I Want to Open a Credit Card, Any Advice?

It's something I should have done long ago as someone who's very serious about not missing payments to start building good credit but alas I keep forgetting. Now that I've finally decided to take the plunge on getting a credit card for the first time, what's some good advice? Mostly in terms of customer experience, best way to go about it (I have a Bank of America debit account), and any other personal experiences with credit cards that could be a good thing to note.

The best advice is to not get a credit card. All you're doing by getting a credit card is giving a bunch of your money to whichever bank you get it from for no reason. If you are going to get one anyway, make sure there isn't any kind of annual fee or anything like that on it and it's just straight interest on the money you borrow. Getting a credit card is a bad idea.

@BaconGames said:

It's something I should have done long ago as someone who's very serious about not missing payments to start building good credit but alas I keep forgetting. Now that I've finally decided to take the plunge on getting a credit card for the first time, what's some good advice? Mostly in terms of customer experience, best way to go about it (I have a Bank of America debit account), and any other personal experiences with credit cards that could be a good thing to note.

when I was buying a house they told me that just having an open account was really good to have. It supposedly shows that you have the willpower to keep from maxing cards out. So if you do get a card, you don't have to actually use it to build good credit.

My understanding is just having the account provides the credit benefit, its something like showing "available" credit. So go for one and don't use it. And yes, the only two real things you need to know are annual fee and APR. Customer service sucks all the way around, unless you are going to really use the card seriously and go with American Express, but I doubt you are in that category.

Life advice, credit card debt is easy to get into and hard to get out of. Be careful. On the other hand, if you are serious about growing older, having available credit for large purchases or emergencies is helpful and in some ways, I think a sign of maturity. But just be careful. They make it easy to spend, and then it can get hard to pay.

Also, opening an account with a bank where you have savings accounts will get you better rates, but keep in mind that banks basically "own" your money once they have it, so if you have a savings account and debt and go into default, they can often seize that money without any judicial process or notice necessary to satisfy the debt.

My advice: don't. Going into university I got a card and very quickly got huge amounts of debt I was never able to fully pay off. Now luckily I got some help and I got rid of the card. Now I just have a debit card I can use online instead of needing a credit card.

That's not to say everyone is like me and is really dumb and irresponsible with all of a sudden being handed a card with a bunch of money, but it's shocking at how quickly your spending can go from responsible to total clusterfuck.

Just get something with a low credit limit, like $500 to start off. Try to use it as often as possible and make sure you pay it off every month. Your credit rating will be decent in a relatively short amount of time. The low credit limit will keep you from spending too much at once so as to be able to pay it off on time. I bank with Capital One and haven't had any problems. I'm not really a huge spender, though, so it's been easy for me to keep up with the payments. Eventually your credit limit should get raised automatically.

@Spankmealotus said:

The best advice is to not get a credit card. All you're doing by getting a credit card is giving a bunch of your money to whichever bank you get it from for no reason. If you are going to get one anyway, make sure there isn't any kind of annual fee or anything like that on it and it's just straight interest on the money you borrow. Getting a credit card is a bad idea.

I know a couple people that always pay off whatever charges they made every month, so they never really have any interest build up. My best advice would be to only use it when you really need to, and try your best to keep it paid off so you get no interest. Oh, and as said, no annual fees.

If you don't have credit then get one because you're going to need credit. But don't use it often and pay it off as quickly as possible. Maybe use it to buy lunch one day or get a coffee. But pay it off right away. That way you can establish a good credit history which you'll need if you ever want to finance anything like a car or house.

Yeah, to continue what everyone is saying, if you get one, avoid the temptation to use it for big purchases, and try to use it to buy stuff where you can immediately pay it off before you have to pay interest. I'm in Canada, so I can't really help you regarding what bank to go with.

@Jams said:

@BaconGames said:

It's something I should have done long ago as someone who's very serious about not missing payments to start building good credit but alas I keep forgetting. Now that I've finally decided to take the plunge on getting a credit card for the first time, what's some good advice? Mostly in terms of customer experience, best way to go about it (I have a Bank of America debit account), and any other personal experiences with credit cards that could be a good thing to note.

when I was buying a house they told me that just having an open account was really good to have. It supposedly shows that you have the willpower to keep from maxing cards out. So if you do get a card, you don't have to actually use it to build good credit.

