I’m 25 years old, and I’ve never owned a credit card. But at this point in time, it is advantageous for me to consolidate my debt onto a credit card and pay only one payment per month.
However, my credit is less than perfect. Er, scratch that. My credit isn’t great at all. Several factors have led to this, but they’re not important. Anyway, would someone be able to recommend a credit card that I could obtain with not-so-great credit that won’t screw me if I miss a payment? I’ve thought of Capital One, but I through posts like this and this, I’ve decided that they’re probably not the best company to go to.
One way to start is to get a store credit card. Stores are usually more forgiving on credit problems, and if you use it and pay it off regularly, it will improve your credit rating so that you can get a better card.
Of course, many stores now use a branded MasterCard/Visa, so that may not work.
I’ve had luck with BankOne, AT&T Universal Card, and Sears. But I do have pretty good credit.
Store credit cards aren’t going to help you consolidate though.
I have a Capital One ‘secured’ credit card - due to a REALLY bad credit rating - but it’s better than nothing. You could probably get a regular one from them.
I haven’t had any problems with them - a couple of times there were charges on my bill that were not mine and they reversed them right away for me, and they closed my account each time without squawking and gave me a new card.
Don’t apply for a bunch of cards though - every time you apply for credit, they do a credit check on you, and that shows up adversely on your credit report. So if Visa does a credit check and they see that you’ve applied for a Mastercard, that counts against you.
Why not check with your bank first and go for a personal loan? Worth a try …
IMHO (and that *is * where we are), as a 20 year veteran of credit card use, abuse, neglect and disuse, the best credit card you can get is the one that lies in two or more pieces on the table in front of you. The road I’ve taken has led me to the most sound conclusion that there is no substitute for disciplined budgeting and savings.
It’s an old song, but unless you actually plan the card’s use into your budget (I will buy groceries only and pay it off every month–no exceptions) those little bastards have a way of getting away from you. Before you know it you are financing a living which is beyond your means and the only way to get by is more credit. It’s a lot like heroin that way, really. And then you crash.
If you’re concerned about building credit, get a store card (Target is easy) and carry no more than a 50% balance on it, but always carry a balance. Basically, buy a vacuum cleaner & apply for a new account for the 10% discount. Destroy the card when you get it in the mail & make payments on the account. When you get room for another $100 or so to put you back up to the 50% mark, call the card company, request a replacement card, buy $100 worth of Target stuff and destroy the card again. Gas cards are good too, especially if you’re prone to running yourself out of gas.
If you must get a credit card, refuse to accept an annual fee (they’ll be getting their money in the interest charges, no need to pay a “fee” on top of it all), or at least draw the line at $20 or $30.
Credit score is a mysterious algorythm, but things that matter are the age of the account, your OVERALL debt in relation to your total available credit (keep at or below 50%) and your demonstrated ability to pay on time. Bad news withers over time so don’t sweat the past.
Sorry. If you’re into debt consolidation and have a car that is paid off you can “refinance” the car at many banks. That gives you a chunk of cash that you can use to eliminate revolving credit in exchange for installment credit–which is a far nicer way to have your eyes plucked out and your groin abused.
Getting a credit card is not the best solution to your problem, particularly if you plan to miss a few payments here and there. Any late payment gets reflected on your credit score as a negative - when trying to rebuild credit, that’s a bad thing.
Develop a relationship with your bank. Arrange for a consolodation loan. Pay it judiciously.
You’ll eliminate the urge to overspend with a card, and you’ll rebuild your credit at the same time. Additionally, you’ll develop a strong relationship with your bank so that in the future when it’s time to apply for a mortgage or other loan you’ll have a leg up, as opposed to some shmoe off the street.
I’m not very worried about my credit rating at the moment…I’m not planning on buying a house or financing a new car anytime soon. However, I will be taking everyone’s advice and talking to my bank to see what they can do for me. Inigo, borrowing against my car (which is paid off) sounds like a splendid idea! Thanks for the advice, everyone!
