My first credit card...

RunAboveIt · August 5th, 2006, 12:24 AM

I just recently applied for my first credit card from Capital One and got approved for a visa platinum card with a $1,000 credit line and no interest for 6 months. 20% APR after that (but its variable so who knows). I'm not going to carry a balance anyways unless some emergency comes up. I'm 18 with zero real credit history (unless my paypal debit card and former visabuxx card is on my credit - but they shouldn't be). I'm a super good credit freak and want to build my credit the best I can. But anyways, is this unusual to get such a high credit line? Also, any of you care to share what terms your first credit card was? Also, any tips on handling credit (besides the obvious)?

And wow - it's such a high going to newegg and loading my cart with 1,000 of goodies - knowing I could buy it

(not that I have anything to complain about now). But ah the temptation

.

pickel · August 5th, 2006, 12:29 AM

Pay it off EVERY month and you'll get increases and show up good on your credit score.

mr.jiggyfly · August 5th, 2006, 12:41 AM

I got 1k on my first credit card too! One tip I do have for you is to check online to see if you can view your statements and pay them off on the website. Makes it quick and painless.

RedFury · August 5th, 2006, 12:46 AM

I hope you indeed can resist the temptation of using it for purposes of evil. I'm still paying off a refridgerator I bought on credit 8 years ago. I'm horrible with credit, which is why I pay cash nowadays.

RunAboveIt · August 5th, 2006, 12:47 AM

Quote:

Originally Posted by mr.jiggyfly

I got 1k on my first credit card too! One tip I do have for you is to check online to see if you can view your statements and pay them off on the website. Makes it quick and painless.

Lol, thats what I did when I first got it. Already have my bank account set up for payments. I'm sure it will be much simpler and easier to make a payment - and it even posts the same day according to capital one

.

RunAboveIt · August 5th, 2006, 12:49 AM

Quote:

Originally Posted by RedFury

I hope you indeed can resist the temptation of using it for purposes of evil. I'm still paying off a refridgerator I bought on credit 8 years ago. I'm horrible with credit, which is why I pay cash nowadays.

heh, I actually just read about your history in another thread. Why wont you ever look through the windows again? Did you move? They break? And I'm a bit confused on how throwing money into a savings account every week helps your credit score? I've never heard of those being reported? Maybe I'm wrong tho..

jkrohn · August 5th, 2006, 01:37 AM

Another good thing to do to improve your credit is to get a cell phone in your name. Even if they make you put down a deposit.

It counts as a line of credit, and as long as you pay your bill on time, reflects well on you.

Jkrohn

The Real Bingo · August 5th, 2006, 01:40 AM

I don't know what everyone's rush is with trying to build a credit line, especially with a credit card. Especially dumb kids who over-spend and can't pay it off and end up in debt up to their grandchildren's eyes. Anyway...

Just keep track of what you buy and be damn sure to pay everything off on time. You have $1000 limit per each month? I'd only put $250 on the card, max, but that's just me...Hell, I don't think I'd spend $250 a month at all, but that's your call.

Best of luck.

SpaceSquad · August 5th, 2006, 01:44 AM

Why did they put a $1000 limit on your card? Simple...they want you to overspend and owe them lots and lots of money. It's how they stay in business.

RunAboveIt · August 5th, 2006, 01:56 AM

Quote:

Originally Posted by SpaceSquad

Why did they put a $1000 limit on your card? Simple...they want you to overspend and owe them lots and lots of money. It's how they stay in business.

Actually, credit card companies make their money from two main sources. The first and biggest, is that they charge the merchant a commission on each transaction and that transaction rate can vary from 1% for larger stores and up to 5% on certain cards for smaller retailers. That is why smaller stores will probably be more prepared to offer you a discount should you ask to pay for your purchase in cash rather than on plastic. The other source of income for credit card companies is like you stated the interest that is charged on overdue and outstanding balances.