Baby's first credit card.

DasUberEdward

Are people still going the capitol one route or are there other options? I have fair credit and my only real expenditure is my car payment which isn't too large of a portion of my income. I noticed that i'm using my debit card quite a bit. I'm a little frustrated with my bank at the moment because as a new customer I only have access to a portion of my deposits. I think it took nearly one week for my last paycheck to completely clear which makes things a little frustrating.

I'm not a financial guru by any means but i'm thinking the smart thing to do at this point in my life would be to pick up a credit card for beginners. Deposit my paychecks regularly into my bank account and just use it as a source for my credit card payments only. This way i'll have my car payments working to build my credit and my credit card improving my score.

Is there a particular card that is recommended?

Jasconius

it never hurts to have a low-cap credit card to buy miscellaneous items with

DasUberEdward

Kamiro wrote: »

This is what I do. I only use my debit card to pay at places that don't accept my credit card (Discover). My Discover card gives me 1% cash back on all purchases and 5% on certain ones up to a certain amount.

The important thing when using your credit card as a debit card is to make sure you pay it off in full every month.

If you do this, and get some sorts of rewards (cash back, airline miles, etc) then you should be good.

That's my game plan. Just never touch my bank account and monitor my spending to pay off the card in full every month.

So should I just go to discover or. . .are there recommendations?

tuxkamen

Capitol One is good for rewards. Discover is nice (and certain Amex cards as well), but you run into availability. It's usually best to run with two cards with complementary rewards. If you have to pick only one, a Visa is probably best.

saltiness

Are there any good credit unions in your area?

My first credit card was a Capital One and it's not a terrible card but it's very difficult to get credit increases with them. I've had a card with them for nearly a decade and it still only has a $1k limit which can be annoying at times. I bank with a credit union who not only deposits my paychecks immediately but also gave me a $10k limit card with 1% cash back. My Capital One card now just sits there. I haven't charged anything to it in over 3 years but I don't want to close it since that will ding my credit score for a while.

My advice is to shop around for a credit union who can give you not only a good credit card but also better banking.

tuxkamen

Are you sure it isn't operating under some kind of beginner's-card rule set?


$1K after ten years sounds ridiculous if you've been keeping up with payments. I imagine a polite call explaining how you're considering cancelling your card since the limit is stupidly low compared to your shiny new one will fix this situation.

Shogun

DUE I seriously read the title thinking this was a credit card for a baby and i was scratching my head.

I highly recommend an American Express especially if you intend on paying your bills every month. Mine had an annual fee of $55, but it was worth it. Two words. Buyer Protection.

If you don't want to go that route join a local good credit union and get a card from them. I still have one from them with a very reasonable 8% rate I don't think I have ever used it.

saltiness

tuxkamen wrote: »

Are you sure it isn't operating under some kind of beginner's-card rule set?


$1K after ten years sounds ridiculous if you've been keeping up with payments. I imagine a polite call explaining how you're considering cancelling your card since the limit is stupidly low compared to your shiny new one will fix this situation.

I haven't done anything with it in the past 3 years. Five years ago I needed to rent some camera equipment so I asked Capital One for a temporary credit increase to $2,500 and they denied me. Next day I went to my Credit Union and they gave me a $10k limit card. I imagine I probably could get an increase on it now that my income is nearing six figures but they've proven themselves unhelpful already so I haven't bothered.

DasUberEdward

I am a member of a credit union for my car payment. . .I imagine they wouldn't give me a loan and a credit card? Never considered it to be honest.

Funny thing is I considered this because of a lack of access to my deposits with the bank i'm with. Making deposits and then not having access to the cash is really uncomfortable to me. On the bright side it prevents me from making any sort of frivolous expenditures but on the other hand it's an annoying impediment.

Anyway I should have a card within the next week. I don't think I have any further questions. Thanks everyone.