Credit Card (USA)

I'm looking to establish some credit, so I'm in the market for a credit card. I've never had one opened, so my credit is effectively 0 as far as I know.

Anyone have any suggestions for specific cards/banks? Obviously comparatively low fees/interest is preferable. Also will likely need a company that accepts people with no history.

Co-signing isn't an option, because my dad is all about cash only. Which is cool, but there are still valid reasons to establish credit without actually using it to go into massive debt.

Anyway, all suggestions are appreciated. Cheers

 

Capital one has a platinum card where you can pay a deposit that would effectively become your credit limit. It's good to set at ceiling if you want to build credit. That way you're not shelling out more than you can afford.

 

Your best bet is talking to or joining a local credit union if you have one around. They'll usually make you have your credit limit locked in reserves at the bank (i.e. $500 limit = $500 cash you can't touch). The CARD Act is partially to blame for this, but good on you for trying to build credit. Even with secured reserves, big banks typically require a cosigner.

 

I appreciate the suggestions and information. I don't really have a problem putting down a deposit. Not trying to max out a card.

I do have some bills I could put on it though and then immediately pay off.

 

Another nice thing about capital one is that they allow you to pick your date that you pay your bill by. So you can work it around the schedule of when you get paid.

 

Agreed i joined a FCU bank and did this plus took out a loan for 1000 dollars for a year. You dont get the 1000 dollars at the start tho you get it after you have made all you payments for the year. Pretty much is a starter load for people with no credit.

 

I just got a Capital One card but set the credit limit to $300. No money down, easy to pay off $300/month every month and just put food/gas on it. ~25% interest rate when I started and had little-no credit. Every card except for a secured credit card will probably have 19% or higher interest rate so just be careful and read everything before you get a card.

 

Does anyone know of a credit card that actually provides benefits?

 

Basically all of them will have options for earning rewards based on how much you spend (1%-2% cash back, reward points for flying, hotels, gas, etc)

 

Delta AmEx gives you a free round trip ticket anywhere in the U.S. when you sign up, there's something they advertise on t.v. that's 2% cashback so I would find out what that is and use that for purchases, skip anything that doesn't have good benefits, there are so many to pick from there's no point choosing something that doesn't give you benefits

 

I'm not sure who your bank is, but I got a BOA student card since I already bank with them. Honestly, it's not that good of a card and I only got it to help increase my credit. It's basically just 1% back on everything and its' interest rates are quite high. I myself don't care about said rates since I pay for items before interest kicks in.

Discover also has a good student card (whom I was going to go with initially). I'm not sure if you're a student, but they're good cards to apply for because they're aimed at young individuals whom do not have any credit.

If you use Amazon a lot, I would suggest an Amazon Store Card. It's free, allows you to order items with 0% financing for 6-12 months (if you're interested in any bigger-ticket items), is easy to get accepted, and will help build your credit. Once credit is built, you can apply for a better credit card then a student card.

Ps. Don't apply for a bunch of cards, it's not good for your credit.

 

It'd be impossible for someone starting off to get approved for any American Express product.

Darkest, i suggest starting off with a store card you're interested in using. If you're a student, try applying for a Discover student card.

Best starter cards in my opinion would be a capital one card (one without an annual fee) Secured credit cards are also an option (paying a deposit) but may not be necessary.

I started off with a Macys card and best buy card, 6 months later got a discover student card and a capital one platinum card. 7+ Years later i'm looking at buying a condo/co-op and have a 750 credit score.

Start small, don't spend too much, be smart. If you have questions i suggest joining the myfico.com forum the people there are incredibly knowledgeable. Good luck!

 

i've heard good things about the capital one card as well. personally, i use chase (because I use them as a bank as well) and have no complaints. banking with them is super easy, 1% cash back on everything is nice, and 5% on certain things every three months makes the deal fairly sweet imo

many of the ones you have to pay an annual fee for have pretty good benefits. chase sapphire is pretty good (and cheap iirc? under $100/yr)

 

I was approved for a discover student card, which means I didn't have to put down a deposit. Looks like I can keep track of my credit score pretty easily that way as well. Thanks for the advice guys, feel free to continue the discussion or give more general advice than what card to go with

 

American Express is phenomenal. But that really depends, because I call it phenomenal since I'm a frequent flyer. I get access to all first-class lounges even when I fly economy, free airline tickets, free hotel rooms, free food at many airports, and there are always random perks every here and there. I was at the mall just today and the valet was free for all AmEx users (this is a huge deal since it's in the top 10 busiest/largest malls in America and you can NEVER find a parking spot).

 

So what's everybodys credit score?

Mines 786

 

Congrats! Glad I could help, that was one of my first cards as well. Don't go too crazy lol.

 

Banks will do a secured card where you put up some money and that is your credit limit. You get your money back when you close your card.

 

Isn't Amex kind of hard to get? Or you have to have established credit for one? I got approved for every card I applied for except for Amex, but only a year or so of credit history.

 

It's not hard to get, you just need to have an established credit history. But it's nowhere close to being a good first choice in terms of getting your first credit card considering the annual fees alongside AMEX not being accepted at a good portion of local places due to their processing fees. On the flip side, any major store will likely accept AMEX, and they do have good features/rewards.