What's the best starter credit card?

Eloyke

I am 17 and have not yet gotten a credit card, but have been researching for a while. I want to get one to begin establishing credit, but I'm having a hard time sifting through the tons of cards out there. Is there a card or type of card that builds faster credit or more credit? There are a lot of "student cards" on the market, and it seems that they do neither, but instead are a marketing ploy; is this true? There also are cards meant for people with bad credit or no credit which claim to build it faster by reporting to bureaus more often; do these cards actually make a difference?

Also, I plan on only buying with it what I can pay back because the point of getting a card is to establish my credit, so I'm trying to figure out what is more worth it if cards all build credit the same. I won't be buying a lot, so I won't rack up points and therefore while 5% is a good cash-back rate, it is rather trivial in the grand scheme of things. I won't be needing to have low APR because I will pay everything back in full every cycle. What should I be focusing on then?

jamalfatty

If your not going to be spending much on it and paying it back in full each month it probably would make little difference as to which one you go for.

You cant 'build' credit, just a credit history, and as time goes same speed for all companies then take your pick of them. Perhaps one that gives you a (half) decent free gift when you open it?

And are you sure its 5% cashback?!!

A contract mobile phone would also help, as would getting on the electoral roll the second you turn 18

Lavendyr

I think OP was just giving 5% as an example.

While some cards may claim to build your credit faster, in reality any credit you have can be shown on your credit report. There is no such thing as a "credit rating", all lenders use their own criteria to determine what to lend. Likewise there is no such thing as a card which will not show up on your credit report - theoretically any card can show up, but it depends on whether your card issuer tells the credit reference agencies about your use of the card. So a student credit card is as likely to turn up on your credit report as any other, it's all credit.

With the requirements you specify, almost anything will do really. I have an HSBC credit card which came with my student account, it has a £1000 credit limit (initially £500) and 18.9% APR, but I pay the balance each month in full and on time, so the high APR isn't an issue, and I limit myself to spending £100 a month on the card unless there's an emergency. If you bank with someone already, you could see about getting their credit card.

You could also look for your own preferable criteria, e.g. companies you'd prefer to support over others, cards whose lenders contribute to green/ethical causes or any other cause you care about, etc.

leimichellecat

Im also having a similar problem. Im 21, have just finished Uni, have had a contract phone for the past year (which i pay direct debit) and never had a student overdraft account. i have checked my credit rating and appear to have no negatives, yet i keep being refused a credit card. I have tried Virgin, Mint and the standard Capital one, and awaiting a reply from the Capital one for low credit ratings.
But can anyone recomend another card than might be appropriate to my issue? i only plan to spend what i can pay back each month, so a minimal limit would do me fine.

Lavendyr

Stop applying for cards and give it a rest for a while! The more searches that show up on your record, the less likely anyone is to be willing to lend you money.

Are you on the electoral roll?

leimichellecat

I was on the electoral register at my previous address, but iv only been at this house a month. But iv changed all my address details with other companies i use.

Eloyke

I just spoke with a representative of Discover, and he said that I cannot obtain a credit card until I turn 18 by law, even with a co-signer. He said the only way to use a credit card as a minor is to do so under a parent's account, and in which case you cannot establish credit from it. This is a rather frustrating discovery.

Haycorns_2

OP - if you intend to travel, the Nationwide one would be a good one to start with if you can get it, as there exchange rates are very good

M_Thomson

Eloyke wrote: »

I just spoke with a representative of Discover, and he said that I cannot obtain a credit card until I turn 18 by law, even with a co-signer. He said the only way to use a credit card as a minor is to do so under a parent's account, and in which case you cannot establish credit from it. This is a rather frustrating discovery.

Hi, This website is actually a UK based site, I notice you mention Discover, so you must be in the US. All the cards mentioned above will not be relevant to you. When are you 18? It is not that long to go before you can get your own card. I would get a card from whoever you bank with first, then keep paying it off every month until you build good credit.

M_Thomson

jamalfatty wrote: »

And are you sure its 5% cashback?!!

You can get cards which pay up to 5% cashback in the US where the OP is from.

M_Thomson

jamalfatty wrote: »

You cant 'build' credit, just a credit history,

That is just an American way of saying building a credit history.