Credit Starter

I agree with the others that recommend not getting a credit card. The only thing that comes from it is debt. My advise would be to go buy Dave Ramsey's Total Money Makeover book (either at a book store or online at www.daveramsey.com) and then determine if you still need a credit card. As he says, you can do everything with a debit card that you can do with a credit card. Ever since my family stopped using credit cards, we feel more free than ever before.

I wouldn't get a credit card from anyone other than a credit union. They are the only reasonable ones out there.

I agree no credit card is a good credit card! I also highly recommend Dave Ramsey. Check out www.daveramsey.com, he also has a show on talk radio every day from 11AM-2PM (I believe) and he has a show on the Fox Business News channel every night. He offers sound common sense financial advice. NO gimmicks no systerms.

If you can't pay cash for it, you don't need it! If you take the money you would be spending on your minimum credit card payment and put that away every month then you will be able to afford what you want in no time. If you don't like carrying cash, use your debit card!

M.B.,

What are you trying to do that you believe you need a credit card to get started on getting credit?

The only thing I have to say is STAY FAR AWAY from credit cards. These things have gotten so many folks into a ton of debt/a ton of trouble. I teach Dave Ramsey's Financial Peace University class at my church and have seen the damage first hand.

Always remember...Cash is king!

Please holler if you have any more questions.

K.

No credit card is the best credit card! Others have mentioned it as well. Lots of bad habits can begin when you start relying on credit cards!
Do you know the average person will spend 12 % more on store and restaurants purchases when they have a credit card vs. when they carry cash?
Use cash or a DEBIT card.

My advice is not to get a credit card. Last year we were enrolled in Financial Peace University with Dave Ramsey - FABULOUS life changing course.
I would avoid the time spent filling out a credit card app and invest the time and money reading his book.

Hi there:) Just wanted to respond to your question with a question. Is there a reason you feel you need credit? Credit cards are a really good way to end up in a financial mess of debt even if all intentions are very good. There is a book called "The Total Money Makeover" by Dave Ramsey that revolutionized my family's life financially. We paid off 25K in about 15 months or so and are now well on our way to paying off our house. I really encourage you to seek other ways to be financially free that don't involve credit. Cash is king and if you have it you can get what you want. Most rental cars or hotel rooms etc can be reserved with a visa debit. If you ever want to talk money you can feel free to send me a personal message, I love this stuff! I wish you all the best:)

I agree with the other ladies about the necessity- rather, un-necessity- of credit cards. They are a trap, and what you'd pay in interest to the cards, you could be paying yourself by collecting interest in the bank.

I, too, am a HUGE fan of Dave Ramsey. I can't believe it's taken me so long to figure out how HORRIBLE credit cards are and how EASY it is to save money and spend less.

I know we've convinced ourselves that we need it for "emergencies", but we don't. Through Dave's program, we now have an emergency fund. And I can tell you by my own experience, that it gives you MUCH more peace of mind, knowing it is there...in case you need it.

I don't mean to preach, but I am speaking from experience. I wish I knew many years ago what I know now. And I would never encourage my kids or anyone to get a credit card now.

**Please, feel free to share what you think you need it for. I know many of the Dave Ramsey fans would be more than happy to help you find an alternative to a credit card. I just hate to see you get yourself into something that may be difficult to get out of later. (Again, speaking from experience.) Feel free to e-mail me personally.

Another Dave Ramsey fan chiming in here. Please do not get a credit card just to "build your credit" (or encourage anyone else to do so...especially a teenager or college student!). It's so easy to misuse them and get into huge debt and it just isn't worth it. You don't say who or what this credit card is for, but honestly, do yourself a favor and don't go there. Look into getting a book by Dave Ramsey or visit his website and you'll learn what financial freedom is all about. My hubby and I have cash in the bank to pay for "emergencies" and buckets of money waiting for the expected things that pop up throughout the year, such as Christmas, birthdays, kid's clothes as seasons change or they outgrow them. We don't need a credit card because we budget our money and create a plan to have cash on hand to pay for things when we need it. It's an awesome feeling to know that when the brakes need replaced on the car (which just happened to us), we just paid for it and it wasn't a big deal at all because we had a bucket in our savings plan that covers car repairs. It's such a peaceful way to live! Look into it and I think you'll change your mind about the credit card. Best of luck!

I would PLEASE like to recommend another option FIRST before pursuing a credit card. Try listening or reading a book by Dave Ramsey. This is ONLY my opinion. When my husband and I were recently married we had a small amount of money in our bank account but we tried to rent an apartment, they said NO CREDIT ESTABLISHED. Then we tried to buy a used car-NO CREDIT ESTABLISHED. Some years later, house, car, trips etc--we had credit cards, great credit and HUGE DEBT!! We allowed this to overtake us and consume us and allow us to "think" we had the means to do things with. It took us over 10 years to pay this HUGE debt off and many sacrifices. I beg you to at least listen to Dave Ramsey. In my good hearted honest opinion, the ONLY credit card you need is a debit card attached to a bank acount that reflects what you have in the bank. If it's not there, don't assume it will be there with a credit card. Don't be a slave to anyone else! We were for years and it is not a good feeling. My husband and I are debt free and living life to the fullest. Best wishes to you. God bless.

Try the bank where you have your checking. They usually offer good deals on interest. Wells Fargo has been good to us so far (11 years).

Talk to your bank, especially if you have any type of savings account. The interest might not be as low as some of the others you see,(be ware of introductory interest rates and balance transfer offers), but they know your history (with out the credit score) and might give you a break if it is bad or just not there. YOu can also use the card as an overdraft protection plan if that is something that you have a need for.

