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Getting My First Credit Card

A detailed account of a Fastlane process...

M&A

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Several people I know have been victims of identity theft/fraud and the biggest scam lead to getting cleaned out $10,000 through some guy pretending to be a DHL delivery man, luckily it was a transaction done on a credit card and he was no liable for the charge.

Had this been a debit card I assume it would be much harder to get the money back plus it will go straight from your bank account.

This has made me feel like I need a credit card card, just for the fraud protection purposes. I have always felt uneasy paying by debit card in certain places when I didn't have cash.

Is it possible to get a credit card based on amount saved with the bank and Irregular deposits ?

I have an irregular income in terms of amounts and intervals as most budding fastlaners do and I have no tax returns to prove income as I was under the threshold last year but this year I will be paying tax at the highest personal rate.

Can a bank issue a credit card with the above criteria ? I just need one for small personal expenses and paying off the balance within the free credit limit period.
 
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blackhat

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Do you have a credit history? If so, how is your score?

If you know for a fact that purchases will be small and usage low, a secured card might be worth considering. You are virtually guaranteed to get one as you put down cash collateral and receive a limit identical to that amount.
 

Lathan

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If you know for a fact that purchases will be small and usage low, a secured card might be worth considering. You are virtually guaranteed to get one as you put down cash collateral and receive a limit identical to that amount.
I just did this recently. The credit card was for $300 and I just used 30% of it each month and paid it off in full as soon as I got my statement and within 6 months they automatically upgraded me to an unsecured card.
 

Esquire

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Several people I know have been victims of identity theft/fraud and the biggest scam lead to getting cleaned out $10,000 through some guy pretending to be a DHL delivery man, luckily it was a transaction done on a credit card and he was no liable for the charge.

Had this been a debit card I assume it would be much harder to get the money back plus it will go straight from your bank account.

This has made me feel like I need a credit card card, just for the fraud protection purposes. I have always felt uneasy paying by debit card in certain places when I didn't have cash.

Is it possible to get a credit card based on amount saved with the bank and Irregular deposits ?

I have an irregular income in terms of amounts and intervals as most budding fastlaners do and I have no tax returns to prove income as I was under the threshold last year but this year I will be paying tax at the highest personal rate.

Can a bank issue a credit card with the above criteria ? I just need one for small personal expenses and paying off the balance within the free credit limit period.

What you are referring to is called a secured credit card.

Open a $500 certificate of deposit. Bank issues a $500 line of credit. The amount is up to you.

I think it is a very responsible way for people to make use of credit.

Worst case scenario .. the bill is already paid.

Keeps you out of trouble.

Otherwise ... it is very easy to fall into a cycle of debt.

Keep your credit limit low.
 
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samuraijack

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Try Capital One, They were my first credit card and the only one who would accept me when I had no credit history. I didn't even need a secured card, they just gave me a card with $300 limit.
 

sparklyshadows

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First of all, did you know that you don't have to give your pin at stores and can instead use your debit card as credit?

I'm always surprised to learn that so many people don't know about this. When using your debit card, simply ask the cashier to do credit instead and they'll lead you from there. At some stores, the cashier has to click credit on his end, at other stores, when the machine asks for your pin, simply hit the cancel button and the credit option should pop up.

This is a much more secure method of using your debit card. Furthermore, just like a credit card, you can dispute any fraudulent charges on your account within 60-90 days depending on your bank.

On to getting your first credit card! Credit cards are very useful for a wide variety of reasons (if used right of course).

Since you have no established line of credit as of yet, I would suggest two things:

1. Apply for a credit card with the bank you've had an account with for a while. Do NOT apply online. Apply in person at a branch. Most likely they will approve you for a decent credit limit depending on your age, if you have any derogatory marks (accounts that have gone to collections- for example a ticket you didn't pay off, etc.), income, etc.

2. Your second option is to apply with Capital One. They are the best bank for people who have difficulty getting a credit card elsewhere. The downside to this option is that they are a very stingy lender and will most likely start you off on a limit of $300 or so.

Try with you bank first and if you can't get a credit card there, try Capital One.

Now as far as your income goes, you can always apply for a student credit card and give the name of a local community college when they ask for details on that. Otherwise, just give a rough estimate of your gross annual income and you should be fine.

Once you do get your credit card, always stay under 30% utilization. For example, if you get a limit of $1000, never spend over $300. Ideally, you want to stay even lower with a utilization of 10% or lower.

Anyways, good luck in your credit acquiring endeavors!
 

The Grind

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Don't grow up to be me.

I got a credit card, starting spending 20-30 every few days on it, thinking it was no big deal. "I'll just pay it later, I'll worry about it later." Over the months it adds up to "too much". Your credit suffer, you develop a dark cloud over your head.

