Let me get some words of advice - Credit Cards.

cyclenski23 · May 6, 2011

Be careful. I say discover card.

I got a discover card at 18 years old. Ive never payed anything late and usually pay off the card at the end of each month. Basically, i use my CC as a debit card, so when i make a purchase, i dont do so unless i have the cash in the bank. I use the CC because i get 1% on everything and 5% on specific things each month. Overall ive made 500 dollars using my card!

Dont get one unless you think youll never make a late payment, cause then your credit score will suffer. On the other hand get it if you can, because it will build your credit and make purchases alot easier.

Pesqueeb · May 6, 2011

http://www.pbs.org/wgbh/pages/frontline/gsearch.html?q=the+card+game&x=0&y=0

That said, my first CC was an American Express, points/rewards are decent and when you call Customer Support you get an actual person. I still have it and still use it.

Never ever use it unless you have the cash already in hand.

stoney · May 6, 2011

Pesqueeb said:
http://www.pbs.org/wgbh/pages/frontline/gsearch.html?q=the+card+game&x=0&y=0

That said, my first CC was an American Express, points/rewards are decent and when you call Customer Support you get an actual person. I still have it and still use it.

Never ever use it unless you have the cash already in hand.

This. If you are buying something, put the cash into your savings account until your bill arrives. It is a very strong urge to put things on credit just because you can. Look at Redrabbit's thread about debt to see repercussions of debt spending.

Sandwich · May 6, 2011

I recommend capital one for a starter card. Interest rates will probably be high for your first card. I think mine was around 17%, which is really pretty absurd, comparatively. I used that for a few years before opening a bank account with an associated credit card. That had seven times the spending limit and came with cash back rewards. I stopped using the capONE card and started using that one. So far (five years or so) I've made $600 cash back on it. Not much, but that's effectively free money compared to a debit card. I've spend I think $3.74 in finance charges that I missed from not paying it off one month.

Get yourself into the habit of paying it off monthly. At the bare friggin minimum, pay off a portion of it. There's zero reason for a late payment, and only a small reason not to pay it off entirely.

I put EVERYTHING on my credit card, and virtually never use debit. I don't pay fees because I'm not retarded. The first card I ever applied for, I was denied. Now, I have excellent credit (760 or higher, I think) and qualify for some pretty impressive loans (ie, well qualified buyers). Now is the perfect time to start building your credit score, as long as you don't mess it up.

Total Heckler · May 6, 2011

I 2nd Capital One.

I got a card and only use it for car related things (gas, oil changes, etc). I got the card when I was 18 and have been using ever since (26 now).

I also have a American Express that my wife and I only use for groceries. Tons of points earned over the years and we don't have to worry who spent what at the grocery store. We just pay even amounts on the card every month.

Just remember, do your best to not spend money you don't actually have and ALWAYS make sure to make your payments on time.

stoney · May 6, 2011

We use two cards for it purchases - an amex and visa. Amex is our primary as we get starwood points for.spending on it. We are spending four nights in Denver this weekend and didn't have to pay for the hotel sole because we had points. We even paid for our honeymoon to Tahiti entirely on points.

clarkenstein · May 6, 2011

i worked in banking for years so i have a little experience with CCs. go with amex if you can.

they aren't accepted at as many places like MC/VISA because they charge merchants a higher percentage per sale, but their consumer rewards programs are pretty good and they generally have better interest rates.

i started out with the normal amex green card, which had a annual fee and you had to pay the balance off the next month, then i bumped up to the gold card. i now use amex blue because i finally have enough discipline to not spend like an a$$hat and rack up huge bills (no annual fee and revolving credit line).

i had a CS experience once with amex that sold me on them. i was making a large purchase - unusually large for my credit usage history (i was paying for some work i had done on a 19th century upright bass) and the card wouldn't go through at the shop. within two minutes (after the shop tried again, but got the message "call amex" on their machine) the shop phone rang and it was amex on the line calling to make sure that it was me making the purchase and not someone who stole my card. that was pretty freakin' cool in my book.

kazlx · May 6, 2011

CCs are definitely the way to go if you can be disciplined. It's not free money. Normally the people that tell you to avoid them are scared of them, have debt or just aren't educated on what they can provide.

I have bought my XBox, PS3 and a whole load of other crap like plane tickets and other things just with points from my CC. You are going to pay bills, buy food, bike parts, gas and everything else that comes with daily life....why not get something back for your loyalty to a company? Just make sure it's something that fits what you want.

My aunt and uncle have a airline miles card, because they fly all the time. They get more points when they buy tickets and a better deal on tickets when they use points. Other cards do cash back. Find something that works for you. Nobody says you have the use the same card until the end of time. Whichever card you open now though, I would never close, just keep it open. Length of time for a credit line affects your credit score.

