topic Re: Help choosing my first CC? in Credit Cards

Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 12:21:38 GMT

Hello everyone,

I'd like some guidance on which credit card(s) to apply for. I'm 30 years old, and have a Debit card which I use frequently. I use this to pay for gas, groceries, student loan bills, etc. However, I have never had a credit card. Ideally, I'd prefer a card with no annual fee, and that has a good cash back% without a low capping point. I have a decent amount of savings (~15k) and thus have started to travel more. In these instances, I've been carrying just my DB. Since I will be going overseas this summer I think now is a better time than any to start applying for a CC, not only to build my credit, but also for credit security when I am traveling. I'm not sure if I would benefit much with a card that gives back travel miles because I only travel 2-3x a year. Is that something else I should look into? And what should I look for in a second CC?

TL;DR - 30 yrs old. So many options - need help choosing 1st CC.

Thanks again!

Re: Help choosing my first CC?

SouthJamaica — Mon, 25 Apr 2016 12:28:09 GMT

@Anonymous wrote:
Hello everyone,

I'd like some guidance on which credit card(s) to apply for. I'm 30 years old, and have a Debit card which I use frequently. I use this to pay for gas, groceries, student loan bills, etc. However, I have never had a credit card. Ideally, I'd prefer a card with no annual fee, and that has a good cash back% without a low capping point. I have a decent amount of savings (~15k) and thus have started to travel more. In these instances, I've been carrying just my DB. Since I will be going overseas this summer I think now is a better time than any to start applying for a CC, not only to build my credit, but also for credit security when I am traveling. I'm not sure if I would benefit much with a card that gives back travel miles because I only travel 2-3x a year. Is that something else I should look into? And what should I look for in a second CC?

TL;DR - 30 yrs old. So many options - need help choosing 1st CC.

Thanks again!

If you don't yet have a FICO score, best place to start would be to apply for Capital One platinum, or a secured card from Capital One, Discover, or Citibank. I don't believe you will have many choices until lyou build up a credit score.

If you do have a FICO credit score then I would need to know what it is to advise you on which cards might be best for you to start off with.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 12:40:15 GMT

@ Jamaica

I don't believe I have a Fico score simply because I've never had a credit card. I'm not sure what other ways there are to build my Fico score without one.

Is there a specific Discovery or Citibank card you can recommend? And do you know what would qualify/disqualify someone like me from the approval process?

Thanks again!

Re: Help choosing my first CC?

SecretAzure — Mon, 25 Apr 2016 15:37:14 GMT

School loan, auto loan, home loan would all affect your credit. If you've never had any of these things you're at square 1. I recommend Discover It or BoA for starters because they often will fall back to a secure card if you're new to credit. So you apply for a regular card, they counter-offer with a secure card. I know that with Discover the card can graduate to a non-secured, not sure if BoA does the same but it might.

If someone else here can verify that everything I've just written is correct that would be great. Please feel free to tell me i'm wrong on something because I don't want the OP to make a mistake on my part...but I'm KIND OF sure what I just wrote makes sense.

Anyways, with whatever you decide on, I'd look at Amex EveryDay or Amex BlueCash EveryDay as your second card (some months to a year after your first card) as their limits grow ridiculously fast ridiculously quick and other lenders will see that you're more trustworthy very soon after.

Re: Help choosing my first CC?

Samac — Mon, 25 Apr 2016 15:46:48 GMT

You definitely have a fico score because you have student loans. You can pay $1 to get it from Experian to give a baseline. It's hard to advise you without knowing where you stand.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 16:15:44 GMT

you do have a FICO score since you have a student loan... it might not be uber amazing but if you've been making good payments on student loans for a bit, it's likely in the "acceptable" range at the very least... I think getting your credit score is hands down step one in this whole process...

Outside of that... I think Capital One Quicksilver the the best "overall" credit card right now... There are 2 version of it... one with an annual fee and one without... they have the same benefits... it's just the one with the fee is for people with a lower credit score... however, I don't believe that the requirements for a regular (no fee) Quicksilver are particularly high and you might be able to qualify just with consistent student loan payments...