A weight on your shoulders, a feeling of guilt and sorrow. A deep realization when you realize "I'm just like everyone else...consuming and not producing...spending money I don't have to buy shit I don't need...going deeper into debt...digging a deeper grave every day."

Don't grow up to be me.
 
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AgainstAllOdds

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I got a Capital One Quicksilver card and never had a card before. It's great.

1.5% cash back on all purchases.

Also, check out creditkarma.com. They'll help you stay up to date on your credit score and will tell you which credit card offers are available to someone with your credit.
 

sparklyshadows

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Don't grow up to be me.

I got a credit card, starting spending 20-30 every few days on it, thinking it was no big deal. "I'll just pay it later, I'll worry about it later." Over the months it adds up to "too much". Your credit suffer, you develop a dark cloud over your head.

A weight on your shoulders, a feeling of guilt and sorrow. A deep realization when you realize "I'm just like everyone else...consuming and not producing...spending money I don't have to buy shit I don't need...going deeper into debt...digging a deeper grave every day."

Don't grow up to be me.
The key here is mindset. Most people tend to apply the sidewalk methodology to credit cards- "I'll buy whatever I want right now and then worry about paying it off later." (I've also been guilty of this a few times.)

This of course always backfires, getting credit cards a bad rep in the process.

Credit cards are issued by banks and of course banks want as much money as they can get - banks are for profit institutions - however, credit cards themselves can be used as a beneficial resource if you take a realistic and educated approach towards them.

The key is self-control, exhibiting mindfulness when it comes to your expenses and treating your credit card like a debit card for the most part (know how much you make in a month and therefore how much you can spend). Monitor your finances and reign yourself back in when you catch yourself spending beyond your means.

No matter how much money you have, learning how to manage your finances is a valuable skillset. Though of course, the ultimate goal is to focus on growing your income versus cutting down on expenses.
 

hestati

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For secured one, go for SDFCU (Google them). I just got one and their customer service and process is amazing AND it is a credit union, they treat you much better than banks.
 
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DaRK9

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I have a secured card for cell phone bills. I don't even have the physical card anymore. It pays my cell bill, I set the money aside and pay it when its time.
 

Tristan2k0

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First of all, did you know that you don't have to give your pin at stores and can instead use your debit card as credit?

I'm always surprised to learn that so many people don't know about this. When using your debit card, simply ask the cashier to do credit instead and they'll lead you from there. At some stores, the cashier has to click credit on his end, at other stores, when the machine asks for your pin, simply hit the cancel button and the credit option should pop up.

This is a much more secure method of using your debit card. Furthermore, just like a credit card, you can dispute any fraudulent charges on your account within 60-90 days depending on your bank.

On to getting your first credit card! Credit cards are very useful for a wide variety of reasons (if used right of course).

Since you have no established line of credit as of yet, I would suggest two things:

1. Apply for a credit card with the bank you've had an account with for a while. Do NOT apply online. Apply in person at a branch. Most likely they will approve you for a decent credit limit depending on your age, if you have any derogatory marks (accounts that have gone to collections- for example a ticket you didn't pay off, etc.), income, etc.

2. Your second option is to apply with Capital One. They are the best bank for people who have difficulty getting a credit card elsewhere. The downside to this option is that they are a very stingy lender and will most likely start you off on a limit of $300 or so.

Try with you bank first and if you can't get a credit card there, try Capital One.

Now as far as your income goes, you can always apply for a student credit card and give the name of a local community college when they ask for details on that. Otherwise, just give a rough estimate of your gross annual income and you should be fine.

Once you do get your credit card, always stay under 30% utilization. For example, if you get a limit of $1000, never spend over $300. Ideally, you want to stay even lower with a utilization of 10% or lower.

Anyways, good luck in your credit acquiring endeavors!
So I am getting my first credit card in the mail here in a few days, its a Discover it card I believe. My credit line is $750. That is the limit right? Why should I always stay under %30 utilization? I will have the money to pay it off every month. I am very new to the credit card game. I know it can be very dangerous, but I feel it's safer than always using my debit card. I will spend less because I know I will have to pay it off at the end of the month. So I am trying to gain as much knowledge from the Fastlane about using credit cards. Any one else have any advice for an 18 year old kid who is getting his first credit card? I make about $700+ a week. I am still in the slowlane, I am working my a$$ off to reach the Fast one.Any advice or tips is greatly appreciated
 

blackhat

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A big portion of your score come from your utilization. The lower the better. 30% is the absolute highest I would go. 20% or less would be better. You should stay under because not doing so will hurt your score.
 
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Tristan2k0

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A big portion of your score come from your utilization. The lower the better. 30% is the absolute highest I would go. 20% or less would be better. You should stay under because not doing so will hurt your score.
So I will get the best score from small utilization? What if I utilize all of it but I pay it off in full at the end of every month? I feel like that would increse my credit more. It just doesn't make sense to me to only use a small percentage of the credit.
 

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