Check your credit report once a year and get your scores just to see where you stand. It's cheap, like $40 for all three scores. This will let you double check to make sure you don't have any reporting errors. It pays off to keep your credit clean, from buying a house or a car, to applying for a job. I have always had excellent credit....at least in the mid 700s and it's painful to see rates some friends get that have less than stellar credit.

Check this out, comparison for a lot of the different cards out there:

http://www.creditcardguide.com/credit-card-comparison/

Mr Jones · May 6, 2011

If you're as good with $$ as you say you are... get a Costco American Express. As a backup though, you may want to consider getting one of those green dot reloadable visa cards. $7 fee per $100 reloaded. I have a green dot card that I use strictly for online purchases. My Amex is a costco amex so the rewards on that thing add up pretty quick.

Last year I got a costco rewards check for $280. I had them put it on a costco cash card and used it to buy gas for a whole month.

Brian HCM#1 · May 6, 2011

I never had one, but American Express. You're forced to pay it off every month, so you can establish credit and stay out of debt.

demo 9 · May 6, 2011

Buy your 350z with a credit card

bean · May 6, 2011

Mr Jones said:
If you're as good with $$ as you say you are... get a Costco American Express. As a backup though, you may want to consider getting one of those green dot reloadable visa cards. $7 fee per $100 reloaded. I have a green dot card that I use strictly for online purchases. My Amex is a costco amex so the rewards on that thing add up pretty quick.

Last year I got a costco rewards check for $280. I had them put it on a costco cash card and used it to buy gas for a whole month.

$7 per $100 on the card? I bet they love you.

drkenan · May 6, 2011

I 2nd Amex. Their points are awesome and their customer service is even better. I have so many Amex points, I'm planning to get an around the world ticket at some point relatively soon - all for just spending money I would have spent anyway (this is a business card though).

stoney · May 6, 2011

Mr Jones said:
If you're as good with $$ as you say you are... get a Costco American Express. As a backup though, you may want to consider getting one of those green dot reloadable visa cards. $7 fee per $100 reloaded. I have a green dot card that I use strictly for online purchases. My Amex is a costco amex so the rewards on that thing add up pretty quick.

Last year I got a costco rewards check for $280. I had them put it on a costco cash card and used it to buy gas for a whole month.

GDOT = rape of poor people

Ciaran · May 7, 2011

Personally I like the feeling of being debt free more then I like frequent flier miles or any other "benefit" CC's provide.

Buying online? Use your bank card. I have a separate account with my CU I use for online purchases. It costs me nothing.

No I didn't get into trouble with a CC. No I was never in huge debt over my head. I had normal debt, A CC, a student loan, car payment, etc. I just prefer simplicity and no debt. Personally I see no real good reason to have a CC. (I have emergency funds in the bank equal to or greater than the limit a CC would give me.)

My opinion and my experience. Your mileage will vary.

CrabJoe StretchPants · May 7, 2011

The only CC I have is Capital One. Only reason I got it (like you) was to build up credit, around the same age as you. I pay off every bill in full every month, and because of that my credit scores were up around 760-780 when I went to buy a house, which is why I was able to get a mortgage. I mainly use my debit card, and I really just use the CC for gas and an occasional largish purchase once a month, so the bill is never really super high, so it's easy to pay off in full each month (largest bill has been maybe a grand or so). As pretty much everyone has stated, I only use it if I could pay cash at the moment for whatever I'm charging. I'd rather not have a CC but it's somewhat necessary to build credit/get loans....just be careful and it's a worthy move.

jdcamb · May 7, 2011

I have a debit card. If it costs more then $218, then I don't get it. Last month I had $610. I felt like buying something and went to JC Penneys and bought some Sox and Underwear. The rest went in to my savings after the 15th. I feel that if I can have a house and put $590 in my savings account, then I'm doing well... I would like some nice ODI grip replacements next month though.

Serial Midget · May 7, 2011

You could have saved an addition 10% had you opened and activated a new JCPenney Account like they asked you to...

jdcamb said:
I have a debit card. If it costs more then $218, then I don't get it. Last month I had $610. I felt like buying something and went to JC Penneys and bought some Sox and Underwear. The rest went in to my savings after the 15th. I feel that if I can have a house and put $590 in my savings account, then I'm doing well... I would like some nice ODI grip replacements next month though.

jdcamb · May 7, 2011

Serial Midget said:
You could have saved an addition 10% had you opened and activated a new JCPenney Account like they asked you to...

Don't be a jagoff... JCPenny doesn't carry ODI stuff... Sillyhead.... They didn't ask anyways... I bought sexy underwear. She was to busy doing the visual in her head to remember to ask I'm sure.... I called the number on the reciept and if I can get to Hyderabad by next thursday I have a solid date... I can't pronounce her name though..... I'm a little intimidated about meeting her family first...