My suggestions for a limit, do not start off with a limit that is higher than you could pay off in say 2 months if you had to. . . say $500 max - enough to buy a cheap airline ticket or reserve a hotel or car. . . get use to having that, using it and paying it off.

I know your credit score is based on available credit, but too much credit is almost as bad as no credit with the new scoring methods

I bank with Wells Fargo, someone told us a while back that to help get our credit score up we should get a secure credit card, you can secure it with what you want your limit to be, the key to the credit cards (all of them) is to only use 30% of your available credit at any given time, pay more than the minimum balance ( all of it when possible) and after a year you get the secure amount back and it is an unsecured line of credit, this worked well for us!

The best way to improve or start your credit is to get a secure credit card. o to bankrate.com 4 more info.

Orchard bank: www.orchardbank.com is a great one. They're reliable (so far), friendly cust. service agents & they're great to help those of us w/less than perfect credit. I, oddly enough, rec'd one of their cards after I had no choice but to file bankruptcy. I needed a cc & they actually approved me! I was shocked since others had turned me down. Providan was a great cc provider but unfortunatly, they no longer issue ccards! Which is a bummer. They had a NICE credit limit & I had one too but it got put in the bankruptcy so, *SIGH* no more super high credit limit! But Orchard bank generally will start you out lower, but may not always, just depends on your credit issues I think. They may start out $300 but then after 6 mos. (I think) of making ontime pmts they raise your limit. You can also ck into CapitalOne. They're great too, so is WaMu (now Chase) but WaMu/Chase started limiting their cards to acct. holders only, apparantly, but you can always ck into them anyway. They have a nice starting limit too although I don't think their limits are really 'high', it's enough for me. I'd avoid the ones that make you pay fees upfront, like First Premier Bank w/their $200 or $300 fee amts upfront that you hafta pay off first. I'd only go w/them if you have no other choice. They're good cards for helping people w/credit issues but they only start out w/like $250 credit limit but after all the fees are applied, you start out w/$75 (or even $50 if you take the xtra card option for a spouse/significant other, etc.). I'd do your research. Just go online & do a gen. cc search. There's a website that lists several card companies & their info such as APR% rate & the credit type you must have to apply/be accepted. Here's the link to the one I use: http://www.creditcards.com/bad-credit.php?a_aid=1017&...
Just keep in mind they may not show ALL the credit cards available. I'd definitly avoid the 'debit' card type of ccards since you can just get one at the bank you use. Those types avail. just have a limit on whatever you deposit so they're technically debit cards & they'll have the info about the cards there on the website too. Good luck!

Ask your banker. Go for a six month interest free loan and pay it off every month. If you cannot get an interest free loan, just pay it off every month. In any case, this will require charging only what you really need... groceries, gasoline...... so that you don't end up in debt. This will give a feel for how you handle credit and will also help establish your credit worthiness. God bless.

My husband and I have found that the best credit card is American Express. It has a good rate. Now typically if you don't have any credit your limit is going to start out low. But the best way to get it raised is to use the card and pay it off every month. Best way to start this is to use it for things you are already paying for. For instance if you budget $200 a week for groceries, buy your groceries with your credit card and turn around the same day or week and pay $200 on the card. You can do this with anything you would pay cash for....gas, clothes, other bills. Also using your credit card gives you points which you can redeem for other stuff.
Good luck.

If you don't belong to a credit union you can join, I would suggest that. My credit union is GREAT. I will NEVER go back to a regular bank.

I have two secured credit cards with them. My APR is only 9%. I went with secured for my own benefit. The cards are secured, which means you CAN NOT go over your limit and get into debt with them! If at anytime you decide you no longer want that credit card, you call the credit union, and they cancel your card. Because it's a SECURED credit card, it is paid in full and the card canceled. I also got a credit builder loan with them. The money went into my savings account and drew 3% intrest while it was there. My APR on my loan was only 7%.

Anymore, you have to have credit for everything. Did you know some places do credit checks for jobs?

I have A+ credit with them, so I went through them to finance my first car. (Yes, at 32 I Finally got a car on payments.) How is 5% for a car loan sound to you??

I'm a longtime customer with my bank, and I do not use credit cards--just never liked the concept. When I was ready a couple of years ago to establish some credit, I got a credit card with my bank. I use it for everyday little things (like parking at work and lunch and coffee). Then, I keep it paid off. I don't wait to pay the minimum amount. As often as I can, I pay it all off. Sometimes I pay extra and get a "credit". (Example: My limit is $500, but sometimes I have more than $500 on my account. I can't use more than 500 at one time, but I can spend 300 and 300, etc.) It comes in handy when I actually need to use some credit. It helps me to establish a good pattern, so that I have a little negotiating leverage in the event that I fall on hard times. Don't use it to buy things that you cannot afford. If you cannot pay cash for it, then you cannot afford it. Only get stuff like that if you can't afford NOT to have it, like if your refrigerator goes out and you can't pay cash. You can even use the card and then turn around and pay it right off with cash.

The main thing is that you pay as you go and NEVER use it as a substitute for money. If you can do that, then you don't have to worry too much about interest rate; and after a year or so, you can talk to someone about lowering the interest rate. If you have little to no credit, then you will have even less say in credit limit and interest rate. They'll generally start you at a fairly low limit and fairly high rate. You gain bargaining power once you prove yourself credit-worthy.