Credit card questions

[teufelhunden]

Got a couple of questions...

First: I have no credit [not bad credit, no credit] and I'm looking to build some. I heard from a bud of mine who was told by his econ professor that if you get a credit card, even if you don't ever use it, you still build positive credit. Is this true?

Second: I'm looking to get a credit card regardless of the answer to the above question. Does anybody know of a good credit card for a 19 year old student with no credit? I know I'm not looking at getting.. um, any real rewards cuz I won't spend enough money, but something with good possibilities is nice. I have an account with Fleet/Bank of America, if that matters.

Third: Anything to watch out for, other than the standard pay on time and don't get into debt?

Gracias.

[fire1811]

chances are your first credit card is going to be ha HIGH interest card so make sure you pay it off every month.

also put a low limit on the card.
saying you wont spend that much and not spending that much are way different.


also check with the bank you have a checking/savings account with, a lot of them offer cards

[trevorjk]

my first credit card was a low interest with high penalties. i had an 8.9 interest but late fees would absolutly kill me, but then again any reasonable person can pay there dues.

i say if your going to get your first card go to your bank and ask for a very low limit say $500 and see what you can come up with. they more then likely will approve you and get you started.

just be prepared, as its going to make you want to use it all the time... even if you are a hermit who refuses to spend a penny.

[frontrunner]

heras what you do. get a card its gonna have high rates but don't worry. use it to buy simple things you would buy anyway, i tell my friends use it for gas then at the end of the month pay it off and you not owe any interest. gas works great cause i send about $60 a month in gas and its something i'd buy anyway. do not use it to buy toys, do not use it to buy things you don't have the money for. i use mine half the time like its my debt card.
hope that helps good luck

[Kevmaster]

you'll need to use it to gain any substantial credit...but using it and paying the money back on time (NEVER LATE) will increase your credit rating. although, a 19yo student shouldn't be too too concerned with his credit

[teufelhunden]

Well, I applied for a Citibank student mastercard. It's 5% cash back at gas stations, drug stores, and supermarkets and 1% everywhere else. I figure I buy gas anyway, like ^^ said, so I may as well get cash back for it and build credit. So I guess I'll only buy gas with it and if I was buying something at a drug store or supermarket I'd buy it with the credit card.. obviously, within reason so I don't run myself into debt.

Thanks for the help guys


Kev-- just doin the think ahead thing. Never hurts to have credit.. i think.

[MayAMonkeyBeYourPinata]

Whatever you do pay it off completely every month.

[Kevmaster]

Kev-- just doin the think ahead thing. Never hurts to have credit.. i think.

dammit...stop making me feel worthles....here i am trying to justify not worrying about things till later and here you are telling me i should....grrr

[Koosh]

Heh, I was denied by just about every credit card company on the block...

Except captial one. Of course they gave me one with all of a $200 limit (goes up to $400 if I pay the minimum for 3 months on time!)...

I had a citibank mastercard 2 years ago, but I ended up loosing it and I just paid it off and cancelled after about 9 months of use...