First Time Credit Cards

First Time Credit Cards

The first time I applied for a credit card was when I was in college. I was fortunate enough to apply for a first time credit card which offered a low credit limit of $400. Within a couple of months I had charged $300 on the credit card and the interest rate was 15%, which put my balance over $300, but under $300. On holiday break I explained to my parents that the only gift I wanted was for my balance on my credit card to be paid off. They didn't even know I had a credit card and were a little upset about me getting one without talking to them first. They paid off my balance on the condition that I only use the card for emergencies. I agreed. Cut to three months later and my credit card balance was back up over $300, but it didn't seem that bad as my credit limit was now at $800. My birthday came around and my parents asked me what I wanted for a gift. I asked they pay of my first time credit card balance of $335. They said sure and were not made or upset as the only charge on the card since the holidays was a charge for car repair, which i had told them about. I used my student credit card for an emergency when my car quit on me. The credit card came in handy as there was no way for me to pay for it as I was on spring break with limited cash.

Credit card for student: First time student credit cards for college students can be useful tools if used properly. I sat down with a credit counselor and learned some of the basics of building solid credit. I learned that paying off your card then canceling it can sometimes not be beneficial for your credit score as it can be better to pay it off and leave it open because having a credit line from a creditor for a length of time shows credit history. Avoiding late payments and keeping your balance low while making regular payments leaves an amount of credit that is available. Not using all of your available credit is rumored to be a factor in figuring one's credit score. In other words, maxing out your credit card is a bad thing, while having available credit is a good thing. A numerical example for good credit could be having a revolving credit line of $1000, with $900 available and $100 which is used monthly and paid off each month when possible. Doing this on a repetitive basis shows a borrowing and payoff pattern which is much better than making the minimum payment of $30 each mont on a maxed out credit card that has a $1000 credit limit.

When it come to credit, students need to learn the basics of building solid credit before applying for first time student credit cards for college students. Consider StudentCreditCards.com to learn good credit tips and compare the major student credit card companies.