What credit card should I get as my first?

[adrian]

It looks like my laptop won't be seeing the end of the month, and since it'll take me a while to save up for a new one, I'm thinking of gently stepping into the pool of credit card(s).

The question is, is there any particular way I should do this? Should I get a specific card (maybe a home shopping card or a best buy card) or should I just sign up at visa's or mastercards' websites?

[Palolo Joe]

Re: What credit card should I get as my first?

If you're going to use it to buy a new computer, consider one of the retail stores' (Best Buy, CompUSA, Sears) branded cards. Especially with the holidays coming up.

I bought a new computer a few years back using CompUSA's credit card. No interest payments for 18 months. I didn't charge anything else to the card, and paid off the balance before the year and a half was up. Was a good deal.

Do your research. Get a credit card with no annual fee or cost to sign up. Again, look for introductory offers to make it a better deal for your computer purchase.

[Leo Lakio]

Re: What credit card should I get as my first?

Ask at your bank, see what kind of deals on credit cards they might give you, for being one of their customers. If you belong to a credit union, you could get an even better deal - lower rates & no annual fee are common amongst them.

[blueyecicle]

Re: What credit card should I get as my first?

Get a 0% and pay it off in one year! That is what we do if we HAVE to have a credit card purchase. Stores charge 22% most times and the bank or other ocmpanies only charge 7-12% depending on credit.
There are always ads for 0% for one year or longer.

[Miulang]

Re: What credit card should I get as my first?

If you don't already have a credit card, starting with a store card (at 22% interest) might be the best way to start. Store cards are generally easier to get; you just have to avoid the temptation of putting many purchases on that type of card because of the high interest rates. But you can leverage a store card (or a gas card) into getting other types of credit cards. As others have said, once you start getting those bank-issued cards, look for the ones that don't charge an annual fee. If you've had a relationship with your bank for a long time, you might also be able to get a card through them.

Again, the trick is, not to use any credit card unless you absolutely have to or unless you can pay more than the minimum every month. Otherwise, pay for everything in cash. That'll help you decide between what you really need and what you only want. And once you start charging for things, try to pay it off immediately. You could end up paying for something for YEARS because of the interest rates if you only pay the minimum. That's how people get into money trouble.

Miulang

[GeckoGeek]

Re: What credit card should I get as my first?

The best card to have is a MasterCard or Visa since they are both the most widely accepted. But it might not be the best one to start with.

My first card was a Chevron card. I subscribed to some high-end magazines. I'm not sure as they ever knew they were offering the card to a collage student. I used it wisely and it probably helped me get other cards. (Hard to go too hog wild on a gasoline card.)

I think all of my cards were offers. I don't think I applied for any of them. Discover might be the exception, but even then I think I signed up in a store offer or something (didn't Sears used to push them?)

Anyway, I think you've gotten good advice. I think a store card for the purpose of getting a laptop might be the best plan for now.

[Glen Miyashiro]

Re: What credit card should I get as my first?

1. Open a checking account with a credit union. Membership criteria are loose enough that you will probably qualify somewhere.

2. Give them some money to hold on to.

3. Apply for a credit card. They'll probably be able to give you the best permanent interest rates.

4. Once you get your credit card, don't actually use it. Pay cash. If you can't afford it, save up till you can.

[scrivener]

Re: What credit card should I get as my first?

4. Once you get your credit card, don't actually use it. Pay cash. If you can't afford it, save up till you can.

If I understand correctly, Adrian, you've got some sweet hardware on your desktop. Unless you NEED a laptop, save up for one. Going into debt for something you're not sure you can pay for -- you DID say you're thinking of quitting your current job -- is one of the worst things you can do. My credit rating is thrashed because I suck at handling money. Until you have a regular, dependable source of significant income (by significant, I mean at least somewhat greater than what you usually spend), don't go into debt. It's bad news.

[brianca]

Re: What credit card should I get as my first?

not getting one would be the best choice by far. Just save up and buy what you need. If you have to use a credit card, you can't afford it.

