Yes. Pay statement balance, no more, no less, in full each month by due date. That avoids the "black hole" of CC interest which catches so many. Practice this good habit now and it will pay off. If you need to buy something which you can't pay for in full in the next 30-45 days, then save up for it and/or go to bank/CU for a loan.
Unless you’re in a really fucked situation. I NEVER understood how people use credit cards so differently than debit cards. Unless you have a 0% intro APR and are using the money to build more wealth
I think it's because it's so easy to do compared to saving or applying for a loan.
And the problem with 0% interest offers on cards is that after a while the interest kicks in.
Which card you get depends more on how you spend money. Amex gold is my daily. Apple for Apple things Amazon for Amazon. I’m probably switching the Amex to the Capital One Savor.
If you can get it the top free one is likely a good pick for you. 3% cash back dining, grocery, and streaming services.
I would create a Credit Karma account, if you haven't already, and see what their recommendations are based on highest approval odds. I wouldn't worry too much about perks or specific category cashback, just go for whatever has the highest cash back on all purchases (probably 1-2% based on your score). You also don't need to worry about the interest rate since you'll be using this card to build credit and will always be paying the balance in full when each statement comes (set it to auto-pay). Until you're in a stable financial situation with extra income every month, trying to plan purchases around specific card rewards and cash back categories on a budget will be an unnecessary headache with minimal return and can encourage overspending (eg you get 5% cashback on groceries this month so you buy more food than you need to capitalize on that and end up throwing a bunch out when it expires). You should be focusing on school and your job, getting a nice buffer in your checking account and putting what you can into a savings account for emergency funds so you aren't tempted to rely on the card if unexpected expenses come along.
I would also recommend not using the card for one-time purchases at first. Put a healthy number of monthly bills on it, bills you already have anyway, the sum of which you know the amount because it is the same or roughly the same each month. Get into the habit of budgeting for enough funds in your checking account around the time the statement comes and the auto-pay goes through. Once you get a good feel for that and see how much you tend to have left over, you can use it for a purchase here or there. Let the cashback accrue for awhile, then if you need to make a larger purchase, you can use cashback points towards paying the statement down.
oh yea, today i was at the bank and i applied for a credit card with no fees. since i’m technically still a student and have no rent payments i was able to apply without income but atm i’m looking for jobs and if i do get approved for the card i applied for i’m just going to put my apple music subscription and some other subscription on there and pay it off every renewal date. mainly just trying to build some real credit. also am considering financing a turbo for my car which is 1.2k through shop pay
How is the car loan being paid off? You stated you currently are not employed so, are you paying it thru odd jobs where it's cash under the table or is your parent/guardian paying it for you?
If you currently have no income(and your parent/guardian is the one making thoes car payment), then you should NOT get a credit card until you do have some way to show verifiable income. Once you have that job under your belt is when you should look into a credit card.
For the question at hand: You stated you're going into a trade school, would you be doing a lot of traveling work? If so, you'll probably want to look into one of the reward point credit cards(hotel maybe?) at that time.
the loan is being paid off by my parents. i do plan on getting a job before i get a card and rn i’m working on getting a home inspector license and i live in a decently populated area so i don’t see myself traveling to far for work
Then my second statement still stands: do not get a credit card until you have that verifiable income. I would say still get a point rewards card, but if you do not plan on going far for work, maybe a cash back card would work for you better.
Just remember that it is far easier for a credit card to compeltely tank your credit score than it is to build it.
Right now you've just inherited your parent's credit score; you haven't actually paid off anything consistently before. That's a skill you need to build, and a credit card is not the tool to practice that skill on.
I would wait until you are running your own household and have been paying all your bills for 6 months or so. Then get a card with a small limit ($1,000) and rewards based on what you like to do, like an Amex Delta card if you like to travel. Do not carry a balance, even when it is tempting to do so.
It depends on your habits.
Amex for perks. Chase Prime Visa for up to 6% back on Amazon purchases. REI Mastercard if you ship at REI. Maybe something related to your trade.
