I am getting close to turning 18, and I want to make sure my credit stays balanced as well as I can. I realize due to my first time dealing with any sort of finance my interest rates are high and my credit score is absolutely nothing. I am in the United States and I plan to get a small credit card with a low spending limit for things I can not afford at the moment but can cover with my next paycheck. Does anyone know of a card they have gotten for their kids to start off with? I am not a unwise spender. I want something I don't have to pay too much for or use very frequently. I have seen some cards I can get with a whopping 21% interest on them, which is insane.
For first time credit cards, a good place to start looking are the major two; Visa and Mastercard. They both offer a choice for students and those who have yet to build a credit history. In Visa's case, they appear to be partnered with Capital One to provide the Journey Students Rewards card, while Mastercard has a different deal under Orchard Bank. The 19.8% interest rate they offer should not be too bad if you can manage small spending for a while. If neither of these options work for you, it may be best to inquire these companies about whether you may be able to obtain a secured credit card, at least until you build enough credit for a standard one. There is another interesting option you may want to look at. The Chase Bank offers the Chase Freedom Card that maintains 0% APR on new purchases for 15 months, which may actually be your best bet for building credit. If you cannot manage to get a credit card with the assets you have despite looking, try joining a credit union to gain access to one. They tend to look at you on a more personal basis.
Well, I would say depends on which bank are you with. For most of the banks, there are credit cards just for students, which that was the one I used when I was a student because it offered points and limited the credit line so I didn't go overboard. Plus, the interest was zero as long as I was a student back then. I would think a student Visa or Mastercard with $500 but no more than $1000 credit line would consider a good one.
If you're a student, take advantage of that fact by getting a student credit card from the bank of your debit card. Wells fargo for instance, offers a cc for students who have checking accounts with them even if you have no job or savings. If you're out of school and have no credit, you can easily get a secured mastercard from capitalone.
I think Discover It by Discover is a great credit card. They do have late payment forgiveness and are as friendly as advertised. The agents are helpful and the rules/rates are fair.
Many people have mentioned student credit cards, which is what I started with. And they are great! But, since I almost always pay off my balance each month, I found something better. A credit card with rewards, specifically cash back. Chase Freedom (Visa) has been the perfect credit card for me. They give you 1% cash back on every purchase and then 5% cash back on different categories each quarter (this quarter includes Starbucks and grocery stores). Since I usually pay off my balance, I make between $15 and $30 a month and sometimes more! Occasionally they have a referral program where you can get $50 for each person you refer that signs up and spends a certain amount. It really is great. Plus, you can use the "cash back" to buy discounted gift cards or merchandise on their website. Or even directly on Amazon. I highly recommend this card!
I actually disagree that the major two (visa/mastercard are the best way to go). If you can manage an amex, that would be my recommendation. If not, try discover. Amex has better benefits. Discover is easier to get and has great customer service. The reason I recommend one of those is that they're not accepted in as many places. That is a positive thing in the process of building credit because you will be less tempted to use them. The other thing I found to be helpful when I still had most of my cards, was to put the card somewhere that was difficult to access. It didn't live in my wallet. That made it easier to use the card for planned purchases, because using it is important to building credit, without making it vulnerable to impulse shopping.