The card is great... you get $100 signup bonus (not the highest, but it's still a bonus), you get 1.5% cash back (again, not the highest but it's better than standard 1% plus it posts right away and has no redemption minimum so you can redeem any time for any amount and you don't have to wait for a statement or two like you do with Citi Double Cash for example)... it has no foreign transaction fee so it's good if you travel, plus Capital One seems to be a bit more generous with their limits and APR, which is good for someone that's just starting out...

It's not the best card in any single category, but it's above average in pretty much everything... which makes me think that it's the most balanced card overall... If I had to only own one card, that's probably what I would go with

However... if your FICO score is too low, Capital One also has a secured card which will help you get your foot in the door and step up to Quicksilver once you get some CC history on your report...

That's my personal $0.02...

TL;DR please, pay a few $$ and find out your FICO score (you can get Experian for $1 now if you cancel within 7 days)... come back here and tell us what your score is and we'll help you more... but overall, I think Capital One Quicksilver is a very good, balanced card which will serve many roles for people starting out...

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 15:55:46 GMT

@SecretAzure wrote:

If someone else here can verify that everything I've just written is correct that would be great.

My first CC was a BofA secured card (w/ annual fee) that was later graduated at the 1 year mark. Auto Cli from 300 -> 1400 within 2 years (no more AF). It is possible to PC once you've proven your worth.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 16:08:47 GMT

PDC_First: Try applying at Capital One first. See if you

can pull a Platinum Card at first since you have a Student

Loan and must have a FICO over 600 if paying on time/no lates.

If that Fails; DEFINITELY get a Discover Secured

Card with no Annual Fee and Rewards. Use $1K of

your savings to Secure it. I wish this had been avaiable

to me with I started re-building 3 years ago!!! Best of Luck to you.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 16:18:45 GMT

@Anonymous wrote:
you do have a FICO score since you have a student loan... it might now be uber amazing but if you've been making good payments on student loans for a bit, it's likely in the "acceptable" range at the very least... I think getting your credit score is hands down step one in this whole process...

Outside of that... I think Capital One Quicksilver the the best "overall" credit card right now... There are 2 version of it... one with an annual fee and one without... they have the same benefits... it's just the one with the fee is for people with a lower credit score... however, I don't believe that the requirements for a regular (no fee) Quicksilver are particularly high and you might be able to qualify just with consistent student loan payments...

The card is great... you get $100 signup bonus (not the highest, but it's still a bonus), you get 1.5% cash back (again, not the highest but it's better than standard 1% plus it posts right away and has no redemption minimum so you can redeem any time for any amount and you don't have to wait for a statement or two like you do with Citi Double Cash for example)... it has no foreign transaction fee so it's good if you travel, plus Capital One seems to be a bit more generous with their limits and APR, which is good for someone that's just starting out...

It's not the best card in any single category, but it's above average in pretty much everything... which makes me think that it's the most balanced card overall... If I had to only own one card, that's probably what I would go with

However... if your FICO score is too low, Capital One also has a secured card which will help you get your foot in the door and step up to Quicksilver once you get some CC history on your report...

That's my personal $0.02...

TL;DR please, pay a few $$ and find out your FICO score (you can get Experian for $1 now if you cancel within 7 days)... come back here and tell us what your score is and we'll help you more... but overall, I think Capital One Quicksilver is a very good, balanced card which will serve many roles for people starting out...

Very well written post! And I agree. Quicksilver is an excellent starting card.

If you're looking to get a couple cards at once, for the second I'd look at something that has better rewards for your specific usage. There are a lot more options there depending on what kind of spending or rewards you want to focus on.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:21:27 GMT

Thanks all!

All very interesting recommendations. I have been referred to Discover IT & Quicksilver more than a few times. I've read Discover has a great bonus program for Amazon as well, which is nice since I am a Prime member. Also, I think it has no FTF fees which is great since I plan to do more International traveling in the years to come. Hopefully by then I will have built my credit high enough so I can upgrade to preferred cards.

