I am 18 years old and i never had a credit card before. i need to start building my credit score and i think i need a credit card to do that. My older sister built her by paying off her new car but i cant do that because my car is paid in full. I am a student (starting freshman in college) and i make about 8K a year working part time. What is the best card for a student and how dose the process work. if i do not use the card for a long period of time and ist paid in full will i still be charged to have it. thank you so much for your help and sorry it was so long.
The type of card you choose is dependent upon how you plan on paying your card and what you’re looking for. If you plan on paying your balance in full each month (and they calculate interest based on your average daily balance for one statement cycle instead of over a 2 month billing period) then there is no reason for you not to do cash back or points because even though those cards have higher interest rates if you’re paying off in full every month by the payment due date you’re not going to be charged finance charges.
http://hubpages.com/_yan/hub/How-to-Select-best-credit-card
the best site to apply for a credit card is credit cards.com. you want to look for something with a low interest rate, NO annual fee, NO membership fees, and if possible a card which gives you a percentage back for every dollar you spent. chase is a really good one to start with. since you dont make much money, they will probably not give you a very high credit line. (this is good when you are young).
when/if you get approved, make a few small purchases and pay them off when you get the statements each month. im talking $5 – $25, nothing major. this will help build your credit with that particular bank. if you let the card sit with a $0 balance for several months, i dont believe the bank will inactivate it. ive had a best buy card at a $0 balance for 3 years.
do not, i repeat do not view a credit card as free money. it is merely a loan. alot of people get caught up in the fact they can spend hundreds of dollars and only pay a small payment each month. this is true, however, if you get too stretched out you will be making that small payment until you are 60.
I don’t know why people say don’t get cards with no membership or annual fees. You might try the Southwest card issued by Chase if you go to school out of state and you can use the rewards to fly back home during the holidays. Or a Discover card, you said your car is paid in full you obviously you have a car and Discover gives good cash back on auto related purchases, and yes that includes beer from gas stations