topic Re: Best First time CC in Credit Cards

Best First time CC

Anonymous — Wed, 16 Nov 2011 20:32:10 GMT

I was curious as to which is the best CC to apply for. I just read my credit score at 724. I have a thin credit file though. I would like a good first time CC. I am currently an authorized user on a store card. I was thinking about Capital One Journey Student card or are there other cards I'd be better off apply for.

Re: Best First time CC

castlefox — Wed, 16 Nov 2011 21:19:05 GMT

I would suggest starting with a credit union credit because of they are usally easer to get, give lower interest rates and higher credit limits. Depending on how low the APR the card may be worth keeping for a very long time.

I would stay away from any credit cards with any rewards because they usually come with much higher APR rates and are harder to get for people new to credit.

From what I have heard about CapitalOne is that they are kind of stingey on giving higher credit limits.

Where did you read that you have a credit score is 724?

What else do you have on your credit report?

Re: Best First time CC

Anonymous — Wed, 16 Nov 2011 22:01:07 GMT

Discover also has a student card. They have decent cash back rewards and their website and customer service are top notch. I know from personal experience as I have a Discover More card.

Re: Best First time CC

Creditaddict — Wed, 16 Nov 2011 22:35:08 GMT

If possible I would probably skip the student cards... depending who they are backed by they might cap out at low limits and once you are not a student some wont even convert to non student, they make you apply again.

Citi Forward

Amex Zync

I would skip all Capital One unless you can't get approved for either of the above counts.

Credit Union like suggested is also a VERY good idea if you have a good one around you or have access to Navy.

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 00:36:51 GMT

My first CC was a US Bank student VISA in 2006 with no prior credit file. Starting CL was $500, but over time it grew with me. Now it's a points rewards card with a CL of $13,250. They're a solid conservative bank and will treat you well if you take care of your account. Highly recommend them.

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 00:45:44 GMT

@Creditaddict wrote:
If possible I would probably skip the student cards... depending who they are backed by they might cap out at low limits and once you are not a student some wont even convert to non student, they make you apply again.
Citi Forward
Amex Zync

I would skip all Capital One unless you can't get approved for either of the above counts.

Credit Union like suggested is also a VERY good idea if you have a good one around you or have access to Navy.

I agree with the above reply, I think it's very sound advice.

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 01:05:45 GMT

Another shout out for Credit Unions. It's just a better way to go. PenFed is a great one. Visit penfed.org

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 01:13:57 GMT

I am in a similar boat. 4 years out of law school and have never had a credit card...never really wanted to get one but want to be in a better interest rate position in a year or two for a home purchase.

myFico gave me 745 today for Equifax.

Freescore.com gave me 738 TU, 707 EX and 683 EQ on 10/03/11(most common negative comment from this site was my lack of credit cards).

I would like to get one credit card that I can stick with and not have to hold on to as a "starter card" simply because it is my oldest one. Amex Blue Cash Everyday seems decent and I am curous if I even have a shot at it.

Combined household income is about $100K. $92K mtg balance (about $575/mth in payments) and about $87K in student loans (about $475 monthly) that I have been paying for 4 years without any late or missed payments. Employed with same company since graduation.

Any advice?

Thanks.

Re: Best First time CC

Gh0st — Thu, 17 Nov 2011 03:24:44 GMT

For the OP, I would go for a Citi Forward. Credit Unions are great but since you seem pretty young, you might as well take advantage of the reward system the citiforward has to offer. If you are also looking at applying for a car loan sometime in the future, then apply for a creduit union as well.

For the lawyer,

Chances are, credit unions will give you bigger limits due to your income. NFCU is very giving, so give them a shot if you have an in. Penfed can be somewhat conservative but I've seen some high limits around these parts. In terms of credit cars from known companies, I would apply for either of the American Express blue cards. Considering your income, you can get some decent cash back on their offerings. Other than that, limits will be higher with unions.

