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I would start with a gas card for some gas station. you can't really use it for anything but gas and maybe some food if you go inside. you need gas so you will use it all the time but not for anything else. So make your payments on time and you should be good to go
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Originally posted by YaaaarrroTour:
You dont need Credit Cards to build credit.If you dont believe me, I've never had one and likely never will and my credit score is in the upper echelon of the possible score. Use things like cell phone bills and car loans to build credit. Credit Cards lead to nothing but trouble. Just remember, Credit Card companies love to "give out" their money hoping that you wont be able to pay it back.
They can be a good thing...
Use them responsibly and pay them off in full within a 2-3 month window every time. Larger purchases should be done via conventional loans or revolving lines of credit through a bank or credit union(MUCH better rates than CC agencies, even with unsecured loans). You always have the option of telling the CC issuer to LOWER your spending limit if you feel that it may be a problem. Once you establish a good running record with a CC, bug the living s**t out of them every couple of months, DEMANDING that your rate be lowered. If they don't lower it, dump them, as there are other CC agencies that would be more than happy with a lower-risk customer and will adjust their rates to reflect that reduced risk.
The wife and I have NO cards that are double-digit APR due to shopping them carefully and beating them up on a quarterly basis...
The perks and points can be bloody nice; I run most of my household bills through an American Express card as well as all of my business expenses (paid in full every month as AMEX gives you no other option since it's a charge card and not a credit card). I've had vacations practically paid for due to piling up points; fixed expenses (car payment, house payment, etc., etc.) are great to put on charge cards due to the $$ amount that really piles on the points/perks.
Where people screw up with CC's is when they start viewing them as a supplemental means of income instead of viewing them as EXHORBANTLY expensive debt that carries brutal penalties.
JaTo
e-Tough Guy
Missouri City, TX
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Originally posted by PlatoSVT:
Allright, long as we're on topic here, here's my issue. I want to start building some good credit. I've already been working on it for a few years with small, introductory credit cards, utility paynments, car loan, etc. I want to get a credit card that can start helping me out with rewards and such. I'd like to get one of those cards that puts the change left over from each purchase into a High-Yield Savings Account. Should I just find one and apply, or should I check my credit first? If I check first, won't that hurt my credit just a bit, which could be enough to not get accepted? Are there other, better rewards credit cards that I should be looking to as a college student? Should I look to going through USAA for my future military purposes? Just lookin' for some opinions here.
Checking your own credit report does nothing at all to your score. You can check it every single day if you'd like.
Check it first before applying if you'd like, but it's not going to help you get accepted at all, or even give you an idea of your chances.
As for what reward card is best for you -- it's purely up to you. Some people travel a lot, so it makes sense to get the air mile cards (be aware these almost always have annual fees and significantly higher interest), or if you travel by car, a gas card that saves $0.10/gallon. The 'change left over' cards are nice, but be aware that they all have caps on what you can save -- usually around $300/year. So it's not quite as cool as it might seem. I'd max-out the reward limit on those cards in just a couple months. Cards like Citi Dividend and Discover probably give the most cash-back on everything you buy, but the percentage is very small. It takes quite a lot of purchasing to add up to much and they usually only ket you 'cash-out' your rewards when they add up to a high amount. I doubt as a college student you spend enough to get significant amounts of rewards from any company. A gas card with its' immediate rewards on gas savings, rather than having to save-up, might provide the most immediate benefits to you.
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Originally posted by JaTo:
Where people screw up with CC's is when they start viewing them as a supplemental means of income instead of viewing them as EXHORBANTLY expensive debt that carries brutal penalties.
Yup. We've been forced into loading up our Discover lately due to expenses related to moving to a new city and the cost of living in our old one, and I am SO looking forward to zeroing that account once we're done with closing our house contracts.
"Think of it, if you like, as a librarian with a G-string under the tweed." Clarkson on the Mondeo.
