What's a good first credit card?

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PrincessK
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What's a good first credit card?

Postby PrincessK » Sat Jul 01, 2017 5:02 pm

I'm 21 and want to apply for a credit card. I currently don't have any form of credit established. I live in a small town that only has Bank of America, Suntrust, Regions, and Wells Fargo. Does it matter if the bank is in my city? I would only use the card for small purchases that can be paid in full each month. I'll be sure answer any questions you may have. Any suggestions will be of help thanks in advance!


im_mr_awesome
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Re: What's a good first credit card?

Postby im_mr_awesome » Sat Jul 01, 2017 11:20 pm

Have you ever had a car loan, or student loan? Any sort of credit could be helpful when you are young and have a thin credit file.

Generally for first time credit seekers, a secured card is a good bet. Capital One, Bank of America, and Wells Fargo all have decent options. BofA's secured card does have an annual fee, and Capital One's secured card has a higher APR, I believe (23-25%). Wells Fargo might be a good choice for a secured card of you have some cash to put down, as they match your deposit up to $10,000.

Keep that card and pay in full for 6 to 12 months, never using over 30% per month, and assuming no bad items on your report, you should have enough credit to get a better card with some rewards from most any bank. I wouldn't apply for more than one or maybe two.

Good luck.
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TXviking
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Re: What's a good first credit card?

Postby TXviking » Sun Jul 02, 2017 12:31 am

With no credit established, it makes sense to start with either a secured credit card, a department store card or both. I started out with a Target department store card.

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CarefulBuilder14
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Re: What's a good first credit card?

Postby CarefulBuilder14 » Sun Jul 02, 2017 12:52 am

I think Discover Secured is worth considering.

It can un-secure (you'd get the deposit back but keep the card and maybe get a credit limit increase) with time and responsible use. The unsecured version is a card many people with mature credit profiles find useful, so it could quite possible be a card you'd end up keeping.

It's true that fewer merchants take it compared to Visa or MC...but it sounds like you've been able to get by without any card at all so far, and could use a Visa or MC debit (or maybe another credit card) when necessary.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

PrincessK
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Re: What's a good first credit card?

Postby PrincessK » Wed Jul 05, 2017 8:55 am

im_mr_awesome wrote:Have you ever had a car loan, or student loan? Any sort of credit could be helpful when you are young and have a thin credit file.

Generally for first time credit seekers, a secured card is a good bet. Capital One, Bank of America, and Wells Fargo all have decent options. BofA's secured card does have an annual fee, and Capital One's secured card has a higher APR, I believe (23-25%). Wells Fargo might be a good choice for a secured card of you have some cash to put down, as they match your deposit up to $10,000.

Keep that card and pay in full for 6 to 12 months, never using over 30% per month, and assuming no bad items on your report, you should have enough credit to get a better card with some rewards from most any bank. I wouldn't apply for more than one or maybe two.

Good luck.


Sorry for the late reply, but I've never had any type of loan before. I tried to check my credit and they didn't even have me in the system at all. It was like I didn't even exist. Thank you for the suggestions I'm currently looking into Wells Fargo as one of my options.

PrincessK
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Re: What's a good first credit card?

Postby PrincessK » Wed Jul 05, 2017 8:57 am

TXviking wrote:With no credit established, it makes sense to start with either a secured credit card, a department store card or both. I started out with a Target department store card.


I tried applying for a Victoria's Secret credit card but I never heard anything back at all. Then when I tried to check my credit score they didn't even have any knowledge of me its like I didn't exist. I'm not sure whether Target will even accept me or not.

PrincessK
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Re: What's a good first credit card?

Postby PrincessK » Wed Jul 05, 2017 9:03 am

CarefulBuilder14 wrote:I think Discover Secured is worth considering.

It can un-secure (you'd get the deposit back but keep the card and maybe get a credit limit increase) with time and responsible use. The unsecured version is a card many people with mature credit profiles find useful, so it could quite possible be a card you'd end up keeping.

It's true that fewer merchants take it compared to Visa or MC...but it sounds like you've been able to get by without any card at all so far, and could use a Visa or MC debit (or maybe another credit card) when necessary.


I've been hearing a lot about Discover Secured card and I'm currently looking at that as an option. Do you know how long it typically takes to get the unsecured version? I've been hearing that it isn't as widely accepted which I think could benefit me so I wouldn't have the urge to use it all the time. My regular debit card is Visa that I would use for the more expensive purchases. I do feel like eventually in a few years I would probably get a Visa or MC credit card.

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CarefulBuilder14
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Re: What's a good first credit card?

