# What credit card should I apply for? (if any) **URL:** \ **Category:** Factual Questions\ **Created:** [February 3, 2005, 8:04am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144 "2005-02-03T08:04:04Z")\ **Posts on this page:** 14\ **Page:** 2
**Author:** ![Martin\_Hyde](https://avatars.discourse-cdn.com/v4/letter/m/47e85d/32.png) [@Martin\_Hyde](https://boards.straightdope.com/u/Martin_Hyde)\ **Post date:** [February 4, 2005, 5:20am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/21 "2005-02-04T05:20:17Z")
> [@Jonathan Woodall](#): > > A couple of other items: > > Know that the more cards you apply for, whether or not you get them, the more your score drops. If you don’t plan to apply for any credit in the next year, then fine. > But applying for credit more than twice a year hurts your score, and if you apply more than 10 times, I have no idea how big a hit you’ll take. It may be substantial. > > This board has people who are knowledgeable about credit in general and credit reports in particular. > [http://consumers.creditnet.com/straighttalk/board/](http://consumers.creditnet.com/straighttalk/board/) > > This board has more of an emphasis on different credit products. > [http://www.creditboards.com/forums/](http://www.creditboards.com/forums/) Yeah, any check on your credit report will hurt your chances of getting a credit card in the immediate future. When I was in college I had to take out a _lot_ of student loans to afford books, tuition, housing (even working in college you don’t make the kind of money you need to finance yourself.) My sophomore year after I took out the majority of the loans that covered the rest of my education I decided I was going to get a credit card for two purposes 1) consolidate most of my purchases into one easy monthly credit card bill so I don’t have to keep meticulous track of debit card purchases, and 2) to build a good credit history. After researching cards AmEx had the best offers/features for students. I was surprised to get rejected, and the leason listed was quite clear: too many credit checks on my account within the last 12 months. The lender I got 3 loans from did 3 credit checks on me and that’s why I couldn’t get a card. I decided to wait awhile before applying for another one and then applied for a Chase card which I used for awhile. ---
**Author:** ![Thinktank](https://avatars.discourse-cdn.com/v4/letter/t/6a8cbe/32.png) [@Thinktank](https://boards.straightdope.com/u/Thinktank)\ **Post date:** [February 4, 2005, 5:24am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/22 "2005-02-04T05:24:39Z")
I feel obligated to respond, not because have loads of info to provide, but because 2 years ago my Polish wife came here with no history to her name and a very hard-won SS# :smack: … It would seem your banker dad, would be able to break this all down for you, but here’s what we did… some of course will not work for you because you are single and my wife had me… I have credit history only because I do close to nothing with whatever I’ve somehow gotten it with, so when my wife needed a cell phone they offered us up to 7 accounts… :eek: “no thanks, one’s fine” I put her in my name, yet we shared the credit history that was accrued… Once you have a good relationship with your bank, I would presume you would be about to take out a loan… use a small bit of that money, but leave it alone then pay back your loan with the money you borrowed and make sure you can not only replace, but add to the amount you used as the percentage rate will probably make what you borrowed much more… how much more depends on your terms of the agreement and time you hold onto some of the loan. In almost every case, my wife had brought her name to the front of credit history with only one thing, dual ownership, so sorry that option is off-limits for you unless you can get a co-signer to fit in the agreement then you could technically do the same thing… also spending is obviously a good thing (for credit history) especially when you can afford it :rolleyes: … otherwise your “efforts” have the opposite effect… major things everybody needs like a car, a phone, housing? utilities? it’s my opinion that they put you on the credit history map… I hate credit cards personally, but they seem necessary and soon, I’m betting my wife will have much better history than mine… :eek: ``` Sometime back we got a USAA card together, since they handle our Car insurance and my dad and brother both recommended them, we gave it a try... it's been a year now and they just mailed my wife a sheet of checks, that happens whenever they are impressed with your good standing or they want you "onboard" ... I immediately cut up my card when the account was first opened as I am horrible with finances and a problematic late payer... besides the whole idea was to use my name to get her big-time points in her credit history and it's working. ``` She’s incredibly responsible and only after a year of watching, she’s doing her own taxes this year… I myself am just learning how money works and have realized how incredibly behind I am with it all… the point to make to yourself in regards to “evil cards” and the like would just be that fear creates such attitudes. The more the understand about what you’re afraid of, the less you fear it 😉 good luck with the greencard… I know it was hell to make it this far, but it will get easier…don’t give-up! (…it’s what everyone else is expecting ---
**Author:** ![Dr\_Paprika](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dr_paprika/32/3042_2.png) [@Dr\_Paprika](https://boards.straightdope.com/u/Dr_Paprika)\ **Post date:** [February 4, 2005, 5:37am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/23 "2005-02-04T05:37:42Z")
You could get a Visa or MasterCard. It probably doesn;t matter – get the best terms you can. If you want a good credit history, however, you should: - apply for one card only - pay off the balance every month - leave the card at home if going places where number #2 will become difficult ---
