Best Credit Card for new graduate? (1 Viewer)

[SacramentoBob]

I would try to start with the Chase Freedom (rotating 5% categories, great rewards program) or the American Express Blue Cash Preferred. Both would be good cards that grow with you. If turned down, you can always call one of their underwriters directly and try to get the decision reversed. Just tell them you're fresh out of college, got XYZ job and really want the card because of their rewards and reputation. They'll start you out with something small, but in a couple of years it will be worth it. Failing that, a good credit union would be my next choice along with a couple of store cards for places you actually shop at that will graduate you to actual Visa/MC/Amex cards if you do well (Target/Walmart/Macys).

Actually you should get a Target card if you shop there, regardless of anything else. 5% cash back on all Target purchases for using their card. Pretty much a no brainer.

 

[Doctor Detroit]

I like the Chase Freedom also, especially at 7.99% APR. They always have good cash back and reward stuff also, which is a bonus. Discover card seems decent also.

 

[The Big Guy]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)

Just because YOU can't manage your finances, please do not assume others can't.

 

[Doctor Detroit]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)

Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt.

I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

 

[The Big Guy]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt. I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

You are right I did mistake the OP vs AZ earlier. Oops. But you are the moron who said that you were the one with outstanding cc debts and I am the one who gets paid about $50 per month to use my credit cards. But what you can't deny is that someone with no active credit history who goes your route is going to have to not only figure out how to save over 20% for their down payment, but how to manage the 15 year mortgage as well. Your advise is poor and you make assumptions about others based on your own bad experience.

 

[Doctor Detroit]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt. I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

You are right I did mistake the OP vs AZ earlier. Oops. But you are the moron who said that you were the one with outstanding cc debts and I am the one who gets paid about $50 per month to use my credit cards. But what you can't deny is that someone with no active credit history who goes your route is going to have to not only figure out how to save over 20% for their down payment, but how to manage the 15 year mortgage as well. Your advise is poor and you make assumptions about others based on your own bad experience.

So you think a 30 year mortgage is better than a 15 year mortgage? lol

Well according to your terrific financial insight, my 810 credit score makes me some sort of superhero.

Please bow now, TIA.

 

[The Big Guy]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt. I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

You are right I did mistake the OP vs AZ earlier. Oops. But you are the moron who said that you were the one with outstanding cc debts and I am the one who gets paid about $50 per month to use my credit cards. But what you can't deny is that someone with no active credit history who goes your route is going to have to not only figure out how to save over 20% for their down payment, but how to manage the 15 year mortgage as well. Your advise is poor and you make assumptions about others based on your own bad experience.

So you think a 30 year mortgage is better than a 15 year mortgage? lolWell according to your terrific financial insight, my 810 credit score makes me some sort of superhero.

Please bow now, TIA.

I am glad that you have an excellent fico score. And maybe if you were to buy a house in Detroit would an average college graduate be able to afford a 20% down 15 year mortgage. However in the real world, people like to live in better places and that tends to require the use of a 30 year mortgage.

 

[Doctor Detroit]

People paying cash instead of credit are just leaving money on the table. Pay off your revolving balances in full every month and in 2 years you will have unbelievably great credit.

The main thing is: Don't treat credit card limits as additional income. Just put your normal monthly spending on them and pay it off. You buy gas and groceries every month right? Put that on the card and pay it off in full each month. If you're carrying a balance, you're doing it wrong.

Exactly. But that's the problem, almost everyone is doing it wrong. Me included.

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt. I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

You are right I did mistake the OP vs AZ earlier. Oops. But you are the moron who said that you were the one with outstanding cc debts and I am the one who gets paid about $50 per month to use my credit cards. But what you can't deny is that someone with no active credit history who goes your route is going to have to not only figure out how to save over 20% for their down payment, but how to manage the 15 year mortgage as well. Your advise is poor and you make assumptions about others based on your own bad experience.

So you think a 30 year mortgage is better than a 15 year mortgage? lolWell according to your terrific financial insight, my 810 credit score makes me some sort of superhero.

