pushbacktosquare Posted January 16, 2012 Share Posted January 16, 2012 Anyone have any useful hints / tips as to how to successfully start your credit? Maybe someone with some good / bad experiences can share some stories that can come in handy to someone trying to start credit. Where did you go apply for credit? Is there anywhere one should stay away from completely? Where would you recommend opening a credit account? Do tell. Quote Link to comment Share on other sites More sharing options...
harryq Posted January 16, 2012 Share Posted January 16, 2012 I had a checking account at US Bank for a year or two, and then got a credit card through them. I think the benefit of getting a credit card through your bank is that you can look at both your checking account balance as well as your credit card balance online, and then it's easy to pay the bill online now I have a checking account, savings account, and two credit card accounts through them -- had the student one, then I wanted to sign up for that START savings program and had to set up a "package" that included a different credit card... I use the old one once a year or so to avoid the stupid account fee, but otherwise only use the new one because it has better rewards oh, and the START savings program kicks ass if you already have $1000 and know how to work the system (you get a $50 gift card when you hit $1000 and another one after you've kept a $1000 balance for a year... in other words, it's fairly easy money if you're halfway responsible) Quote Link to comment Share on other sites More sharing options...
suchashorttime Posted January 16, 2012 Share Posted January 16, 2012 my best advice is to get the lowest possible credit balance. being a college student, in most cases, ALREADY involved a whole buttload of debt. save yourself the headache 4 or 5 years down the line and don't rack up a bunch of additional debt. if you have a serious stable job, of course, a lot of this won't totally apply. semesterly work-study jobs or seasonal jobs at home might make it tough to keep your balance down. At this point I have 2 credit cards, a whole bunch of student loan debt, a master's degree, and a real-life job. Credit debt is just tough to pay down because in the grand scheme of things, it's pretty low priority (loans are most demanding so they get paid first, I have a car payment, rent and bills, and then whatever is left goes toward my credit cards). Quote Link to comment Share on other sites More sharing options...
BuzzersonKillwell Posted January 16, 2012 Share Posted January 16, 2012 Someone here may know more than me but I think credit is derived from historical data about your ability to pay for things reliably and it also factors in your available credit to debt ratio. Having a credit card with a low balance may help your credit score some, having a credit card with a high balance and making minimum payments ain't going to help much at all. Start small with a phone or bills in your name, and don't get a credit card with an APR over 9%. DON'T use it to buy records, especially if you drink. Credit will accumulate naturally, unless you in a rush to buy a home or something, just let it build. Quote Link to comment Share on other sites More sharing options...
controlthebleeding Posted January 16, 2012 Share Posted January 16, 2012 my best advice is to get the lowest possible credit balance. being a college student, in most cases, ALREADY involved a whole buttload of debt. save yourself the headache 4 or 5 years down the line and don't rack up a bunch of additional debt. if you have a serious stable job, of course, a lot of this won't totally apply. semesterly work-study jobs or seasonal jobs at home might make it tough to keep your balance down.At this point I have 2 credit cards, a whole bunch of student loan debt, a master's degree, and a real-life job. Credit debt is just tough to pay down because in the grand scheme of things, it's pretty low priority (loans are most demanding so they get paid first, I have a car payment, rent and bills, and then whatever is left goes toward my credit cards). this exactly. i got a couple of credit cards, and wound up in a whole heap of a mess and had to sell my albums to pay my credit cards and student debt. unfortunately, i'm still $5k in the hole, and that hasn't been paid off in years. one day... one day. Quote Link to comment Share on other sites More sharing options...