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Originally posted by BrApple:
I would start with a gas card for some gas station. you can't really use it for anything but gas and maybe some food if you go inside. you need gas so you will use it all the time but not for anything else. So make your payments on time and you should be good to go
Good idea to start out, but you probally will still need to have someone co sign if you have no credit history. Also, most gas stations only report to 1 of the credit bureaus (out of 3) and so if you are really trying to build good credit then I would definently get a Visa and a Mastercard also... but only if you have good self control to not spend more than what you have! It is very easy to rack up unpayable debts on credit cards so you need to be very careful. It is a great Idea to have multiple cards with very low credit limits.
Jeff
For Sale - 96 Tour Sport 2.5L MTX with SVT Exhaust, pre 98 trunklid with newer Contour Sport spoiler instead of lip spoiler, newer Contour sport rims. Newer paint job. Brand new floor mats. Rust Free! PM me for details and pics.
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Dumping the balance to a bank loan or even another CC (taking advantage of 0% APR for x months) would probably be the way to go...
I HATE paying interest and will do just about anything to avoid it at all costs; if it's unavoidable, then I find the cheapest way out.
Let some other chump line Discover's pockets with eye-popping interest; dump the balance to a low-cost or no-cost alternative means of financing and zero the balance out ASAP.
JaTo
e-Tough Guy
Missouri City, TX
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Originally posted by sigma:
Checking your own credit report does nothing at all to your score. You can check it every single day if you'd like.
 Please only speak if you know what you are talking about. I am a loan officer and if you would like to give me your SSN, Date of Birth, and full name then I will prove your statement wrong. I can even check it multiple times everyday if you would like. 
I don't intend to criticize you sigma, but I don't want CEG'ers running around with false misled information. It would not be right for me to let your bogus comment pass by.
For Sale - 96 Tour Sport 2.5L MTX with SVT Exhaust, pre 98 trunklid with newer Contour Sport spoiler instead of lip spoiler, newer Contour sport rims. Newer paint job. Brand new floor mats. Rust Free! PM me for details and pics.
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Originally posted by JReebs96sport:
Originally posted by sigma:
Checking your own credit report does nothing at all to your score. You can check it every single day if you'd like.
Please only speak if you know what you are talking about. I am a loan officer and if you would like to give me your SSN, Date of Birth, and full name then I will prove your statement wrong. I can even check it multiple times everyday if you would like.
I don't intend to criticize you sigma, but I don't want CEG'ers running around with false misled information. It would not be right for me to let your bogus comment pass by.
If you pull my credit report, of course it will be bad. That would be an inquiry. I said you can check your own without doing anything to your score.
2003 Mazda6s 3.0L MTX
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Originally posted by sigma:
Originally posted by JReebs96sport:
Originally posted by sigma:
Checking your own credit report does nothing at all to your score. You can check it every single day if you'd like.
Please only speak if you know what you are talking about. I am a loan officer and if you would like to give me your SSN, Date of Birth, and full name then I will prove your statement wrong. I can even check it multiple times everyday if you would like.
I don't intend to criticize you sigma, but I don't want CEG'ers running around with false misled information. It would not be right for me to let your bogus comment pass by.
If you pull my credit report, of course it will be bad. That would be an inquiry. I said you can check your own without doing anything to your score.
I apologize, I misread what sigma wrote. But this was good that we clarified it for CEG'ers who are new to the world of credit! 
For Sale - 96 Tour Sport 2.5L MTX with SVT Exhaust, pre 98 trunklid with newer Contour Sport spoiler instead of lip spoiler, newer Contour sport rims. Newer paint job. Brand new floor mats. Rust Free! PM me for details and pics.
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I can't believe no one has mentioned www.creditboards.com . You can learn a lot from that site.
Go to www.myfico.com to get the scores that most lenders use, and still see your credit report. You can usually find 15 or 20% coupons for you score. And don't be surprised to learn that your score will differ between the three major bureaus (Experian, Equifax and TransUnion).
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