Credit card help
 

I want a get a credit card, specifically to make online purchases ;) .

I need help selecting a card, that has good rates, so that I don't end up paying up the ying yang--im only in college after all.

I know that their are several cards out there, which makes this decision really hard.

So here's where I need some help. A quick crash course in what I should be looking for, or what credit cards you use or would suggest I get.

TIA,

zero2

just get the lowest interest rate and for god's sake, get a low limit.

Get a visa or master card check/debit card. Spend the money you have and then you don't need to worry about interest rates.

Bad news: Your first credit card is gonna suck. If you have no history, expect a high interest rate, possibly an annual fee, and a low limit. My first card was a Providian and I had no problems with them. It had a $1000 limit and an astromical 23.99% APR, but that's par for the course.

Good news: With responsible use your credit score will go through the roof and you'll be able to get a much better card, along with a mortgage, car loan, etc. I got my first card 18 months ago. It now has a $8k credit limit and 11.99% APR, and I also have an AmEx with a 9% APR and cash back on purchases through it. It pays to have a good score.

Is this a good card?

Citi Platinum Select Card

0% APR* for 6 months on purchases,
cash advances, and balance transfers
No annual fee
Build your credit history
Free online account management
$0 liability on unauthorized purchases
TERMS & CONDITIONS

*Introductory rate of 0.0% for 6 months from date of cardmembership on purchases, cash advances and balance transfers. After the promotional period, the standard APR for purchases will be applied to all remaining purchase and balance transfer amounts; the standard APR for cash advances will be applied to all remaining cash advance amounts. (As of October 1, 2003, the standard variable APR for purchases: 13.99%; the standard variable APR for cash advances: 19.99%.) However, if you default under any Card Agreement, we may immediately increase the rate on all balances (including any promotional balances) to a variable default rate of 27.99%. The minimum finance charge is $.50. The transaction fee for cash advances is 3% of the amount of each cash advance, but not less than $5. The transaction fee for balance transfers is 3% of the amount of each balance transfer; minimum of $5 and $50 maximum. However, we will waiver the balance transfer transaction fee on balances you transfer in response to this offer. The annual membership fee is $0

That's a good card, but I'd be very surprised if you can get that card without having a card before. Do you have any prior credit history (car loan, etc.)?

Do NOT get a debit/check card, unless they give you free fraud protection as well.

For a credit card, if it gets stolen and you report it within 60 days of the bill it shows up on (IIRC), you are liable for, at most, $50 under US laws, even if you don't sign up for any of the expensive "fraud protection" crap they try to pawn on you.

You lose the debit card and someone cleans out your account, you're screwed. All gone.

I've had debit cards from 3 different banks over the past 5 years. I have never, ever gotten calls to verify any charges.

I've had 3 credit cards over the past 18 months, and each one has called me up at some point to verify a transaction. One when I suddenly made a much larger than normal purchase, another for making 3 online purchases in a day, and the other for buying coffee and a sandwich at 7-11 every day for several weeks. It just showed up to them as a gas station, and gas being charged to it every single day raised a flag.

Credit cards are much better for fraud protection. Banks issuing debit cards don't seem to have nearly the same level of interest, and once your money is gone, it's gone. I hear they are getting better, though. Plus, a debit card won't do a damn thing for building credit, and that's important. The difference between 5% and 9% interest on a decent sized mortgage is considerable.

Sounds like I'm leaning toward the credit card rather than debit card.

The major selling point is that I want a credit history.

The Citi Platinuim Card that I mentioned is for students.

Here's the site:
http://www.mastercard.com/fac/naviga...ctId=1&catId=2

Citibank is a good bank to do business with. I have a student loan with them for next year. But my current credit card is with MBNA America.
http://www.mbna.com/index_main.html
I got one offered through them in cooperation with the United States Fencing Accosiation (which I'm a member of). It was available for students and offered a 9.9% apr on all purchases. That's my experience, but then, everyone has had different experiences with credit cards. If I were you, I'd do as I currently am, and get a very low credit limit, use it sparingly, such as for gas purchases and online purchases, and only a little bit if at all anywhere else, and pay it off at the end of each and every month! Don't spend any money that you don't already have in your bank account ready to pay it off unless you absolutely have to for an emergency (ie, emergency car repair). That's my two cents. If you really want advice on a credit card, I'd post this question in the Tilted Finance board.

My frist card in college was actually a Citi Platinum Select Card. Ive had it now for 4 years or so. I like Citi banks service. When my own back turned me down for a card, Citi gave me credit.

I just got my business card through Citi as well.

American Express is another option you might want to consider.

They're generally pretty easy to get for students.

It establishes credit for you.

And encourages you to keep your spending under control because the entire amount is due at the end of the billing cycle.