selfreliable Posted January 16, 2012 Share Posted January 16, 2012 Basically just put bills under your name and pay them off on time every time. I never got a credit card till around 23 and I got a no limit Amex Gold Card. Also, if your parents have great credit, see if they will put you on one of their credit cards. My parents did that when I was around 15 or so. I never even saw the card, they kept it, but with them having great credit and paying it all the time and my name on the acct as well it helped me get good credit built up as well. Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted January 16, 2012 Share Posted January 16, 2012 Credit for a college student..... Apply for a Chase +1 card, you will start w/ roughly $300 w/ no co-signer and will double to $600 couples months after; I Believe it has 12months 0% apr. I use my card for everything and always keep a few hundred dollars from month to month statement. I'm 21 and my credit score is in the 700's w/ no cosigner help Goal is for my to get to 800's so I can lease a Mercedes G-Class upon graduating. Quote Link to comment Share on other sites More sharing options...
controlthebleeding Posted January 16, 2012 Share Posted January 16, 2012 Credit for a college student.....Apply for a Chase +1 card, you will start w/ roughly $300 w/ no co-signer and will double to $600 couples months after; I Believe it has 12months 0% apr. I use my card for everything and always keep a few hundred dollars from month to month statement. I'm 21 and my credit score is in the 700's w/ no cosigner help Goal is for my to get to 800's so I can lease a Mercedes G-Class upon graduating. can i cruise down the strip with you? Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted January 16, 2012 Share Posted January 16, 2012 ahah If you come to Washington DC you can Quote Link to comment Share on other sites More sharing options...
controlthebleeding Posted January 16, 2012 Share Posted January 16, 2012 ahah If you come to Washington DC you can fuck that. i've already been to dc. in that kinda car you're shure to get car jacked!!!! fuck that noise. Quote Link to comment Share on other sites More sharing options...
Snaggle Von Swift Posted January 16, 2012 Share Posted January 16, 2012 Capital One has a Student card that is easy to get. (All Capital One cards are pretty easy) Quote Link to comment Share on other sites More sharing options...
somethingvinyl Posted January 16, 2012 Share Posted January 16, 2012 Get a job. Don't get into debt. If you charge something, pay it off within 3 months. Quote Link to comment Share on other sites More sharing options...
thebiglebowski Posted January 16, 2012 Share Posted January 16, 2012 There are plenty of websites that tell you habits that lead to high credit scores (low debt/income, on time payment, not running your score frequently) and you should definitely try and be conscious of them, but in my opinion, don't obsess over your credit. There is a big difference between what you can do/get with a 500s credit score and 700s, but I doubt your life will be very different whether you have a 700s or an 800s credit score. It's not like once you hit the 800s you get 1% loans whenever you want. I would be more focused on trying to get a credit card with a good rewards points system. 1 or 2% cash back really adds up when you try and put as much as you can on it (but not too much, don't carry a balance on an interest paying card or it defeats the purpose). As others have said, just be financially responsible and it happens on it's own. That's what it is designed to measure... Quote Link to comment Share on other sites More sharing options...
bgdesign Posted January 16, 2012 Share Posted January 16, 2012 Your bank/credit union will have the best rates, but I recommend not getting a card. Capital One will give you 10% intro but it skyrockets to 25% after you use it. Bank of America is known for this too. I'd just stear clear of credit cards. Quote Link to comment Share on other sites More sharing options...
pushbacktosquare Posted January 16, 2012 Author Share Posted January 16, 2012 Your bank/credit union will have the best rates, but I recommend not getting a card. Capital One will give you 10% intro but it skyrockets to 25% after you use it. Bank of America is known for this too. I'd just stear clear of credit cards. But don't you NEED credit? I mean, I remember attending this workshop in college and this dude from Wells Fargo told us that once we graduate we should already have a pretty established credit score. That if in the future, we wanted to take out a loan to buy a car / house you won't be able to if you have no credit. So don't you kinda have to need to build credit if you're looking to be a homeowner one day? Thanks for all the responses everyone. Quote Link to comment Share on other sites More sharing options...
harryq Posted January 16, 2012 Share Posted January 16, 2012 If you charge something, pay it off every month. when I got my credit card, I used it as a 2 week advance on my paycheck (I'm paid through a salary/stipend, so it's the same amount every paycheck). if you can't afford it, don't buy it. and I'm skeptical of any of the credit card companies that send me offers once a week... something about their persistence makes me think that they're totally trying to fuck you over Quote Link to comment Share on other sites More sharing options...
