First Credit Card

[Heads22]

I'll second this, they'll all try to screw you, but a credit union will likely try to screw you the least.

 

http://www.veridiancu.org/loans/credit_cards.asp

 

I have a good relationship with this credit union (had accounts with them for over 10 years, actually, just opened a money market). The Platinum Rewards looks ok.

 

 

[Chisoxfn]

If you have a choice, go Amex. Amex is the only of the major credit card companies that is always on your side when it comes to dispute resolution. Visa and Mastercard don't do it near as often. In fact, studies have been done and AMEX customers win there disputes on charges, significantly more than other companies.

 

The only downside to an Amex or Discover is that they aren't as widely accepted.

 

But I put everything on my cards (Amex Cash Rewards) and pay off the balance in full every month. Have a couple others that I have and use for those purchases that I can't use my AMEX on and keep them open because it is good to have lots of available credit from a credit score perspective.

[NorthSideSox72]

My experience with CCs:

 

Chase - Awful, all CC companies are out to screw you, its true, somehow, but Chase takes it to new levels

Crapital One - No, that IS how it is spelled, trust me

HSBC/Orchard - Great for credit rebuilders, but steep in annual fees, and their cards will never 'grow' with you

Citi - I never cared for them much, but there are people that swear by their Citi cards, so its a toss up

Discover - Always did me right when I had one, unfortunately I don't carry one anymore

GE Money Bank - Really only good for department store/"Mall" store type places. Steep APRs as well, avoid em unless you just want some diversity

Barclays - This is who my big CC is with now, I've never had a single issue with them, and have had automatic-CLIs(Credit Line Increases) every 6 months, like clockwork. Besides, who can deny the look of this card??

 

(Yes, my CC has William Shatner on the front of it...)

[Capn12]

AmEx is pretty solid, but they have no qualms whatsoever about FRing you frequently, if they don't like your shopping habits, usage amounts, etc.

 

(Financial Review)

[Chisoxfn]

AmEx is pretty solid, but they have no qualms whatsoever about FRing you frequently, if they don't like your shopping habits, usage amounts, etc.

 

(Financial Review)

Ya, if anything goes wrong with your credit, even if you've never had any problems they are known to boot you.

[Texsox]

Read one of Dave Ramsey's books and think three or four times about starting any credit card.

 

If you really want to start down that road, start with something really safe like a department store card. Fill out a JCPenny application. They have pretty easy standards. Best of all, you can't use it for drinks with the buddies, a vacation, tickets to a ball game, etc. At worse you may go over at Christmas or something buying gifts. If you do decided on a Visa or MC, only take a $500 loc and see how well you do for a year or so paying off the balance every month. Balta is a very rare consumer with his history. If he was a random message board dude I would raise the bs flag. But I know he's legit.

 

The bank credit card industry has spent hundreds of millions of dollars convincing people they need a credit card to do anything in life. They have been very successful in that. There will be a dozen replied talking about how essential it is to have credit cards. Listen to them and their stories then

 

Read one of Dave Ramsey's books and think three or four times about starting any credit card.

 

 

 

[Balta1701]

The bank credit card industry has spent hundreds of millions of dollars convincing people they need a credit card to do anything in life. They have been very successful in that. There will be a dozen replied talking about how essential it is to have credit cards. Listen to them and their stories then

Trouble is, long-term, they're not wrong. You can get by without a credit card...but you can't get by without access to credit if you expect to do things like purchase a car or home, and the ability to make those purchases is legally tied to what you do with your credit cards.

[bigruss]

As long as you are conservative with your purchases and follow a sound budget for yourself, a credit card is actually a great thing to have.

 

I got my first credit card linked to my parents when I was 16 (for gas money, etc), and got my first personal one when I was 19, and you just have to have self control over what you buy. I know what I can afford, but have been lucky with great paying summer jobs/internships so I have had more leeway than most. For those who don't plan on having a job to replenish the bank account, I would suggest not getting a credit card.

[StrangeSox]

The bank credit card industry has spent hundreds of millions of dollars convincing people they need a credit card to do anything in life. They have been very successful in that. There will be a dozen replied talking about how essential it is to have credit cards. Listen to them and their stories then

 

I just spent 4 days for free in Naples, FL and I'm getting several hundred dollars worth of free room nights for my honeymoon thanks to my credit card and I do not carry a balance, ever. I had a credit score right around 800 at the age of 24 thanks to taking out a card I never use.

 

Credit cards are simply a tool, not something to be feared.