Re: Best First time CC

SevenNEW — Thu, 17 Nov 2011 04:25:25 GMT

For the lawyer,

Chances are, credit unions will give you bigger limits due to your income. NFCU is very giving, so give them a shot if you have an in. Penfed can be somewhat conservative but I've seen some high limits around these parts. In terms of credit cars from known companies, I would apply for either of the American Express blue cards. Considering your income, you can get some decent cash back on their offerings. Other than that, limits will be higher with unions.

+1. Also keep in mind that if you get an Amex you can ask for a CLI after 61 days and they often give x3, so the initial CL may not be very relevant.

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 05:04:07 GMT

I started out with a US Bank Student card. There's no rewards, but US Bank has great customer service and is very similar to a CU imo.

My second card, another student card, was the Citi Dividend Platinum Select. Citi started me out with a $4k CL and of course the 21 month 0% APR. The card is a 1% cash back on everything and it also has 5% revolving categories like Chase Freedom/Discover More. The cap is low though, lower than Discover if I'm not mistaken.

MissExcellentCredit wrote:

Another shout out for Credit Unions. It's just a better way to go. PenFed is a great one. Visit penfed.org

Penfed is very conservative and applying with them defeats the purpose if you don't have a great CR.

Re: Best First time CC

Anonymous — Thu, 17 Nov 2011 16:04:06 GMT

For the lawyer,

Chances are, credit unions will give you bigger limits due to your income. NFCU is very giving, so give them a shot if you have an in. Penfed can be somewhat conservative but I've seen some high limits around these parts. In terms of credit cars from known companies, I would apply for either of the American Express blue cards. Considering your income, you can get some decent cash back on their offerings. Other than that, limits will be higher with unions.

Thanks for the input! I will probably try first with Amex. I was wondering if my lack of credit card history would be too big of a factor with that company. Also, does anyone know if you have a better shot when applying over the phone (so you can explain your situation) than doing an online application?

My wife doesn't have a credit card either. When and if I get one, can she get on the account as well? She doesn't have loans or a mortgage that she has buillt a payment history with so her scores are likely lower than mine. Would adding her to the account hurt my chances? Finally, if she is on the account, does she develop any credit history?

ETA:

Does anyone know if there are different approval standards for Blue Cash Everyday and Blue Cash Preferred?

Re: Best First time CC

castlefox — Thu, 17 Nov 2011 19:30:14 GMT

My first real credit card that applyed for was the Citi forward card and they send me a letter saying that I didnt have a revolving credit line so they decided to not extend that credit card to me. I was a student at the time and didnt bother calling back to tell them how little was making at the time. This was 1.5 years ago, so I didnt get a free scrore with my app. Maybe they have gotten easer to get, but that was my experiance.

IMHO Citi forward is a poor card for a first card.

I stilll think CU credit cards can make for a good card to start with because of their generally lower APR rates, and I feel like it is best to have one low APR card with no rewards in case of emergencys.

Re: Best First time CC

Anonymous — Fri, 18 Nov 2011 16:05:57 GMT

Thanks for the reply, castlefox!

MyFico shows that i have 0 late payments, my oldest account is 10 years 5 months ago (something that I don't remember from Citi with last activity in March 2002), and average account age is 5 years. Everything else in my history is student loans and mtg.

My income is about $56K and combined household is just over $100K. (Is household total a factor or only the credit applicant?)

We pay everything in cash and don't want a credit card for carrying a balance...everything will be paid in full monthly so APR isn't a consideration. I really just want to raise our credit score for a house purchase down the line and want to stick with one card that gives cash back benefits. We would basically use it like we currently use our debit card and get something back for it. The AMEX Blue Cash Preferred looks like the best option for this but I am open to considering others. If I could get such a card it would likely be the only one I would apply for for a long time.

Realistically, do I have any shot at a prime card like the one I'm describing or do I have to fill my wallet/sockdrawer with a bunch of cards that I don't want?

Re: Best First time CC

castlefox — Fri, 18 Nov 2011 18:36:50 GMT

I am also looking at the AMEX Blue Cash cards because of their cash back options.

I have no idea if you have a shot at one of those cards but from what i have read AMEX credit cards are harder to get than their charge cards.