**Author:** ![HanoNymus](https://avatars.discourse-cdn.com/v4/letter/h/ee59a6/32.png) [@HanoNymus](https://boards.straightdope.com/u/HanoNymus)\ **Post date:** [February 4, 2005, 5:57am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/24 "2005-02-04T05:57:55Z")
Other than **Obsidian** ’s solution (which is a good one for building up credit history) I would stay away from using credit if I could help it. Something _always_ happens. Not now, not tomorrow, maybe not in a week. But chances are that within a year you’ll have a bigger balance than you’d like to. It’s _extremely_ hard to pretend you don’t have a card. Plus, beware of late payments. Make sure you set them up to be paid automatically. I didn’t, and last month I forgot to make a payment. I just _forgot_ about it. Yes, it can be useful in building a credit history and in emergencies. But not much else. ---
**Author:** ![dlack](https://avatars.discourse-cdn.com/v4/letter/d/b5ac83/32.png) [@dlack](https://boards.straightdope.com/u/dlack)\ **Post date:** [February 4, 2005, 1:11pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/25 "2005-02-04T13:11:28Z")
> [@recurriman](#): > > 2- I can build credit by charging things to my credit card and immediately paying the balance off (as in, within minutes or hours, well before the 15-25 day grace period expires) . > > I have my doubts about #2. See, my plan all along was to use the credit card in that fashion but it seems too good to be true. If I do that, the CC company doesn’t get any money from me other than the annual fee. How am I going to be a desirable customer then? Even if you pay off your balance every month and get a card with no annual fee (both things you should do) the credit card company will make money from your use of the card. The businesses (gas station, grocery store, everywhere) pay the credit card company in order to have the credit card machine and transfer the money. The only person you’re helping by paying interest when you don’t need to is the credit card company. Also, I always pay my credit card bills online. Saves the worry of writing checks and not knowing if it will get there in the mail. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [February 4, 2005, 3:23pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/26 "2005-02-04T15:23:33Z")
> [@dlack](#): > > Even if you pay off your balance every month and get a card with no annual fee (both things you should do) the credit card company will make money from your use of the card. The businesses (gas station, grocery store, everywhere) pay the credit card company in order to have the credit card machine and transfer the money. > SNIP For the record, here is a sample credit card merchant agreement I was offerred by a Big Local Bank ™ when I was self-employed a couple of years ago: Pay them $4000 over 4 years to buy the credit card machine. 1. Pay $0.35 per transaction, in addition to 2. 1.7%-1.8% of transaction amount for Visa/Mastercard purchases. 3. 2.2% of transaction amount for Discover Card purchases. 4. 2.3% of transaction amount for Amex purchases. Now I don’t know about you, but I would LOVE to make just under 2% of all the money that passes through let’s say… my local Wal-Mart’s hands in credit card form. A CC issuer doesn’t need to charge you interest or fees to get rich off of you. He just needs for you to use his card enough to cover his administrative overhead. ---
**Author:** ![spingears](https://avatars.discourse-cdn.com/v4/letter/s/ebca7d/32.png) [@spingears](https://boards.straightdope.com/u/spingears)\ **Post date:** [February 4, 2005, 4:00pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/27 "2005-02-04T16:00:00Z")
Get a Credit Card (from your bank) — IF and Only IF: 1. You have the discipline to use it for necessities only. 2. You can pay off the balance, on time, every month. Reasons are to avoid spending ANY money for finance/carrying charges. ---
**Author:** ![FilmGeek](https://avatars.discourse-cdn.com/v4/letter/f/b19c9b/32.png) [@FilmGeek](https://boards.straightdope.com/u/FilmGeek)\ **Post date:** [February 4, 2005, 4:15pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/28 "2005-02-04T16:15:10Z")
Annual fee? I’ve never in my life had a card with an annual fee. Avoid avoid avoid. ---
**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\ **Post date:** [February 4, 2005, 4:16pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/29 "2005-02-04T16:16:32Z")
Having a credit card is really almost a basic necessity for in modern America. Without one it is a pain to rent a hotel room, rent a car or buy anything mail order. I am sure you can do all of the above without a card but it will be much more of a hassle. Get one with no annual fee. Also ask around your friend to see how long the period from receiving the bill to when it is due is. Some cards seem to be longer than others. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 4, 2005, 5:11pm UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/30 "2005-02-04T17:11:43Z")