I want to say that I have had a CitiBank Visa (now a Mastercard) and have never had one problem with them. I would definitely go with a bigger recognized name card company than some unheard of one. Use your cc when you need it and only when you know you have the money to pay when the bill comes because if you don't pay it all off and you are a first time cc user, like everyone posted, your rates are gonna be sky high. But use your debit card for purchases sometimes too. Whatever you do, don't get yourself into debt. It will screw up the rest of your financial life.

Also, watch out that they don't raise your rates on you. They can do this to you even if you are a perfect customer and have never been late and they don't even have to tell you. So check your bill each month and after 6-12 months, if you have spent enough and paid your bills, and they haven't lowered your rate, call them and ask. They may say no at first, but be assertive.

HTH.

If you do get a dept card make sure it has a "visa" logo on it. If it does it is covered just like a regular credit card. I was in the same boat (no credit) and eventually got one through my bank.

Get a credit card. Better protections.
I recommend trying your bank's credit card. Mine is a Line Of Credit from US Bank with a 5% interest rate. However, I have a long credit history with a FICO of 750. Plus, a bit of credit card debt. But that's another story.

Summary:

a) Credit Card will gain you credit where a debit card will not
b) Credit Card will protect you against fraud where a debit card may not.
c) Get a card with LOW APR and a LOW balance to start with. This will build your credit without worry of screwing yourself later.


FYI, Citibank is a great company. They were my first credit card as well, but due to an accounting error (they sent me two seperate Platinum cards with a large limit) I screwed myself. My credit went to hell VERY quickly. They were still a great bank to deal with.

Currently I'm trying to rebuild my credit. I have a Platinum Mastercard through Capital One that works very well... I only have a $500 limit (which is a good thing) but it's 0% APR through 2004 and then only 9.9% APR after that. If I can get 9.9% with LOUSY credit, you can get it with no credit at all... just wait for the right deal (or search for the right deal). Annual fees might be a good option if it lowers your APR a great deal. $29-39/year isn't too bad. If they want more than that, they're probably out to hose you.

Okay, hope that was helpful along with everyone else's post. Good luck!

I just received my Capital One Mastercard the other day. It has 0% interest for the first 6 months, and then only goes 11.99% after that. It is the best deal I have found yet.

www.capitalone.com

It's actually relatively easy to find a credit card with no annual fee. Do yourself a HUGE favor and pay off your credit card each month! Not only will you build a great credit rating but you'll save yourself a lot of money and a lot of headache from debt piling up.

This is so important that I have to quote it and add my two cents. A girl I work with turns 19 tomorrow, and already has three maxed credit cards. She pays more each month on interest than I spend on purchases. Only use "buy now pay later" on things you NEED but can't afford, not things you want. The more money you have to spend on interest, the less money you have to spend on toys.

Here's how I do it. I have my card set up to automaticly pay off the entire balance every month. Nothing to send in, I just need to make sure the money is in my savings account. So I just carry a check book and mark off my purchases the same way you would with a check, making sure I don't go over how much I have in savings. This gives the convenience of a debit card with the (usually) better fraud protection of a credit card. And since I'm paying it off in full every month, no interest. So I don't care about my APR (I honestly don't even know what it is) and instead use the card with the best bonus program I can find. I like the Discover gas card (up to 10% back on gas, up to 2% back on everything else). If you're just using it for online purchases, a visa might be better since it's accepted slightly more places, but as long as you pay it off every month and have no anual fee, it's all good.

Thanks for the help, everyone. I'm definetly one not to spend what I don't have, but I figure, if there's ever an emergency and I don't have the money or am not able to get to the atm or bank, a credit card would be useful in those types of scenarios.

what you have to realize is that your only gonna get a sucky card to start with, that has a HIGH interest rate, the trick is getting one with no annual fee, like the Blue for Students card from AMEX. other than that, good luck to ya man, beggers can't be choosers when it comes to first establishing credit!

Take my advice: Avoid cards with low promotional rates, especially if it's your first card. Unless you are very self-disciplined. I was all excited when I turned 18 and I got credit card after credit card after credit card.

Fast forward five years later and here I am with over $10,000 in credit card debt, having a car about 5-6 years old that should probably be traded in soon before it starts getting too expensive to maintain, and not having the credit score to allow that to happen easily.

My biggest downfall is the promotional rates. Oh yeah, 1.9%, I can get this paid off in 6 months, no problem! Well, I didn't. And yeah, I was bad and missed a payment here and there, and one of my cards literally got to the point where minimum payment wasn't even covering 70% of the finance charges.

I'm not one to write off my debts and let other credit card holders pay my balances off by paying high interest rates while I ride out a 7 year bankruptcy train.. I did the next best (worst?) thing and went with Credit Counseling, which is nice since it prevents future spending on those cards, but now I have to start my length of credit history over with another creditor. Now I know better and literally use the card only in emergency situations, and even then I don't like to use it.

Get a card with a small limit, don't necessarily pay it off every month (since the credit card companies WANT to make at least some money off of you), but pay most of it down. After awhile you'll start getting good credit.