Applying for my first Credit Card- any recommendations?

[HGoat]

Graduated from ISU last year and am in graduate school now. Will finish my MS in May. I know this is a bit ridiculous at my age, but I have always just used my bank debit card. I would save money from summer jobs and work a bit during the school year and it was enough to keep me afloat until the next summer, when I could make/save money again. Between my summer work, scholarships and a little bit of help from my parents help, I was able to come out of undergrad debt free. Never felt the need for a credit card, and to be honest I didn't feel I was responsible enough to have one. I had enough trouble rounding up beer money every weekend, I didn't want to have to round up money for credit card payments each month as well. I also didn't want to put myself in a a situation where my financial future was bleak based on dumb decisions with a credit card in college.

Now that I'm in graduate school, I feel that I'm responsible enough to make the monthly payments and it is really a necessity. I'm no longer close to my Credit Union and if I were to lose or misplace my debit card I would have no way to access money until my new bank card was delivered. In addition, I feel some pressure to start building credit.

Any suggestions on going through this process? I thought about just opening a credit account in my current location with a US bank or Wells Fargo type, but I know that many of the people I talk to are commission based jobs and I don't want them to bully me into decisions I don't feel comfortable with. I've also thought about opening an credit card with Southwest Airlines or another major airline and gaining some free flights, but I don't know which have the best rates or what to expect from them.

Once I graduate and have a more steady income I'm going to hire a financial advisor to discuss these sorts of things with. Anybody have tips for this graduate student or positive experiences with their credit card provider? Thank you!

 

[CloneinWDSM]

In before ISUCyclones2015 writes 5 pages about all his credit cards and rewards.

 

[cyinne]

My suggestion would be to get a card with some sort of rewards. Be it cashback, specific airline or hotel, general traveling. Many cards now have sign up bonuses where you get a large amount of points for spending a certain amount of cash in a certain amount of time.

There are websites to help compare cards-
http://www.creditcards.com/
https://www.nerdwallet.com/credit-cards

There are also people who blog about credit cards and their experiences with them- I personally follow The Points Guy- honestly, I really wish that I was him- he has a ton of awesome experiences and knows a ton about travel reward cards. Pretty sure he has over 30 credit cards....
http://thepointsguy.com/credit-cards/
http://thepointsguy.com/credit-cards/
Be sure to do your homework and happy shopping!

 

[ISUCyclones2015]

In before ISUCyclones2015 writes 5 pages about all his credit cards and rewards.

I've learned my lesson with you people regarding higher end credit cards.

My suggestion would be to get a card with some sort of rewards. Be it cashback, specific airline or hotel, general traveling. Many cards now have sign up bonuses where you get a large amount of points for spending a certain amount of cash in a certain amount of time.

There are websites to help compare cards-
http://www.creditcards.com/
https://www.nerdwallet.com/credit-cards

There are also people who blog about credit cards and their experiences with them- I personally follow The Points Guy- honestly, I really wish that I was him- he has a ton of awesome experiences and knows a ton about travel reward cards. Pretty sure he has over 30 credit cards....
http://thepointsguy.com/credit-cards/
Be sure to do your homework and happy shopping!

Most of the cards TPG has the OP wouldn't get approved for. He has no credit. I love TPG but he has focused on higher end cards lately because those are where all the good bonuses are.

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OP this is a very easy decision. You have no credit and a lower income so you won't get approved for 75% of credit cards. These two are the easiest to get approved for and Discover offers Student cards. They won't give you a high credit limit initially (Probably around $2k for Discover and 3k for Chase Freedom) so you won't get into too much trouble. Both offer 5% rotating categories for cashback. A 3rd option would be the Citi Double Cash but that one is slightly harder to get approved for.

Order of likely approval
1.) Discover IT Card - Link to student cards - https://www.discover.com/credit-cards/student/
2.) Chase Freedom Card
3.) Citi Double Cash

As for banks I highly recommend Ally. They are completely online and reimburse any ATM fees you incur. Extremely easy to deposit money via the mobile app. They also overnighted my debit card whenever I lost it. They also have a higher than average interest rate.

