Credit cards

[D_Thissen]

Set yourself up with a monthly limit that you can afford. I think my first credit card was around 500 bucks. I used it for gas and washer fluid. Also if you have a cell phone, you could use a credit card to pay for that phone bill. Just remember to pay your bills on time, the CC companies really love when you don't lol.

[TimmyC]

Originally Posted by 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.

Thanks! I need a credit card to buy car parts online too!

[industrial]

1) Get any major credit card without an annual fee. Check into your bank. A bank credit card is good. Plan on keeping this first credit card forever.
2) Pay the full balance every month. Balance your credit card like a checkbook. Use your credit card for everything but NEVER EVER carry a balance. I pay the entire balance of my credit cards every time I get paid. Twice a month.

After a couple years of building credit. Get a rewards credit card of your choice and use it the same way and beat the system. I have a 840 score and ~$175,000 credit limit. I fly everywhere for free (points from Jetblue Amex) and stay at alot of places for free (points from Marriott Visa, free nights from IHG MC).

[Dadhawk]

Originally Posted by TimmyC

Thanks! I need a credit card to buy car parts online too!

Or, you can use a debit card. If you use it like a credit card it has the same protections as long as it has a Visa or MasterCard logo on it. I also have a separate account just for online transactions, keeping just enough of a balance to pay for what I'm ordering at the time.

[Packofcrows]

Save $500.

Buy pre-paid credit card. Pretend the $500 not there and make payments for 8 months. Then you should be able to get a real credit car for about $500-3000 depending on interest. Get one 10% or less for beginner credit. Later, for less than 5% and NEVER go over half the limit.

If you want a good credit even after bankruptcy, get 3-5 credit cards (Macy's. Kohl's, Visa...etc), owe least $200 on each, then make payments for about 8 months to 10 and bam! Can now be considered for loan or $3k+ credit card.

DO NOT go for yearly/monthly fee credit card.

Try Capital one, YOUR bank or Barclaycard for beginner.

Good luck.

p.s. this is how i built my credit. I also helped a few friends obtain a a new fresh start after their credit went bad and....I also have a tad of experience from a internship with old skool WaMu and Wells Fargo.

p.p.s. Just remember to NEVER owe more than what you can pay in 3-4 checks when starting a credit! i.e. owing $5000 when you make $200/month!

[chezplatypus]

Late to the party but whatevs. My first credit card was a Capital One Platinum. No interest for the first year (not that it's particularly wise to carry a balance, but face it - it'll probably happen at some point), and once you've made something like five payments on time, they'll bump your limit up a little bit. Free credit tracking that seems relatively accurate, at least in line with the other outlets I use to check it.
I've had it for about six years now and I'm relatively satisfied with it.

I'm really happy to see that nobody has said "Don't get one." It's a somewhat necessary evil.

Also, look at the rewards on cards. Sometimes that can be a difference maker. My Amazon Chase card is my best friend!

[Zed]

Some banks won't give you a card without any prior credit history, and some cards are just terrible as a first CC.

I started out as a secondary cardholder on my dad's CC. This helps since you get the credit building parts, and technically your parent is liable to cover your debt if you cant. If you have no prior credit history, and cannot get approval for any non-fee'd cards, I'd suggest you talk to your parents about doing this.

Once I had couple months of credit history, I was able to apply for chase freedom pretty easy. It's a good starter card from what I've heard, but really what you want to look for, like others have said, is a CC with no annual fees, and maybe a decent rewards program.

The interest rate SHOULD be irrelevant to you because you should always pay off your balance every month. Think of CC's as a loan shark that's letting you borrow up to the card's limit every month. Pay it all off, and you're good, but the moment you're late on full payment, they start raping you in accrued interest. Before you know it you'll end up on Dr. Phil wondering what went wrong with your life.

here are also alternatives to building credit without CC's:
http://lifehacker.com/5880453/how-do...-a-credit-card

tldr: don't buy what you can't pay off, or get a sugar momma

[soulreapersteve]

+1 to the sugar momma! ^

Anyhoo, late to the party also. I didn't want to deal with an unsecured credit card and all the stuff that *could* come with it so I went to my credit union got got a secured one. 500 dollar limit and all I do is use less than 10% of it every month. Tank of gas, sushi session, etc. Credit score was horrid due to a mistake I made outta high school but it's been fixed since. Now, along with paying off the car loan, score is much better.

Only reason why I got one in the first place is because I want my own house within the next 3-5 years. Hoping score is good enough for a low interest rate on a mortgage.