You're young, you have a full-time job, but you presumably don't have a very long credit history (unless you've been working and paying a lot of bills since you were, say, 13). Unless you've had a car repossessed or a cell phone account sent to a debt collector, your credit is probably in pretty good shape although it would be considered "thin" because you're just starting out.
Since you want to build credit, I'd recommend you choose a card that encourages you to pay off the balance each month. A history of on-time payments and low credit usage are great for your credit score. If you're as well-disciplined as you seem, you would probably do well with a rewards card. Rewards are a great way to put some cash back in your pocket for the things you spend money on anyway.
[Let CardRatings.com help you find the right cash back credit card for you.]That's the key right there--money you would have spent anyway. Don't be swayed into buying more than you can afford just so you can get more points. And be sure to pay off the balance each month, or the interest charges will quickly wipe out any rewards you earn.
For a specific recommendation, I'd suggest applying for one of the more popular rewards cards like the Capital One No Hassle Cash Rewards card. You'll get two percent cash back on gas and groceries and one percent cash back on everything else. It's a pretty nice deal for a young person on the go, and there is no annual fee. There is also a zero percent introductory APR, which means you won't pay interest on your purchases for an initial period. But , but that will go up to 12.9 to 20.9 percent after the introductory period.
Whatever card you get, please don't carry revolving debt, but if you do, make sure you can easily pay it off in two or three months, tops, and don't keep spending with the card while you're paying off that revolving debt. I wish someone had drilled that message in my head when I was 22.
No Comments
- I'm looking for a credit card that I can use to simplify my bills and earn either rewards or cash back at the same time.
- What's typically better, cash back or rewards points?
- I have a credit score of 650 and need to re-establish my good credit. I won't carry a balance. Please advise regarding the credit card I can qualify for.
- I want to apply for a Capital One no annual fee card with points but I also want to do a balance transfer. If I apply for the points card, do they send BT offers once you have the card in hand?
- Is Capital One a good credit card to have?
- Which Capital One credit card is the best for accruing air miles the fastest?
- I have a FICO score of 767 and I'm looking for a credit card with a low APR and a high credit line. Can you recommend any cards with those specs?
- Next week will be seven years that I've always been on time with my house payment, car loan, and charge card. Will I be able to start a new credit card at a lower interest rate?
- I'm looking for a low interest rate credit card with cash advances and no fees. My credit is excellent.