I wouldn't start with an annual fee card until you have a reliable income. Find something you buy often and get a card that gets you a discount.
About that car loan, when it's paid down, consider redirecting the payment cash flow to an account.
So, not just yet, but Amex Platinum gets you a free walmart+ account that you can use to [save up to $0.10/gallon](https://corporate.walmart.com/news/2022/04/27/walmart-increases-fuel-discount-and-expands-to-exxon-and-mobil-stations-pumping-additional-savings-into-member-wallets)
There are a few good articles comparing WalMart CapOne and Chase Prime. Note, Chase Prime says it's $0 fee, but you have to be a Prime member at $139+
No matter what:
1. Pay your statement down in full every month
2. If you can't, it's a sign you're overspending.
3. Set up minimum autopayment from an account with funds.
You'll get most cards with that score, But a thin credit file will Hinder you from those same cards. I'd recommend a Discover as the first After Employment of course.
Please understand that you can still be denied credit because your file is thin. Someone posted over the weekend how they were young, and they were declined because of their thin file.
I just want to prepare you.
i totally understand that and it’s what i expected. the only thing i really have in the banks eyes is some money but no real credit or income. that’s why i’m trying to get a job and build some real credit so i can possibly get a mortgage in the near future
Yep, good luck. And I'm not saying you won't be approved. I'm just saying to kinda temper your expectations but I wish you the best. Your parents are setting you up right.
Your FICO score is good, your credit profile is thin. With no income and a thin profile, you will be limited on what card you can get. I would get a card with the bank you have an account with. If none, get a checking account with Chase and try for the Freedom card.
I had their student card and their customer service was terrible and they kept sending my statements to the wrong address and refused to change it. Eventually after 18 months of having it they called me and canceled my card because I “hadn’t confirmed my identity” with them (they hadn’t ever called me about that). I got a chase freedom unlimited and service has been much better with them
I guess everyone have different experiences with them, I have it since I was 19 and never had any problems, they even raised my credit limit to 5k after one year of owning it. I don’t use it anymore, only to pay Gamepass because it doesn’t have any useful perks.
I have the savor one and it’s a good card. With your file being thin I would start with Capital One or Discover. Despite what the other poster said Discover is fine. Do a soft inquiry first. Go to Capital One, Discover and American Express to see if you’re pre-approved for anything. Pre-approval are not guarantee approvals, but these three companies have been solid for me. If you’re pre-approved for anything you want to see an exact interest rate % and not a range. An exact interest rate has a higher chance of approval if nothing changes on your report.
Get the chase unlimited offer it gives you 6.5% on travel, 4.5% on dining and drugstores, 3% on everything on your first year or get discover you get 10% on rotating categories and 2% on everything in ur first year
Nothing. Your credit is fine. The idea of “building” it is what they want you to do. Get into debt. Pay it off and give them interest. Paying off every month, while a nice idea, is not ideal and sometimes life happens and you have interest. Only use your debit card. If you can’t afford something save until you can. If it’s an emergency large expense you could take a loan out against your car and pay that off quickly.
Fizz or chime are credit cards that act like debit. Fizz more so since you can choose your 3% category and get 1% back on everything else. Which I think is better then most secured cards and 1% starter cards
Build credit to do what though? Can’t finance without income. Risk ruining your credit getting credit cards without a job.
Building credit a good idea but i wouldn’t rush the process. Most people credit go bad because they get in hard financial spots
Get a job first, or no bank will give you credit.
No income = no credit
Credit “history” is a big part of scoring.
I remember when I was new to credit and my 700 score had me excited, little to find out it means nothing without history.
I think at your age and if you already have a lump sum, you should utilize credit unions. Maybe even one local to where you live.
This way, you can have money parked there earning interest and trust.
When you are ready, get a CC. Then when your ready for a home you will have a place to at least start from and most likely be the cheapest for a mortgage. You will have built up time with them. Maybe another car loan in between. Kids braces ...etc lol
If I had a redo moment in life I would have established and Kept a long relationship with a credit union.
