<p>I'm about to enter my freshmen year of college. I was wondering if I should get a credit card so I can begin building my credit. I could use it for low expenses (things here and there) and nothing real expensive. I was thinking maybe one from Amazon, or Bestbuy because I tend to use those sites a lot and the rewards would benefit me. What do you guys suggest? Should I get one? If so what'd be the best type?</p>
<p>I’d get one from your bank. You are likely going to either need to get a secured card or have a cosigner. </p>
<p>Only make purchases if you are absolutely sure you can pay them off. Do not carry a balance. </p>
<p>I think getting a CC early is good. Long credit history is one of the main boosts to credit score. </p>
<p>^Agreed. Go with your bank - a credit union preferably. You may need a cosigner, even for a “small” amount of $500, but after a while, with responsible usage, you can request to increase it higher. Before making a purchase, set aside the amount you’re using (transfer it to a separate savings account or wherever you choose) and use that to pay the balance. Most likely, you will receive 0% interest for the first 12 or 15 months, so be sure to use it a couple times within that first year just in case since you won’t accrue interest. Some financiers I’ve talked to suggest individuals that obtain a new, or first, credit card to make a purchase (still with the entire purchase amount set aside) that you can make payments on over several months. Their reasoning behind this is that some banks, when evaluating your credit, like to see payments made over time on bigger purchases rather than smaller purchases with the balances paid in full within every billing cycle. They say banks look at this as a more indicative way that bigger loans are made such as a car or home (thousands of dollars paid over a set longer period of time). Personally, I don’t know how I feel about that, but if you do decide something like that, then the first year is the best time to do it, again, considering the 0% interest during that period. I don’t work in a bank, but I do know that when you apply for a loan (if you don’t personally know your banker) a lot more than just your credit score are taken into consideration. In this way, the “big-purchase-long-term-payback” option seems like it could matter: your credit score is mainly determined by paying your credit line on time, not so much as to what your actual balances are and sometimes not even how much you’re paying each billing cycle that has a balance - just the fact that a) there was a balance on the credit line during x date and b) this person paid at least the minimum due. In fact, the different credit reporting agencies record it all differently too: some include the amount you paid, some just show an identification that you made a payment, period.</p>
<p>Anyway, evaluate that for what you will. I’d stick with “medium” sized purchases relative to the amount available for credit on the card if I could afford to pay it off in full by time a payment is due.</p>
<p>Fwiw, my mom worked in a bank for almost 30 years, including as a credit specialist, and I’ve never heard of them looking at keeping a running balance in a positive light. On the contrary, they generally want to see it paid off every month so they know that you’re not going to let payments slide. </p>
<p>Thanks for the advice guys. I’ll definitely get a student one from my bank which is pretty good for starters.</p>
<p>I’m about to finish my first year at a big Uni and I successfully got a credit card from the school credit union in December without a cosigner. Its the student card option which has a balance of 500, I didn’t think I would get approved but my work study job helped a lot, but having a parent cosign wouldn’t be terrible especially if they are paying some of the balance. Its great to build your credit now so you can get an apartment or loan later. </p>