Credit Card Question

Student Lounge College Life
1

<p>Hello,</p>

<pre><code> I've been browsing this site for the past two months, and having just graduated high school, my time on this site has definitely increased. There is a lot of good advice on this site, and it has eased the the nervousness I fell about going to college in the fall.

I do have a question that I would like help answering though; I had my family graduation party not too long ago, and got a nice amount of cash to put towards college(laptop, books, dorm supplies,etc.) and would like to sign up for a credit card.

Now before the red flags come up, hear me out. I have been financially responsible for my whole life, and understand the benefits of having a good credit score, something I would like to establish now so it can build up.

Here is my plan:
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<p>Put some of my grad. money to the side
Charge some of my pre-college purchases to the card, such as notebooks and other school supplies.
Pay the balance off in full when the bill arrives with the money I have put aside.
Use the card for 1-3 small purchases a month to keep the card active.
Keep paying the card off in full.</p>

<pre><code> I plan on keeping my credit card usage to about 25-50% of my credit limit, as I've heard that's what you're supposed to do as it is beneficial to your credit score.

And I plan on signing up for the CitiForward card for college students; it has a nice rewards package.

So, what do you guys think of my plan that I presented above? Also, another question my parents were unable to answer, can you pay off a credit card bill with a debit card? My debit card that is hooked to my checking account, as all others, deducts money straight from my account, and I earn points when I use it, so this way I will earn double points.
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<p>Criticism is welcome.
Thanks,
Mike</p>

2

<p>I don’t believe you can pay the balance of a credit card with a debit card (that would probably be considered a balance transfer). I have an American Express Clear card, and I just have it direct debit from my checking account. </p>

<p>As long as you don’t go on any shopping sprees or keep a balance on the card, you will be fine. Using a credit card allows you to accrue interest on the money that you would have spent if you used a debit card.</p>

3

<p>Hey, I recommend getting a card if you trust yourself to follow through with your plan. I’m in the same situation and I just got my citi credit card last week. Granted, I also had a credit card on my mom’s account since I was 17 and whenever I bought something I would immediate do online bill pay to the card. Now we plan on using that card for emergencies only. Since she can pay it if she has to if something happens in college. But now I have my own student card from citi. I’m very financially responsible and have experience from having a card on my mom’s account. I wasn’t allowed to use it, unless I could fully pay for it. (Except for senior trip lol, my mom is too nice!)</p>

<p>Now I’m really happy to have my own card, because now I receive the bill and I know it’s really helping my credit. You can’t pay the bill with your debit card, but you can use your checking account. The easiest way to do it is how I said I pay. Go to your bank’s website and sign up for online banking along with bill pay. You go to the bill pay section and enter your credit card info and you can add money to your bill any time you want.</p>

<p>You could also pay your bill through citi’s website. You log into your account and there is bill pay option there. The advantage to doing it on the citi’s website instead of your bank is that that it may be faster. They can get the money that same day if your close the deadline, but your bank may wait a day or two to transfer the funds. Personally, doing through your bank may be easier down the road when you have multiple bills and you need to keep track of what you need to pay. </p>

<p>Hope this helps! :)</p>

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<p>Balance transfer would be moving the debt from one credit card to another. Assuming the debit card is linked to his checking account, it’s as if he wrote a check, or had automatic billpay set up. My card is paid in full every month automatically.</p>

<p>How will you continue to pay the card while in college? I assume you’ll have a job?</p>

<p>I went for a non-reward/college card, as it allowed me to obtain a higher limit and lower interest rate. It wasn’t worth fooling around with their point systems.</p>

5

<p>If you’re thinking about getting a credit card do it soon. The law is changing in february (I think) to make it very difficult to get a credit card under the age of 21.</p>

6

<p>I whole-heartedly encourage people to use credit cards. If you understand what a credit card is and how it works, you’ll know that it is arguably the best way to purchase what you want.</p>

<p>As long as you make it a habit to pay your full balance on time, you’ll have no problems.</p>

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<p>how are you guys even getting approved for credit cards! i have tried with my own bank and a store card (like old navy) but thats it because i dont want too many inquiries on me. i dont have any credit so no one will give me a credit card. is citi bank easy to get cards from?</p>

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<p>Its really not a huge deal (for me anyway). And it really helps to boost your credit rating.</p>

<p>I just have money on my debit card but use my credit card to buy things, then pay it off with my debit. If theres no money in my debit, I don’t use credit.</p>

<p>People I know are so scared to get into debt with credit cards, but its seriously no rocket science. Have the money? Use it. Broke? Don’t.</p>

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<p>Do you have a checking/savings account with a bank? Assuming you’ve been a good customer with them, I’d imagine they’d accept you for even a minimal amount.</p>

<p>(I use Wells Fargo, so I don’t know about Citi)</p>

10

<p>I had to try 3 times to get a card. I got mine from CapitalOne with a high rate obviously. I don’t make much, I think there is a minimum salary you need to meet, which isn’t much, because again I just work full time in the summer and very few hours during the school year.</p>

11

<p>I can’t seem to get approved for a credit card either and I’ve tried 2-3 times. I’ve had a debit card for around a year and half now and I’ve never gone over my limit or anything but I always get denied due to “lack of credit”. How am I supposed to get credit without a credit card in the first place?</p>

12

<p>Paying bills is one way. I even read somewhere that movie rentals have an extremely small impact on credit.</p>

<p>Credit cards aren’t the only form of credit out there - just the most obvious.</p>

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<p>I’m sure if those of you who keep getting denied apply for a student card, you could get approved. They’re probably not expecting students to already have established credit. Just a thought…I could be wrong. If that doesn’t work, ask your parents to add you to their card, (if they are good about paying the bill cause you dont’ want their bad credit on your file) and then do the whole online bill pay, to pay it any time you make a purchase. If you tell your parents that, I’m sure they’ll have less qualms about adding you because you pay it easily that way.</p>

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<p>@Another_Adam:</p>

<p>Actually, paying bills does not help you build credit since many do not report your payment history to the three major credit bureaus. Another way to put this - paying bills does not help you build positive credit, but rather they prevent any negative history from getting onto your personal credit report. It’s a weird way but it’s true. Your electric company, internet service provider, cell phone provider etc. will only report missed payments to the credit bureaus.</p>

<p>I should put this as a disclaimer and say that it may be possible for these companies to report your monthly on-time payments to the three major credit bureaus (Equifax, Transunion, and Experian) but you may have to call in and specially request for this to be done. Also, since this is not a routine procedure for these utility companies to report good payment history to the credit bureaus, they may convenient forget and stop doing it altogether. So you might be calling them quite a bit if this is the case.</p>

<p>If you’re a student, getting a student credit card should not be too much of a problem. Citi and Chase both offer great rewards programs and I highly recommend them.</p>

15

<p>Does any one know about US Bank. I tried with best buy and dell to get my laptop but nothing. So I am waiting 15 days to apply with US Bank, which is the bank I bank with.</p>

16

<p>Thanks for all the advice guys. I applied for the CitiFoward card and am just waiting to hear back.</p>