Starter Credit Cards
- Thread starter mrdotcom1
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You don't want a huge card to start off incase you can't Pay it off. You want a smaller one. Ask a bank, not the internetmrdotcom1 said:
Go to a bank and get one with a small limit on, then only use it for small expenses so its easy to pay off and you can build your credit.
Debit is even worse at times, seeing as they are directly linked to a bank account, also they don't build credit.Marq said:
Another idea is take out a small loan and just pay it off on time.mrdotcom1 said:
You should start small, but that isn't hard if your GF has no credit. Most companies won't give you a very high limit to start.
If you plan on paying off the card every month, you might want to look into one with points. I do that with my Best Buy card. I buy all my groceries with it, and get enough points to buy a game every other month.
Best Buy is also fairly stingy with their credit to start with, so you are unlikely to get into trouble with a high limit.
If you plan on paying off the card every month, you might want to look into one with points. I do that with my Best Buy card. I buy all my groceries with it, and get enough points to buy a game every other month.
Best Buy is also fairly stingy with their credit to start with, so you are unlikely to get into trouble with a high limit.
I'm 31 and still on my first card, with an £800 limit. I get paid in cash and rarely make it to the bank, so random £1000 deposits are the norm.........and the bank think I'm a drug dealer!
Rule #1 for me is 'only buy with a card what you can afford to pay off fully when the bill comes in'.
Rule #1 for me is 'only buy with a card what you can afford to pay off fully when the bill comes in'.
Talking about credit history. If you get a credit card or loan, and build up a good 'credit history' by making all your repayments on time, and handling your credit card sensibly, then they'll look favourably upon you later when you apply for a larger loan for something you need, like a house or car.Ambi said:
Also, anyone else think there's something just a lil off with Alexrobort?
But yeah, just start off with a small limit credit card, I had a $500 limit for a while, for just small online purchases, then bumped it up to $800 so I could pay my car rego online. As a rule, I only spend what I can already afford.
Seriously. I would not recommend any of them because they are practically designed to get people into debt and then keep them there. Banks and lenders don't look at people who repay their credit loans as worthwhile investments, they want people who blow their limit, can't repay, and who incur massive penalties because that's where the money is.
I repeat, it's a trap.
If she is a student try getting a student credit card. If not there are higher rate cards that can be used to build a credit history but make sure you pay them off in full each month.
http://www.moneysavingexpert.com/cards/
http://www.moneysavingexpert.com/cards/
I used to think the same way until i tried to get into my first apartment. nobody gave a shit that i made quadruple the amount of the monthly rent, all they cared about was credit history, which i had zero. Up until this point i had bought every thing i wanted in full. Like it or not, you will need it if you ever plan to rent an apartment, or get a loan on a house or new car.SmashLovesTitanQuest said:
He mentioned specific things that credit history is useful for in the U.S. Renting, car loans, housing loans, etc. It's either that or have everything co-signed by someone who does have a credit history (and even doing this builds credit history). It also can get you lower interest rates on those loans if you have a good credit history.SmashLovesTitanQuest said:
And not having previous debt isn't good for credit card companies. They want to be able to predict how you'll pay off credit card bills next month. Someone with no debt history could just as easily be wildly irresponsible, and they'd prefer someone they knew was a little irresponsible to someone who is an unknown, because they can always bump up the interest rate on the irresponsible person. The unknown could just as easily rack up debt and then declare bankruptcy.
I haven't built any credit history myself at 21, but I only seem to get offers from Capital One.
they need a credit history beacuse it is a way to judge your future performance. If you give someone a massive pile of sweeties. You have no idea if they will just eat them all rite there and then unless you have given them sweeties before. Then in that case they will probubly do whatever they done before.
You need to build a credit history if you ever want loans or better financing options when making big purchases like cars or houses. If you have low or no credit, you get the shittiest interest rates and whatnot.Labyrinth said:
Also, to the OP, you might want to talk to a bank or someone who knows a thing or two about finances. Asking the Internet for financial advice is like going to a carnival asking random people about quantum physics.