> [@recurriman](#): > > Well, you’re right. If i have to actually mail the CC company a check or call them on the phone to pay off my balance, It’s very likely that I will slip. > > The steps I want to follow go something like this: > > 1-Get a credit card > > 2-Log on on credit card website and fill in my Bank savings account. > > 3-Set it up so that whenever I’m supposed to pay my credit card balance, the money is automatically withdrawn from my savings account (without me having to do anything) > > 4-Whenever I purchase a $XXX item using my credit card, login into my bank’s website and transfer $XXX to my savings account from my checking account. That ensures that I know that money is no longer mine and that when the time comes, there will be money to cover my credit card balance. > > 5-Profit! > > Is there any flaw to my thinking? Is it common for credit card companies to allow you to do that? This will work - it’s how I’ve got my credit cards set up. However you’ve got to make sure the servicer’s website allows you to specify “pay in full” versus “pay the minimum required payment”. We have one credit card that we run all our routine expenses through, then pay _in full_ every month. The website does not make it easy to pay in full - all the defaults are “pay just the minimum”. The bank probably doesn’t love me quite as much as if I carried a balance, but too bad. They haven’t dumped me yet, so they must like me OK. You can also make payments multiple times during the month, from the websites. We’ve done this when, for example, we’ve gotten reimbursed for a healthcare expense that was charged on our card. Sure, we could deposit that money in our savings account, and collect a penny or two of interest during the grace period, but it’s too easy for that money to, uh, disappear before we pay the bill. So we get it out of the way immediately, even before the bill comes in. One trick to keep an eye out for: changing payment-due dates. Our primary card would be due on, say, the 5th of the month for a while, then one month it’d be due on the 3rd, or the 2nd. No clue why, except that perhaps the bank was hoping we wouldn’t be paying attention, and miss our due date, and thereby incur fees and interest. So you can’t just relax and pay the bill about when you think it’s due, you have to watch it like a hawk. If you get a card that has “perks” (cash back, frequent flier miles or whatever), DO NOT carry a balance. The interest rate will more than wipe out any “profit” you make. Don’t worry that the bank isn’t making any money - they get a cut of every purchase you make, even if you don’t carry a balance / pay interest. That’s how they pay for the perks - interest charges are just gravy. You mentioned overdraft fees being Evil. Yep. Don’t pay them. Well, watch your account like a hawk and don’t incur those fees. Fees like that are a pure waste of money. If you want, you can apply for an overdraft line of credit. That’ll avoid overdraft fees - _plus_, that should help build credit if you monitor that and pay it off promptly. I _have_ heard of banks jacking up annual fees or interest rates for people who don’t carry a balance. I haven’t encountered such a bank yet but if that happened, you’d better believe I’d close that account the same day. ---
**Author:** ![recurriman](https://avatars.discourse-cdn.com/v4/letter/r/8dc957/32.png) [@recurriman](https://boards.straightdope.com/u/recurriman)\ **Post date:** [February 5, 2005, 12:43am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/31 "2005-02-05T00:43:36Z")
Ok, it’s good to know that my plan can work. Of course, I’ll need to find out whether the option is present on the website of whatever card I get approved for. It might be tricky but i’ll remember to make it a priority. ---
**Author:** ![Garfield226](https://avatars.discourse-cdn.com/v4/letter/g/9e8a1a/32.png) [@Garfield226](https://boards.straightdope.com/u/Garfield226)\ **Post date:** [February 5, 2005, 3:01am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/32 "2005-02-05T03:01:36Z")
> [@recurriman](#): > > 1-Get a credit card > > 2-Log on on credit card website and fill in my Bank savings account. > > 3-Set it up so that whenever I’m supposed to pay my credit card balance, the money is automatically withdrawn from my savings account (without me having to do anything) > > 4-Whenever I purchase a $XXX item using my credit card, login into my bank’s website and transfer $XXX to my savings account from my checking account. That ensures that I know that money is no longer mine and that when the time comes, there will be money to cover my credit card balance. > > 5-Profit! Actually, a minor nitpick: I go the other way 'round. Fill in your _checking account_ info on the credit card’s website, keep your money in _savings_ and transfer it to checking only when you need to. This way you’re earning interest (unless, of course, your checking earns you interest too). ---
**Author:** ![recurriman](https://avatars.discourse-cdn.com/v4/letter/r/8dc957/32.png) [@recurriman](https://boards.straightdope.com/u/recurriman)\ **Post date:** [February 5, 2005, 6:41am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/33 "2005-02-05T06:41:32Z")
> [@Garfield226](#): > > Actually, a minor nitpick: > > I go the other way 'round. Fill in your _checking account_ info on the credit card’s website, keep your money in _savings_ and transfer it to checking only when you need to. This way you’re earning interest (unless, of course, your checking earns you interest too). Neither account earns me interest actually so it’s a non-issue. ---
**Author:** ![recurriman](https://avatars.discourse-cdn.com/v4/letter/r/8dc957/32.png) [@recurriman](https://boards.straightdope.com/u/recurriman)\ **Post date:** [February 10, 2005, 6:56am UTC](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144/34 "2005-02-10T06:56:55Z")
This thread has been dead for a few days but I figured some of you would appreciate a follow up so here goes. From your comments and some further investigation thanks to the links that were provided, i figured out that the AmEx student blue card was considered the best option out there. So I applied and, to my surprise, got approved today. Let the spending spree begin!!! I keed, I keed. PS: they actually called me because they ran a credit check and couldn’t find me. So much for the theory that you need a credit history to get approved for an Amex [Previous page](https://boards.straightdope.com/t/what-credit-card-should-i-apply-for-if-any/288144.md?page=1)