com and am notified of any changes to my credit report and score.

I'm a score watcher, too.

MyFico.com is one of the only places to get your FICO scores (I believe WAMU customers with a specific card can get a PFICO score each month). Generally, only the scores through the FICO site are an accurate representation of the scores that lenders see. If you are offered a credit score and it doesn't say that it is a FICO score, you can be misled as to the true state of your credit worth.

FICO will also tell you that a good mix of credit (bank cards, auto loans, mortgages etc.) are one of the keys to a high score. Start with one card, but a good plan includes building a portfolio of available credit. Also, the more credit you have available on a revolving basis, the easier it is to keep your utilization low, another key to a high score.

 

[darkwater_soul]

I would suggest also making sure you ask for a low line of credit - like no more than what you could essentially pay off in a month if you ran it all up, like 300 - 500. That'll keep you from completely screwing your score. HOnestly, how I do my cards - I put my Xmas gifts on them, then paid it off, and I put my gas on it for the month, then pay the card, knowing how much is already earmarked for it.

 

[abbey_08]

credit cards are evvvvvvil! dont get caught in the minimum payment trap. minimum psyments are the devil! you think you can get away with it one month but its easy to spiral out of control. and watch for them putting your credit limit up and up...thats another way they lure you into debt.