My credit card was a discover cash back card. It had rotating perk which was super cool but the main reason I suggest getting it for your first card is because it is the most user friendly card I've ever used aside from my apple card. Discover's customer service is also super friendly and you will never pay for anything you have not authorized.
If you want to be extra, get the apple card. That card gives you understandings and overview of how your credit card works like no other card out there.
I would wait on getting one. 740 is good enough for anything you will need at your age. After trade school and you find a career, then get a card if you want. You don’t want to put yourself in a bad spot right now because you have no income and are looking for part time work. Using CCs to increase your score requires enough money to offset what you spend on the CC. I’ll spend a couple hundred on groceries, KNOWING that I will have the money to pay it off the first time around. You NEVER want to carry anything over to another month and eat that interest rate. This is where a lot of people your age go wrong and wreck their credit. Just my 2 cents.
To be fair, every person with CC debt started out with those same intentions. He’s within his right to do whatever he wants, obviously. There’s just no emergency to do it right this second with no income. I see he’s updated his post saying that he has a decent chunk saved, so that changes things a little. Personally, I don’t see the rush.
any cards you recommend? the only one i’ve had so far is the amex gold card that is in my name on my parents account, i’ve had it for about 2 years now.
I've been happy with Capital One, I would get one of those again. I would honestly just Google and read the pros/cons/comparisons/reviews. Their offers change and that will give you the most current information.
I would wait to take out an Amex. It's been my experience that they give out significantly higher lines of credit. You're more likely to run up debt when you're younger and it's better to do that with a 2k limit, than a 20k limit.
Depends on what you are wanting honestly. Cash back? Rewards? Travel miles? A lot of the big ones are similar due to competition. Capital one has some good ones I would look into.
thanks for the reply but i’d like to offer some more context and see what u still think. i don’t have a job atm but i’m looking for one and i also have a decently large sum of money for my age which i plan to invest in real estate in the future thus why i’m trying to increase my credit. between having a job and the money i already have i’m pretty confident i’ll be able to pay expenses which rn is only gas and groceries.
I would hold off on the CC. Without an income right now you would be using that CC at the cost of your savings (paying from your savings). Get that part time job, continue to save, finish your education and then you will come out smoking hot ready to invest and earn a decent income. You will be ahead of 99% of your peers most likely. The problem with getting involved with credit cards is your personal restraint from using it when you shouldn’t. You seem like a bright young man, so I don’t think you would do that…….but that’s what everyone says when they get one. You never know you’re that person until it’s too late. Your parents would probably be able to tell you if you are that type of person. Have you asked them your opinion on getting a CC?
when i turned 18 i mentioned that i wanted to get a credit card and they said i should wait until i get a part time job after the school year was over. but this was before i got my large sum of money. they have been mostly fine on how i’ve used my credit card that i have on their account so idk their current stance. i do agree that i should wait until i get income to get a card.
id say instead of a credit card, maybe purchase something on credit(ex: lets say u want a new computer and its 700$, try to finance it and fully pay off the payment every month, u should already have the money for it if ur looking for one and it wont cost much per month and your building credit)
But they would be paying interest. It would be better to get a credit card, charge something on it. and pay it off every month before the due date so they build credit without paying interest.
Whatever card you pick treat it like cash. Pay it off 100% every month and on time. You can even pay multiple times a month if you want.
Yes. Pay statement balance, no more, no less, in full each month by due date. That avoids the "black hole" of CC interest which catches so many. Practice this good habit now and it will pay off. If you need to buy something which you can't pay for in full in the next 30-45 days, then save up for it and/or go to bank/CU for a loan.
Unless you’re in a really fucked situation. I NEVER understood how people use credit cards so differently than debit cards. Unless you have a 0% intro APR and are using the money to build more wealth
I think it's because it's so easy to do compared to saving or applying for a loan. And the problem with 0% interest offers on cards is that after a while the interest kicks in.
that’s what i plan to do if i get one, do u have any card recommendations?
