How do I go about getting my first credit card, and what are some of best incentives I should look for?
I'm 25, have good credit anyways from loans, and financing purchases, but haven't hard a card yet.
Get one that makes you pay in full every month (like American Express.) And use it only if you can pay it off every month. Otherwise it is a black hole that will suck your financial house dry. You absolutely must set limits for yourself. People get in $30,000 to $100,000 without even noticing. And don't fall for the transfer for 0% scheme. The first time you are 1 day late the rates go to the maximum (over 25%).When you buy on credit you pay more for what you are buying. Why pay more?
To establish good credit have no more than 2 credit accounts, never ever be late with a payment, and pay off as soon as possible (not the minimum payment–you'll be a slave to it for the rest of your life). If you do that it makes sense to have credit so you have a good credit rating for big purchases like a car or house that you cannot pay in cash. But the less you spend on credit the more you have to spend without all the interest–or better yet, talk to a financial counsellor or just save in an interest free retirement or investment account. No matter what your age.
January 6th, 2009 at 12:45 am
Get one that makes you pay in full every month (like American Express.) And use it only if you can pay it off every month. Otherwise it is a black hole that will suck your financial house dry. You absolutely must set limits for yourself. People get in $30,000 to $100,000 without even noticing. And don't fall for the transfer for 0% scheme. The first time you are 1 day late the rates go to the maximum (over 25%).When you buy on credit you pay more for what you are buying. Why pay more?
To establish good credit have no more than 2 credit accounts, never ever be late with a payment, and pay off as soon as possible (not the minimum payment–you'll be a slave to it for the rest of your life). If you do that it makes sense to have credit so you have a good credit rating for big purchases like a car or house that you cannot pay in cash. But the less you spend on credit the more you have to spend without all the interest–or better yet, talk to a financial counsellor or just save in an interest free retirement or investment account. No matter what your age.
References :
Been there—done that!
January 6th, 2009 at 1:28 am
Getting your first credit card is relatively easier than you may be expecting. Just remember that you do have choices when choosing a credit card. The best way to get your first credit card is through your bank. They usually give you lower rate with higher credit limit.
You should always go for low APR. Other incentives don't compare.
References :