Please bow now, TIA.

I am glad that you have an excellent fico score. And maybe if you were to buy a house in Detroit would an average college graduate be able to afford a 20% down 15 year mortgage. However in the real world, people like to live in better places and that tends to require the use of a 30 year mortgage.

I live in DC. Stick to your day job, Columbo.

ETA: Not every place can be the Shangri-La known as New Jersey. That's a low blow man. <_<

 

[Arizona Ron]

I'm just playing devil's advocate. I never had any debt until my late 20s and I wish I would have kept it that way. I don't have a ton now, but it's enough for me to completely change my perspective on consumer debt. Will all be paid off by spring except my mortgage, then me and consumer debt will part ways forever.

DD

I've respected your posting style for years and I'm in no way being combative with you. Do you think your view on this is a little dated though?

My notebook says you're in your 50s, times are very different for people graduating college in 2014.

Your thoughts.

- AZ

 

[Doctor Detroit]

I'm just playing devil's advocate. I never had any debt until my late 20s and I wish I would have kept it that way. I don't have a ton now, but it's enough for me to completely change my perspective on consumer debt. Will all be paid off by spring except my mortgage, then me and consumer debt will part ways forever.

DD

I've respected your posting style for years and I'm in no way being combative with you. Do you think your view on this is a little dated though?

My notebook says you're in your 50s, times are very different for people graduating college in 2014.

Your thoughts.

- AZ

I'm not very close to 50.

No idea if it's dated, I just think encouraging young people to seek credit is too culturally ingrained and it has led to a country full of debtors. I'm guilty of some of it myself but not nearly to the extreme of others. My friend's kid is 25 and has $90k in student loans and a $35k job at a marketing firm. I mean that kid is ####ed. I have another friend who called me asking if he should pull funds out of his 401k to cover $50k in consumer debt!

It's crazy.

 

[Arizona Ron]

I'm just playing devil's advocate. I never had any debt until my late 20s and I wish I would have kept it that way. I don't have a ton now, but it's enough for me to completely change my perspective on consumer debt. Will all be paid off by spring except my mortgage, then me and consumer debt will part ways forever.

DD

I've respected your posting style for years and I'm in no way being combative with you. Do you think your view on this is a little dated though?

My notebook says you're in your 50s, times are very different for people graduating college in 2014.

Your thoughts.

- AZ

I'm not very close to 50.

No idea if it's dated, I just think encouraging young people to seek credit is too culturally ingrained and it has led to a country full of debtors. I'm guilty of some of it myself but not nearly to the extreme of others. My friend's kid is 25 and has $90k in student loans and a $35k job at a marketing firm. I mean that kid is ####ed. I have another friend who called me asking if he should pull funds out of his 401k to cover $50k in consumer debt!

It's crazy.

Roger that, there is a gap in educated credit users and those that use credit when they need income. I'm almost 40. When I was in my early 20s, my bank allowed me to take a "signature loan" for 10k that I carried like a cross for ~7 years. I paid goo gobs in interest but stayed in good standing. That account (still active as a line of credit) helped me finance a condo and a house 15 years later.

I think, at least with me, there was always a "tomorrow will fix it" mentality I had in my early 20s; through the combination of preparation and opportunity - it did.

I don't think that happens with most people though.

 

[Mr.Pack]

Pack - why does she need a cc? Does she have a job?

Yes she does, two of them and she's making pretty damn good money.

She is planning on moving to Nashville in the Spring and wants to build some credit. She hates owing and knows that she needs to pay it monthly. (The plan now is to just use it for gas, and pay it off monthly because she does have the cash,)

I think having a CC for when she moves is just a smart thing, just in case......

She is like us, we have one CC and rarely carry a balance.

 

[Mr.Pack]

In the land of unicorns and free lunches 22-year-old women pay their credit cards off every month, Beirut is the hottest tourist spot, and the Cubs win the World Series every year.

I hear what you're saying and maybe she's an anomaly that way, but she's learned form us as we only have one cc and rarely carry a balance. And she's seen a couple of her friends get into serious trouble with cards, and she's a cheapskate and wants no part of that.

