Ok, so I've never had a credit card before and essentially have no credit. I'm looking to try to establish some. I've heard the best thing to do is to apply for a gas station card or a store card (like sears or jcpennys) keep that for a couple months and then apply for a real one...is this true?

1/1/2007 6:11:43 PM

Do you really need a credit card to establish credit? I've a good credit score from just paying down student and car loans and I've never owned a credit card.

1/1/2007 6:15:31 PM

^ No, you don't. You establish credit when you take out a student or car loan and pay it off on time.

1/1/2007 6:20:23 PM

Don't have any loans. Only credit cards I can get have like 300 dollar limit. I'm looking for more of something in the 1000-2000 dollar range for emergencies. I have no real reason to use a credit card for other reasons.

1/1/2007 6:22:10 PM

My sister's financing a Jeep to get herself started (starting from 0 credit). It's pretty bad for interest rates, but after a year she's going to refinance it.

1/1/2007 6:25:27 PM

^^if you start with something with a low limit and use it and pay your bill on time then they will increase your limit

[Edited on January 1, 2007 at 6:30 PM. Reason : ]

1/1/2007 6:28:39 PM

any recommendations for a low limit card then?

1/1/2007 6:31:20 PM

If you go to Best Buy, they will give almost anyone a credit card with a limit of around $300, at least (I got $600 and have little credit). When applying for the card, they give you the option to apply for an additional Master Card. I was approved and got a $300 credit limit, and they bumped me up to $500 within two months. If you get a small-limit credit card, if you make above minimum payments regularly on time, more than likely your credit limit will increase quickly.

1/1/2007 6:36:17 PM

i have a credit card through SECU with a $600 limit. we got it to build credit, and use it almost exclusively for gasoline purchases so my fiance can drive to work. i just pay it off every month as my part of the "bills."

1/1/2007 6:39:16 PM

kill a nigga

1/1/2007 6:43:45 PM

If you can, get a card through USAA. They will adjust your credit limit based on your year in school, and the interest rates are at least decent (I don't know if they're decent, good, or excellent - I have no idea what the going interest rate is on CCs these days. My APR is 12.15%

If USAA weren't an option, I'd look into SECU, or any credit union (as opposed to a traditional bank) you might be eligible for. It's worth getting a campus job merely to be eligible for SECU.

1/1/2007 8:05:42 PM

Citi or Capital One

Just make sure to go for the student cards


When I took my first one out they had a 2k limit and I had it reduced and when I did they wanted to send me the 1k in cash.

1/1/2007 9:42:07 PM

only on the wolf web will someone recommend a super high interest rate retail credit card as a good way to build credit

1/1/2007 10:07:21 PM

you should search

1/1/2007 10:11:22 PM

if you get a citicard, you can request in increase periodically on your own. You just select it from a pull down menu. They'll rarely come to you and offer it or automatically do it, with citicard you can increase it on your own over a period of time.

and one other suggestion, dont get a "student card." you'll only get a few hundred dollar limit, get a normal credit card, the cashback mastercard that citicards offers is a great choice

1/1/2007 10:30:42 PM

Generally, every line of credit that you have that has a clear record (no late payments, etc) and a low or zero balance, improves your score. Potential creditors like to see that other creditors have trusted you with credit lines that are being used responsibly. On the other hand, carrying balances, particularly close to your limit, tends to reduce your score, as creditors see this as a warning sign that you may be approaching the bounds of your ability to repay.

It's quite likely that your first credit line will have a high interest rate. High interest rates correspond to a higher risk, which is by definition what a first-time borrower is.

I'd recommend to anyone to establish an sort of credit card they can while they are young and in school. There's a lot more companies whose business involves "tempting" young students with easy credit than new professionals. Paying the balance in full on a credit card for three or four years while always seeking the largest increases in credit line will do wonders for your credit. You can easily wind up with a $10K line of credit and credit score in the top 20% of your age bracket.