RUFUS · May 7, 2011

Keep the credit card out of your wallet and out of sight. Seems like you have the right attitude though for the rest and there is some great info here.

splat · May 8, 2011

I have had a BankOne CC for 20+ years, they were always Great never ever had a problem with them. Low Interest rate ( I only used that once or twice ) , no Fees , and CS was great Had a Scheduled to be paid on line the day it was due, never a problem. last year they got bought up by Chase. what a Bunch of Assholes! 1st. they told me that I had to switch to the Black CC (with a $500 yearly fee) because my Credit line was so High! ( $100K I didn't even relize Bank one had kept jacking it up and up with No repercussions) so after an a hour on the phone they removed the fee and dropped my Credit line down to $20K , I've never been close to that, but they still want to charge me an annual fee , and fees for making this change. more time on phone . next I had a Month where the payment was due on a sunday. so I pay it like I always have on the day its due. Oh wait its Sunday ! that Payment won't go through till Monday ! ( never wasa problem in the past) Now they hit me with a Late fee! and interest , because of that got on the phone again , this time they won't budge. I have an 800+ credit score I don't need there BS ,they are Gone! FU chase!

TheMontashu · May 8, 2011

Ciaran said:
Buying online? Use your bank card. I have a separate account with my CU I use for online purchases. It costs me nothing.

What he said.

If you're just ordering online, just use your debit card, that what I do. If you want to build credit on the other hand, get a credit card.

Sandwich · May 10, 2011

Iridemtb said:
Turned down for the card... I called, they said it was because I had no previous credit... The representative said I needed credit because they have more "conservative" policies. Soooo I guess I gotta find another card here to apply for. I'll keep you all posted haha. Thanks guys for the help though.

sorry dude...check out capitalone or other intro cards. You aren't likely to get rewards with your first card and your credit limit will probably be $500-1000. That's how I started. NOW I can get one of those 5% back cards....actually I can get any card I want besides the prestige cards that carry a yearly fee (Yay, pay to play???).

ebarker9 · May 10, 2011

Sandwich said:
sorry dude...check out capitalone or other intro cards. You aren't likely to get rewards with your first card and your credit limit will probably be $500-1000. That's how I started. NOW I can get one of those 5% back cards....actually I can get any card I want besides the prestige cards that carry a yearly fee (Yay, pay to play???).

Had the same experience when I was in college. Had to apply for a student card. Once you've got some kind of credit history (6 months? a year? I dunno) then you seem to be much more appealing to the various CC companies and can do a little more shopping around.

SkaredShtles · May 10, 2011

Debit cards offer NOTHING if you fiscal discipline. I've never used my "debit" card - I use it occasionally to get money out of the ATM, but that's it.

SkaredShtles · May 10, 2011

Ciaran said:
Personally I like the feeling of being debt free more then I like frequent flier miles or any other "benefit" CC's provide

In this case you can have your cake and eat it too. Debt free AND "benefits" - what it ends up being is the BANK paying YOU to use their card. It's brilliant. AmEx paid me over $500 last year to use their card. :cool:

JustMtnB44 · May 11, 2011

^ I agree. I have two credit cards and one ATM/debit card. I have never used the debit card for anything but ATM cash. I have a Capital One CC, which was also my first CC that I got in college. I also have a CC through my bank, but don't use it as much. I have never paid a penny in interest or late fees. I also usually get $500+ per year in rewards money from my credit cards.

As long as you are responsible with your money and don't spend money you don't have, you will be fine with a credit card. The interest rate doesn't matter if you never use it.

CrabJoe StretchPants · May 11, 2011

This reminds me......I've been meaning to get an REI CC.....additional 5% added to your yearly dividend for REI purchases, and another 1% on all other purchases elsewhere. Seems worth it to me, God knows I go there enough to justify applying for it. Any other monkeys have one?

SkaredShtles · May 11, 2011

CrabJoe StretchPants said:
This reminds me......I've been meaning to get an REI CC.....additional 5% added to your yearly dividend for REI purchases, and another 1% on all other purchases elsewhere. Seems worth it to me, God knows I go there enough to justify applying for it. Any other monkeys have one?

Yup - it's my go-to when a merchant doesn't accept AmEx.

blackohio · May 11, 2011

I wasnt paying attention to my Trek card. went 1 payment outside the 6 mo deferred interest. Balance went up $348.

Paid it off 3 weeks later, with the additional interest. They wouldnt remove it (understandable but) I promptly closed the card. Woulda kept it open and used it if it werent for that. stupid me, got sidetracked with the cross country move.

CrabJoe StretchPants · May 11, 2011

SkaredShtles said:
Yup - it's my go-to when a merchant doesn't accept AmEx.

Word. May have to get one, though I'm not much a fan of CC's......but the rewards make it worthwhile.

SkaredShtles · May 11, 2011

CrabJoe StretchPants said:
Word. May have to get one, though I'm not much a fan of CC's......but the rewards make it worthwhile.

I'm a huge fan of credit cards. Free money. What's not to love??

Let me get some words of advice - Credit Cards.

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