An alternate way to build good credit without getting a credit card is to pay student loans on time, if you have any.

I've got a Visa card..it's been good, not a super-high interest rate, and I use it sparingly. Now that I'm almost out of school, it's going to be my student loan payments and other bills that are going to determine much of my credit rating.

Do your parents belong to a credit union that issues credit cards? Or maybe another organization like USAA? Places like that don't try to confuse you with small print on the credit agreement and they won't jack up your interest rate if you would ever be late on a payment.

On a personal note, credit is an odd thing. I was just informed that the credit limit on my Visa card was just raised to $31,000 and I don't even have a job! Just the thought of racking up that kind of debt gives me the heebie-jeebies :eek:

my CC is through capital one i believe. i received it a week before i left for college. i use it just for books and christmas purchases or birthday purchases. the great thing is, you get a rebate at the end of the fiscal year. for example i received 55 bucks in february just cuz i had earned it. what a bonus!

yeah and i'd make sure to pay off balances quickly or at least budget them. i wanted a sony robot so i calculated what interest would be several times before i dropped that kind of cash because i feel FOOLISH giving away my hard earned cash if it could be prevented. makes me think of the ATMs stealing my money with those fees.

have you received any applications through the mail yet? i don't know if it's because my credit is great or what but i'm starting to get veryyyyyyyyy obscure ones, the "disney" bonus card and so forth.

i support AmEx as well. i researched a lot about credit cards for a paper and i felt they were the underdog somewhat and if you can get blue without the annual fee, my first application for them said there was one, and then a newer one said there was not, it's not such a bad deal, but then again it said you had to make 25k to be qualified and as a college student, i don't know how you can be earning that!

goodluck with whatever you decide to do!

make sure you have will power and self control... I'm now up to my ears in credit card debt and I'm only making minimum payments every month... if you tell yourself that you are going to pay it off every month make sure you are actually financially capable of doing that... just be careful and don't get to many... that was my mistake...

I was told that paying student loans does not give you the kind of credit that paying a monthly credit card bill would-but maybe it is b/c I have automatic payment each month with my student loan?

I never pay interest-I transfer balances every few months to the 0% offers-if you do this it can save lots of money but make sure you close the old account. I just learned from my mortgage company that I have 16 open credit card accounts which lowered my credit rating.

You're right. Paying a medical debt is the same thing. Defaulting on student loans will mess up your credit, to be sure, but paying them off does not build the same sort of credit as being a good debtor would.

I have around a 12-11K income right now. I qualified for the AMEX Blue "student" card. Got a whopping $500 credit limit.

Given my income MBNA gave me a 13K credit limit on one of my cards:confused:

That's not all true actually. Having a card on your record that is "dormant" or doesn't show use can actually hurt a credit rating, not always, but it can.

Another thing on trying to find a low interest card, if you don't have a credit history or a very limited one, you might get stuck with a higher interest rate. Many credit card companies use low interest rate cards to gain customers that have an extensive and decent credit history.

The last thing about the credit card. If you want to build your credit a little faster, try putting a few things on the card and when the statement comes, pay the minimum balance. Yes you will be charged a little more in interest, but it shows that you are capable of making a montly financial obligation, even if it is only $10 or so.

If you have a high interest rate on the card and you just pay it off every month, the company may be more reluctant to give you a lower rate down the road, because there would really be no use anyway, they aren't making any money off of you because you keep paying the card off right away. lol

Oh and one more thing, credit inquiries can hurt your credit as well. Sorry if people already touched on these, I didn't read through the posts....I'm so slack, I know.

I actually heard the same thing about student loans, that if you pay off a little each month, it does better for your credit than paying it all off at once. Now, I'm not saying this would be my choice (I could find other ways to build my credit than holding onto my loans), but that's what I heard.

Really, i just got one...starting credit at $3,900.

My piece of advice, only use it if you have the money in the bank.