Help Needed with FIRST CREDIT CARD

[Michelle Lowry]

Good job Benn, keep it up.

It will help your credit score.  Your credit score is something you build up over time, though.  Paul and I were over 800 on all three companies when we checked for refinancing this last month. It's a combination of alot of things, but not using credit you have access to (unused credit lines), your credit history, and paying on time are big components.  Those who have the best credit score tend to need their credit score the least, though having a great credit score is necessary right now if you need a mortgage or to refinance.  Its a tough mortgage market out there, so we are grateful we've been so careful with our credit.

[Jon Allen]

What Michelle is really saying, Benn, is she would love to co-sign on your next loan... 

[Paul Petersen]

Oh well. Easy come, easy go. With annual fees and loss of incentives, I imagine many people will switch to using debit cards.

WASHINGTON – Congress on Wednesday sent President Barack Obama a bill with sweeping new rules for the credit card industry that will affect just about every American.

The House voted 361-64 for the bill on Wednesday. The Senate had already approved the measure by a 90-5 vote on Tuesday.

The new restrictions will protect debt-ridden consumers from many of the surprise charges common in the industry, like over-the-limit fees and a charge to pay the bill by phone. People under 21 also will find it difficult to get a card.

As banks scramble to make up for the lost revenue, cardholders who pay off their balance in full each month could see annual fees become the norm and lucrative rewards programs canceled....

(bolding added for emphasis)

full article
http://news.yahoo.com/s/ap/20090520/ap_on_go_co/us_congress_credit_cards

[Sasha Pachev]

I like my cashback check, but I would take the drop in prices from people being unable to stretch their income with credit cards instead.

[jeff]

I am sitting in the airport waiting for a flight to Fairbanks for the State track meet.  I flew to the regional meet in Juneau last week.  Total cost for two trips totaling over 3000 miles?  ... $15 dollars since I used miles from credit card purchases.  I always pay my CC bill.  I do it online with direct transfer from my checking account.  The card costs $30/year but I get 2-4 free tickets plus one half price fare each year.  Bottom line is as long as you pay the bill a CC can be a big plus.

[Joe Furse]

I haven't read all the posts but what I did is I went to my credit union and said "what can I do to make sure I have good credit down the road when I want to buy a house etc etc."  The loan officer then helped set me up with A) a small overdraft protection on my checking account which acts like a loan but if I never overdraw (which I don't) it will never affect me negatively,  B) a credit card with a $300 limit and a relatively low interest rate (I think it was like 15% or something), which I rarely use at all, and C) a small loan against a certificate savings account which I paid off in a year of small payments (Apparently,to get the full benefit of having a loan out you should be paying it off for at least a year)  So basically even if I maxed out every line of credit on my accounts I would be able to pay them all off in full in a pinch with the money I have, but I'm still getting a lot of benefit from it credit wise. She said that to really make a good credit score you should have 3-5 lines of credit out and be making your payments and stuff on all of them.   I think the idea is that it doesn't necessarily matter how much money you have on credit, but rather it matters that you have a few different types of credit lines open and that you are managing them responsibly.   

[Benn Griffin]

I've had my credit card with citigroup now since September.. Paid the balance each month in full the day of my statement. I have seen my APR % drop from 18% to 12.24%. In addition, I got a check in the mail for 73 bucks last month. (Cash back incentive). In effect citigroup just paid for a couple people to eat at my wedding! Woot!

[Michelle Lowry]

That's awesome Benn. Keep up the discipline.  You have a good head on your shoulders.