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Old 03-05-2011, 07:31 PM
KatherineLee88 KatherineLee88 is offline
Junior Member
Join Date: Jan 2011
Location: Iowa, USA
Posts: 25
Default Re: First credit card- good for credit rating??

I disagree with davidbibby's advice.

I think you should get a credit card. I got my first card at 19. I currently have three cards at age 22. I have YET to carry a balance into another month... meaning I never gave the credit card companies a cent! In fact, my first credit card was through US Bank - and I've actually received $100 over the course of three years in Cash Rewards back - so in a way, I've made $100 from my card through using it properly.

Also, now of my credit cards carry an annual fee. So, I get to use my cards for free, make cash rewards, and build a credit history. You can do this too if you use a card responsibly.

As others have eluded to, having a credit card is a "necessary evil" but it's only an evil if you allow it to be. If you're weary after hearing the advice of others suggesting you don't get a card, you can get a secured credit card. These cards can be thought of like a debit card. You load a certain amount of cash onto them and only can spend what you load onto the card. The disadvantage is that most secured credit cards charge a fee - and they're meant more for people rebuilding their credit.

I think you'd be able to qualify for an unsecured credit card (a regular type of credit card) with a low credit limit on it. Just never spend what you won't be able to pay off by the end of the month.

Also, the idea of having 50% down for a house seems extensive to me. Although it'll be about 5-8 years from now before I plan on getting a home, I don't plan on having more than 30% down. I'd be looking at 150-200,000 house. Is having 100,000 in cash saved up really realistic to me? No. Is 30-50,000 possible? Sure.

Proper use of credit can be VERY beneficial. I say you test the waters and try to get a card with a low limit until you build up your confidence in using cards. I wouldn't allow the failures of other people to handle their credit scare you from taking control of YOUR credit.
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