Edited May 11, 2011 by StrangeSox

[StrangeSox]

Trouble is, long-term, they're not wrong. You can get by without a credit card...but you can't get by without access to credit if you expect to do things like purchase a car or home, and the ability to make those purchases is legally tied to what you do with your credit cards.

 

If you travel a lot for work, you'd also be stuck with huge holding charges on your debit card from hotels and rental cars. If you're traveling for a few weeks in a row to different places, this can amount to thousands in holding fees, tying up your real, actual money and leaving you without an emergency back-up.

[IlliniKrush]

I just spent 4 days for free in Naples, FL and I'm getting several hundred dollars worth of free room nights for my honeymoon thanks to my credit card and I do not carry a balance, ever. I had a credit score right around 800 at the age of 24 thanks to taking out a card I never use.

 

Credit cards are simply a tool, not something to be feared.

Yeah, a portion of your FICO score is your debt to credit ratio, so having a card or two and essentially cutting them up is actually pretty wise. You don't necessarily have to use the card much for it to have an impact.

Edited May 12, 2011 by IlliniKrush

[StrangeSox]

Not to mention that more and more places check your credit. Renting an apartment, car insurance rates, even employment in many cases now and anywhere you have to get security clearances. Ignoring the realities of credit in the modern world and treating them as some fearful taboo isn't the way to go, imo. Just like some studies show AA actually has higher recidivism than no treatment at all with various other treatments that don't stigmatize and demonize the drug to the point of idolization, the same is true of credit or any other vice, really.

[Leonard Zelig]

My girlfriend has a credit score of about 760 and just got denied a card because she does not have enough revolving credit.

[Balta1701]

Credit cards are simply a tool, not something to be feared.

You know, I disagree a bit here...even though I'm good with mine, I still fear them, because I know that the issuer will try to screw me the first chance they get. For people who aren't careful with their purchases, they need to be even more scared.

 

Fear is, at least for me, part of the motivator to cover all my bases on those cards and watch them constantly.

[StrangeSox]

You know, I disagree a bit here...even though I'm good with mine, I still fear them, because I know that the issuer will try to screw me the first chance they get. For people who aren't careful with their purchases, they need to be even more scared.

 

Fear is, at least for me, part of the motivator to cover all my bases on those cards and watch them constantly.

 

You can also maim or kill yourself if you improperly use tools, but I don't "fear" my saw or blowtorch. You respect the danger, you keep up your guard and you stay safe.

 

That's different than what Ramsey preaches, which is to never use credit (of any kind) ever.

[Texsox]

Walk into a car dealership with 20% down and you will drive off their lot. Walk into a mortgage company with a decent down payment and no credit cards and you will get a mortgage. Stable work history and a history of saving, including a positive net worth, actually has value.

 

But yes, showing you can manage a negative net worth with lots of debt also works, and there are a lot more companies advocating for that.

 

But actually saving money, putting away an emergency fund instead of relying on credit cards, saving for down payments instead of no money down instant gratification is very difficult for most people. Even if you don't go as far or as extreme as some financial advisors will tell you, being your own credit card increases your net worth and saves you money.

 

And look at who is telling you that credit is essential. Credit monitoring companies, credit card companies, credit repair companies. And we want that stuff immediatly, it's something we like, so we believe them.

 

The only time I can honestly say you absolutely need a credit card is to rent a car. If you manage to put aside an emergency fund, you can pay for those unexpected expenses like car repairs. If you can't afford to set aside the savings, how will you pay off the credit card without racking up interest payments?

 

Americans want to spend 110% of their income.

[Rex Kickass]

I would recommend a Discover card actually, unless you plan on using your card internationally. Discover has, traditionally, had a policy of forgiving one late payment a year (something I took advantage of twice.) But that's if you're really looking to go by Credit Card brand.

 

If you are a member of a Credit Union, get a credit card with them. It usually means a lower interest rate, and more flexibility with terms, and more forgiveness if you forget to make a payment now and again. I ran into some financial trouble a couple years ago, and my credit union told me they didn't consider a payment to the credit card late until five days after the payment date. Not all CUs are that flexible, but because you represent a bit more than a customer to them, they tend to have better terms.

[southsider2k5]

Walk into a car dealership with 20% down and you will drive off their lot. Walk into a mortgage company with a decent down payment and no credit cards and you will get a mortgage. Stable work history and a history of saving, including a positive net worth, actually has value.