My general advice would to treat your credit card like a debit card and never overspend your bank account. Pay off the statements every month and you'll be off on the right foot.

 

[demoncore1031]

My recommendation... don't do it!!

 

[Cyclonepride]

If you're looking at it as a payment, I'd say don't get one. I'd advise getting one and using it to track expenses, but keep a budget on it and pay it off every month.

 

[Farnsworth]

In before ISUCyclones2015 writes 5 pages about all his credit cards and rewards.

Yup.

 

[DeereClone]

whatever you do pay it off every month. If you are getting it to actually borrow on and carry a balance I would not recommend getting one.

 

[Lexclone]

I've learned my lesson with you people regarding higher end credit cards.



Most of the cards TPG has the OP wouldn't get approved for. He has no credit. I love TPG but he has focused on higher end cards lately because those are where all the good bonuses are.

----------

OP this is a very easy decision. You have no credit and a lower income so you won't get approved for 75% of credit cards. These two are the easiest to get approved for and Discover offers Student cards. They won't give you a high credit limit initially (Probably around $2k for Discover and 3k for Chase Freedom) so you won't get into too much trouble. Both offer 5% rotating categories for cashback. A 3rd option would be the Citi Double Cash but that one is slightly harder to get approved for.

Order of likely approval
1.) Discover IT Card - Link to student cards - https://www.discover.com/credit-cards/student/
2.) Chase Freedom Card
3.) Citi Double Cash

As for banks I highly recommend Ally. They are completely online and reimburse any ATM fees you incur. Extremely easy to deposit money via the mobile app. They also overnighted my debit card whenever I lost it. They also have a higher than average interest rate.

My general advice would to treat your credit card like a debit card and never overspend your bank account. Pay off the statements every month and you'll be off on the right foot.

I agree with all but I would add: YOU CAN pay your card off more than monthly with no penalty and actually a lot of benefits.

Discover and Capital One have great websites that you can link to a checking account and pay off multiple times per month (though I am sure their are others). Pay off what you spend weekly and make your credit card into a quasi-debit card. You build credit having a card, help you credit score by keeping your used credit "low" (since you pay it off, maybe weekly) & you are less likely to get hit with that surprise bill that you can't pay off at the end of the month & you can reap some card rewards.

 

[mb7299]

agreed, there is a great benefits of having a card, I have a citi card set up to auto payment so in essence its just a delayed (payed at the end of the month) debit card. Plus I usually get about a 100 dollars cash back each year for what I spend, I dont ever spend more then what I have and Im pretty tight with money other wise I could make more off the cash back.

 

[cyinne]

Most of the cards TPG has the OP wouldn't get approved for. He has no credit. I love TPG but he has focused on higher end cards lately because those are where all the good bonuses are.

I am just showing the OP that there are many places on the web to find information about credit cards. TPG guy knows what he is talking about- even though the OP probably wouldn't be able to get a card that is advertised on his site the TPG guy would be a good reference point to do research on what there is available in credit cards and what to get down the road. Also, the TPG guy focuses on the high end cards because he gets a cut for those that sign up for cards that click through his website- that's a no brainer for him to do.

 

[buf87]

Use the cashback rewards and NEVER carry a balance on it.

I have a VISA with cashback rewards and pay it off every month. Also don't be lack with a payment. They get you with a late payment fee and a huge finance charge. I set mine up to pay on the internet and as soon as I get my bill, I go online and set up the payment on the due date.

 

[DurangoCy]

In before ISUCyclones2015 writes 5 pages about all his credit cards and rewards.

AMEX Centurion is the only way to go.

