It has occurred to me that I need to get a credit card...

And I don’t like it.

For the past three years I have had a debit card. I love it, it’s easier than checks, and allows me to not carry a lot of cash. I like the idea of actually spending money to buy something, and not but it in credit on the promise that I will pay them the amount. But, the world being as it is, I will need a credit car, and soon. I graduate from college in May, and will need to go out in the “real world” and get a job, apartment, etc…I know there will be times when I need to buy something I can’t afford right then, maybe my paycheck doesn’t come till Friday and I need to pay the electric bill, or my car breaks down and I need to have the engine overhauled.

So I need to know what is a good card for a first time card-holder. Obviously, a low interest rate is desired, but I also know that for a first time card-holder, this isn’t really possible. I am leaning towards a Discover card, but I know that it’s not accepted a lot of places. A Visa or Master Card would solve that problem, but they don’t have cashback, do they? (Of course, the cashback is like 1% or less on the Discover card, so it really isn’t that big a thing.) American Express I don’t like. It’s accepted less than Visa or MC, maybe even less than Discover. It also seems to gear it’s cards toward’s people with a little more money/expereince, or to business owners.

So what are your general experiences with cards? Best, worst, etc?

Check out a credit union. There is probably one affiliated with your school and as a student you’re likely to be eligible, and remain so after you graduate. If they have credit cards, it will be a standard Visa or MC with a reasonable interest rate.

Don’t do it. Big mistake. Others will argue with me but I don’t care. I’ve been there (hell I’m STILL there) and it’s not worth the trouble that WILL come.

Dave Ramsey (www.daveramsey.com is his site, mods feel free to delete if this is against policy. I don’t work for him, just admire his work) is a great financial guru and following his plan I’m about 4 months away from being completely debt free after chopping up my credit cards a while back. It’s not easy to do at first but it’s worth it not having to worry about money in the long run.

Simple run down:

  1. Save $1000 for an emergency fund. Must be forgettable but accessable in case you do need it for car repairs or what have you.

  2. Pay off your debts starting with smallest monthly payment first, then applying the payments on the next highest once the smallest is paid completely (I’m on my last card now)

  3. Save 3-6 months of monthly expenses for your emergency fund

There’s much more, but as a young person about to graduate, you probably wouldn’t be that interested in it as it’s all long term, but I promise, the sooner you start on this the more likely you can live like royalty. Credit Card companies have pounded into your head that you NEED their services but it’s such a crock. You give your bank money to use and they pay you 5% interst on it. Then they want YOU to borrow the money you’ve loaned them and they charge you 16% interest. Who’s the sucker?

I have a credit card and love it, and I’m only 18. My credit card has a credit limit of $1,000, thus even if I were to go insane and max it out, I wouldn’t be screwed over. My visa bill always amounts to an easily paid sum (I pay off the entire sum every month). So long has you’re responsible, a credit card is a great asset and can provide you with an excellent credit history.

At the age of 30, with no credit at all (none bad, mind you, none at all) I decided that if I was planning on getting a house in 2-5 years, I needed to build my credit.

I applied for a card through my credit union. I just needed to provide a letter from a utility stating that I have paid them promptly for 6 months. It was routine for them, and they faxed the letter the next day.

I asked for a $500 limit - I can pay that ammount in full with one of my paychecks. I use it where I would have used my debit card, then pay the entire ammount off.

I don’t ever plan on using it for something that I can’t afford without it, the way this is set up, I can’t screw myself over.

You could attach a line of credit to your checking account and access it with the debit card you’re already using. This could be the solution for emergencies.

When I didn’t have a credit card the main trouble I found was that I couldn’t make big purchases - airline tickets, specifically - or buy things off the internet - airline tickets, specifically. Had to borrow a friend’s card and pay him back, which was irritating because of the withdrawal limits on my (non-chequing) account !

You do not have to have a line of credit to get your first house. Unfortunately my notes are at home and I’m at work, but I’ll let you know what you do need when I get to them. Something like a letter from your landlord, steady job, blah blah…It’s a government program that gets you in without having to ever had a credit card.

And I promise, without a card, I can’t screw myself over either :slight_smile:

Yeah, *Max, I’m interested.

You should definitely consider American Express, because a standard American Express account REQUIRES you to pay all your charges in full at the end of each month - so you can’t get in “over your head” as easily with it as you can with standard credit cards (something you’re obviously worried about).

Once you’ve developed the habit of paying your credit card bills in full each month, you can then get a VISA or Mastercard with a low credit limit and not worry about running up bills you can’t pay.

And there’s absolutely NO need to carry more credit cards than that! One VISA/Mastercard (your choice which) and one American Express Card (which offers a lot of benefits if you’re a frequent traveller) is all anyone needs.

My credit card only has a 500$ limit (I could get more, but haven’t bothered). I use it for groceries and gas mostly, and pay it off within a couple of weeks of the purchase date. I know I can afford it, and its paid off with money from the account I would have paid it with if I had used debit, so its all the same to me. This basic card has no fees, and while the interest rate is high, I always pay purchases off in full so I haven’t paid a penny in interest. I figure it could come in handy eventually to have at least SOME credit history.

BTW, I’m a 22 year old student.

I have to agree with Max Carnage here.

To buy a house without having a “credit history” you need to be (steadily) employed and pay your rent early or on time for two years.
Gravity, you should check out Dave Ramsey’s website. You can listen to his show free online from 2:00 - 5:00 EST M-F and he is on many talk-radio stations across the country. Dave Ramsey saved me from myself :slight_smile: and I recommend him to anyone who’ll listen. His book Financial Peace Revisited is a great read.

I have a credit card. I pay it off in full every month, and the main reason I have it is because 99% of my personal expenses can be charged to the card, which consolodates them and makes it easier for me to track my monthly spending. I also noticed that credit card statements are more detailed and specific when it comes to the places you’ve spent the card.

I don’t reccomend a credit card for someone who can’t live within their means, it will bury them. Having one is a great responsibility, and the risks should be weighed carefully before getting one.

Another vote for having a credit card and simply paying it off every month. Visa now has a measly 1% cash back but it’s better than nothing.

I use my credit card for almost everything and pay it off monthly or even several times month. This way I avoid the service charges associated with using a debit card. My monthly service charge from my bank is $2.50. Previously I used my debit card for almost everything and the service charges add up quickly to $15.00 per month.

Anyway, that’s my $.02

I’ve been to credit hell and back. Maxed out at $56K in unsecured credit debt (I funded a business, rather than buying toys). That’s all gone now, but it sure made the future look cloudy for many years. I don’t even want to think about what I actually paid to make it go away.

That being said, while I haven’t used a credit card since 1996, I do use my Amex often. Despite the claims of the ad campaign, it’s accepted everywhere I’ve wanted to use it. As noted above, the terms of its use prevent you from accruing a mountain of debt, and what I use it for would be much more difficult without it.

I use it for: a.) most often, buying gasoline at the pump, b.) travel, as in purchasing airline tickets, renting hotel rooms and renting cars and c.) remote purchases such as online purchases or sending bottles of champagne to a far away Dopefest that I can’t attend.

It’s useful, and mountain-of-debt-proof.

I also keep a no-annual-fee Visa card with a limit of around $10,000 for the possible eventuality that I might need to transact business with one of those fabled places that don’t take Amex. But, as I’ve said, I haven’t used a credit card since 1996, so I obviously haven’t needed it. I sure the heck wouldn’t buy some goodie with it.