Owning a credit card for the first time... Who to go with? | TigerDroppings.com

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iwyLSUiwy
Southern Fan
I'm your huckleberry
Member since Apr 2008
21258 posts

Owning a credit card for the first time... Who to go with?


This is only my second or third Money Talk topic to start so sorry if this subject has been discussed over and over.

Im 27 and i've used cash or debit since I was 17 or so. I use my debit card daily and if its over $1,000 im using cash. So I have no credit and that needs to change.

Ive used a mom and pop bank for 5+ years now and they dont do credit cards.

1. I dont need a 50k limit, just a couple grand will do.
2. Not too worried about reward points, if that makes a difference in getting a good rate.
3. If I could stay away from 0% interest for a year then 50bazilion% after that type of stuff would be nice. Ex: Bank Of America is running a rewards card for 0% apr for 12 months then 20% after :ah: A steady low interest would be nice, stating the obvious.
4. I havent done a credit check but I see no way that I would have any. So that would be a factor in which card im able to get im sure.

Suggestions would be appreciated. What you use, ect.








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SpidermanTUba
LSU Fan
Member since May 2004
27250 posts

re: Owning a credit card for the first time... Who to go with?


I have no idea who has the best deal. Use it as much as you can and pay it down every month. That way you never have to pay interest anyway. I don't even know what interest rate my card is, I never pay it.

I've been doing that for years. I probably run about $2 - $3 through it each month. Since its all paid before the grace period ends, I never pay interest. But it has done wonders for my credit rating. When I went to buy a home 2 years ago, I found out I had an 811. I asked the loan agent how it could be so high, he said it was probably the credit card.


If you are married - make sure your wife is a joint account holder, not just a named user of the card. We found out the hard way that the latter does nothing to help your wife. My wife's credit was in the mid 700's - despite otherwise similar credit history - just because we didn't make it a joint account.


I actually don't pay it down every month per se - instead every time a paycheck comes in I pay half the outstanding balance. This usually happens three times a month. But if the balance goes over $2000 I pay it down to 1k no matter when the next pay check is.



This post was edited on 9/10 at 4:47 pm


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kennypowers816
LSU Fan
Houston
Member since Jan 2010
1682 posts

re: Owning a credit card for the first time... Who to go with?


In order of your comments...

1 - if you truly have no credit, it may take you a year or 2 just to get to a couple grand. I know of a lot of people who started off with less than $500 credit limits.

2 - why not worry about points? figure out what you spend the most money on (travel, gas, groceries, etc.) and what type of rewards you would like (cash back, travel, merchandise) and pick the one that fits best. Might as well since you will be starting off slow anyway.

3 - if you plan on being a responsible credit card user and paying your full bill every month, the interest rates don't matter at all. Unless you have a high enough limit for it to matter and you REALLY REALLY need the credit for an emergency (I do NOT recommend this), then don't worry about the interest rate at all.

4 - others have recommended creditkarma.com . Its a free site that will give you a rough estimate of your current credit score. I've used it and I know others have on this site and I have never heard of any negative feedback about it.






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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6522 posts

re: Owning a credit card for the first time... Who to go with?


Get an American Express green card. It's the one card that ought to be in everyone's wallet. No limit.

Unless you're a global traveler forget about all the reward cards. If you have enough time to obsess about redeeming all those nickels and dimes just get a Discover card.




This post was edited on 9/10 at 7:34 pm


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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
528 posts

re: Owning a credit card for the first time... Who to go with?


I'm a fan of Chase Freedom card. When I got mine, it was actually a Chase Student Card. I was approved for $400. It was slowly increased by Chase (and converted to Freedom) to just over $10k.

They offer 1% back on everything, 5% on rotating categories every quarter. Interest rates and promotions are pretty competitive.

Just be careful with any card you get. Financial responsibility will go a long way.






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iwyLSUiwy
Southern Fan
I'm your huckleberry
Member since Apr 2008
21258 posts

re: Owning a credit card for the first time... Who to go with?


Appreciate the advice yall







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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
40940 posts

re: Owning a credit card for the first time... Who to go with?


quote:

3. If I could stay away from 0% interest for a year then 50bazilion% after that type of stuff would be nice. Ex: Bank Of America is running a rewards card for 0% apr for 12 months then 20% after :ah: A steady low interest would be nice, stating the obvious.


Just curious. Why are you going to pay interest?






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stevengtiger
LSU Fan
Shreveport
Member since Jul 2013
849 posts

re: Owning a credit card for the first time... Who to go with?


Chase Freedom is a great card. 5% back on gas for 6 months out of the year. I drive often for work and this gets me some good cash back. 1% back on everything else.

I looked into several cards just a few months ago. With no/middle level credit, you may have a hard time getting an AMEX.

There are several websites that let you look at different rewards for all credit cards. Chase Freedom is definitely one worth looking into.

ETA: Don't worry about APR. Don't overspend and pay your bill on time regardless of APR.



This post was edited on 9/11 at 1:57 pm


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CENLALSUFAN
LSU Fan
Ascension
Member since Mar 2009
4620 posts

re: Owning a credit card for the first time... Who to go with?


quote:

Owning a credit card



you don't own a credit card, they own you!






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Owning a credit card for the first time... Who to go with?


quote:

you don't own a credit card, they own you!


If you're ignorant.






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iwyLSUiwy
Southern Fan
I'm your huckleberry
Member since Apr 2008
21258 posts

re: Owning a credit card for the first time... Who to go with?


quote:

Just curious. Why are you going to pay interest?



Well I guess I dont have to. I can easily pay off what I put on it each month im sure since it wont be whole lot. I guess just the principle of the matter, not wanting to get robbed just in case I didnt.






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kennypowers816
LSU Fan
Houston
Member since Jan 2010
1682 posts

re: Owning a credit card for the first time... Who to go with?


quote:

Well I guess I dont have to. I can easily pay off what I put on it each month im sure since it wont be whole lot.


Exactly. No principle of the matter... just pay it off every month and you won't have a problem. I'm fairly close to your age and have had credit cards since I was 19 and have never carried a balance on the card. I've paid it off every month. It's not very difficult as long as you're responsible about it.






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