Advice for first credit card

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StophJS
Posts: 112
Joined: Mon Jun 25, 2012 2:34 am

Advice for first credit card

Post by StophJS »

Hey all, I was hoping to get some advice on a good first credit card. I found a couple previous threads, but they were fairly old. I don't trust most of what I find via google, because I figure most of what can be found there is really just advertisement masquerading as something else. I'm a 24 year old college graduate, with no debt. I am a member of Lake Michigan Credit Union, and also use Ally Bank. According to the free credit report from creditreport.com, I have a credit score of 712. My understanding is that this score is decent, but apart from some bills and paying off my student loans, I have a very sparse credit history and am seeking to build it up. What would be a good place for me to look for a first credit card? Thanks.
tryintosave
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Re: Advice for first credit card

Post by tryintosave »

My first credit card (in college) was the Citi Forward (https://creditcards.citi.com/credit-car ... -students/). No annual fee with a pretty decent rewards program. You could also try for Chase Freedom too.
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BL
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Re: Advice for first credit card

Post by BL »

USAA is good. You may be asked to reveal your bank account, however, at least someone I knew with no credit history did.
lindisfarne
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Re: Advice for first credit card

Post by lindisfarne »

What credit card you get doesn't matter much as long as you pay it off monthly & use it sparingly.
There are some with promotions but you may not qualify with your credit score. Student loans should help build your credit score.

Some suggestions here - skip to the bottom where they list various cards:
http://money.usnews.com/money/personal- ... edit-score
Sam I Am
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Re: Advice for first credit card

Post by Sam I Am »

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dratkinson
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Re: Advice for first credit card

Post by dratkinson »

Chase and Citibank both have 1% cash-back CCs, with quarterly 5% rotating promotions. Pay it off in full every month.
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
mlipps
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Re: Advice for first credit card

Post by mlipps »

I've been working on building my credit over the last year. Previously, I had one student card from when I was in college. I was successful in getting approved for the Chase Freedom & Citi Forward cards last year. The rotating categories for the Chase Freedom are pretty lousy though.
Nerd Wallet is a good starting point to find some cards w/good rewards. Also, Credit Karma will rate your likelihood of approval for various cards. Worth checking anyway.
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ThirteenEleven
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Re: Advice for first credit card

Post by ThirteenEleven »

My situation (and credit score) was identical to yours when I signed up for Chase Freedom. I love the card. We got $100 in rewards for spending at least $300 in the first two months. Three months into using the card they offered me $150 dollars for opening a checking account with them. All I have to do to avoid the fees is keep a deposit of $1,500 for six months. That's a 10% return for six months in a FDIC insured account! Chase's promos are hard to find elsewhere.

Best luck OP.
Dishonest money dwindles away, | but whoever gathers money little by little makes it grow.
scrabbler1
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Re: Advice for first credit card

Post by scrabbler1 »

lindisfarne wrote:What credit card you get doesn't matter much as long as you pay it off monthly & use it sparingly.
This, to me, is the most important. I recall when I got my first credit card back in the mid-1980s after I began working. My bank at the time (Citibank) had a special promotion at the time in which they lowered their annual fee from $25 to $10 (wow!). Back then, remember, there were few if any no-annual-fee credit cards. And there was no such thing as cash back. I used my CC rarely and paid it off every month, so I did not care what the interest rate was as long as it had a decent grace period for new purchases. Having a CC was handy for buying plane tickets and buying things while out of town, something I did every year back then. I did not have a large limit on the card, but CItibank raised it in the next few years. And it became easier to find a better card, such as one with no annual fee which became more commonplace in the late 1980s. (Actually, they found me!)
sscritic
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Re: Advice for first credit card

Post by sscritic »

Sam I Am wrote:Does your credit union offer a credit card?

If so, might be easier to get, seeing as how you already have a relationship with them.

Sam I Am
Agree. I have a credit card from my credit union. I don't use it much, but that's beside the point. Your goal is to have a credit card so you can charge moderate amounts that you will pay off in full each month. After doing that for 6 months, get another credit card and start using it. After 2 years, you will have 5 credit cards. Too many? No. If the first card has a limit of $5k, the last will probably have a limit of $10k, and your total credit line will be about $40k. Then your $500 a month of charges will be only 1.25% of your available credit rather than the 10% it was when you first started.

If one of those cards happens to be 1% cash back, that's just gravy. You are trying to get your credit score up. A good payment history and low credit utilization will get you what you want.
jimmyrules712
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Re: Advice for first credit card

Post by jimmyrules712 »

One of the best "first cards" that is very easy to get approved for is the citi forward. Its targetted to college students and gives roughly 4% cashback on restaurants and amazon purchases (plus 1% on everything else and some other categories).

Other cards that may be worth applying for, however i dont know if youd get accepted, are the Penfed Plat Rewards (5% cb on gas and 3% on groceries and 1% everything else) and fidelity visa (1.5% on everything).

Ultimately the best card is the one you can get approved for. However ideally you should choose the one that matches up with your spending. If i were you id apply for two, the forward and one of the other two i suggested.