 

[Doctor Detroit]

Pack - why does she need a cc? Does she have a job?

Yes she does, two of them and she's making pretty damn good money.

She is planning on moving to Nashville in the Spring and wants to build some credit. She hates owing and knows that she needs to pay it monthly. (The plan now is to just use it for gas, and pay it off monthly because she does have the cash,)

I think having a CC for when she moves is just a smart thing, just in case......

She is like us, we have one CC and rarely carry a balance.

 

[StrikeS2k]

Or maybe she should just save for a major purchase.

Again, this mindset is the problem in a country where consumer debt is just expected. Most people don't get credit cards and then pay them off the same month.

U.S. household consumer debt profile:Current as of August 2014

• Average credit card debt: $15,480
• Average mortgage debt: $156,474
• Average student loan debt: $33,424

In total, American consumers owe:

• $11.74 trillion in debtAn increase of 5.% from last year

[*]$872.2 billion in credit card debt
[*]$8.24 trillion in mortgages
[*]$1,131.7 billion in student loans
[*]An increase of 14.2% from last year

I don't disagree with any of this. However, it's unrealistic to expect someone not to take out a mortgage when they buy a house. What percentage of people do that? I see from your posts that you have a mortgage. Personally, I also don't have a problem with someone financing a new car depending on how much the loan is for and the interest rate. Sometimes taking on debt isn't a bad thing. It all depends on the individual and their financial situation. Building up a credit record gives a person flexibility in how they go about their finances. That's not a bad thing, and I wouldn't discourage someone from trying to build a good credit record.

Where did I say that?

Buying a new car is a terrible purchase also, and I've bought five of them. Never did I leave that lot saying, "damn I just made a great financial decision."

Student loans and mortgages are good debt, pretty much everything is bad.

Again, you keep calling his kid getting a cc Debt, like it is preordained and a done deal already. AZ already said that his kid is paying down her SL debt, so it is safe to assume that she is working at this point, so having a CC does not mean that she is going to be incurring debt.

I'm not following any of this.

Okay, say she gets a credit card and does one of the following:

- Doesn't ever charge anything on it.

- Charges a few household expenses on it instead of paying cash, but sets aside the cash as she goes along and pays off the bill in full every month.

Is that still bad? You're acting like she's gonna suddenly have a massive additional debt, which may not be the case. Some of us are suggesting to you that not everyone fits the profile you posted above. Some people are disciplined and responsible and are just looking to establish themselves in the adult world, which typically includes having some credit.

lol at all of this.

 

[Arizona Ron]

Pack - why does she need a cc? Does she have a job?

Yes she does, two of them and she's making pretty damn good money.

She is planning on moving to Nashville in the Spring and wants to build some credit. She hates owing and knows that she needs to pay it monthly. (The plan now is to just use it for gas, and pay it off monthly because she does have the cash,)

I think having a CC for when she moves is just a smart thing, just in case......

She is like us, we have one CC and rarely carry a balance.

Lots of flexibility having a credit card at her age. Car rental deposits, holds on hotels rooms, etc. this will remove the concern of them holding up her "cash" (i.e. a debit card).

Nothing is more embarrassing to a young professional than needing a cash advance because they can't float travel expenses a few weeks.

 

[Doctor Detroit]

Or maybe she should just save for a major purchase.

Again, this mindset is the problem in a country where consumer debt is just expected. Most people don't get credit cards and then pay them off the same month.

U.S. household consumer debt profile:Current as of August 2014

• Average credit card debt: $15,480
• Average mortgage debt: $156,474
• Average student loan debt: $33,424

In total, American consumers owe:

• $11.74 trillion in debtAn increase of 5.% from last year

[*]$872.2 billion in credit card debt
[*]$8.24 trillion in mortgages
[*]$1,131.7 billion in student loans
[*]An increase of 14.2% from last year

I don't disagree with any of this. However, it's unrealistic to expect someone not to take out a mortgage when they buy a house. What percentage of people do that? I see from your posts that you have a mortgage. Personally, I also don't have a problem with someone financing a new car depending on how much the loan is for and the interest rate. Sometimes taking on debt isn't a bad thing. It all depends on the individual and their financial situation. Building up a credit record gives a person flexibility in how they go about their finances. That's not a bad thing, and I wouldn't discourage someone from trying to build a good credit record.

