Money Tips: Best Beginner Credit Card for Students

Posted On: March 29, 2006

Guest: tpham2006
Post subject: Best Beginner Credit Card for Students
Posted: Wed Mar 29, 2006 1:37 am

Hi,

I just turned 18, literally. My bday is 03/29. Anyways, I was wondering if I should start trying to get a cc to establish a good credit history or should I wait a bit before trying. Also, any suggestion on what card I can apply for w/o getting rejected? Thanks.

Guest: tpham2006
Posted: Wed Mar 29, 2006 1:48 am

also, I should note that I won’t be graduating until later in June so I’m not sure if I can apply for the “college student” card

Guest: beyond platinum
Credit Expert (100+ Posts)
Posted: Wed Mar 29, 2006 2:00 am

Why wait? You would only be delaying the start of your credit history. You will find that approval will be easier if you go through your credit union or bank first. Once you establish a history(usually 6 months or more) then apply for cards issued through major banks or creditors like American Express or Citibank.
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Guest: tpham2006
Posted: Wed Mar 29, 2006 2:06 am

I am currently banking with TCF and I don’t believe they have an credit card option. I’ll check on that but would a department store CC be a good choice for my 1st card? I’m thinking of BB as I spend a lot of money there.

The reason why I asked if I should wait a bit is because I just turned 18 and I don’t know how it would look if I go and apply for a CC 2 days after turning 18.

Guest: beyond platinum
Credit Expert (100+ Posts)
Posted: Wed Mar 29, 2006 2:18 am

You may be right; http://www.tcfbank.com/PersonalBanking/pb_checking_miles_plus_card.jsp

A retail card would be my second suggestion or taking out a small personal loan through TCF. Here is the website for the Best Buy card which is managed by HSBC:

Best Buy

Happy birthday and remember that check or debit cards don’t report to the credit bureaus.
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Guest: fenster
Posted: Wed Mar 29, 2006 8:25 am

tpham2006 wrote:
Hi,

I just turned 18, literally. My bday is 03/29. Anyways, I was wondering if I should start trying to get a cc to establish a good credit history or should I wait a bit before trying. Also, any suggestion on what card I can apply for w/o getting rejected? Thanks.

Well, it all depends on your present savings, whether you can afford a secured card with an annual fee as much as $50 a year for your fist year. Whether you’ve the discipline to not carry a balance on that high interest secured card and pay in full each month. Whether you can freeze a minimum of $200+ for a full year.

With no credit rating of your own yet, no majors will issue you a unsecured card, not before college.

If you can’t afford a secured card, you should examine your character and see whether you’re liked and trusted by immediate and distant family members. If you’re liked, trusted and can charm members of your family to enlist you as an authorized user on a low limit card, all the greater and cheaper accomplishment. You’ll piggy back on your family members’ card, start a credit rating in your own name and earn everybody’s trust at the same time.

Once you’re an authorized user on a major card, you’ll walk into a department store which will issue you $250 worth of instant store credit, and mail your store card in a few weeks. Make sure you take a state ID with ya when you attempt this transaction. At this point you’re startin’ to cook.

And if your family members trust you as an authorized user, maybe they’ll also trust you with a mobile phone, co-sign your contract, have you make calls and your account reported to the bureaus. Now you’re cookin’ Italian.

Lastly, you’re already closer to a secured card of your own cuz you’ve an established checking account, many secured card banks will issue you a card with a limit of $200 (no credit check) when you furnish them with your checking info. However, this do it alone option is always the most expensive, for the fees are too high for a kid starting out. Good luck.
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Guest: stevejk
Credit Expert (100+ Posts)
Posted: Wed Mar 29, 2006 9:30 am

My $0.02 worth…

If you have a PT job that will be a plus, but applying for the TCF Miles Plus card (it looks like it’s a credit card, as opposed to a debit card) may be a good first step. At least you have a relationship with them, they may be more lenient.

Another idea would be a store card, whether Best Buy, JC Penney’s, Wal-Mart, or even a gasoline store card. They would likely be more lenient than a major CC bank.

The cosigner method is what I used. I was resonably good with money — at least I didn’t overextend myself financially — and my dad advocated the importance of a long good credit history (this is back before FICO), so he cosigned on my first CC.

Depending on your financial situation, and if TCF Bank allows it, taking loan out against your savings would also be a good thing. Paying off an installment loan on-time looks good on a credit report.

While a secured CC is an option, I would make it a last option.

Whichever method you go with, use it occasionally but responsibly so you build up a good credit history. Six months may be a bit short but certainly after a year you may be able to work your way up to a regular VISA or M/C.

Assuming you are going to college, you’ll have to fend off the CC solicitations with a stick.

Not to be a wet blanket, but the big creavat is once you get a CC of some flavor, use it responsibly! Don’t over-spend. Don’t miss payments or pay late. Do pay in full (PIF) to avoid fees and interest.

Guest: catalyst4christ
Posted: Wed Mar 29, 2006 9:34 am

tpham,
As fenster said, your best bet would be to become an authorized user on a family member’s account and start your history that way. But if this is not possible, this is how I started out.

I actually banked with TCF at first too but then I switched to Wells Fargo because there are so many more locations in MN. I think WF has better online services as well. When I switched to WF, I also got their student credit card because it also gave me overdraft protection on the checking account. I did have to send in class schedule or something like that, can’t remember, to verify that I was a college student. I guess that is a little different for you because you’re still in high school. I used that CC to build my credit and soon after that, got another card. Now I have a pretty good set of cards at age 23.

It takes some time for things to build up so be patient. I treat my credit cards like they are debit cards. I don’t use money I don’t have in my checking account and PIF every month. Hope that helps.

D
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Guest: bullwinkle29
Posted: Wed Mar 29, 2006 10:00 am

i would apply for a gas card. i did, (chevron). i still have it to this day. i do pif every month. but hey, it’s a great place to start. your first crdit line maybe only $300.