First Credit Card Advice?

Do you like to travel?

Was in the exact same situation you are now only 6 months ago. Don't sweat it too much because you will likely not be able to get a card with more than a $1000 limit so you won't likely reap any huge rewards anytime soon. Just start building that report!

...i got travel rewards.

I have the Costco American Express card. No yearly fee with my Costco membership. 3% cash on gas and travel, 1-2% on other items. Last February I walked into Costco and they gave me 1100 cash. Not many better rewards cards out there but AMEX not accepted everywhere so you occasionally need a backup Visa.

I got a $2500 limit for my first card, and my credit wasn't particularly good.

I went Visa through Bank of America, which gives 1-2% on all purchases +10% (so 1.1%) for redeeming into my bank account. The travel rewards cards seem like way too big of a hassle to deal with, IMO.

asfddsf wrote:

Do you like to travel?

I live pretty far from my family and college friends so I have to fly coast to coast pretty often. Southwest seems to have a pretty good starting bonus of like 2 roundtrip flights.. does anything beat that?

Though Southwest doesn't fly direct to most places I would go

my daughter got a pre-screened offer from Discover shortly before she started college. Was surprised as she had no credit history. Checked it out and she signed up. She's been happy with their service, pays it off monthly and gets the 1% rebate. Tough to beat for a first card.

Dont' get anything with a yearly fee. Most of the time cash back rebates are better than using points to travel or get other rewards. I personally use credit 90% of the time because of the cash back. I have two cards and never carry a balance. Haveing the cards has helped me build an excellent credit history. The standard rate for cash back is 1%. If you look around you can likely find something a little better.

Here is a link to a good rewards card that gives 5% back on many things. It is Penfed CU, they usually give pretty good limits. Anyone can join by joining a charity type organization, you can find the info on their site.

Costco Amex is good if you have a store near you. I think you are more apt to be approved for a card if you go in. Amex has a card that is great, but they won't approve you as a first card, You could call and ask them though. Get something from them and build a relationship. The Amex card is Blue Cash Preferred, it pays 6% back on some things. There is a $75 fee, but worth it if you use the card regularly. They also have a special where they give you $250 back withing 3 months. They also have a 3% card with no annual fee.

http://bluecashcards.americanexpress.com/home/#/

Chase, and Citi both have a few 5% reward cards. I have a card by Sallie Mae that gives 5% back on groceries, gas and Amazon purchases. I don't think it would work as a first card, but if you have a loan with them it might be worth a shot.

Tip: if you have a family member who has a credit card with a low balance which has never been late, ask them to put you on as an Authorized User. You get the credit history and it will help you get some cards. You can go to the site creditboards.com for more info. Much will depend on your score, and if you have any kind of credit history. Hopefully you have a store card or other loan.

Here is the link:

https://www.penfed.org/Platinum-Rewards/

Thanks for all the info. Will penfed approve me as a first card? I don't want to join on of those organizations and then get turned down for the card

I don't know. It looks like you would need a score a little over 700, but I would call them. You didn't say if you had any other loans. Some banks have may you one if you are a recent college grad. Usually credit unions are very friendly, you are more likely to talk to a person actually in the US who isn't just reading from a screen, so calling them actually helps.

If you don't know your score you can get a good idea by signing up at Creditsesame.com. The score isn't exact, but it is real close. CreditKarma has scores too, but they aren't as accurate. Both places after signing up will have suggestions on cards that fit your profile. They are both legitimate sites, they make money by advertising you products, so they are free.

Plan B would be to sign up for the best card you can and wait a year. next year you would probably get any card you wanted. I would stay away from Capital One and Chase, they don't treat their customers that well.

No I'm completely unscored on experian. I think I may be stuck with a crappier card for a while before I can get one of these nice ones.

Thanks again

oops and I am The OP.

While I understand the importance of having a good credit history, I've never been a huge fan of blindly following "reward" schemes on cards. for the average consumer, it incentivizes spending with a nearly insignificant reward that gets magnified by the words "free" and "cash". they likely wont realize that their 2% cash back isnt worth it if the knowledge of that cash back causes them to waste an extra $2.01 on a $100.00 buying spree.

if a shopper recognizes this and doesn't change spending habits by even 1%, then it makes sense, but its tough to claim with absolute certainty that credit doesn't cause you to spend more than you would have with just cash or debit in your wallet.

You can try Citi for a first card or Amazon. Maybe you have an account with a bank now that could give you your first cards. For a first Card Cap 1 or Chase would be OK. What will best help your score would be 2 bank cards and a store card or two. The store cards are easier. I assume you have had no loans out at all. Many credit unions and banks have secured cards that are much easier. You open an account and they give you a card with the limit of what you put in. Then they unsecure it in 6 months to a year. If you do it, put in as much as you can. That way your account will report with a higher limit and you will get higher limits on other cards.

If you wanted the Penfed Card in the future, join now then in a year or so you can apply for a cards. They may even have a secured card that you can get now. When you apply for the good cards you want in the future, make sure you show a balance on one or two cards that you have of about 10% of your limits. This shows that you are managing credit, but not overusing it. Every time you officially apply for credit it hits your report, and banks don't like to see many credit card inquirers, just be selective and talk to them first so you don't waist them.

It's great that you are getting a credit card. When used responsibly it is a fantastic tool to help build your credit and provide financial flexibility when needed.

If you are concerned about getting approved just got with a standard Visa card through your bank. They may start you at a low limit but it's no big deal - you have to start somewhere.

Where do you spend most of your money? Try to get a card that targets those purchases.

I just recently received my first credit card that I actually have to pay an annual fee. It is worth it though. For an annual fee of $75 I get 6% back on groceries, 3% on gas and department stores, and 1% on everything else. If you send just $104 a month on groceries you break even.

For a first card, I would go with a capital one card (venture is a good choice) They have a decent point system, also can do cash back. Another perk is no foreign transaction fees if you like to travel.

My favorite credit card: Starwood Preferred Guest card. No other reward system compares.

Build good credit and you can start to get approved for cards with huge sign up bonuses (citi american airlines, chase British airways, chase ink, starwood preferred etc)