1/1/2007 10:54:37 PM

my credit score is 750 and all i have done is have a credit card from SECU since high school with a $500 limit and pay that bitch off....the lady at the bank was really suprised at my score when i went in to apply for my car loan

1/1/2007 11:01:08 PM

750 is not bad on FICO


now many lenders are using the Vantage Score

http://en.wikipedia.org/wiki/Vantagescore

550-990 range

also you can check your credit report for free annualy at http://www.annualcreditreport.com

if you play it right, you can check your credit report every 4 months

for your credit score however you will have to pay about $5.95 per company.


to build credit get a regular crad, even a low limit, buy 1-2 items a month (gas for the car) and pay it off every month

you will be suprised what it does for your credit

1/1/2007 11:08:48 PM

If your bank is willing to approve you for a loan that was my first way to start building some, I simply got a 1000 dollar loan i believe and just put it in an account and paid it off over 12 months from that account just adding on the small amount of interest on the final payment. Lot lower interest rate than a CC especially if you are ever late even one time. Credit cards are great but the first time your check gets there a day late or you make your online payment after their closing time for the day you can count on your interest rate jumping up to like 29%.

1/2/2007 3:49:30 AM

does ncsu offer any free services to get a credit score...i've always wondered what mine is...only things that are in my name are the cell phone and columbia house(paid all of it off on time)

1/2/2007 4:29:02 AM

just start by opening a line of credit at your bank and make payments.

1/2/2007 11:24:58 AM

what if you have bad credit?

1/2/2007 11:38:33 AM

I don't know anything about SECU but USAA credit card rates are good.
Purchase APR 10.0% (Prime + 1.75%) Cash APR 13.0% (Prime + 1.75% + 3%)

1/2/2007 12:26:45 PM

Quote :

"just start by opening a line of credit at your bank and make payments. "

1/2/2007 1:06:04 PM

I have a USAA platinum card with a 5K limit. This was my first credit card.The rates are a little higher than ^^ but I get 10% off gas for a year plus some cash back program. In any case I pay it off every month.

[Edited on January 2, 2007 at 1:06 PM. Reason : 86]

1/2/2007 1:06:15 PM

i co-signed a loan with my dad...had the loan for a year.
my credit limit is now 1000 and 4% APR

[Edited on January 2, 2007 at 1:55 PM. Reason : ]

1/2/2007 1:54:39 PM

I had a Credit Card with about 7 years history, no lates and I added my wife as an authorized user. I never even gave her the card, but the account then showed up on her credit report with the full 7 years history on her report. It increased her "score" significantly to have a 7 year positive history on an otherwise new credit profile.

So, you could see if your parents will add you to their credit card (assuming they have good credit and they like you) and not actually give you the card, simply to boost your rating.

Other than that:

-Always pay on time - A single 30 day late payment can affect your score for two years.

-Watch your utilization rate - For example, you have two cards with $1000 limit on each. You charge $950 on one and $0 on the other. Your credit score could drop because one of your cards is currently at a 95% credit utilization. There isn't a hard and fast rule, each lender judges utilization differently. The guideline you hear most often is that have your total revolving debt (credit cards, etc.)and each individual card is under 30% utilization then it will not have any type of negative impact.

-Variety - Having a mix of revolving, installment (auto, etc) and mortgage debt is better than having it all in credit cards. It is a widely held belief that lenders like their customer to have mortgage debt as it implies stability, makes it easier to find a delinquent debtor, and in some states adds a concrete physical item that the lender can attach a judgment to if you default on your obligations with them.

-Don't apply for too many credit cards - Inquiries into your credit report are initiated in one of three ways: Some are promotional, whereas Equifax Transunion, or Experian "pre-screened" you for some company that is paying them for a list of "married men, that own a house, and have a credit score above xx". These pre-screened offers are visible to you when you request a copy of your credit report but they are only visible to you, and have no impact on your score. The second type of inquiry would be "Account Review, Account Servicing, etc"; they have different names but are all variations of the same thing. An example is if you have an American Express card, they regularly "pull" your credit report under this type of inquiry to make certain you are paying your other bills on time, not running through your credit and becoming high risk. Some companies have the right (read the small print that came with your card or loan)to change your interest rate if you pay somebody else late. These inquiries are visible only to you, and the company that pulled it. They are not supposed to count against your score, as they were only purpose was to review a current customer. The third type is customer initiated. These happen when you apply for a loan, apply for a credit card, buy a cell phone, insurance, utilities, etc. These are visible to anyone who accesses your credit report and they will cause your score to drop. For that reason, be careful how many different applications you make.


I think that covers the basics...

1/2/2007 2:04:40 PM

http://www.truecredit.com

All 3 scores/reports can be checked daily.

1/2/2007 2:19:26 PM