I am soon going to apply for a citi bank credit card for college students in order to build some credit. Now I have to decide Visa or Mastercard? I already have a Visa Debit bank card from my bank, so would getting a mastercard be a good idea for variety? Or does it matter? Please help me, I noob...
Same thing, doesn't matter. I can recall only one place that accepted one and not the other (Sam's Club) but they don't accept MC anymore, so that is a moot point.
Thanks. I wasnt sure if there were any major differences besides who accepts what where. I will probably spring for the mastercard in case my visa isnt accepted somewhere.
Don't get any of them. Credit cards are the devil!
Nah, if you do get one, be responsible with it. Mastercard or Visa it doesn't matter...Just be responsible with it...
Good luck finding someplace that it's not inside the US.
For a while I think it was the bookstore here at the U that wasnt accepting visa, dont know why and it was temporary
Originally posted by NO 4 EVR:
I am soon going to apply for a citi bank credit card for college students in order to build some credit.
Oh god. I have that same card.
Word of advise, NEVER MISS OR SEND A PAYMENT LATE!!! They jack up the APR insanely high after one screw up. (Won't say how much 
) I'm paying out the ass for it right now.
As soon as it's paid off, I'll be checking around after for a new one. I don't need the student one anymore. It was just to get me started.
Definitely get a VISA. They are more easily accepted online than MasterCard. When CitiBank switched my Driver's Edge to a MasterCard, I had so many problems buying online I made them switch me back to a VISA.
Otherwise, the difference is not significant.
I agree don't get one at all.. Pay cash, or do without!
They are not necessary!!!
Originally posted by coatsy:
I agree don't get one at all.. Pay cash, or do without!
They are not necessary!!!
You must not like building credit?
Having a credit card and building credit is essential in the modern economy. I do advocate only using it to purchase items you have cash in hand for, or doing without until you do. Advocating responsible use of a credit card does not mean you advocate the holder going into debt.
As long as you pay off the bill on time every month, credit cards are smarter than cash. You can gain interest on the float and perks such as rebates for just using the card. Pay it off in full so you don't pay interest, and you're ahead.
I'm sorta in the same situation. I love my debit card but I need to build credit. If and when I choose, VISA all the way.
Originally posted by coatsy:
I agree don't get one at all.. Pay cash, or do without!
They are not necessary!!!
Good luck getting a decent deal when you buy a house, or a car for that matter. Building credit is essential but you have to be responsible about it as well. As far as the difference between Visa and Mastercard, that's debatable but I would simply look for the card that has the lower interest rate and hopefully no annual fees. Both cards are widely accepted.
Why does everyone think you have to have a credit card to build credit? There are other ways that won't put you in debt and/or charge you ridiculous interest rates.
Because a credit card is an essential component to a good credit history. Not having one is a serious negative on both the main scoring models. You can build that history without going into debt beyond the float period and without paying a penny in interest. In 14 years, I paid interest to my VISA card one month and zero to my other cards.
Originally posted by IRingTwyce:
Why does everyone think you have to have a credit card to build credit? There are other ways that won't put you in debt and/or charge you ridiculous interest rates.
Please be more specific..... Typically, the most common ways that young people build credit are with credit cards. The only other examples I can think of are car loans and student loans. If you don't have a car payment and never had any school loans, which other ways do you suggest?
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
While that will help establish the other important credit type (installment credit), few college students need help in that area. Student loans will provide coverage in that area for most, and auto loans will help for many others.
It still is no replacement for credit card experience.
Originally posted by IRingTwyce:
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
We're talking about people with no credit, not bad credit. Chances are being that he's a college student, he probably doesn't have any cash to work with.
Originally posted by Pienstars:
Originally posted by IRingTwyce:
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
We're talking about people with no credit, not bad credit. Chances are being that he's a college student, he probably doesn't have any cash to work with.
Have you seen some of the mods in his sig? He's got SOME money from somewhere. All he has to do is save it instead of spend it for a few months. This works regardless of good/bad/no credit. That's because it's a secured loan. Banks LOVE this kind of loan because there's zero risk in it for them.
Originally posted by IRingTwyce:
Originally posted by Pienstars:
Originally posted by IRingTwyce:
The easiest would be with a secured loan from your bank. It does require a little cash to do, but it is especially easy to do if your credit is bad to begin with. First, save up for a few months until you have $1000. Go to the bank, open a CD with the thou and a savings account. You then borrow $1000, using the CD as collateral against the loan. Put the $1000 you borrowed into a savings account, then pay the loan off in 6 mos or a year. You're earning money on the original CD used for collateral, and you'll earn a smidgen on the borrowed thou while it's in your savings account.
We're talking about people with no credit, not bad credit. Chances are being that he's a college student, he probably doesn't have any cash to work with.
Have you seen some of the mods in his sig? He's got SOME money from somewhere. All he has to do is save it instead of spend it for a few months. This works regardless of good/bad/no credit. That's because it's a secured loan. Banks LOVE this kind of loan because there's zero risk in it for them.
I don't see any mods in his sig. 
Originally posted by Pienstars:
I don't see any mods in his sig.