Where did I say that?

Buying a new car is a terrible purchase also, and I've bought five of them. Never did I leave that lot saying, "damn I just made a great financial decision."

Student loans and mortgages are good debt, pretty much everything is bad.

Again, you keep calling his kid getting a cc Debt, like it is preordained and a done deal already. AZ already said that his kid is paying down her SL debt, so it is safe to assume that she is working at this point, so having a CC does not mean that she is going to be incurring debt.

I'm not following any of this.

Okay, say she gets a credit card and does one of the following:

- Doesn't ever charge anything on it.

- Charges a few household expenses on it instead of paying cash, but sets aside the cash as she goes along and pays off the bill in full every month.

Is that still bad? You're acting like she's gonna suddenly have a massive additional debt, which may not be the case. Some of us are suggesting to you that not everyone fits the profile you posted above. Some people are disciplined and responsible and are just looking to establish themselves in the adult world, which typically includes having some credit.

lol at all of this.

 

[Mr.Pack]

I would try to start with the Chase Freedom (rotating 5% categories, great rewards program) or the American Express Blue Cash Preferred. Both would be good cards that grow with you. If turned down, you can always call one of their underwriters directly and try to get the decision reversed. Just tell them you're fresh out of college, got XYZ job and really want the card because of their rewards and reputation. They'll start you out with something small, but in a couple of years it will be worth it. Failing that, a good credit union would be my next choice along with a couple of store cards for places you actually shop at that will graduate you to actual Visa/MC/Amex cards if you do well (Target/Walmart/Macys).

Actually you should get a Target card if you shop there, regardless of anything else. 5% cash back on all Target purchases for using their card. Pretty much a no brainer.

Thank you!

 

[Mr.Pack]

Pack - why does she need a cc? Does she have a job?

Yes she does, two of them and she's making pretty damn good money.

She is planning on moving to Nashville in the Spring and wants to build some credit. She hates owing and knows that she needs to pay it monthly. (The plan now is to just use it for gas, and pay it off monthly because she does have the cash,)

I think having a CC for when she moves is just a smart thing, just in case......

She is like us, we have one CC and rarely carry a balance.

Lots of flexibility having a credit card at her age. Car rental deposits, holds on hotels rooms, etc. this will remove the concern of them holding up her "cash" (i.e. a debit card).

Nothing is more embarrassing to a young professional than needing a cash advance because they can't float travel expenses a few weeks.

This is exactly the reason why I want her to get one, you just never know when something might happen. Also, if she plays it smart, she can make a little money using the right card.

 

[Grady Wilson]

Paying off student loans as quickly as possible will build credit better than getting a credit card.

Bingo....

 

[The Big Guy]

It's a life lesson we all have to learn. Now is a good time for Mr Pack to sit down with his daughter and give her some words of wisdom. She may follow it or she may learn the hard way. Either way, if she wants to buy a house in 5-10 years she's going to have start proving she's responsible with credit now or pay cash.

That's not true though

Getting a Mortgage Without a Credit Score

Lets go back a few years, thoughback before you paid off that mortgage. How can you get a mortgage without a credit score in the first place? Isnt this magic number your key to the world of mortgages and homeownership?

Actually, no, it isnt. You can get a mortgage without a credit score. How so? Manual underwriting.

Not every lender is going to do manual underwritingwhich is basically when they use a little common sense and look at factors like your income and not just your credit score. Churchill Mortgage is the lender we recommend for manual underwriting.

