Credit cards

[TimmyC]

Posting on here because I want some unbiased opinions.

So I just turned 18 and know nothing about the real world. I heard that people need to build up credit at a young age so it will be easier for me to buy a home or car in the future and to do this I need a credit card ? So, I want to sign up for one but I'm not sure which one to get. My dad has a discover card that doesn't charge interest as long as payments are on time. But is this good for building credit ? I would like a credit card that doesn't charge interest as long as payments are on time, no annual fee, and an app of some sort that will text me everytime a transaction is made. Any suggestions on which one I should sign up for?

[EAGLE5]

Do you have a job or are you a college student?

No card charges interest for on-time payment. That's not how they work. Go to your bank for starters. Ask about their credit cards. Don't put much of anything on the card and always pay it off at the end of the month, every damned time. Do it for a yea and you can get another card and another. Keep not using the cards much, never leaving a balance, and you'll have great credit.

Credit cards are a way to conveniently pay for things but not as a way to get what you want right now, before you have the money. They're an IQ test. How stupid are you?

[ZOMFGAARON]

You will not get approved for a discover card with no interest if this is your first card. Check with your bank to see if they offer secure cards if they do pick one up, it will require a deposit to open it. I suggest going with a capital one secured credit card if they don't have it.


Another option is PayPal credit.


Sent from my iPhone using Tapatalk

[cjd]

I don't know of any credit cards that charge if you pay in full every month - it's only if you carry a balance, and evidently that's how most people work. None of mine charge, but that's exactly how I've built credit (though at this stage of my life I also have a mortgage and a car loan that have been paid off, and a mortgage again...) but good enough our lender didn't care about escrow for property tax.

No fee is good, but may be tougher if you have no credit.
Discover is good, though not quite as widely accepted as MasterCard or Visa. I believe they have some good options for a first card, though. Even just using it for filling the tank on the car can build your credit nicely.

The real key is being diligent about not carrying that balance, and believe me - it'll be tempting some times.

American Express, unlike the other 3 common US cards, is a charge card - you MUST pay it off. It helps build credit, and is accepted in fewer places, but may still work in enough to get you moving.

Citibank also has been very good for us, and offers a card you might be able to get.

I'm very very wary of most other cards, but I've got a connection in the industry.

I can't help you on an app that lets you know what's happening, but you can keep watch with both Citi and Discover. They've also been very good with respect to fraud, and I expect that tools for mitigating fraud will be improving significantly in the next year, probably even requiring 2-step auth for online purchases.

Every card we have has been hit by fraud, it's getting worse (and moving online vs brick and mortar stores.) Interesting times. Last one (again! 2nd time in <1yr for that card) was a series of online purchases at Home Depot and a partially matching series of returns - I can only assume they were hoping for a cash return.

[TimmyC]

Originally Posted by jsimon7777

Do you have a job or are you a college student?

No card charges interest for on-time payment. That's not how they work. Go to your bank for starters. Ask about their credit cards. Don't put much of anything on the card and always pay it off at the end of the month, every damned time. Do it for a yea and you can get another card and another. Keep not using the cards much, never leaving a balance, and you'll have great credit.

Credit cards are a way to conveniently pay for things but not as a way to get what you want right now, before you have the money. They're an IQ test. How stupid are you?

I am a college student with a part time job

[TimmyC]

Originally Posted by ZOMFGAARON

You will not get approved for a discover card with no interest if this is your first card. Check with your bank to see if they offer secure cards if they do pick one up, it will require a deposit to open it. I suggest going with a capital one secured credit card if they don't have it.


Another option is PayPal credit.


Sent from my iPhone using Tapatalk

Does PayPal credit offer a actual card that I can use in stores?

[TimmyC]

Originally Posted by cjd

I don't know of any credit cards that charge if you pay in full every month - it's only if you carry a balance, and evidently that's how most people work. None of mine charge, but that's exactly how I've built credit (though at this stage of my life I also have a mortgage and a car loan that have been paid off, and a mortgage again...) but good enough our lender didn't care about escrow for property tax.

No fee is good, but may be tougher if you have no credit.
Discover is good, though not quite as widely accepted as MasterCard or Visa. I believe they have some good options for a first card, though. Even just using it for filling the tank on the car can build your credit nicely.

The real key is being diligent about not carrying that balance, and believe me - it'll be tempting some times.

American Express, unlike the other 3 common US cards, is a charge card - you MUST pay it off. It helps build credit, and is accepted in fewer places, but may still work in enough to get you moving.

Citibank also has been very good for us, and offers a card you might be able to get.

I'm very very wary of most other cards, but I've got a connection in the industry.

I can't help you on an app that lets you know what's happening, but you can keep watch with both Citi and Discover. They've also been very good with respect to fraud, and I expect that tools for mitigating fraud will be improving significantly in the next year, probably even requiring 2-step auth for online purchases.

Every card we have has been hit by fraud, it's getting worse (and moving online vs brick and mortar stores.) Interesting times. Last one (again! 2nd time in <1yr for that card) was a series of online purchases at Home Depot and a partially matching series of returns - I can only assume they were hoping for a cash return.

Right! From a bystander point of view, discover is great at fraud protection!

[EAGLE5]

If you're a student, there should be offers around campus, aimed at students like you.

[Captain Snooze]

Originally Posted by TimmyC

unbiased opinions.

Oxymoron.

[BlueDubbinTDI]

Originally Posted by jsimon7777

Do you have a job or are you a college student?

No card charges interest for on-time payment. That's not how they work. Go to your bank for starters. Ask about their credit cards. Don't put much of anything on the card and always pay it off at the end of the month, every damned time. Do it for a yea and you can get another card and another. Keep not using the cards much, never leaving a balance, and you'll have great credit.

Credit cards are a way to conveniently pay for things but not as a way to get what you want right now, before you have the money. They're an IQ test. How stupid are you?

Awesome advice!

[cjd]

pretty sure this is legit and just what you're looking for: https://www.discover.com/credit-cards/student/

Looks like they have the app tie-in too.

Seriously, their fraud algorithm is incredible. My wife and I were in different states, no problems (wasn't expecting to use the DS so didn't call ahead) but one real fraudulent transaction and we had new cards a few days later.

Plus they give you credit reporting (just one agency, but still) every bill so you can actually see how it's going.

C

[bcj]

Since you're in Seattle, give BECU a thought (Boeing Employees Credit Union).
Credit unions generally have better rate structure available to members.
You don't have to be an employee to get an account anymore.

1) don't buy stuff you don't already have the cash to cover right now.
2) refer to #1

My first credit transaction was for a TV at an appliance store (or was it an astrolabe, I disremember).
I could have bought it that day outright, but I wanted to start building credit history.
Start small and make the payments EVERY month.

[Dadhawk]

@TimmyC, as others have said, no (at least none that I know of) credit card charges interest as long as you pay off the balance before the due date.


That said, you do not need to have "built your credit" to buy a house. All you need is not have "bad credit" (debts you haven't paid), a decent down payment (10% minimum, 20% preferable), have had the same job or work in the same industry for two years, and show you've paid your rent on-time. Then you'll need a mortgage underwriter that has a clue about how to write up a proper mortgage.


As far as a car loan, well yes, you may need a credit history to get a car loan, or you go 100% down and don't have to worry about it.


There's a lot of different philosophies around this, but you should just carefully consider if you need a credit card for any reason. Building your credit score is not a good reason to get one.

[EAGLE5]

Just never carry a balance. That's a fool's game.