Credit Tips: Help Getting First Credit Card

Posted On: July 1, 2006

Author: ae2198
Posted: Fri Jun 27, 2003 9:54 pm
Post subject: Going to get first C.C. NEED HELP!

hi, i’m 21 yrs. old and i’ve never had a credit card before. i have no idea about basics, or what is good for me. i just want to establish some credit because i want to buy a house in 5 yrs. i have no debt. i have paid off my car and the only reoccuring bills i have is rent, phone bill and car insurance.
can someone give me some advice on what is a good credit card for me, what kind of useage with the card, and what are the things i need to do to get very good credit report.

your replies will be appreciated!

Author: Ira
Posted: Mon Jun 30, 2003 9:13 pm
Post subject:

Going from back to front, getting and maintaining a very good credit report is real simple for someone like yourself. All you have to do is pay your bills on time. NEVER be late by even an hour. A good starter credit card would be a department store card. They’re fairly easy to get. When you get thee card, make a few purchases that are within your means, and pay off the balance within the grace period. The grace period is the number of days between the date of your statement and the “pay by” date which appears on the statement. Be sure to leave enough time (usually at least 5 days) for them to receive & process your payment. After a few months apply for another.

Then apply for a Visa/MasterCard. By this time you’ll probably be getting a few “preapproved” offers in the mail. The best advice is to get what is known as a “rewards” card which gives you either merchandise, free gas, airline miles, cash rebates, etc. In other words the card issuer pays you for usiing their card. Not bad, eh?

Author: ae2198
Posted: Mon Jun 30, 2003 9:29 pm
Post subject:
thanks for the reply Ira!

Is a secured visa/mastercard a good option? Also, would i be able to use a dept. store c.c. anywhere else? i’m a big hater of credit cards and i just want to be safe because i need to build the credit for a home. i dont want to get in over my head with credit cards and end up in trouble.

Author: Ira
Posted: Wed Jul 02, 2003 2:56 am
Post subject:

I don’t want to write a lengthy discourse on the merits of credit cards, but you cn use them as if they were cash, and you can also look at using a credit card as a means of getting interest on $$$ you have already spent. Example: make a purchase for $100.00 on your credit card. Now deposit $100.00 in an interest bearing account. In about 30 days you’ll get your statement which will have a 25 day grace period. 5 or 6 days before the expiration of the grace period you withdraw the $100.00 and pay your credit card company IN FULL. The interest you made on the $100.00 stays in the bank. Ok, these days you won’t make much that way, but you won’t have to carry cash, your record keeping is easier, and if you have a rewards card you’re making even more $$$ simply by using credit cards. Personally I charge as much as I possibly can and pay off the balances during the grace period. I eard several hundred dollars each year in rebates, and I haven’t calculated what I earn in interest. There are other tricks, but the point is if used correctly credit cards are your friend, not your enemy.