FngKestrel

Okay, so the overly long subject line may tell it all, but here's everything in more elaboration and possibly unnecessary details.

So I've decided that I'm long overdue for a credit card, mainly because I have no credit history and am starting to run into problems that that entails.

Anyhow, I bank with Washington Mutual and was hoping to get a credit card from them as a safe start. Unfortunately, I found out the other day that Washington Mutual does not, in fact, offer a credit card.

I still need to get a card and am determined to get one, but am cautiously treading through the minefield that is credit debt. I've been advised by friends to try the card offered by The Motley Fool (www.fool.com), which is another financial aid site or use the Amazon.com card for some cashback rewards.

Foremost, I've been advised to get a card with no annual fee.

What's the best plan of action?

I've seen a lot of credit card advice on this forum, and was hoping to get some specific for my situation. Thanks in advance.

amonkie

While I don't know your area to know what banks you have around you, I've found my lowest APR rates by getting a credit card with the credit union I bank with. The #1 thing I could tell you is to NOT go application crazy and apply for 10 different credit cards, especially really closely to each other. Each of these applications show up on your credit report as a hit by the group sponsoring the card, and that many hits in such a short time is NOT good.

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Hardknock

There are plenty of credit cards out there and they'll all be more than happy to take your application. You just need to pick one that suits you. You’re on the right track with the no annual fee. That fee is bullshit and a waste of your money. I'd also tell you to stay away from airline credit cards unless you're VERY persistent about paying off the balance every month. The interest rate on those things start at 18%. Shop around and find the terms that'll suit you best.

Bottom line, no annual fee, get the lowest interest rate you can find and you should be in good shape.

FngKestrel

What kind of interest rate should I be able to expect for a first time card? My coworkers scoff when I suggest trying to get an interest rate lower than 26%.

Hardknock

If you don't have any credit history at all, then your co-workers might be right. When I first started building up my credit, I got a couple of department store cards with a limit of $200 each. The interest rate was about 18% on both. I was 18 when I got them and I bought a few things here and there and buit up a history. Since you're just starting out, this might be the way to go for you.

arch13

Bankrate offers a website that tracks the lowest availiable APR's for both fixed and variable rates, as well as balance transfers.
The Wall Street Journal publish's this list every monday.
It is a nation list, taking into account many factors.

Like wise, do a search at Bankrate.com's credit card page for the card that fits you best.

My advice? Don't apply online, do it over the phone. If declined, you can negotiate for a lower credit limit and not have to re-apply.
Rememeber that applying for to many cards in a couple month period negativly effects your credit score.

Also, I got a 15% rate when I got my first card (Visa from First Union, now Wachovia) my sophmore year in college.

The only card worth it's salt with an annual fee is the Amex green card, and you do not have the credit history for that yet.

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f6twister

I couldn't get a regular credit card initially because they said I didn't have any established credit. Walking through the mall one day, I saw a sign for a credit card at a jewelery store. I applied and got one of their cards. I bought something small for my girlfriend using it and paid it off right away. Once that happened, I was starting bonfires for all of the credit card applications I was getting in the mail.

I'm with Hardknock....you will most likely end up with a low credit limit and high interest rate until you can establish yourself. It took me a few years before I saw the limit go up and the interest go down but if you plan on buying a car or house in the future, you need to put up with the hassel in order to establish your credit history.

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Merlocke

Redflagdeals.com had a really nice section on cards with points systems - only thing is that if you're not Canadian it doens't help if you don't have access to these cards.

I think the American Express Air Miles card with no annual fee was one of the higher scoring ones.

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FngKestrel

Thanks for the advice all. I'm still wading through the mess, trying not to get suckered into bad deals.

What about opening a new account at another bank, say, Wells Fargo, and then applying for a card there? What's the feasiblity of that? And is it a good option?

THGL

My advice is try to get an American Express card. It's not a credit card but a charge card, which means you HAVE to pay it off every month. This will help you curb your spending (a lot of people get credit cards and go a little crazy at first and get into trouble).
Use it sparingly and within a few months you might start getting credit card applications in the mail. Don't jump at the first app. you get. Now that you've got a little history under your belt you should get a better APR than someone with no history. After you get your first credit card then it's up to you if you want to keep the AmEx.