 

[DurangoCy]

Graduated from ISU last year and am in graduate school now. Will finish my MS in May. I know this is a bit ridiculous at my age, but I have always just used my bank debit card. I would save money from summer jobs and work a bit during the school year and it was enough to keep me afloat until the next summer, when I could make/save money again. Between my summer work, scholarships and a little bit of help from my parents help, I was able to come out of undergrad debt free. Never felt the need for a credit card, and to be honest I didn't feel I was responsible enough to have one. I had enough trouble rounding up beer money every weekend, I didn't want to have to round up money for credit card payments each month as well. I also didn't want to put myself in a a situation where my financial future was bleak based on dumb decisions with a credit card in college.

Now that I'm in graduate school, I feel that I'm responsible enough to make the monthly payments and it is really a necessity. I'm no longer close to my Credit Union and if I were to lose or misplace my debit card I would have no way to access money until my new bank card was delivered. In addition, I feel some pressure to start building credit.

Any suggestions on going through this process? I thought about just opening a credit account in my current location with a US bank or Wells Fargo type, but I know that many of the people I talk to are commission based jobs and I don't want them to bully me into decisions I don't feel comfortable with. I've also thought about opening an credit card with Southwest Airlines or another major airline and gaining some free flights, but I don't know which have the best rates or what to expect from them.

Once I graduate and have a more steady income I'm going to hire a financial advisor to discuss these sorts of things with. Anybody have tips for this graduate student or positive experiences with their credit card provider? Thank you!

If you "churn" you mileage cards every year or two, you can rack up miles pretty easily. I have a co-worker that's turned this into a part time job and an international flight for his family every year or two.

It looks like there's a SW Rapid Rewards Visa card that you might want to look into.
If you're actually interested in personal finance, you don't really need to hire an adviser.

 

[jsb]

Honestly, if you haven't had much credit before, just apply for any credit card and start building your credit. Pay it off each month. Once you've established some credit, you then apply for a credit card with the rewards of your choice.

This doesn't have to be some sort of huge decision. It sounds like you are very responsible....just apply for one.

 

[ECIRT.KCAJ]

NO... do not do it.......your bones and cranial abilities/and muscles are now disinrgrated... NO CREDT CARD !!!!!

 

[CysRage]

I love all of the people who are so anti-credit cards. I get the hate if you plan to carry a balance from month to month but if you are smart and pay it off every month, absolutely get a credit card. The rewards are good and promo offers are awesome on many cards. Also, because I had a credit card through college, I was able to get a mortgage at age 24 at the lowest rate. Had I not had any credit prior, there is a chance I wouldn't be able to get a mortgage and even if I could there would be an adjustment in my rate due to my lack of credit history.

OP, what do you spend the most on? Groceries? Gas? Hotels? Airlines? Usually the most is spent on gas and groceries. If so, I would go down either the Bank of America 3-2-1 card or the Amex Blue card. Both cards have 3% cash back on groceries, 2% back on gas, and 1% cash back on everything else. No annual fee. Alternatively, you can get the premier Amex Blue Cash card that has 6% cash back on groceries, 3% cash back on gas, and 1% cash back on everything else but take into consideration this card has a $99 annual fee. Even with the annual fee, usually this card pays for itself for families with kids. Let me know if you have any questions!

 

[SplitIdentity]

I've learned my lesson with you people regarding higher end credit cards.

What do you mean "you people"? Us plebs without an amex platinum card?

 

[carvers4math]

With my kids, they all had a savings account with the local bank that we transferred to a more nationwide bank when they started college. When opening those accounts with the bigger bank, they had a college type account that required a VISA account to be attached to it. In their cases, also a parent on the account, which has actually been convenient for transferring money to them. They developed a credit history while in college by using the VISA and paying it off every month. The oldest two have both been able to buy cars on their own credit while in school at 0% financing and with just college jobs for income because they developed a great credit history by getting a card at 18, using it,and paying it off every month.

I guess I would suggest you start off in a similar way, choose a bank in an appropriate location and attach a VISA or MC to the account, use it, and pay it off. By using it, you will get offers on some of the better cards available. My oldest, who is also in grad school, has the best credit rating in the family.

 

[CarlHungus]

I have the cap one quicksilver which gives me 1.5% cash back on every purchase; I really like that one.

As others have said though, only get one if you are going to pay it in full every month.