One Hundred Fifty-Two Posted January 16, 2012 Share Posted January 16, 2012 I'm 24 and haven't had a credit card. Hasn't hurt me yet. Quote Link to comment Share on other sites More sharing options...
suchashorttime Posted January 16, 2012 Share Posted January 16, 2012 Your bank/credit union will have the best rates, but I recommend not getting a card. Capital One will give you 10% intro but it skyrockets to 25% after you use it. Bank of America is known for this too. I'd just stear clear of credit cards. But don't you NEED credit? I mean, I remember attending this workshop in college and this dude from Wells Fargo told us that once we graduate we should already have a pretty established credit score. That if in the future, we wanted to take out a loan to buy a car / house you won't be able to if you have no credit. So don't you kinda have to need to build credit if you're looking to be a homeowner one day? Thanks for all the responses everyone. You have to consider that the guy giving the workshop was from Wells Fargo. Those dudes make their money from you paying interest on your multiple forms of debt, so of course he's going to sell you on the credit score pitch. Your credit score will certainly establish itself over time, and, especially in today's economy / market, I don't really see anyone needing to rush said establishment. When you graduate and hold a steady job, a credit card is a great idea because you can earn small rewards / cash back, and if you pay most of the balance off (once it's posted, or it won't count toward your score anyway), you'll totally minimize the interest you have to pay. Our generation is heading in a different direction than those before us have. Unless you are paying off school as you go, and land a pretty serious job immediately upon graduating, it will take you a few years to establish yourself anyway. The dream of graduating, getting a job, buying a house and a car right out of the gate is becoming fewer and further between. The job market can't support all of the young people with degrees, and even in markets that have a better hold on it, competitive salaries are relatively low. I think the statistic is that the vast majority of college graduates move back home for close to 5 years before moving out these days. To put it in perspective, I just finished my MAT and am teaching in an urban district (the reason I mention it is because urban teachers' salaries are supposedly higher than a suburban teacher with similar experience). My girlfriend is finishing her MA now. Between the two of us, I think we carry close to 75k in student debt, most of which is mine, but that's still a relatively low amount of debt for two people in their mid-20s with masters degrees. We rent a modest apartment, pay our rent and bills with some fun money left over, but a lot of our money that could go to buying a home goes to paying down debt. We both have stellar credit scores, but can't really afford to do much with them, which is a bummer, for sure. Also, I think we're relatively well-off (debt to income ratio-wise) compared to a lot of other people in similar situations in the country. All in all, you need to think of, say, a 5-year plan. Where do you hope to be in 5 years? Where might you realistically be in 5 years? How much debt will you have when you graduate? What will your loan payments look like? Do you plan to go right back to school? Do you want to be independent right off the bat, or maybe move back home for a while? Keep in mind that things like buying cars and homes involve borrowing money, too. Also remember that even a pretty sweet-sounding base salary that you anticipate earning when you graduate will be taxed, and you'll likely pay some portion of a benefits package. When all is said and done, bills are paid, and you're settled in, will you have any cash left over for food / recreation? Sorry this is so long-winded... I spend a lot of time thinking about this stuff and how I could have done what I did better. If sharing some personal perspective might help someone else land in a better position, I'd be happy. All-in-all what I'm saying is: its REALLY easy to spend money you don't necessarily have, but when the man comes looking for it, he wants it back with interest. And that goes not just for credit cards, but student loans, car loans, and mortgages. The Wells Fargo dude is trying to sell you a dream. Just do what's right for you. edit: I never thought that's how I'd use my 1000th post. Hope it helps. hahaha Quote Link to comment Share on other sites More sharing options...