Postby CarefulBuilder14 » Wed Jul 05, 2017 12:06 pm

PrincessK wrote:
CarefulBuilder14 wrote:I think Discover Secured is worth considering.

It can un-secure (you'd get the deposit back but keep the card and maybe get a credit limit increase) with time and responsible use. The unsecured version is a card many people with mature credit profiles find useful, so it could quite possible be a card you'd end up keeping.

It's true that fewer merchants take it compared to Visa or MC...but it sounds like you've been able to get by without any card at all so far, and could use a Visa or MC debit (or maybe another credit card) when necessary.


I've been hearing a lot about Discover Secured card and I'm currently looking at that as an option. Do you know how long it typically takes to get the unsecured version? I've been hearing that it isn't as widely accepted which I think could benefit me so I wouldn't have the urge to use it all the time. My regular debit card is Visa that I would use for the more expensive purchases. I do feel like eventually in a few years I would probably get a Visa or MC credit card.

Not everyone has the same experience with unsecuring. I think the earliest it can happen is 7 months after account opening. There are lots of reports of it happening after 7-9 months...and some at a year...but there are also a few reports of it having still not happened at 18 months. People who report the unsecuring don't always report how good/bad/nonexistent their credit was at the start, or how it changed, but the cases I've read about where it till hasn't happened at 18 months have just been cases where people are rebuilding from truly awful credit.

It's not a well-known card, so the people most familiar with it tend to be reading credit websites, and already have a card or eight along with some late payments or charge-offs. I think the card itself is good, but there's not a lot of information available about people in your shoes.

So I'd expect 9 to 12 months. Take it as a pleasant surprise if it happens at 7 or 8, but don't hold your breath for it.

Getting a Visa or MC CC is absolutely a good idea. Rather than wait a few years, though, maybe wait 9 months to get an attractive unsecured V or MC you'll want to keep.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

PrincessK
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Re: What's a good first credit card?

Postby PrincessK » Thu Jul 06, 2017 4:15 pm

CarefulBuilder14 wrote:
PrincessK wrote:
CarefulBuilder14 wrote:I think Discover Secured is worth considering.

It can un-secure (you'd get the deposit back but keep the card and maybe get a credit limit increase) with time and responsible use. The unsecured version is a card many people with mature credit profiles find useful, so it could quite possible be a card you'd end up keeping.

It's true that fewer merchants take it compared to Visa or MC...but it sounds like you've been able to get by without any card at all so far, and could use a Visa or MC debit (or maybe another credit card) when necessary.


I've been hearing a lot about Discover Secured card and I'm currently looking at that as an option. Do you know how long it typically takes to get the unsecured version? I've been hearing that it isn't as widely accepted which I think could benefit me so I wouldn't have the urge to use it all the time. My regular debit card is Visa that I would use for the more expensive purchases. I do feel like eventually in a few years I would probably get a Visa or MC credit card.

Not everyone has the same experience with unsecuring. I think the earliest it can happen is 7 months after account opening. There are lots of reports of it happening after 7-9 months...and some at a year...but there are also a few reports of it having still not happened at 18 months. People who report the unsecuring don't always report how good/bad/nonexistent their credit was at the start, or how it changed, but the cases I've read about where it till hasn't happened at 18 months have just been cases where people are rebuilding from truly awful credit.

It's not a well-known card, so the people most familiar with it tend to be reading credit websites, and already have a card or eight along with some late payments or charge-offs. I think the card itself is good, but there's not a lot of information available about people in your shoes.

So I'd expect 9 to 12 months. Take it as a pleasant surprise if it happens at 7 or 8, but don't hold your breath for it.

Getting a Visa or MC CC is absolutely a good idea. Rather than wait a few years, though, maybe wait 9 months to get an attractive unsecured V or MC you'll want to keep.


Thank you so much for all your helpful information. I think I'll be getting the secured Discover card before the summer is out then maybe right around February or March of 2018 get a Visa or MC CC probably that offers some type of rewards or cash back.

TXviking
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Re: What's a good first credit card?

Postby TXviking » Fri Jul 07, 2017 8:39 pm

PrincessK wrote:
TXviking wrote:With no credit established, it makes sense to start with either a secured credit card, a department store card or both. I started out with a Target department store card.


I tried applying for a Victoria's Secret credit card but I never heard anything back at all. Then when I tried to check my credit score they didn't even have any knowledge of me its like I didn't exist. I'm not sure whether Target will even accept me or not.


You won't have a credit score until you've had at least one credit line report in. So that part isn't surprising.

It's unusual to not hear back after a credit card application though, if only a form letter informing you of approval or denial. Did you contact Victoria's Secret to inquire about the status of your application? Any chance it might have gone to the wrong address, e.g. if you moved recently?



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