I'll look into acquiring my FICO score and post it on here. Hopefully it's within a good range and will able to help widdle down my CC options.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:22:54 GMT

@ JMED

When you say 'secure' it, do you mean spend at least 1K using the card?

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:30:37 GMT

I just checked my FICO score at Experian and it's at 648.

Much lower than I would have liked. Will this affect me negatively when trying to apply to the cards that were listed?

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:32:29 GMT

@PCD
A secured card is one in which yo put down your own money, in this 1k to be used as collateral. If the acct is closed in good standing or becomes unsecured you get your money returned. This is simply a way in which banks build a relationship without incurring any risk.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:34:18 GMT

@ OpenG

I think I understand. It's basically like an insurance policy for you card.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:36:31 GMT

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 18:39:57 GMT

Sorry about the blank post...been away awhile, haha. Yes but the bank puts your money at risk instead of their own.

Re: Help choosing my first CC?

SecretAzure — Mon, 25 Apr 2016 19:07:47 GMT

@Anonymous wrote:
@ OpenG

I think I understand. It's basically like an insurance policy for you card.

Exactly! I would highly recommend Discover It and then Amex ED or Amex BCE now that we know you have an actual score. You might even want to apply for both. I got my sister to apply for these (8 months ago) when she had no credit and already she had scores above 750 and a credit limit totalling over $8K .

P.S. I made her authorized user on 3 of my cards a few months before she applied...you can skip this since you have SOME credit thanks to your school loan and generally speaking, your own credit holds more weight than just being an AU on somebody else's cards.

Re: Help choosing my first CC?

MyLoFICO — Mon, 25 Apr 2016 19:16:51 GMT

Get your score and AAoA first. If it's decent you might be able to jump the line of crappy cards and go for something decent. My mom did that and we got her a Freedom card as her first.

Re: Help choosing my first CC?

Anonymous — Mon, 25 Apr 2016 19:25:14 GMT

I think at 648 you can get something better than a secured card... unfortunately, I don't think it's enough to get the regular Quicksilver... you probably need roughly 680 to start with that...

However, I do think you should easily qualify for Quicksilver One ($39 annual fee) and I would think you should be able to get a regular Discover It as well (please correct me if I'm wrong here, I would guess 650ish should be enough)

Both are good cards with pros and cons...

Quicksilver One:

+More chance to qualify

+Mastercard is more widely accepted than Discover

+1.5% cash back is better than 1%

+Capital One is likely a more generous lender, at least initially

-You probably want to keep your first credit card for a long as possible for credit building... annual fee won't help that

Discover It:

+Right now, the cash back is doubled at the end of your first year (but it does go back to 1% after that)

+5% quarterly categories let you earn some decent cash back (although on limited things at a paticular time), plus I hear that the discover deals are nice (earn decent cash back from select merchants)

+No annual fee so you can keep you card forever without having to pay up $40 each year

+You get a real FICO score rather than simulated score from Capital One

-The biggest downside is while Discover is accepted at more and more places now, it's still not as universally accepted as Visa/MC which might be a bit of an issue if you only have one card

Honestly, after hearing your score, I think Discover might actually be better for you IF you are willing to use debit in case your card doesn't get accepted somewhere... No annual fee is a big thing for long term credit building... Which card earns more is debatable based on what you spend your $$ on but overall, I feel like you might not see a significant difference in cash back and it might actually fluctuate from time to time. The only risk with Discover is that you are probably towards the lower end of the application? It says their average approval score is roughly 660, not too off, but lower... I'm pretty sure though that you'll have no issue getting Quicksilver One... it's a difficult decision with no truly easy answer... both will be fine... I see Discover as having more upside while QS1 is more sure thing but you will probably outgrow the card soon...

Re: Help choosing my first CC?

MyLoFICO — Mon, 25 Apr 2016 19:23:59 GMT

Try and prequalify for the IT. Its the better of the two by a good deal. Healthy CLI's too.