I am 21 years old, 3rd yr of college, paid every year by myself with my own cash, work FT/school FT. I did have to get a small $5,000 school loan wh/I pay on monthly of $100. That is the only debt I have %26amp; the only thing linked to my credit. I pay cash for everything I buy, if I can%26#039;t afford it, I don%26#039;t buy. Because of this I have an excellent credit score of 712, but with a short history. My mom %26amp; b/f said I should think of getting a credit card and buy my gas with it (I only fill up twice a month at $45 each time) %26amp; pay it off monthly just to establish more credit %26amp; to add length to my credit history. I also have thought of getting one in addition to that idea to use in an emergency ONLY! Would these be legitimate reasons to get one and should I get one? And which one? Reward card, cash back card? Personal/student card? And which provider: chase, citi, capital 1, wells fargo, bank of america? I want low interest, no annual fee, %26amp; only use it for gas %26amp; emergencies.
Serious credit card question!!?
I was in your situation when I was in school having to work and go to school full time, and this is what I did. Instead of getting a conventional credit card, I got a secured card, which pretty much meant that I built my own credit from scratch, I used my own money as collateral to establish credit and I didn%26#039;t let the credit card company tell me how much my credit limit was.
Understand that although you have a 712 credit score, that%26#039;s just a part of it. Aside from the loan you have, you don%26#039;t have that much experience with credit, and it%26#039;s possible you could still get denied. How do I know, because I work at a credit card company making these decisions on whether to say yea or nay on approving and denying people credit. That%26#039;s why I say get a secured card, that way you have the best chance of getting approved, and although you%26#039;re using your own money, you can control your own limit. For example, if you deposit $200, your credit line is $200, and so on %26amp; so on. The more you deposit, the higher your credit line, which helps your credit because it creates a cushion between what you%26#039;re using and how much you%26#039;re able to use. The security deposit can also double as an emergency fund that you can use later on down the line once the card upgrades to a regular card and it%26#039;s not needed anymore.
It%26#039;s good that you have the mentality that you do, because although I have the same mentality, and that%26#039;s why a secured card would work the best. You work hard for every penny you get, and by getting a secured card, you%26#039;re using ALL your money towards the deposit, purchases and payments. When I had one, it had made me more disciplined about using credit cards because my money in the deposit was at stake, and I didn%26#039;t want to lose it. Once I got it back, I had a very high limit, AND I took the leftover deposit and I started up an emergency fund by placing it in a high yield savings account, so I wouldn%26#039;t have to rely so heavily on my credit cards.
But that%26#039;s my story, I thank you for reading.
One more thing I posted several links to some secured card companies that I think will work for you. In my personal opinion, Bank of America has one of the best secured cards overall
Serious credit card question!!?
Pick one with no annual fees. The other stuff doesn%26#039;t much matter.
Serious credit card question!!?
Those are legit reasons to get one, and, yes you should get one, as later on in life when you go buy a house, or any other major purchase your credit will play a crucial role. If you are only going to use it for gas and emergencies then Chase has a BP Visa card which gives discounts on gasoline, and I believe rewards for gas. If you dont want to go that route, you can try a Bank Of America Student Rewards card, they have a catalog which you use your rewards to buy things, you get 1 point for every dollar spent. Bank of America cards have 0% Interest for the first year, and no annual fee.
Serious credit card question!!?
What a lot of people fail to understand is that when used properly credit cards are great! But, the must be used properly. I buy absolutely everything with my credit card and even pay all of the bills that I can with it. The result? I have excelent credit and I only have to pay one bill for it and I even do that online. I dont have to worry about any of my bills being late because they get paid automatically by my credit card and I dont have to worry about if I have cash to buy something. As long as you are responsible to pay it off every month and dont use it on things you wouldnt spend your cash for I say go for it. I have a capital one visa card that earns reward points. All of the %26quot;points%26quot; that you earn with credit cards are over rated but its still a perk for not doing anything extra. I like Visa but mastercard would be ok to with them you can use them almost anywhere. There is no point in having a card that you can only use at a gas station. As to the interest rate dont worry about it because you only pay interest when you have a balance on it for 2 statements so as long as you pay it off every month its like having a 30 day 0% loan. Most real credit cards like a regular visa have no annual fees.
People get themselves in over their heads and then want to blame it on the credit card companies when its really their own fault. As long as you are responsible getting a credit card can be one of the best things you can do for yourself financially.
Serious credit card question!!?
I don%26#039;t have an answer for you, but I want to congratulate you for being responsible. It is so refreshing to read about someone with a good head on her shoulders. Good luck to you.
Serious credit card question!!?
My best card is a Capital One Platinum it pays me 1% cash back on every purchase and an additional 25% at the end of the year.
I use it for everything and pay it off in full before the due date.
It%26#039;s a great way to build your credit. Just remember never exceed 30% of your credit limit in any given month or your score will take a hit.
Serious credit card question!!?
712 Is an excellent Credit score, I can%26#039;t see a reason you would need to build it any more. At most banks if you apply for a loan this would qualify you for the best pricing and is certainly enough to qualify you for things like a mortgage should you decide to buy a home.
GOOD JOB
Serious credit card question!!?
Excellent work! You definitely have a good feel for credit and a good hold on your credit situation. Seeing responsible you are with your finances, I think you should definitely do as you mentioned here and get a credit card to pay only for monthly gas. Pay it off in full each month and you will help to build an ever more solid credit history.
If you are only planning to buy gas, I would get a gas rebate card so that you can get good rewards for these purchases. These types of cards give a higher percentage of cash back or points for gas purchases.
Serious credit card question!!?
May I suggest an even more radical approach. Why use credit at all? You%26#039;re young, you have lots of potential earning power (hopefully) with a college education. Why not bank it now, pay off the loans, and start building a hedge for later. Lots of adults now (some by choice, some by necessity) are having to live on the %26quot;pay as you go%26quot; plan, and they are shocked to find out that it REALLY works.
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