Now, this doesnt mean that just anyone can walk into a bank or mortgage lender and walk out with a home loan using manual underwriting. Remember, this is the way weird people do it, so there are some requirements youve got to live up to. Specifically, you must:

• Put at least 20% down on your home.
• Choose a 15-year, fixed-rate conventional mortgage.
• Have a strong employment history and personal income to support the loan.
• Demonstrate 46 trade lines that span 1824 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Did you actually read what you posted? Look at the higher requirements you are going to subject yourself to, not to mention a higher rate for doing a non government backed portfolio loan (oh yeah, with a 15 year term)Just because YOU can't manage your finances, please do not assume others can't.

Coming from the same guy who can't get Arizona Ron and Mr Pack straight, I'll take this with a grain of salt. I manage my finances just fine, shlep. Take a look at the link I provided earlier with all the consumer debt in this country, it's YOU that can't manage your finances.

You are right I did mistake the OP vs AZ earlier. Oops. But you are the moron who said that you were the one with outstanding cc debts and I am the one who gets paid about $50 per month to use my credit cards. But what you can't deny is that someone with no active credit history who goes your route is going to have to not only figure out how to save over 20% for their down payment, but how to manage the 15 year mortgage as well. Your advise is poor and you make assumptions about others based on your own bad experience.

So you think a 30 year mortgage is better than a 15 year mortgage? lolWell according to your terrific financial insight, my 810 credit score makes me some sort of superhero.

Please bow now, TIA.

I am glad that you have an excellent fico score. And maybe if you were to buy a house in Detroit would an average college graduate be able to afford a 20% down 15 year mortgage. However in the real world, people like to live in better places and that tends to require the use of a 30 year mortgage.

I live in DC. Stick to your day job, Columbo.

ETA: Not every place can be the Shangri-La known as New Jersey. That's a low blow man. <_<

Wait...So you, being from Detroit and currently living in DC can take the time to trash anywhere else in the US? You went from the #1 ####hole to the #2 ####hole and want to talk about the vacation paradise that I live in?

Please try to get outside a little more and know that my state is a little more than Newark AC and Camden. Or better yet, don't come to NJ and let us enjoy our beautiful beaches by ourselves.

 

[Doctor Detroit]

Wait...So you, being from Detroit and currently living in DC can take the time to trash anywhere else in the US? You went from the #1 ####hole to the #2 ####hole and want to talk about the vacation paradise that I live in?


Please try to get outside a little more and know that my state is a little more than Newark AC and Camden. Or better yet, don't come to NJ and let us enjoy our beautiful beaches by ourselves.

lololololololololololololololololololololololololololololol

ETA: ool

 

[inca911]

Another recommendation for Chase Freedom.

The key with credit is to use it as credit, and not as a loan. Not understanding the difference between credit and a loan is what gets people in trouble. As long as the card holder understands that differentiation, I'd setup a credit card right away to start building a good credit score. Having just a couple cards with long histories of on-time payments does wonders for a credit score.

 

[Juxtatarot]

Always funny how little it takes to start an iFight.

 

[SacramentoBob]

Always funny how little it takes to start an iFight.

You want a piece of me?

 

[BigJohn]

No debt. Pay cash. There's absolutely nothing in this world that you can only acquire with debt.

 

[Henry Ford]

Paying off student loans as quickly as possible will build credit better than getting a credit card.

You might be right but kind of unrealistic for most new grads to pay off school loans quickly.

Then why get a credit card? Seems like getting a debit/credit connected to a checking account is the only way to go. Why we are encouraging young people to pile onto consumer credit when they have tens of thousands in school loans, is not a great way to teach financial responsibility. Credit score doesn't do you any good if all you're paying is debt down.

DD, I think you're overlooking "good debt", e.g. a Home Loan. It's hard to convince a bank to foot 800k for a decent home when all you have to show for it is paying off your student debt. They want to see credit history, credit cards and small loans to develop a pattern of credibility.

No credit card debt is good debt. Paying off a school loan is fine, she doesn't need to establish a credit pattern at 22 so she can get "good debt." You are confusing no credit record with a bad credit record. Plenty of banks will give people with a limited credit history a home loan, especially if they have a good job and a good deal of cash.

I don't think this is realistic anymore.

 

[BigJohn]

Paying off student loans as quickly as possible will build credit better than getting a credit card.

