what should i do.. young person building credit

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sweetpeas
 
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what should i do.. young person building credit

Postby sweetpeas » Sun Apr 19, 2009 2:49 pm

i just recently became aware of this whole credit score and building credit thing. i turned 20 and i only have 2 cards.. but they are both visa. i got this student visa from bank of america about 2 yrs ago, and then i got this gap card (i wasn't careful and somehow i guess i got persuaded without really knowing what it meant to open one, i totally learned my lesson!) about 1 year ago..
i think the having 2 visas is kind of redundant.. should i close the gap card?? i don't spend tons of money there so the benefits arent worth it. but it's confusing because i read that if i keep a card open it can help my credit score later on. both of my cards don't have any major benefits (i think i'm also too young to worry about big rewards too), but i got it because i heard it helps to build credit early on. i never carry balances either.
what should i do next? should i close the gap card? would it benefit to just keep it open? the economy is bad.. but should i try to get more credit cards from the major companies? i'm totally lost and trying to educate myself about this whole process, it can be so confusing.


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Cucumber
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Postby Cucumber » Mon Apr 20, 2009 3:21 am

Hey yep it can definitely be confusing when you're first learning it. No worries because that's why this message board is here :D

I would keep the Gap card open but stick it away somewhere safe so you don't lose it. With the Visa thing it actually doesn't matter because Visa is only a payment processing network. They're not the bank. Here's the history of Visa credit cards.

Don't worry about the payment networks a card is associated with. What you want is to have is different banks/financial institutions and it you already have two different ones with the Visa and a 3rd one through Gap which is issued through GE Capital. I suppose it may not hurt to get another credit card from yet another financial institution but you want to be careful because if its a temptation to spend you should do it. And you should definitely be able to qualify for some good rewards credit cards despite your age/short credit history!!
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sweetpeas
 
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Location: us

Postby sweetpeas » Mon Apr 20, 2009 1:17 pm

Thanks for your reply! :D i'm glad to know it wouldn't matter if i got two visas. I never knew the history of Visa, heh.
I think sometime in the future I should upgrade the BoA student Visa.. should I? its the no frills one.. and I guess keeping the gapcard wouldnt hurt.

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Cucumber
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Postby Cucumber » Thu Apr 23, 2009 4:15 am

No prob :cool:

I would stay away from Bank of America credit cards. THere are so many people on Credit Card Forum with horror stories about their cards with them. They have done some pretty shady stuff lately. The rewards on all of their cards pretty much suck (either 1% to 1.5% cashback) so it's not really worth it. What I would recommend is a rewards or cashback card that has higher rebates for certain categories of spending... then just always make sure you use the card for those categories of spending only ;)
OBAMA
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AnthonyBarone
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Postby AnthonyBarone » Tue Apr 28, 2009 12:23 pm

Stay away from the subprime cards like Orchard Bank Mastercard. The terms are not the best.

Mandy77
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Postby Mandy77 » Wed Apr 29, 2009 1:09 am

I think it's best to have like 3 or 4 different cards from different banks



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