Which Card is Right for You?

The answer to the above question depends on the whether the card is the first, second or third card.

For FIRST Credit Card

Here the card choice depends on your selection of the bank whose credit card you want to use or your most preferred promotional offer, without giving a thought to the brand on the card. Other than that, there is no difference between the two.

Check secured cards, especially ones with lowest limits based on amount you deposit into the account.
There is a website that can be helpful.

Way back when, my first ever credit card was with Sears – they probably still like newbies. Another alternative is to go to your bank or credit union and ask them to open up a credit card with a very small balance for you. If you have banked there for a couple of years, have no bad checks, returned checks, etc… they sometimes will consider you for a starter card.

Another fairly easy qualifying card to get is in a furniture store. They are underwritten by finance companies and usually can start someone off with a small card.

As you do start your credit, be very careful about managing it well. Do not use a card for purchases where you do not have the money to buy the items. Do not use them for short-term purchases with a long-term pay back. In other words, do not use a card to dine out and then just pay the minimum payments – pay those off as soon as you get the bill, NOT minimum payment. If you buy clothes, school books, etc… pay off in two or three payments max. Never charge more than about 50% of your open to buy, to maximize your credit scores. Never be late on even one payment, pay early. Do not get an overwhelming number of cards, just because you can.

The best scores come from those who receive credit and then use it sparingly, not to those who max everything out. Don’t apply for a new card more than once every three months, and limit yourself to a maximum of about three cards, a car note, and a housing payment. If you need more credit, upgrade the three cards until you have the limits that are comfortable. Look at upgrading your cards every year, until you’re established, by asking for a higher limit, or by replacing with a better term card. Close the old accounts out.

the best way to build credit is to start out small.. my financial adviors told me to get a low interest loan from a credit union and make the payments on time; everytime, and that getting a bunch of credit cards at smaller department stores, is horrible for your credit, you should get one card you can use anywhere, and don’t let the balance get to be over 20% of offered credit. if you have a limit of $1000.00 don’t let the balance at the end of the month be over $200.00 That effects your debt to income ratio, which isn’t necessarily on your credit but lender’s will ask for that information. (how much you make in a month vs. how much you spend or owe)

Here are some tips that should help out. Get a checking and savings account, then ask if the bank you have your deposit accounts offer secured cards. how those work are that you set a savings account with a certain amount of money and then the same amount is extended in a line of credit, the deposit in the savings account is to guarantee that the credit card will be paid in the event you’re not able to pay. I would suggest not charging too much on the card and pay it off every month if possible. Normally after about a year of that, the account will convert to unsecured and you’ll be able to get your deposit back, plus interest. Another thing is this. (click this link)
Anything that you pay everymonth can be reported as good credit. it’s similar to a traditional credit report but it shows how well that you pay. It’s a lot on information on the website for me to mention, but it’s worth it, trust me.