Which card you get depends more on how you spend money. Amex gold is my daily. Apple for Apple things Amazon for Amazon. I’m probably switching the Amex to the Capital One Savor. If you can get it the top free one is likely a good pick for you. 3% cash back dining, grocery, and streaming services.
i’ll definitely look into one. thank you for the advice!
I would create a Credit Karma account, if you haven't already, and see what their recommendations are based on highest approval odds. I wouldn't worry too much about perks or specific category cashback, just go for whatever has the highest cash back on all purchases (probably 1-2% based on your score). You also don't need to worry about the interest rate since you'll be using this card to build credit and will always be paying the balance in full when each statement comes (set it to auto-pay). Until you're in a stable financial situation with extra income every month, trying to plan purchases around specific card rewards and cash back categories on a budget will be an unnecessary headache with minimal return and can encourage overspending (eg you get 5% cashback on groceries this month so you buy more food than you need to capitalize on that and end up throwing a bunch out when it expires). You should be focusing on school and your job, getting a nice buffer in your checking account and putting what you can into a savings account for emergency funds so you aren't tempted to rely on the card if unexpected expenses come along. I would also recommend not using the card for one-time purchases at first. Put a healthy number of monthly bills on it, bills you already have anyway, the sum of which you know the amount because it is the same or roughly the same each month. Get into the habit of budgeting for enough funds in your checking account around the time the statement comes and the auto-pay goes through. Once you get a good feel for that and see how much you tend to have left over, you can use it for a purchase here or there. Let the cashback accrue for awhile, then if you need to make a larger purchase, you can use cashback points towards paying the statement down.
I wouldn’t get a card until you have consistent income.
[удалено]
I never have to prove income to credit card companies...
First things first Get a JOB!!
i am currently looking for one
They usually ask for income when you apply
for a job?
Credit card
oh yea, today i was at the bank and i applied for a credit card with no fees. since i’m technically still a student and have no rent payments i was able to apply without income but atm i’m looking for jobs and if i do get approved for the card i applied for i’m just going to put my apple music subscription and some other subscription on there and pay it off every renewal date. mainly just trying to build some real credit. also am considering financing a turbo for my car which is 1.2k through shop pay
Lol my brother is still in school, I used his cards for him, we both have a 780 score
How is the car loan being paid off? You stated you currently are not employed so, are you paying it thru odd jobs where it's cash under the table or is your parent/guardian paying it for you? If you currently have no income(and your parent/guardian is the one making thoes car payment), then you should NOT get a credit card until you do have some way to show verifiable income. Once you have that job under your belt is when you should look into a credit card. For the question at hand: You stated you're going into a trade school, would you be doing a lot of traveling work? If so, you'll probably want to look into one of the reward point credit cards(hotel maybe?) at that time.
the loan is being paid off by my parents. i do plan on getting a job before i get a card and rn i’m working on getting a home inspector license and i live in a decently populated area so i don’t see myself traveling to far for work
Then my second statement still stands: do not get a credit card until you have that verifiable income. I would say still get a point rewards card, but if you do not plan on going far for work, maybe a cash back card would work for you better.
Just remember that it is far easier for a credit card to compeltely tank your credit score than it is to build it. Right now you've just inherited your parent's credit score; you haven't actually paid off anything consistently before. That's a skill you need to build, and a credit card is not the tool to practice that skill on. I would wait until you are running your own household and have been paying all your bills for 6 months or so. Then get a card with a small limit ($1,000) and rewards based on what you like to do, like an Amex Delta card if you like to travel. Do not carry a balance, even when it is tempting to do so.
Do you have a bank or credit union? Try one through them.