If want only ONE credit card I would not get AMEX because they are not accepted everywhere. I would look at a VISA cash back card if you wanted only one card. AMEX & and another card sounds like a better idea to me though.

I would recommend using a credit card/charge card over debit cards becuase of of their theft and fraud protections over debit cards.

Re: Best First time CC

Anonymous — Mon, 21 Nov 2011 17:48:43 GMT

Update:

I applied online for the Chase Freedom card last Friday and was approved! I called and found out that I have a $5000 CL and APR is around 17.99%.

Is this a good starting CL and should I request a CLI at this point?

My only bummer was getting on this forum a day or 2 later and seeing someone mention that they just got approved for a $300 signup bonus...I signed up for the $100 bonus and didn't know about the $300 option.

I called the CSR # and asked if my award can be matched and he said he would note the request on my file and I should hear something in 7-10 days. Should I leave it at that for now? Does anyone know what my prospects are of having them match the award and if there is anything else I can do to help my chances?

Thanks to all for your input. This board has been very informative.

Also, I saw today that my EQ Fico dropped to 737 today from 745...no pain no gain!

Re: Best First time CC

KLGFCG — Mon, 21 Nov 2011 17:43:20 GMT

bstidh1 wrote:
I called the CSR # and asked if my award can be matched and he said he would note the request on my file and I should hear something in 7-10 days. Should I leave it at that for now? Does anyone know what my prospects are of having them match the award and if there is anything else I can do to help my chances?

Congrats on the Freedom, it's a nice card. Two of my family members had success asking Chase to match the highest bonus offer by e-mailing them via the secure e-mail system in their Chase accounts, and I know at least one other MyFico member did as well. I don't remember the exact post details, but I think the other member had no luck with calling, but was immediately credited the extra bonus points when he e-mailed. Neither of my family members tried to call, but received e-mailed replies within a few hours and the points showed up immediately thereafter. Good luck!

Re: Best First time CC

Anonymous — Tue, 29 Nov 2011 17:14:28 GMT

Update:

I received the card this Monday and have used it a few times with no problems

The literature that came wih the card states that payment is due on the 15th of every month and that I have 21 days to pay my bill...does that mean that I have 21 days AFTER the 15th?

Is the date that Chase Freedom reports its utilization to the CRAs the same date that statements are sent out or has it been determined to be a different (or varying) date? I plan on paying my balance weekly...is it better for my FICO score to leave some balance on the card at all times until the payment date? Also, is it more beneficial to be at or near 10% util on the card on the reporting day than it is to be at a lower %?

Finally, I set up my online account the day I got the card and sent a secured e-mail asking if my signup bonus could be increased to the $300 I saw advertised after I applied for the $100 bonus. Four hours later my account had been credited with 20,000 points ($200) without having to first spend the required $500 in 3 months. I thought that was some pretty nice customer service!

Thanks to everyone on this forum for the great info.

Re: Best First time CC

Anonymous — Tue, 29 Nov 2011 18:24:19 GMT

@Anonymous wrote:
Another shout out for Credit Unions. It's just a better way to go. PenFed is a great one. Visit penfed.org

penfed is good

Re: Best First time CC

Anonymous — Tue, 29 Nov 2011 18:34:21 GMT

Chase will report your balance on the statement date to the CRA's. Your due date will be some 21 days after the statement date. Understand that the new statement balance will take a few days or maybe up to a week to reflect at the CRA's.

You do not need to let a balance report on the statement if you don't wish to. You already have accounts with balances (your SL's). If you do let a balance report, then pay it in full by the due date and you will not pay any interest. Just collect rewards and let them pay you for using the card. You should probably wait 6 months before requesting a CLI. Give them a chance to get to know you. Chase is not the most generous bank at growing a CL rapidly but over time they will be generous if you are responsible.

After 6 months, or maybe a year, do some research on these forums and figure out what your next CC goals are. AMEX would be a great next target for you with either a charge card or one of the Blue credit cards. But as you discovered, search around for the best current offer for new applicants.