Choosing my first credit card.

BathTubb

I am looking for my first credit card. This card will be used for some bill payment and a game from Steam here and there. What should I be looking for? What would recommend for a first card?

ATIRage

Welcome to the responsible world of credit cards
I don't know if Minnesota has any credit unions but see if there are any in your area. If you go to college or are a member of some kind of association, you can sign up for cards with them, and they generally have pretty favorable rates for first timer credit applicants.

If that doesn't work, check the banks around you and shop around: You want something with a low APR (how much they charge in interest over the year against the balance you have on your card)

Also, even though its a pain in the arse, read through any credit card information thoroughly before accepting a credit offer. Many times the scary stuff that tells you what happens if you screw up is buried in legal gobbldeygook. It is a headache but it is worth reading to cover yourself.

Finally if there is a community college or community center in your area, see if there are any classes about establishing or managing credit. They'll be able to really give you great tips about how to manage credit.

Saammiel

If you own a Costco membership, their AmEx card is reasonable if I remember correctly. 1%/2%/3% cashback that you need to redeem at a Costco store. I can look up the other terms when I get home, but quite frankly I haven't really cared about the APR since I have yet to carry a balance over on it.

I believe that the requirements for obtaining the card are lower due to being tied to a Costco membership, but I could be wrong. You will also have to deal with AmEx occasionally not being accepted at places, so you'll want a more standard debit card as a backup. It doesn't happen all that often really though.

Deebaser

Have you been getting any offers in the mail?

If not, you probably have no credit and the banks don't know you exist. This pretty much makes you a "begger" as opposed to a "chooser".

Are you a Student? If so, you can probably get a limited history student credit card, which will probably have no rewards, high interest rate, but hopefully no annual fee.

For a first card, you really just want to build a history for later on, so look for one that has a low / no annual fee, and absolutely no application fees (First Premier).

Good luck!

MushroomStick

You're probably not going to have a lot of options for your first credit card. Avoid anything with an annual fee and then just try to get one that earns reward points for something that you like. If you can get a low apr, that'd be nice, but that's probably not going to happen for your first card. Just pay your balance in full every month and the shitty apr wont matter. After you've built up a little credit, you can be picky about your next credit card.

MichaelLC

Good info by ATIRage.

The basic is get one with no annual fee and preferably one that gives you something - points or money. The actual rate (APR) shouldn't matter because you'll be paying off every month, right? That said, lower is always better.

edit: MushroomStick and I would have beautiful, financially independent kids.

Akilae729

If you're paying the balance off every month I recommend the "Citi Platinum Dividend Select"

Almost all of my friends use this card, and all of us were accepted without having any previous credit cards.

It's a pretty simple cash back card that gives you 2% cash back for 6 months then 1% thereafter. It used to be WAY better (5% cash back on gas and groceries for 6 months, then 2% thereafter with 1% on all other purchases but it was tightened up after the downturn.)

I've been putting everything on it for about 3 years now and have ended up with ~$500 in rewards dollars courtesy of Citibank.

The best part, however, has been the customer service.

Especially as a new card holder they have really helped me out. Had my identity stolen at a cheap taco shop and they took care of everything, used the card internationally with no problems, have had multiple credit line increases just by asking, AND have accidentally missed a couple payment deadlines due to travel and had the missed payment penalties waived. They are also super good about overnighting you a new card if yours gets lost of stolen (taco shop incident).

ATIRage

Ahhh yeah, forgot that customer support is extremely important to scout out. Some banks are notorious for awful service (i'm not too happy with my capital one card but everyone else I've used is okay). This is possibly where going to a local bank or credit union may be helpful, because these institutions, by nature of their bank, are generally not large operations (as in across the nation, but there are exceptions, WAMU used to be a big credit union). Therefore you have an opportunity to talk on a more familiar and one on one basis if you have any problems that come up.

DevoutlyApathetic

That is an important point.

Pay close attention to the secondary services bundled with your card. Quite a few cards have hefty consumer protections that can be quite handy. I personally had American Express slap around Equifax, the credit reporting bureau, on my behalf.

Other common things include extended warranty protection or theft insurance. You will typically have to pay an annual fee for these kinds of services.

APR and Reward programs are essentially meaningless if you don't carry a balance or put much use on the card.

Given your light use I would prioritize no annual fee, followed by protections then "reward programs" and APR. Unfortunately the first two don't usually travel together.

ATIRage

Also, in the legalese that fills your documents, make sure to ask if you are gettinng programs that provide "extra" protection to your card. Sometimes these services cost additional (and are not considered monthly fees by the company). Ensure that you either really want the services [although most of the time they aren't that helpful, like credit monitoring [the big lending companies are going to give you a credit report every so often anyways] and some kinds of protection.

Your best bet is to decline extra protection offers (in my experience) and just check on yoru account every couple of days to make sure you aren't suffering from identity theft or anything sneaky isn't happening.

Panzerkampf

I would actually recommend the paypal credit card offered through their service. It has been working great for me, just pay your bills on time and you should be set. Their customer service isn't bad either...

firewaterword

Anything without fees and with a reward you're cool with. I like cash back, so I rock an Amex Bluecash and a Capitalone world mastercard for international travel (no foreign transaction fees on cap one cards) and non-amex places.

Don't carry a balance unless in means sleeping under an overpass or something, and always pay on time.

Bigbluefoot

One thing that would be a good idea, if you are having difficulty signing up for a card, ask your parents to co-sign, providing they don't have shite credit like my dad does. My mom has a fairly good score, and I had her co-sign with me. 2,000 limit on my first card isn't bad. Biggest tip: use it wisely. I'm going to use mine for large purchases, and then pay it off immediately or a month later, and I've used it to buy wood for projects. Be very careful with your first card, it kinda sets the trend.

Oh, and yeah, low APR, no annual fee, that kinda stuff. I would say the Amazon credit card, but that requires a credit history, which I certainly learned.

maximumzero

I went with Chase's Amazon Credit Card.

$30 off any initial Amazon purchase and earn points to redeem for Amazon store credit? Yes ma'am.