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Mega Contributor
Posts: 15,446
Registered: ‎04-09-2011
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Re: My first card! Now what?

I think you would be OK for an AMEX charge card, no revolvers yet.



EQ FICO 548 3/3/16
Regular Contributor
Posts: 206
Registered: ‎12-20-2012
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Re: My first card! Now what?


LS2982 wrote:
I think you would be OK for an AMEX charge card, no revolvers yet.

Ok, forgive me because I am so new to this but.. what is the difference between a charge card and the regular type of card?


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
Valued Contributor
Posts: 1,897
Registered: ‎01-23-2013
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Re: My first card! Now what?


loviedovie wrote:

LS2982 wrote:
I think you would be OK for an AMEX charge card, no revolvers yet.

Ok, forgive me because I am so new to this but.. what is the difference between a charge card and the regular type of card?


Charge cards have to be paid off at the end of each billing cycle. Revolvers are "real" credit cards where you can run a balance.

 

Some Amex charge cards are easier to get than Amex revolvers. Amex started out in the charge card business and has always seemed a little nervous about people running balances.

 

Mega Contributor
Posts: 15,446
Registered: ‎04-09-2011
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Re: My first card! Now what?

A charge card you have to pay all charges in a statement period in full every month there is no grace period. Therefor there is no interest rate.

A regular credit card gives you a grace period and an APR in which you have to pay on your balance if it exceeds to grace period.

Charge cards are a great way to keep your spending in check if your serious about your credit.



EQ FICO 548 3/3/16
Regular Contributor
Posts: 206
Registered: ‎12-20-2012
0

Re: My first card! Now what?


LS2982 wrote:
A charge card you have to pay all charges in a statement period in full every month there is no grace period. Therefor there is no interest rate.

A regular credit card gives you a grace period and an APR in which you have to pay on your balance if it exceeds to grace period.

Charge cards are a great way to keep your spending in check if your serious about your credit.

So if I were able to start with this green amex card, could I later upgrade to a nicer one of theirs? Also I am hoping down the road to upgrade the Citi student card to a regular card. 

 

Or does that product stay what it is for life, and I would have to app for more products rather than converting theones I have?


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
Moderator Emeritus
Posts: 14,317
Registered: ‎12-30-2011
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Re: My first card! Now what?

[ Edited ]

Hrm, I hate to rain on the parade but I don't know that an Amex approval is in the cards, and a Chase one isn't if you only just received your first credit card.  What's your current income and rough assets if you don't mind sharing loviedovie?

 

The Citi Forward approval is pretty sweet even if it's a student version; if you are a student and qualified under that (regardless of age), I'd probably try for a Discover student card, or a BOFA student one (and get the 1-2-3 rewards tacked on when possible).

 

Otherwise I'd probably open up a GE store card (Walmart frankly comes to mind, FICO, CLI goodness, anyone can find something small to purchase online to generate statements), or if I had a good chunk of change laying around, I'd consider a secured card; might even still do it if I only had $300 for that matter too.  

 

Edit: I wouldn't sweat conversions or otherwise much.  It varies by lender as to whether student cards can transition into regular ones; however, for the most part they're identical in the first place for most things that matter.  Worst case you open up new cards later as your situation improves, that's expected and part of building credit for virtually everyone.

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 694, EQ 8 714, TU 8 708, EX 8 724 (04/01/16)
Goal Score: 700 on EQ 04 (01/01/17)


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Mega Contributor
Posts: 15,446
Registered: ‎04-09-2011
0

Re: My first card! Now what?


loviedovie wrote:

LS2982 wrote:
A charge card you have to pay all charges in a statement period in full every month there is no grace period. Therefor there is no interest rate.

A regular credit card gives you a grace period and an APR in which you have to pay on your balance if it exceeds to grace period.

Charge cards are a great way to keep your spending in check if your serious about your credit.

So if I were able to start with this green amex card, could I later upgrade to a nicer one of theirs? Also I am hoping down the road to upgrade the Citi student card to a regular card. 

 

Or does that product stay what it is for life, and I would have to app for more products rather than converting theones I have?


You have to be eligible for a PC. Not saying they always do or dont you just have to be eligible for it.

 




EQ FICO 548 3/3/16
Super Contributor
Posts: 7,193
Registered: ‎12-11-2011
0

Re: My first card! Now what?

You might be able to upgrade to a higher tier charge card in the future, but once a charge card always a charge card. Amex wont let you PC from charge to revolver or vice versa.
New Contributor
Posts: 72
Registered: ‎02-15-2012
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Re: My first card! Now what?

Why are you in a rush?  Credit is supposed to make life easier, not be a burden or as labor intensive as sometimes perceived.  Take your time in developing a relationship with your Citi card - use it, pay it off, and bring happiness to yourself.  Your age has nothing to do with this new relationship.  When life dictates the need for further accounts, then consider applying for other CCs.  One at a time.  Basically, everything in time is sweeter the moment when the need arises.  Good luck!  The Citi card will grow on you as you use it wisely.

Mega Contributor
Posts: 15,446
Registered: ‎04-09-2011
0

Re: My first card! Now what?


jumpinjax wrote:

Why are you in a rush?  Credit is supposed to make life easier, not be a burden or as labor intensive as sometimes perceived.  Take your time in developing a relationship with your Citi card - use it, pay it off, and bring happiness to yourself.  Your age has nothing to do with this new relationship.  When life dictates the need for further accounts, then consider applying for other CCs.  One at a time.  Basically, everything in time is sweeter the moment when the need arises.  Good luck!  The Citi card will grow on you as you use it wisely.


Man I wish I would have followed this good advice 2 years ago...............Smiley Very Happy

 




EQ FICO 548 3/3/16

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