Credit cards and college kids

[DeerNuts]

Equals trouble, right? Well, I just put an app. in for a card through Citi that is specifically geared to allow a college kid(me) with a 0 credit score (me) and low annual income (def. me) to actually be approved for the card.

I am fairly sure the limit will be $500. There is no annual fee. There is no fee to manage my account online. The APR is currently 16.24 percent, but that could change tomorrow of course. The deliquency rate is around 23%. What is nice tho about the card is that I get 5% back at super markets, gas stations, and several other places. 1% back on all others. The max is $300 back (dividends I think they call it). Once you have $50 accumulated, you can recieve a check from Citi.

I had one reason for the card: to build credit at a young age.( Ok, also I am pissed at Nextel's charging me an extra 2.99/mt. + $50 up front for having a 0 credit score.) Was this smart? I think it is. I have a rather large bank account and afford everthing easily, so I dont think there are any downsides to this. Am I wrong tho? What are some more things to look out for? Besides the obvious ones of course.

[JUSTINcredible]

dont get it

[Atkins]

The older guys of the site should know this stuff.

[honduh440]

ur not in the wrong aslong as u dont start throwin stuff on that isnt needed and then ur bill up to 5 grand before u know it.


i started off by getting credit cards at clothes stores in the mall. I would go buy a shirt then pay it off the next day. Did that for about 2 years on anything i bought at the mall. Now my credit is so good i can get a loan for daym near anything and im only 20

[lil400exman]

Originally posted by honduh440
ur not in the wrong aslong as u dont start throwin stuff on that isnt needed and then ur bill up to 5 grand before u know it.


i started off by getting credit cards at clothes stores in the mall. I would go buy a shirt then pay it off the next day. Did that for about 2 years on anything i bought at the mall. Now my credit is so good i can get a loan for daym near anything and im only 20

that honestly doesnt help your credit score when you do that. You actually need to pay something off for awhile to build up a good score.;)

[250R-Dee]

My advice would be to go to your bank and get a debit card. If can't afford a CC your best bet is to NOT get one. If you want to build your credit get a $500 from you bank and pay it off in 6 months and then move up to the next amount that they will allow you to get. It takes 6 months worth of good payments for something to show as good mark on your report. Excessive loans and credit card over-usage with small amounts will sometimes show as a negative remark. If you get a credit card make sure you make more than a minimum payment and try to NOT have it maxed out all of the time.

It took me 3 years to rebuild my credit card after partying, buying books and ordering pizzas while attending Auburn University. My card was always maxed out and I usually only made the minimum payment.

[tater_kamik]

f you use your card strictly to pay for gas and pay it off immediately every time, it will help your credit score. but, be careful! 16-25% interest sucks but it is to be expected when you have no credit. sure paying cash for everything is great but when it is time to even rent an apartment and they run your credit... even having one and not using one is better than nothing i believe

[400exTN]

get the card if you want but remember it's a resonsibility. make sure you have the funds to immediately pay the balance off if needed and NEVER be late on a payment or your interest rate will go up and late payments will effect your credit. you also don't need to keep a balance on your card for months to improve your credit score like you would an installment loan(quad loan/auto loan) and last but not least make sure there is no annual fee before getting the card.

[reddeisel]

dude, i'm 21 gotta card when i turned 18 figured i 'de only use for small stuff and then pay it off.....................$8,000 later i had to consoldate my debt now i gotta 3yr loan i never expected. when you get in a jam the card looks like the fast, easy way out. now i'm screwed. don't do it.

[honduh440]

Originally posted by reddeisel
dude, i'm 21 gotta card when i turned 18 figured i 'de only use for small stuff and then pay it off.....................$8,000 later i had to consoldate my debt now i gotta 3yr loan i never expected. when you get in a jam the card looks like the fast, easy way out. now i'm screwed. don't do it.

yes i know a couple people in the same shoes as you. You have to KNOW that you are good with money to be sure that u wont rack up any money.


lil400exman i was recommended by a banks loan officer and my credit built well over 50 points in 2 years

[Allen]

What I did when I went to college was I got a gas card....Exxon, BP, etc. They give those out fairly easy and its an easy way to build credit....

[knighttime]

Originally posted by DeerNuts
I have a rather large bank account and afford everthing easily

:eek2:

[wilkin250r]

You could say credit cards are like motorcycles/ATVs. Are they dangerous? Yes and no.

The problem with credit cards is that it is very easy to get into trouble with them. The credit card all by itself isn't going to do anything, YOU have to make a conscious choice to abuse it to get into trouble.

Unfortunately, that conscious choice is very easy to make.

Much like an ATV, if you were your helmet and ride safely, you're not likely to get into trouble. Much the same way, the only people that get into trouble with credit cards are people that use them recklessly, spend frivoulously, and otherwise lack the self-discipline to keep it under control.

Credit cards are a great way to boost your credit when you are young. However, they are also a great way to kill your credit, too.

[MNTNMAN]

One of the best ways to build good credit while in college is to open a revolving account there if you qualify. My wife had one and it helped her score greatly afterwards. I didn't qualify and it showed when I went I went to buy a new truck after garduation. Her name had to go first to get the best intrest rate.

i start college in a week. I see how my parents have behaved with credit cards and they talk about it every night and it's something I don't want to get into. If you don't have the money on hand you have no business spending it unless it's an emergency. I'm going to wait untill I have a steady job after college untill I get one.

[TheX1992]

Buy gas once a week/month, pay it off the same day if possible, then put it away til the next week/month. You won't owe anything and you will get perfect credit.

[gun32boarder]

here is a thread from a car fourm i frequent since i have a 3g that may help you all in understanding credit. It helped me a hole lot.
http://www.club3g.com/forum/showthread.php?t=19784

let me know if you can't see it ill copy and paste the article

[DeerNuts]

Originally posted by TRX250RJapan
My advice would be to go to your bank and get a debit card. If can't afford a CC your best bet is to NOT get one

Ive had a debit card for well over a year. Im not worried about affording the credit card as of yet.

[DeerNuts]

Originally posted by knighttime
:eek2:

LMAO. Ok, I guess I should rephrase that: I have enough that, as long as I keep my purchases to a minimum, I can afford stuff. My intention is NOT to have a credit card because Im short on cash.

[DeerNuts]

Thanks a lot for all of your suggestions/ experiences/ examples etc... Some good advice. Much appreciated. I am going with it.

There is no annual fee BTW.

[wilkin250r]

Me, personally, the way I built up my credit was a little different than most people would suggest. But it worked very well for me.

When I got my card, I made one huge frivolous purchase. I bought a big-screen TV. This did two things:

1. I now have a large, but not outrageous, balance on my credit card to pay off over time and build my credit score.'

2. Cool beans, I have a big-screen TV!!

After that, I NEVER touched my credit card. I kept it with me for emergencies, but I never had any emergencies. I payed off my balance over several months.

When the balance was zero again, I made another big purchase. Brand new snowboard, bindings, ect. Again, I paid off the balance over time.

This built my credit score very well, and also gave me the ability to make large purchases that I otherwise would have to save several months for. This approach could possibly work very well for you IF (and this is a big IF), you have the self-control not to get crazy with your purchases.

This approach is not for everybody.