I was reading YOUR mods back when you originally asked me to explain. OK...so YOU have the ability to save the money. 
Originally posted by IRingTwyce:
Originally posted by Pienstars:
I don't see any mods in his sig.
I was reading YOUR mods back when you originally asked me to explain. OK...so YOU have the ability to save the money.
LOL 
I get Visa Extra points with my Visa debit card from Chase, I love it
Am I going to be the only one to say it?
Diner's Club FTW!
Sorry, couldn't resist. Is the Diner's Club card even still in existence?
You do not need a credit card to build credit. Do you have a car loan? If you are thinking on getting a credit card for money at hand you are better off going to your bank and getting a personal line of credit. THe interest rates are half as much, and you will build credit also, Buidling credit is over rated. We all usually have car loans, this builds your credit, and once you have secured a decent job for a length of time lenders, lend you money based on your income and ability to pay back the loan, not based on if you built credit through a CC.
Unless you can pay the CC balance at the end of every month, don't bother getting one. The interest SUCKS. Get a personal line of credit, likely around 4-5% interest if you are a student compared to 14-19 or more % with CC's..
Originally posted by IRingTwyce:
Am I going to be the only one to say it?
Diner's Club FTW!
Sorry, couldn't resist. Is the Diner's Club card even still in existence?
Looks like they gave in... First Citibank took control, now it's just a "Diner's Club" branded Mastercard.
Wikipedia
Originally posted by coatsy:
You do not need a credit card to build credit. Do you have a car loan? If you are thinking on getting a credit card for money at hand you are better off going to your bank and getting a personal line of credit. THe interest rates are half as much, and you will build credit also, Buidling credit is over rated. We all usually have car loans, this builds your credit, and once you have secured a decent job for a length of time lenders, lend you money based on your income and ability to pay back the loan, not based on if you built credit through a CC.
Unless you can pay the CC balance at the end of every month, don't bother getting one. The interest SUCKS. Get a personal line of credit, likely around 4-5% interest if you are a student compared to 14-19 or more % with CC's..
I know lots of people with lots of money with mortgages and many car notes over the years whose credit score still sucks. Coworkers who make the same money as I do, have bought as many cars as I have, and own their own homes as I do, will have credit scores as much as two-hundred points lower than mine simply because they have no credit cards. The ability to hold and more importantly, not abuse, revolving debt counts for far more than a simple car note does. Not only that, but for a young person, it can take years and years before you ever display the ability to actually pay off a car note. And the long-term history of paying the note isn't worth nearly as much to your score as actually paying it off.
That 200 points is the difference between a 0% car note and a 12% car note.
All else being equal a person with credit cards will have a higher credit score than someone who doesn't.
And, BTW, ain't no way you're going to get a 4-5% on a signature loan right now. Prime rate alone is 8.25%, and banks are going to charge 2-5% more on top of that. I just took out one yesterday, with a score of 780, and my rate was 11.9% -- not much lower than some of my credit cards.
Originally posted by sigma:
And, BTW, ain't no way you're going to get a 4-5% on a signature loan right now. Prime rate alone is 8.25%, and banks are going to charge 2-5% more on top of that. I just took out one yesterday, with a score of 780, and my rate was 11.9% -- not much lower than some of my credit cards.
I've held a credit card from my Credit Union back in the states for about 2 years now. Never really used it, but maybe it still helped showing that I was never late with payments on it.
Anyhow, the credit union here said I had excellent credit (dunno the score) and gave me a 6% used car loan (best rate they had was 5%, so not too far off). They also refinanced my signature loan at my old credit union. My old rate was ~12% with my new rate at 8% or something. I'll have to look, but I know it's less than 9%.
Car rates are still pretty low, they always are. I can still get 5-6% at my credit union on cars. But nothing like that on signature loans.
If you can get less than 9% on a signature loan still today, let me know where. You could a few months ago before the prime rate shot up like it has, but not anymore anywhere I've seen.
Originally posted by sigma:
If you can get less than 9% on a signature loan still today, let me know where. You could a few months ago before the prime rate shot up like it has, but not anymore anywhere I've seen.
A branch of Service Credit Union here on base.
I opened the account and got the loan on the next day, which was about 2 weeks ago.
...However, now you have me thinking I'm mistaken, so I'm going to run down to the SVT and get the paperwork to check, then I'll post it up for ya.
EDIT: haven't run down yet, but the website shows 8.84% for signature loans. linky
Originally posted by sigma:
Car rates are still pretty low, they always are. I can still get 5-6% at my credit union on cars. But nothing like that on signature loans.
If you can get less than 9% on a signature loan still today, let me know where. You could a few months ago before the prime rate shot up like it has, but not anymore anywhere I've seen.
You can still take out an equity line or fixed 2nd mortgage at around 8-9% However, they do vary greatly depending on credit, loan to value and loan amount. I got my cousin a fixed 2nd mortgage the other day for 9.22% with absolutely no closing costs. Btw, you're absolutely correct about the importance of having "some" revolving debt. I've seen some credit reports where people had credit many years ago and it was all in good standing however they now have no open accounts and they stopped reporting a credit score. That's not a good scenario when trying to purchase a home.