<p>which one?</p>
<p>It doesn't matter - any place that accepts one will accept the other.</p>
<p>Either is a safe bet. I have MasterCard since my bank is affilated with them. My friend who goes to a different bank has Visa. If you don't get a bank card get whatever card your favorite gas station offers since they sometimes give away free gas (BP does this a lot and they have Visa).</p>
<p>Don't get Discover as they aren't accepted everywhere. The same can be said for AMEX.</p>
<p>I have MasterCard and have never had a problem with it not being accepted. Guess the commercials really are true. ;]</p>
<p>Either Visa or MasterCard are good. Make sure you get either one of them OVER Discover or American Express. Almost any place in the country that accepts credit or checking cards always accepts Visa or MasterCard. The only place I know that doesn't is Costco; they only accept American Express.</p>
<p>Again, get what your preferred credit card company or bank uses. Since my parents have Citi credit cards, I got a Citi MTV-U rewards card which is Visa. My bank's Debit/ATM card, however, is MasterCard.</p>
<p>If you want to go to a New England Patriots game, you can only use a visa... :)</p>
<p>i use mastercard, but it really doesnt matter because almost everywhere takes both (unless they dont do credit cards at all...)</p>
<p>Should I be using a credit card as often as possible, even if I have cash to pay, to build my credit history?</p>
<p>Building a credit history is pretty overrated. You can build a credit history by getting a utility bill & cell bill in your own name & paying it off on time every month. If you choose to charge, be SURE to consider anything you charge as spent money & set aside funds to pay the bill in full every time it arrives rather than having finance & late charges.
If you borrow money (like student loan for college), paying that off on time once you graduate from school also builds your credit history. In my opinion, building a credit history is vastly overrated. The important thing to do is not overextend yourself and ruin your credit history by owing way more than you can easily pay back & having late payments.</p>
<p>I opened a checking account in college & was an additional cardholder on my parents' account (tho I NEVER used the card, it was good to know I had it, "just in case"). I got National Student Loans to help pay for my college & paid it off regularly & on time every time the bill arrived, got a credit card when I started having a full-time job after grad school, & NEVER had any problems getting credit cards, the lowest mortgage rates with the best terms or anything.</p>
<p>"Building a credit history is pretty overrated."</p>
<p>I cannot disagree with that more, especially now that your car insurance rates are based on your credit history. One important aspect of your credit rating IS the length of your credit history--the earlier you build it the better.</p>
<p>Additionally, part of your credit rating is based on the mixture of debt you have--only having student loans is not good. Having one or two credit cards from a major company is important and it will count against you if you don't have at least one. </p>
<p>Utility and phone bills are also not a part of your credit report, so that will not help you build your credit score.</p>
<p>"Should I be using a credit card as often as possible, even if I have cash to pay, to build my credit history?"</p>
<p>Using it once a month should be good enough.</p>
<p>I never had trouble getting a car loan--got the best rates from the credit union. I honestly don't see why folks should have credit cards before they have jobs to pay off the credit cards--it seems like a bad idea & why so many people start their careers already in so much debt. I guess I never buy cars unless we can afford to pay for them in cash anyway--living well at or below one's income is a much underrated virtue in the US but beats ongoing cash crises & financial woes in my book any day!