Yep. A couple of open accounts are actually good for your credit. The trick with credit cards is to not have a balance of more than 50% of your limit. That dings your score.

The best advice I can give is if you are turned down for a credit card, DO NOT immediately go to other places thinking they will give you one. Inquiries into your credit stay on there for a year and places can see if you applied for credit at other establishments. Inquiries in a short time span can hurt you, especially if you do not actually have a credit history. I would recommend trying to get one through your bank if they offer an actual credit card. From this point on, I am going to be talking as if you do not have a credit history because I don't know. Talk to someone at your bank and tell them you are wanting to start building a credit history and just take whatever limit they want to give you (probably just a few hundred dollars). Then just buy something here and there on it so there is activity and pay it in full every month. Don't go over half of what your limit is. In 6 months to a year, you will have some sort of history and will be able to increase the limit and in a couple of years be able to finance a car and then a house (with the correct down payments of course).

Yeah, to continue what everyone is saying, if you get one, avoid the temptation to use it for big purchases, and try to use it to buy stuff where you can immediately pay it off before you have to pay interest. I'm in Canada, so I can't really help you regarding what bank to go with.

scissors usually, they'll open it right up

Buy GOLD

Don't.

If you do, don't buy shit you can't/won't be able to afford.

@xMEGADETHxSLY said:

Buy GOLD

With credit.

Yes, only if you know how to take care and manage your money. I opened one back in September, and since I'm already frugal and cheap, I only use it for purchases I could already make with my debit card anyway. I don't feel sorry for anybody who has amassed credit card debt, it's called being stupid and not knowing how to manage what money you actually have.

I almost wish I had more credit to spend, I'd love to be able to pay off my tuition on my card then just take it out of my bank account, would do wonders cashback wise.

I've had a credit card for about 4 years that has no annual fee. My best advice is don't spend money you don't have. I use mine mostly for online purchases, which I then pay off immediately through online banking. This way, I avoid any interest charges, and don't owe anything!

@mazik765 said:

My advice: don't. Going into university I got a card and very quickly got huge amounts of debt I was never able to fully pay off. Now luckily I got some help and I got rid of the card. Now I just have a debit card I can use online instead of needing a credit card.

That's not to say everyone is like me and is really dumb and irresponsible with all of a sudden being handed a card with a bunch of money, but it's shocking at how quickly your spending can go from responsible to total clusterfuck.

This was me also! Totally fucked me over and I have HUGE regrets ever getting one. I live by my debit card now and honestly think that's the route you should go. But, if you feel you can be responsible enough to make full payments each month and not get hit with a bad credit history, more power to you! Good Luck whichever way you decide!

Just use it for purchases that you have enough money for, and pay it off every month. You'll build your credit and not dig yourself into a hole.

Doesn't hurt to have one card to have around on those times when you might need it, just try to not to most of the time. If you do use it, pay it off as much as reasonably allowed past the minimum & try to find one with a low APR so the interest doesn't screw you over.

Make sure you get a credit card with rewards or cash back. I use my credit card for everything instead of my bank card. I even pay my insurance and cell phone using it. I get tons of points and every 4-6 months I cash them in for a $60 Best Buy gift cert I use to buy video games.

I'm good with money though and never spend more than I actually have.

@StrainedEyes said:

Just use it for purchases that you have enough money for, and pay it off every month. You'll build your credit and not dig yourself into a hole.

Indeed. The idea that credit cards are evil and you should avoid them at all costs is largely ignorant and naive. The world operates on money markets, and if you have demand, you can participate responsibly. You want a house? A car? A business? You'll more than likely need a loan. You can get great starter cards with a low ceiling that you can use to build credit. Your credit rating is pretty important, and it will allow you to build healthy credit habits so you can handle a mortgage or whatever else you'd like without feeling overwhelmed.

Wow, reading over the responses it would seem to be the worst thing in the world, but I disagree wholeheartedly. I've had a credit card since college and while, yes I have accumulated my fair share of debt in those many years, I have paid it off each time. Having a good credit rating is important when looking at life beyond college such as when financing a car or mortgage. I suggest asking credit card providers if they're going to charge you an annual fee. If you have a checking account at a bank, see if they offer a card. There's no reason you should have to pay an annual fee unless you have a poor credit history. Plenty of card companies will at least waive the fee the first year. The following year, if you've been responsible, you can re-negotiate with the company. Additionally, check out what the penalties are for missed payments and how quickly it will spike your interest. I don't think it's necessary to get the credit insurance and all that as long as you are attentive to your monthly statements. There are lots of laws already in place to protect you from credit fraud. No need to pay for more on top of those.