You might be right but kind of unrealistic for most new grads to pay off school loans quickly.

Then why get a credit card? Seems like getting a debit/credit connected to a checking account is the only way to go. Why we are encouraging young people to pile onto consumer credit when they have tens of thousands in school loans, is not a great way to teach financial responsibility. Credit score doesn't do you any good if all you're paying is debt down.

DD, I think you're overlooking "good debt", e.g. a Home Loan. It's hard to convince a bank to foot 800k for a decent home when all you have to show for it is paying off your student debt. They want to see credit history, credit cards and small loans to develop a pattern of credibility.

No credit card debt is good debt. Paying off a school loan is fine, she doesn't need to establish a credit pattern at 22 so she can get "good debt." You are confusing no credit record with a bad credit record. Plenty of banks will give people with a limited credit history a home loan, especially if they have a good job and a good deal of cash.

I don't think this is realistic anymore.

It absolutely is. Credit Unions and local banks that do manual underwriting are everywhere.

 

[Henry Ford]

Paying off student loans as quickly as possible will build credit better than getting a credit card.

You might be right but kind of unrealistic for most new grads to pay off school loans quickly.

Then why get a credit card? Seems like getting a debit/credit connected to a checking account is the only way to go. Why we are encouraging young people to pile onto consumer credit when they have tens of thousands in school loans, is not a great way to teach financial responsibility. Credit score doesn't do you any good if all you're paying is debt down.

DD, I think you're overlooking "good debt", e.g. a Home Loan. It's hard to convince a bank to foot 800k for a decent home when all you have to show for it is paying off your student debt. They want to see credit history, credit cards and small loans to develop a pattern of credibility.

No credit card debt is good debt. Paying off a school loan is fine, she doesn't need to establish a credit pattern at 22 so she can get "good debt." You are confusing no credit record with a bad credit record. Plenty of banks will give people with a limited credit history a home loan, especially if they have a good job and a good deal of cash.

I don't think this is realistic anymore.

It absolutely is. Credit Unions and local banks that do manual underwriting are everywhere.

I don't disagree that they exist, I just know the hoops young people I know are having to jump through to get approved for their first homes. I'm glad to hear that it's still a viable option, just haven't heard of it working out for anyone I know in the past couple years.

 

[SacramentoBob]

You people saying pay cash for everything and don't have a credit card are from another planet.

 

[StrikeS2k]

You people saying pay cash for everything and don't have a credit card are from another planet.

Agreed. Having credit doesn't mean you have to use it. But it makes certain things easier even if you don't actually use the credit - renting an apartment comes to mind. Most people aren't buying a house with cash so getting a mortgage is easier when you have some level of credit. It's amazing that this is even something people feel worthy of discussion.

 

[Vrana]

I received my first credit card three years ago after I graduated college.

Since then, I have added quite a few more credit cards and have put 99% of my purchases on a credit card. I have never run a balance and pay off every single one of my credit cards every month. It can be done. Pretty easily actually if you have the right mindset. I would never put anything on my credit card that I couldn't physically pay for out of my bank account at the exact moment of purchase.

Using my credit cards has allowed me to get a very decent stash of travel perks and miles. I've traveled across the country multiple times to visit family for $0. I'm currently planning a spring trip to Seattle from FL for my girlfriend and I, and I will only have to pay the fees for the flight.

I should have enough miles to fly to Hawaii for free within the next 6 months. I'll probably take that trip next year as well.

My big goal is to fly in a first class suite on Singapore Airlines to southeast Asia. I should be able to do that trip for my girlfriend and I by 2016.

Granted, I've probably spent $300 on credit card annual fees since I started doing this, but I've never paid for an annual fee more than once. I've either cancelled the card or called and was able to get them to remove the fee.

I have a decent job for someone that is only a few years out of school, but it's not extraordinary. Using my credit cards is literally letting me see the world in a way that would be absolutely impossible if I paid cash for everything, and it's barely costing me anything.

 

[SacramentoBob]

Daughter get thrown into debtor's prison yet?