 

But yes, showing you can manage a negative net worth with lots of debt also works, and there are a lot more companies advocating for that.

 

But actually saving money, putting away an emergency fund instead of relying on credit cards, saving for down payments instead of no money down instant gratification is very difficult for most people. Even if you don't go as far or as extreme as some financial advisors will tell you, being your own credit card increases your net worth and saves you money.

 

And look at who is telling you that credit is essential. Credit monitoring companies, credit card companies, credit repair companies. And we want that stuff immediatly, it's something we like, so we believe them.

 

The only time I can honestly say you absolutely need a credit card is to rent a car. If you manage to put aside an emergency fund, you can pay for those unexpected expenses like car repairs. If you can't afford to set aside the savings, how will you pay off the credit card without racking up interest payments?

 

Americans want to spend 110% of their income.

 

Nah, I want to spend 110% of your income.

[Rex Kickass]

PS: Even though your card may have a generous late payment policy, it doesn't mean you should ever make a payment late. The one time you do, maybe the one time it bites you in the ass.

[Rex Kickass]

Nah, I want to spend 110% of your income.

 

I'd settle for 55% of his income.

[IlliniKrush]

Walk into a car dealership with 20% down and you will drive off their lot. Walk into a mortgage company with a decent down payment and no credit cards and you will get a mortgage. Stable work history and a history of saving, including a positive net worth, actually has value.

 

But yes, showing you can manage a negative net worth with lots of debt also works, and there are a lot more companies advocating for that.

 

But actually saving money, putting away an emergency fund instead of relying on credit cards, saving for down payments instead of no money down instant gratification is very difficult for most people. Even if you don't go as far or as extreme as some financial advisors will tell you, being your own credit card increases your net worth and saves you money.

 

And look at who is telling you that credit is essential. Credit monitoring companies, credit card companies, credit repair companies. And we want that stuff immediatly, it's something we like, so we believe them.

 

The only time I can honestly say you absolutely need a credit card is to rent a car. If you manage to put aside an emergency fund, you can pay for those unexpected expenses like car repairs. If you can't afford to set aside the savings, how will you pay off the credit card without racking up interest payments?

 

Americans want to spend 110% of their income.

You're right. If you have an emergency and/or savings account and can put money down, you'll end up getting what you want.

 

CC's are a dicey proposition. I bet some (not all) people who have racked up a lot of CC debt started out with the mentality that they'll just use it a little bit, and always pay it off and not carry a balance. Some people undoubtedly have it and it just makes it easier for them to buy needless s*** on a whim, because hey, it's going on a CC and I don't have to worry about it until later, at which point I don't even need to pay off the whole thing.

 

Having a CC available is a good thing, but I don't agree with putting everything on there. If you do have the cash up front and it's not an emergency, might as well pay for it. Cash is king. A lot of people can get out of trouble with a back to cash movement. There's also something about pulling cash out of your wallet (or to some degree swiping your debit card and having the money gone right away) and paying for something...it seems more "real" at the time, and might even make you think twice about whatever it is you are purchasing if it's not something that's a necessity, which could help you save money. There are too many people (not here necessarily) that treat a CC as a toy and figure at some point, they'll figure out how to pay it off. The interest/penalties you have on it in the long run are brutal.

[Soxbadger]

Using a credit card seems more real to me because most of the cash I have is petty cash so its basically "free" money in my mind. When I have to use my credit card it actually means that I am paying for it.

 

I have a Chase Mastercard, it had the lowest apr and the best rewards. Chase can be pretty unforgiving but my one dispute they resolved in my favor and I dont miss payments etc, so I dont really have issues.

[Iwritecode]

Our credit cards probably saved us from bankruptcy a few years back when my wife was unemployed for 9 months. We were literally living off of them. We racked up a huge amount of debt which we are currently paying off. Ironically we got a personal loan from Discover to do it.

 

 

[IlliniKrush]

Our credit cards probably saved us from bankruptcy a few years back when my wife was unemployed for 9 months. We were literally living off of them. We racked up a huge amount of debt which we are currently paying off. Ironically we got a personal loan from Discover to do it.

That's one of the best reasons to use one, that's truly an emergency.

 

Did they keep raising your interest rate?

[southsider2k5]

Our credit cards probably saved us from bankruptcy a few years back when my wife was unemployed for 9 months. We were literally living off of them. We racked up a huge amount of debt which we are currently paying off. Ironically we got a personal loan from Discover to do it.

 

The important thing is to now cancel the cards so that you don't have too high of a revolving credit line.