[damontucker]

Re: What credit card should I get as my first?

Adrian -

Buying things on credit when you don't make enough money to pay for parking downtown is not the brightest of ideas if you ask me.

I still hate using my credit card(s) and only use them for making online reservations.

They can be a handy thing... but I will tell you now...they didn't help at all when the electricity went out and I didn't have any cash on me....

Good thing the neighborhood store accepted a check from me.

What I'm trying to say Doc... try your best to NOT pay for "Anything" using credit cards unless your able to pay off the balance before the end of the month.

It's great for people who have a good reliable income and can build up frequent flier miles, etc.... however, for people that are still just seeking their careers... I would not suggest buying a computer w/ a credit card.

Your in the computer business.... just do this really quickly....
Calculate how many months it will take to pay off this supposed debt.... by the time it is paid off... your going to want the "newer model" etc....

It's an evil vicious circle.... and as tempted as I am myself to buy a new computer.... what I have now is sufficient (and it's 3 years old already!!! )

[brianca]

Re: What credit card should I get as my first?

Read some of Dave Ramsey's books and follow his advice. If you do that now, you'll be ahead of 99.9% of the people out there. You'll retire early and happy.

[Adri]

Re: What credit card should I get as my first?

I agree that it's probably best for you not to use a credit card to pay for a big purchase. If you want to start establishing your credit history, it *might* be a good idea to get a credit card, put small things on it and pay it off completely every month (or at least make the minimum payments in a timely manner but look out for letting the underlying debt get too big). Generally speaking, credit cards are a very expensive way to pay for things unless you completely pay it off every month or, in the case of store cards where they give you a certain period of time to pay before interest comes due, then before the due date. If you do go with a store card with such a deal (say, no interest for one year), make sure carefully read all the terms and it's probably best if you do pay it all off before the time is up because if you don't, you may find yourself liable for all the back interest.

[adrian]

Re: What credit card should I get as my first?

Buying things on credit when you don't make enough money to pay for parking downtown is not the brightest of ideas if you ask me.

Actually, I can pay for parking, but its the gas and maintenance that will shock me.

And as for the your-computer-is-obsolete-when-you-pay-off-the-bills bit, my dual core desktop hasn't even broken a sweat, and not all programs are being optimized for dual core anyway. Since quad-core processors and 1TB hard drives are emerging this Christmas, it'll be a good time to get a get a laptop that will still do my web surfing/music playing at work, but also be able to play a few games with a controller if I do get bored (or else I'd carry my desktop to work).

I just thought that I could get a credit card to spread the monthly payments over a period of time.

[damontucker]

Re: What credit card should I get as my first?

it'll be a good time to get a get a laptop that will still do my web surfing/music playing at work, but also be able to play a few games with a controller if I do get bored (or else I'd carry my desktop to work).

I just thought that I could get a credit card to spread the monthly payments over a period of time.

Doc -

Please do not get a credit card so that you can web surfing/music/etc.
Trust me it's not worth it.

If you truly needed this laptop as something you needed for business purposes then I could see some need in getting it.

However, your above stated needs to not merit getting a credit card in my book.

[damontucker]

Re: What credit card should I get as my first?

Actually, I can pay for parking, but its the gas and maintenance that will shock me.

You crack me up doc...

So you can pay for the parking!!!! Manoa's bad! Pay for the parking... but not have money for gas... now that makes even more sense?

Doc...

I hate to break it to you... but credit card companies will be breathing down your back to sign you up!!! Do your best to stay away.

Listen to us on HT... we don't say this stuff to piss you off... we say this stuff to you because some of us have made the same mistakes that we see you falling into.

I don't want to be reading a thread 6 months from now... "I lost my credit card...what do I do now?"... type of thing!

We say these things because we feel your heartache and don't want to read about it in the future and hope that our words will hopefully sinc in somehow.

I like to put credit card solicitors in the "slum of the world" category. (well not all of them)