dutchrudder Posted January 16, 2012 Share Posted January 16, 2012 I got a credit card when I was about 20 thinking that I could build up my credit score with it. I planned on using for small things like gas and then pay it off every month. About 6 months later, I ended up putting about $150 worth of records on it... I would say get a credit card if you have a lot of self control. One thing I did when I got the card was had the bank reduce my limit from $1000 to $500. $500 is a lot easier to manage than $1000, in my opinion. Quote Link to comment Share on other sites More sharing options...
bgdesign Posted January 16, 2012 Share Posted January 16, 2012 Yea, that's his sales pitch. You'll get plenty of credit, especially if you have student loans. Quote Link to comment Share on other sites More sharing options...
nicole Posted January 17, 2012 Share Posted January 17, 2012 I only have a high school education. I graduated high school when I was 17 and started working part time making sure to save up every dollar I made. seriously, for months I didn't buy ANYTHING other than necessities like shampoo and whatnot. no wasting. with no prior credit you at least need to have some money in the bank. i had some dough in the bank (youth account) after a little bit and got myself a credit card 2 months after turning 18. i got a cash back mastercard which originally only had $1000 of credit on it but I only used it for things which I would've bought anyways because I make 0.5% cash back on every dollar I spend. I PAY IT OFF IN FULL EVERY MONTH. I'm now 19 and have 2 separate credit cards totalling over $10,000 in credit and I don't owe a penny to anyone as I continue to pay it off in full. I periodically call and get limit increases just because I can and it shows the company that I can handle the responsibility. A few months ago I was able to open a credit score dependant bank account all on my own- no cosigner. apparently people in their late 20s usually need a cosigner to do that. I should mention that my bank and credit card institution are not the same. Basically, just get a student credit card with a small limit and gradually increase it by paying off the whole bill every month. I have a better credit score than most people twice my age. And every january I get a nice credit on my account because my cash back points get redeemed. mastercard has never made a dime off me. they pretty much pay me to use their card. Just be responsible. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 17, 2012 Share Posted January 17, 2012 I'm 25 and my credit is as perfect as a 25 year old's could be. When I bought my car last year, it was over 1000 and the only knock was that I didn't have a long-enough history, which there's nothing I can do about that. Get a credit card - I recommend Discover because their rewards are pretty good. You can't miss payments with Discover because I hear they're brutal on penalties, but I haven't experienced them myself. When you get the credit card, wherever you end up getting it, you CANNOT use it as free money. Treat it like a debit card. I buy a lot with my card, especially from giant corporate chains, because fuck'em (mom-n-pop shops get cash from me so they don't eat any fees). As soon as you buy something, when it posts, pay it off. Don't let any balance ride month-to-month. Put a bill or two in your name if you live off campus. Don't miss a payment though, so if you live with 3 friends or something, either have the cash to cover them if they're dicks and can't pay you, or make sure they're good people. Having good credit is really just about paying attention to your finances. Don't over-extend yourself. Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted January 17, 2012 Share Posted January 17, 2012 Oh, and link as much as possible directly to your bank account online so you can fix yourself in 2 minutes if you get close to fucking up. I pay all my bills online and pay my credit card online once a week or so. Quote Link to comment Share on other sites More sharing options...
hipsterasfolk Posted January 17, 2012 Share Posted January 17, 2012 Yea, its nice to have Debit/Savings/Credit all on one account. You can make any transfers from one to another at any giving moment. Quote Link to comment Share on other sites More sharing options...
element101 Posted January 17, 2012 Share Posted January 17, 2012 I'm 24 and haven't had a credit card. Hasn't hurt me yet. This is how I am but I recently got the paypal credit card. I have horrible credit and it hasn't hurt me too much. Mostly from my mom, I disputed most of it and paid alot of the delinquent crap off. I own a charger and the credit aspect definitely played a role in alot of problems getting it but I had a few friends in high places that were able to bypass things. I personally don't like credit cards but having good credit is almost necessary these days and for me I have to start building now because im already in the crapper with it. Quote Link to comment Share on other sites More sharing options...
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