Another card thats easy to get approved for is the chase freedom which uses rotating categories. I dont recomend it because i hate keeping track of the categories but its worth consideration.
mlipps
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Re: Advice for first credit card

Post by mlipps »

jimmyrules712 wrote:One of the best "first cards" that is very easy to get approved for is the citi forward. Its targetted to college students and gives roughly 4% cashback on restaurants and amazon purchases (plus 1% on everything else and some other categories).

Other cards that may be worth applying for, however i dont know if youd get accepted, are the Penfed Plat Rewards (5% cb on gas and 3% on groceries and 1% everything else) and fidelity visa (1.5% on everything).

Ultimately the best card is the one you can get approved for. However ideally you should choose the one that matches up with your spending. If i were you id apply for two, the forward and one of the other two i suggested.

Another card thats easy to get approved for is the chase freedom which uses rotating categories. I dont recomend it because i hate keeping track of the categories but its worth consideration.
You can redeem your points to actually get 5% cashback as a student loan or mortgage payment rebate. Otherwise, their supposed 5% has poor redemption values that are, as Jimmyrules said, closer to 4%.
robocop
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Re: Advice for first credit card

Post by robocop »

I am a member of CreditKarma (a free service that shows you an estimated credit score, simulates actions to tell you how you can improve your score, etc.). I only mention this because it has a feature which advertises credit cards. While that itself is not that useful (you can find great suggestions for cards many ways, including here), it is useful in the sense that it gives you an idea of whether you will be approves for those cards or not given your simulated credit score.

I would use that to see if you will qualify for some of the great rewards cards suggested here. Otherwise, I'd just go for one with your credit union. My credit union was really great about that- giving me a good APR when no one else would because of my lack of credit history. They started me off with a low limit, but increased it over the years as I proved I was a good customer who paid my bills.
Saleen
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Re: Advice for first credit card

Post by Saleen »

After getting .46% cash back last year on my USAA credit card, I took this week to research my options. First, as discussed above it is MOST important to pay off your balance each month. If that is not the case, you need the card with the lowest APR. However, if you are paying it off every month religiously, then the question is really which card provides you with the best rewards. For frequent travelers, rewards cards that offer miles seem to be great deals. However, I was personally looking for cards that would 1) give me cash back and 2) not be a hassle.

As many have stated, there are some cards from chase and discover that give you 5% cashback on certain purchases such as a gas or groceries. I decided not to go with these cards because the 5% cash back categories rotate quarterly, making them somewhat complicated. Additionally, it can be somewhat difficult to redeem that cash back.

Personally, I went with the Capital 1 cashback card, that has been advertised as late by I believe Jimmy Fallon. It essentially gives 1.5% cash back, 1% immediately and an addition .5% in one distribution at the end of the year. This way, I am not worried about spending categories and I can just use 1 card all the time and get a decent 1.5% return rate. Plus, the cashback is fairly easy to redeem. Unlike some cards, there is no minimum cash back you need to accrue before you can apply it to your bill or have it deposited in your bank account. Overall, the card is fairly straighforward and easy to use. Additionally, they don't charge an international transcaction fee, which is nice if you will be oversees at all as that 3% can add up quick.

I also signed up for the Amazon Chase Rewards card. It gives 3% cash back on all amazon purchases*, 2% on gas and restaraunts, and 1% on everything else. I keep this card in a drawer. The .5% extra on gas and restaurants over the capital one card would be nice, but its not worth the hassle of carrying around another card. I use this only for amazon purchases, which I make a lot of with my prime account. Easy to apply the 3% cash back you get directly to future amazon purchases. With this, and the fact that amazon doesn't charge sales tax, I am saving roughly 10% on purchases made at amazon even if the retail price is the same as it would be in store (not factoring in the prime annual fee, of course).

Really, I think you need to decide what your rewards goals are, and whether you are willing to carry around a constanza wallet to accomplish those goals. Personally, I think the simplest card with a decent 1.5% cashback reward is the Capital One Visa. It seems as if the days of the 2% cashback cards are over, for now at least. Make sure and pay it off each month. Also, be weary of cards with annual fees unless you are sure you will be using it for years to come, as closing an credit card account can negatively affect your credit.

Just my .03.



* I understand there are other ways to get 5% back on amazon purchases. I went with the keep it simple stupid strategy. I don't want to be buying amazon gift cards at grocery stores and it looks as if the chase card won't be considering amazon a "bookstore" for much longer.
Nummerkins
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Re: Advice for first credit card

Post by Nummerkins »

LMCU has a credit card that gives 3% back on gas, 2% on groceries and 1% on everything else. Go to a branch and apply. They underwrite manually so it's not just a computer making a decision.
Today's high is tomorrow's low.
sscritic
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Re: Advice for first credit card

Post by sscritic »

Once again, I don't read the same way other people read.
I have a very sparse credit history and am seeking to build it up. What would be a good place for me to look for a first credit card?
I don't read anything about wanting cash back. I read about building up a credit history. Does your credit history build up faster with 5% back than with 3% back? That's good to know.
Saleen
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Re: Advice for first credit card

Post by Saleen »

Nummerkins wrote:LMCU has a credit card that gives 3% back on gas, 2% on groceries and 1% on everything else. Go to a branch and apply. They underwrite manually so it's not just a computer making a decision.
Those are some pretty decent rewards and would keep you life simple as you are already a member. I would go with that! Doublecheck on the fees though.
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