The best advice I can give is just get one, meaning just one single card. I suggest a Visa or Master Card over any other since they're accepted practically everywhere. Use it just on necessities you'd normally spend cash on but not on every little item you buy. Filling up your gas tank is a good use, buying food at the store is not. When your statement arrives, pay it all off as soon as possible. Never pay just the minimum. Do this every month and you'll grow good credit which can be helpful later in life.

Remember, a credit card is a responsibility. It's not about impressing friends or satisfying your impulses. If you fall into that spending trap, you will regret it. Just figure out where you're spending your cash each month and use the card on a few of those items instead.

Don't. Get a debit card.

You need to open one to establish a credit history otherwise you'll be screwed when you go to get a car loan or anything else requiring a credit check. Don't listen to the advice to not get one unless you feel you can't handle the temptation to make stupid purchases or not paying on time.

@BaconGames said:

It's something I should have done long ago as someone who's very serious about not missing payments to start building good credit but alas I keep forgetting. Now that I've finally decided to take the plunge on getting a credit card for the first time, what's some good advice? Mostly in terms of customer experience, best way to go about it (I have a Bank of America debit account), and any other personal experiences with credit cards that could be a good thing to note.

dont do it man

Get one if you are responsible with money and will only spend money that you know you have. Having good credit can help you for future endeavors.

Don't listen to the people telling you flat out to not get one; only you know about your own self-control.

Get one then tell me all the numbers on it so I can help you. I'll need your name and address too, for reasons.

Best advice ... DO NOT get a Credit Card , you will end up owing a lot of money... maybe not tyur fault but other family members etc. :( it is a bad idea

@BaconGames: how old are you? do you have school loans yet? You can get your credit score up pretty well by paying off your low interest Fedloan student loan stuff. If you have no current outstanding debt i would try to get an Amex just for small stuff, like only gas. that way your bill will always be similar and you can always pay it off on time.

Pretty much anyone can get a credit card these days. It's like free money. If you can't pay off one credit card, just get another credit card. It's a no-brainer!

@Ravenlight said:

Pretty much anyone can get a credit card these days. It's like free money. If you can't pay off one credit card, just get another credit card. It's a no-brainer!

Get your credit score swoll mang, just be disciplined with your use of the credit card. You are going to need it to get a car or more importantly a house.

Be smart with how you use it. I've seen plenty of people that get a credit card and use it for almost anything, and in the end they end up with debt up to their eyeballs. I got my credit card a few months ago and only use it for small purchases. I also make sure that I pay off everything at the end of the month so I'm not stuck with paying any interest.

Dont

Dont get one.. unless you like debt. If you do get one only use it in case of an emergancy when you debit card fails or is not accepted by the store

Don't use it to spend more than you're able to pay off each month. You really, really don't want to get into the habit of carrying a continuous debt.

I very much disagree with the people saying not to get one. If you are already good with money, get one and use it like a debit card.

Only use it to buy what you can pay for immediately. If you are moderately disciplined and pay it off IN FULL every month there's no reason to fear a credit card. You'll probably get modest rewards (cash back/ miles) for using the card as well. Plus when there is an emergency and you need to make a big purchase that you don't have the money for yet (but soon will) you have that option.

There's also a lot more protection from credit card theft than debit card theft if that is something you worry about.

The guy/gal wants to know what provider to go with and all most can say is don't get one and don't spend more then you have, give the OP some credit (see what I did there) and assume they know what they are doing, cant make any recommendations myself but when I got my first card I found it very difficult to get one as I had no credit rating. I spoke to my bank who I have had an account with for many years and the women there said that your actually more likely to get a card with a bad credit rating then no rating at all. So my advice would be go with whoever will have you to start with and then in 6 months shop around.

Don't..

What's wrong with a debit card? You should get one of those instead.

Here's my advice: Don't

if you do, make sure you only charge as much as you can pay off each month.