I agree that however the credit card is used, it's best to pay it off in full every month--that's the crucial piece. Once a month of use should be fine; if you can have payment linked to your checking account & call in your payments, you can save yourself a stamp & the aggrevation of worrying about whether the payment may be delayed in the mail. It has worked well for us.</p>
<p>"I honestly don't see why folks should have credit cards before they have jobs to pay off the credit cards..."</p>
<p>Why can't a college student have a job?</p>
<p>One thing I wanted to add about using your credit card once a month: The only thing that pops up on your credit report every month is the ending balance (your statement balance) and whether or not you paid last month on-time or within 30, 90 or 180 days of the due date. In that respect, using your credit card once and paying it on time will be enough to build up your credit history; however, credit cards are a nice way to help track your expenses. I, for instance, put everything on my credit card and type it all into MS Money at the end of the month to see what I've been spending my money on and make sure I'm within my budget. Cash is hard to trace and keep track of.</p>
<p>Also just because you have a credit card doesn't mean you buy more than you can afford. I don't have a job but I do have a credit card, and I pay it from my savings when I buy something. I just always make sure I would buy it anyways if not for the credit card.</p>
<p>You're right--I had a job the entire time I was an undergrad & also every summer. I am just irritated at credit card companies that offer "free & easy credit" to just about anyone & anything. They've pre-aprproved my in-laws who have been dead for 10 & 15 years respectively, pre-approved my kids since they were infants, pre-approved folks' pets & everyone else. It's madness!</p>
<p>I admit I mostly charge everything & rarely pay cash (except for places that are cash only)--pay it off in full every month the day we get the statement. I don't like having or carrying large sums of cash. I have just heard so many horror stories about folks who dig themselves into such huge holes with "plastic."</p>
<p>Does it matter how much I spend on a particular month, meaning spending a lot of money and be able to pay it all.</p>
<p>In terms of improving you're credit, no, it doesn't matter how much you spend. In fact, the only reason you really need to purchase something every month is to keep your account from being listed as "inactive" on your credit report.</p>
<p>The other issue is that you're credit utilization (how much you owe divided by your available credit) is a HUGE factor in your credit score. If you charge a lot on your card (over 50% of your limit) and do not pay it off before the statement date (which is when the credit card company sends an update to the credit reporting buereus), it will look like you're maintaining a large balance on your card and you're score will temporarily drop (at least until the next statement date). Not necessarily a big deal when you're in school, but something to be aware of.</p>
<p>Meaning I shouldn't charge a lot and not pay...?</p>
<p>You should research any card you're considering applying for. Be sure to understand all the charges you may face, including any "inactivity" charges. We've had several cards that we rarely use (like once/year or every few years) & have never had any extra fee added on, but I understand some cards DO assess such fees.</p>
<p>I'd strongly urge you to pay off your card in FULL every month. I believe the poster you're responding to means you should see what the total "credit limit" you are offered & not charge so much that it's close to your credit limit & another company orders a credit check (you want to borrow money, rent, or get another credit card, etc.), it may look like you have a large amount of debt compared to the total credit limit you're authorized.
After you've had your card for a while (6-12 months), you can always ask the credit card issuer to increase your credit limit if you'd like (or they may offer to raise it or just raise it without your request--that's what happens for us).</p>
<p>Please be careful with credit cards--it is easy to end up buying & owing more than you ever intended. The reason many merchants accept credit cards is because folks do not connect "charging" with actually spending cash for some reason--sort of like Monopoly money--until the charge bill arrives later in the month, surprise!</p>
<p>most places accept both...though i have been to places that only accepted one....I have both and those are the only two credit cards I have/need</p>
<p>"Meaning I shouldn't charge a lot and not pay...?"</p>
<p>You can carry a balance--it's not always a terrible thing--but it's not a good idea, especially for those who are new to credit and don't know what they're doing. It's especially bad considering many college students have cards that have a 19% APR (compounded daily, that's a 20.92% interest rate!). There are circumstances where I understand having a balance (if you're graduating and need to save up cash, if your interest rate is less than what make on your savings/investments), but they generall won't apply to most students.</p>
<p>In other words, you probably shouldn't carry a balance if you don't have to. Additionally, if you're planning to do anything where your credit might be checked (such as applying for a new card, car insurance, etc.), don't let your balance go above 50% of your available credit. </p>
<p>And above all: NEVER miss a payment, and ALWAYS pay at least the minimum.</p>
<p>Another nice thing about credit cards, though: if you have one with a cash back feature on a card that you pay off every month, you end up actually making money by using your credit card.</p>