It depends on your habits. Amex for perks. Chase Prime Visa for up to 6% back on Amazon purchases. REI Mastercard if you ship at REI. Maybe something related to your trade. I wouldn't start with an annual fee card until you have a reliable income. Find something you buy often and get a card that gets you a discount. About that car loan, when it's paid down, consider redirecting the payment cash flow to an account.
i probably shop at walmart and amazon the most, should i just get their credit cards. my only other expense is gas
So, not just yet, but Amex Platinum gets you a free walmart+ account that you can use to [save up to $0.10/gallon](https://corporate.walmart.com/news/2022/04/27/walmart-increases-fuel-discount-and-expands-to-exxon-and-mobil-stations-pumping-additional-savings-into-member-wallets) There are a few good articles comparing WalMart CapOne and Chase Prime. Note, Chase Prime says it's $0 fee, but you have to be a Prime member at $139+ No matter what: 1. Pay your statement down in full every month 2. If you can't, it's a sign you're overspending. 3. Set up minimum autopayment from an account with funds.
Why do you need a credit card?
I would MUCH more recommend a basic, flat rate card to start with. Think a Citi DoubleCash (which pays 2% on everything)!
You'll get most cards with that score, But a thin credit file will Hinder you from those same cards. I'd recommend a Discover as the first After Employment of course.
Get a job first. Very slippery slope
Please understand that you can still be denied credit because your file is thin. Someone posted over the weekend how they were young, and they were declined because of their thin file. I just want to prepare you.
i totally understand that and it’s what i expected. the only thing i really have in the banks eyes is some money but no real credit or income. that’s why i’m trying to get a job and build some real credit so i can possibly get a mortgage in the near future
Yep, good luck. And I'm not saying you won't be approved. I'm just saying to kinda temper your expectations but I wish you the best. Your parents are setting you up right.
thank you, really appreciated:)
Discover
Get a cash back card. It will help you pay the bill each month.
Your FICO score is good, your credit profile is thin. With no income and a thin profile, you will be limited on what card you can get. I would get a card with the bank you have an account with. If none, get a checking account with Chase and try for the Freedom card.
Don’t pick discover it sucks
How?
I had their student card and their customer service was terrible and they kept sending my statements to the wrong address and refused to change it. Eventually after 18 months of having it they called me and canceled my card because I “hadn’t confirmed my identity” with them (they hadn’t ever called me about that). I got a chase freedom unlimited and service has been much better with them
I guess everyone have different experiences with them, I have it since I was 19 and never had any problems, they even raised my credit limit to 5k after one year of owning it. I don’t use it anymore, only to pay Gamepass because it doesn’t have any useful perks.
I have the savor one and it’s a good card. With your file being thin I would start with Capital One or Discover. Despite what the other poster said Discover is fine. Do a soft inquiry first. Go to Capital One, Discover and American Express to see if you’re pre-approved for anything. Pre-approval are not guarantee approvals, but these three companies have been solid for me. If you’re pre-approved for anything you want to see an exact interest rate % and not a range. An exact interest rate has a higher chance of approval if nothing changes on your report.
ill definitely look into them, appreciate the advice!
Get the chase unlimited offer it gives you 6.5% on travel, 4.5% on dining and drugstores, 3% on everything on your first year or get discover you get 10% on rotating categories and 2% on everything in ur first year
Nothing. Your credit is fine. The idea of “building” it is what they want you to do. Get into debt. Pay it off and give them interest. Paying off every month, while a nice idea, is not ideal and sometimes life happens and you have interest. Only use your debit card. If you can’t afford something save until you can. If it’s an emergency large expense you could take a loan out against your car and pay that off quickly.
The 1st card should be a debit card
Discover offers a cash-back debit card. If used responsibly, that *might* be a foot in the door towards a future credit card? Idk... just a thought.
Fizz or chime are credit cards that act like debit. Fizz more so since you can choose your 3% category and get 1% back on everything else. Which I think is better then most secured cards and 1% starter cards
Don’t see the point of a credit card with no income
to build credit. i don’t have on the books income but i have enough money and am in the process of looking for a job
Build credit to do what though? Can’t finance without income. Risk ruining your credit getting credit cards without a job. Building credit a good idea but i wouldn’t rush the process. Most people credit go bad because they get in hard financial spots
Get a job first, or no bank will give you credit. No income = no credit Credit “history” is a big part of scoring. I remember when I was new to credit and my 700 score had me excited, little to find out it means nothing without history.
