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re: Best Credit Card for mid-20 year old

Posted on 5/22/21 at 3:21 pm to
Posted by audioaxes1
Member since Jul 2019
233 posts
Posted on 5/22/21 at 3:21 pm to
one thing you should also do when starting off with credit is try to open multiple cards that you plan on just holding onto indefinitely so you can start building some aging in your credit profile. You dont have to use them besides like once every 4 months ago to keep them from shutting it down for inactivity.
Lets say you only get one card and 5 years later you get another card... your average age of accounts will plummet to 2.5 years which could have a noticeable impact on your credit score.
But lets say you got 5 cards and 5 years later you get a 6th... your average age drops to only 4.16 years.
Posted by HarrisonTown
Member since Nov 2019
516 posts
Posted on 5/24/21 at 6:56 am to
quote:

one thing you should also do when starting off with credit is try to open multiple cards that you plan on just holding onto indefinitely so you can start building some aging in your credit profile. You dont have to use them besides like once every 4 months ago to keep them from shutting it down for inactivity.
Lets say you only get one card and 5 years later you get another card... your average age of accounts will plummet to 2.5 years which could have a noticeable impact on your credit score.
But lets say you got 5 cards and 5 years later you get a 6th... your average age drops to only 4.16 years.


I don't know who downvoted this but it is very solid advice.
Average age of credit cards is a significant consideration on FICO models.
I'd recommend to get only cards with no annual fees.
If you are "just getting started" or "building credit" or "have a thin file", I'd expect your available credit card options are limited.
Amex is great, as are others, but traditionally has been approved for good credit, as opposed to building credit; that may have changed lately, I don't know.
I'd recommend capital one to build.
Even better, if you have any direct or familial connection to the military, try to get an account with USAA or NavyFCU. They will often often extend credit with decent limits for clients with less than stellar files.
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