@RenMcKormack said:

@BaconGames: how old are you? do you have school loans yet? You can get your credit score up pretty well by paying off your low interest Fedloan student loan stuff. If you have no current outstanding debt i would try to get an Amex just for small stuff, like only gas. that way your bill will always be similar and you can always pay it off on time.

I'm a college junior right now.

@DjCmeP said:

What's wrong with a debit card? You should get one of those instead.

I love my debit card, just that for everything I've used it for, I never spend very much at a time when I make online purchases here and there. The way I see it, getting a credit card and then using that first, immediately paying off the balance with my checking account makes sense to me. I just wanted to hear what others had to say and I'm very grateful (except for the don't comments, but I understand where they are coming from) for the information.

As it turns out, since I'm a student with no reliable income except for a weird arrangement with my parents, I need one of them to co-sign it anyway. Thanks for the advice good people, I'll be doing what I'll be doing but feel free to rattle off more advice or whatever you please when this thread pops up again.

@BaconGames: Get a low maximum line (like $1000), it'll stop you from "accidentally" wracking up a massive chunk of debt that you'll be paying off for a decade. It can definitely be useful in emergencies (even non-life-threatening ones like "OH GOD, IT'S THE HOLIDAYS AND I HAVE NOT A LOT OF GIFT MONEY/STEAM SALE MONEY!!") but it can also VERY easily get away from you and get out of control. Plus: it's almost necessary for building credit if you ever want to buy a home and anyone who's telling you not to seem to not realize that fact.

I ended up having nearly exemplary credit by doing this:

1.) Sign up for a credit card

2.) Use credit card to pay for my monthly bills / gas, these are things I would have paid for and had money for anyways

3.) Pay the balance off of the credit card like clockwork monthly.

When I went to get a small loan, I was told my credit was stellar.

@Spankmealotus said:

The best advice is to not get a credit card. All you're doing by getting a credit card is giving a bunch of your money to whichever bank you get it from for no reason. If you are going to get one anyway, make sure there isn't any kind of annual fee or anything like that on it and it's just straight interest on the money you borrow. Getting a credit card is a bad idea.

But you can't do anything without them, they are a necessity if you ever plan on traveling anywhere, a lot of hotels require them. Same with making any major purchase like a car or something, they'll want to run a credit check, if you have none, good luck. Same with paying rent, a lot of landlords demand a credit check.

@BaconGames said:

I love my debit card, just that for everything I've used it for, I never spend very much at a time when I make online purchases here and there. The way I see it, getting a credit card and then using that first, immediately paying off the balance with my checking account makes sense to me. I just wanted to hear what others had to say and I'm very grateful (except for the don't comments, but I understand where they are coming from) for the information.

As it turns out, since I'm a student with no reliable income except for a weird arrangement with my parents, I need one of them to co-sign it anyway. Thanks for the advice good people, I'll be doing what I'll be doing but feel free to rattle off more advice or whatever you please when this thread pops up again.

I had my bank call me and try and get me to get a credit card, which was a little odd, but when I actually sat down with them and talked about it the idea made sense. I had them set the limit really low and basically use it for security. I buy something online with it and then log in online and immediately pay it off. I'm now safe in case I buy something online and it goes sour, I can buy from more websites and the charges for currency conversion are much lower. When I need a loan at any point in the future I'll now be in a better position.

As for you the only thing I would be worried about is the not having a job/proper income bit, but as long as you're sensible it sounds like a good idea. It's a really good thing to have if you make online purchases and as long as you remember to pay it immediately you won't incur any charges.

Be responsible. Don't run up a balance. Pay it off monthly.

See if you can get one that has a low annual fee in exchange for air miles. If you fly frequently, that is.

Look for something without an annual fee and low limit. Just remember that it's money and you can't be spending money you don't have on frivolous things. I was late to credit cards myself but now have two. I only really use 1 of them but will try to make one small purchase a month with the other just to get the activity there to build up credit. I personally like Chase because they give you rewards and you can set up to automatically have it pay the balance on your account so you never have to worry about forgetting.

Good luck. They'll all turn you down for having no credit history. 
You'll have to get a really shady credit card first that probably have "maintenance fees" and such. 
 
I've never had a credit card because they always turn me down, so I have always had no credit history so they keep turning me down. It's dumb.