I have absolutely no credit and would like to get a credit card. The only problem is that the only ones I have seen that woould approve me have a huge security fee that you have to pay and a big annual rate. Does anyone know any good ones that I could look up, any help would be appreciated.
(feel free to move this thread if this board is not appropriate for the question)
I’m not trying to rain on your parade here or anything but if you have no credit cards, count yourself as lucky & keep it that way. Or at least read this book first, then get a credit card if you must. Had I read it before getting my first credit card I think I would have never gone down the credit path. Why not open a separate checking account from your main one, get a Debit card and put cash in it to spend. Once it’s gone you stop shopping. The trouble with credit cards is they allow you to live beyond your means which is well, beyond your means. It gets ugly - just look at the number of bankruptcies in America (assuming you are an American).
If my advice is out of line, I apologize.
Slainte, the Girl who has paid way too much credit card interest over the years… and who is delighted to be paying off and destroying her credit cards.
Best Wishes.
Department store cards gas cards, and getting student loans are classic first steps. Get a checking account and a savings account too.
I’m not going to judge the use/non-use.
But, the steps above are important. Also, if possible, get setup as an authorized user on someone’s account, or pony up for a secured card that requires a smallish deposit…local and smaller bank cards where you do your checking.
Phil - resident credit expert
Are there any student cards around your area? I’m not really familiar with the US system. I know in Australia, at least one of the banks offers a student credit card with no security fee, no annual fee and 55 days interest free.
Just a question here - if you do get on someone else’s account, can you be held liable should they not make their payments? If so I would skip this idea.
OMIGOSH! I’m a college student and I get at least 3 credit card ads a week in my mailbox (not to mention spam). They love to get naive college students - that’s why I only got one, and I never spend more than I have in my checking account. I paid no starting fee, no annual fee, and I’ve never paid interest (I pay everything off before the end of each month).
Just apply at a university - they all sell our addresses to credit card companies and car dealerships. You’ll get a million GREAT deals!
Yeah, in my experience they have no issues with giving credit to college students who absolutely do not deserve it based on their applications. I filled in an annual income of $600 and they gave me a $2000 limit. Something a bit off there?
I’m interested in this too, and I started a new thread about it here .
The credit lines they’ll extend to students is ridiculous. Mine has been raised several times, to the point that it’s nearly half my annual income.
To the OP: if you don’t have a checking account, get one, and maintain it for several months. Get a debit card if you can. This should qualify you for a department store or gas card or two. After that, you should be able to move up to an unsecured Visa. Shouldn’t be too difficult, as long as you currently have NO credit, rather than BAD credit.
HTH
My card is a student card from Capital One. They’re online (try the obvious site) and I have no yearly fee or anything. Its all very warm and fuzzy.
On use, make sure you pay off everything every month. I use my card all of the time, I like it better than paying cash or having to keep track of my checking account on a daily basis. However, I know that I pay it in full, every month. (My checking account is not a place where I let money sit. I put money in it for specific purposes, specific checks.) This lets me keep my money in my intrest gathering savings account for a few extra days, avoid carrying cash, and I can track what I spend money on.
You just have to be careful with it.
However, if your bank offers a debit card, most debit cards are backed by a credit company and can be used just like a credit card, with it coming straight out of your checking account.
Lots of good advice here about paying your card off in full every month but the harsh reality tends to be that most people do not. If you think you have that self-discipline then go for it, but with the realization that it is entirely possible that you will eventually reach a point when you will start justifying making a partial or minimal payment.
My advice is to get the gas card first. A lot of them require that you pay it off every month. Excellent training if you want to become part of that 1% of Americans who pay off their credit cards every month.
Good luck.