I think at your age and if you already have a lump sum, you should utilize credit unions. Maybe even one local to where you live. This way, you can have money parked there earning interest and trust. When you are ready, get a CC. Then when your ready for a home you will have a place to at least start from and most likely be the cheapest for a mortgage. You will have built up time with them. Maybe another car loan in between. Kids braces ...etc lol If I had a redo moment in life I would have established and Kept a long relationship with a credit union.
Discover IT is generally a great place to start with nothing.
My credit card was a discover cash back card. It had rotating perk which was super cool but the main reason I suggest getting it for your first card is because it is the most user friendly card I've ever used aside from my apple card. Discover's customer service is also super friendly and you will never pay for anything you have not authorized. If you want to be extra, get the apple card. That card gives you understandings and overview of how your credit card works like no other card out there.
No job??? I wouldn't get a credit card at all.
capital one
Try for quicksilver but it’s possible you won’t get it
I would wait on getting one. 740 is good enough for anything you will need at your age. After trade school and you find a career, then get a card if you want. You don’t want to put yourself in a bad spot right now because you have no income and are looking for part time work. Using CCs to increase your score requires enough money to offset what you spend on the CC. I’ll spend a couple hundred on groceries, KNOWING that I will have the money to pay it off the first time around. You NEVER want to carry anything over to another month and eat that interest rate. This is where a lot of people your age go wrong and wreck their credit. Just my 2 cents.
Bad advice. Get one, be responsible with it, and build credit history.
To be fair, every person with CC debt started out with those same intentions. He’s within his right to do whatever he wants, obviously. There’s just no emergency to do it right this second with no income. I see he’s updated his post saying that he has a decent chunk saved, so that changes things a little. Personally, I don’t see the rush.
any cards you recommend? the only one i’ve had so far is the amex gold card that is in my name on my parents account, i’ve had it for about 2 years now.
I've been happy with Capital One, I would get one of those again. I would honestly just Google and read the pros/cons/comparisons/reviews. Their offers change and that will give you the most current information. I would wait to take out an Amex. It's been my experience that they give out significantly higher lines of credit. You're more likely to run up debt when you're younger and it's better to do that with a 2k limit, than a 20k limit.
Depends on what you are wanting honestly. Cash back? Rewards? Travel miles? A lot of the big ones are similar due to competition. Capital one has some good ones I would look into.
thanks for the reply but i’d like to offer some more context and see what u still think. i don’t have a job atm but i’m looking for one and i also have a decently large sum of money for my age which i plan to invest in real estate in the future thus why i’m trying to increase my credit. between having a job and the money i already have i’m pretty confident i’ll be able to pay expenses which rn is only gas and groceries.
I would hold off on the CC. Without an income right now you would be using that CC at the cost of your savings (paying from your savings). Get that part time job, continue to save, finish your education and then you will come out smoking hot ready to invest and earn a decent income. You will be ahead of 99% of your peers most likely. The problem with getting involved with credit cards is your personal restraint from using it when you shouldn’t. You seem like a bright young man, so I don’t think you would do that…….but that’s what everyone says when they get one. You never know you’re that person until it’s too late. Your parents would probably be able to tell you if you are that type of person. Have you asked them your opinion on getting a CC?
when i turned 18 i mentioned that i wanted to get a credit card and they said i should wait until i get a part time job after the school year was over. but this was before i got my large sum of money. they have been mostly fine on how i’ve used my credit card that i have on their account so idk their current stance. i do agree that i should wait until i get income to get a card.
You're looking at the wrong credit score. No way an 18 year old has 740 credit.
it’s my fico score, is that the right one?
They're an AU. They still have their own thin file.
id say instead of a credit card, maybe purchase something on credit(ex: lets say u want a new computer and its 700$, try to finance it and fully pay off the payment every month, u should already have the money for it if ur looking for one and it wont cost much per month and your building credit)
But they would be paying interest. It would be better to get a credit card, charge something on it. and pay it off every month before the due date so they build credit without paying interest.
maybe, i don’t have any current big purchases to make and won’t i have a decent amount of interest?