I'm 18 years old and I'm somewhat excited to get a credit card so I can get the ball rolling on building my credit. I was turned down for all of the ones I applied to a few months ago, but was approved for an introductory sort of credit card through my bank a few days ago. It'll hopefully be here by the end of next week.
Now for the most part I understand how the cards work. I don't have any plans on going out and buying a thousand dollar TV or something like that the second I get it. I'll just be using it for stuff that I would normally put on my debit card and just pay off the whole bill at the end of the month.
- Now one question I have to start off with credit cards in full vs. making payments. Say I go out and put $400 worth of stuff on my card a month, and pay it off in full at the end of every month. Would this build my credit faster than if I went out and put $50 worth of stuff on the card and paid it off? I'm not sure if your credit builds faster depending on how much you pay off a month.
- First of all, are cards like these hard to get? I'm guessing they base whether or not you can get them off of your credit score and maybe income, so either way, I'd be waiting a while before I was eligible for it.
- If it's fairly easy to get one with good credit, how high should I get my credit before I apply for it? I don't want to apply only to be told I couldn't get it and then have to wait however long to apply for it again. If I just don't make enough to get the card in the first place though, I won't worry about it.