What is a good basic credit card with little or no fees for a responsible teen?
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MrMonkIsMyIdol wants to know:
I want to get a credit card just for purchasing things online like at amazon or yahoo. I am very responsible with money and since it would only be used occasionally I don’t want to be stuck with a bunch of fees for extras I don’t need. Are there any really basic cards I can get?
Don’t worry, I know that I’m spending MY OWN money and that you can overdo it and get in big debt which stays with you for a long time. I just want to buy a couple of things online and I have the money. Okay, yeah that sounds like what the typical person would say but seriously if I screw up with it that’s my problem, but thank you.
I want to get a credit card just for purchasing things online like at amazon or yahoo. I am very responsible with money and since it would only be used occasionally I don’t want to be stuck with a bunch of fees for extras I don’t need. Are there any really basic cards I can get?
Don’t worry, I know that I’m spending MY OWN money and that you can overdo it and get in big debt which stays with you for a long time. I just want to buy a couple of things online and I have the money. Okay, yeah that sounds like what the typical person would say but seriously if I screw up with it that’s my problem, but thank you.
Tagged with: Amazon • Money • Screw
Filed under: True Credit
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I am in Australia and the ANZ bank has a VISA debit card which is basically a savings account with VISA benefits. You are not going into any debt but spending your own money …www.anz.com…..maybe some banks/financial instituations where you are have a similar product.
I believe the credit card constantly offered to people around the United States by a bank called Chase is pretty reasonable. I work at JCPenney and many of the young customers have stated that they enjoyed using this credit card. The percentage is pretty low and isn’t quite a killer. However it also matters what country you’re in.
your better off paying with cash. get a debit card. stay away. no better yet stay farrrrrrrrrrrr away from credit cards
A lot of people start out with a credit card just for small purchases. Then they get used to spending far more money then they ever would with cash. I have two cards without any balances now, but before I was 21 I had gone into a lot of debt. I had more than $10,000 in credit card debt that took years to pay back. There were years I paid nearly $1,000 in interest alone. That’s money I can never get back. I spent money I did not have and spent even more money to pay for it.
If you are concerned about your security online, I suggest opening a separate free checking account with your bank and getting a debit card for it. You can keep $500 to start with in it and keep that amount recharged as you use the card. This way you will be “borrowing” money from yourself and will be able to keep your own money instead of paying interest to a bank.
Best of luck to you as you plan out your financial goals. Remember, no one ever became rich on bonus points and airline miles!
The problem you might run into here is finding a card with “little or no fees.” Unfortunately, most credit cards offered to first time users have some sort of fee involved. Your best bet may be to find a ‘secured’ credit card. One where you make a deposit to the credit card company, and it sort of works more like an Check Card, subtracting your purchases from your balance. Make sure you get a credit card that ‘reports’ to the credit agencies. This will help you establish good credit as long as you make your payments on time.
I can’t stress enough, how careful you have to be with your credit. Bad marks on your credit report can and do take up to 7 years to come of your credit report. and it can come back to haunt you years later when you are trying to apply for a car loan or mortgage.
I think most experts would suggest that if you were to get a credit card, buy a few small items, and pay them off IMMEDIATELY. Get in this habit and you will begin to establish good credit, which down the road, is extremely important.
That being said, I went with a First Premier Bank credit card. They usually start you with a $250 credit limit, and you can build it up from there.
As far as fees are concerned, you will not pay any interest fees if you pay off your balance every month before the due date. The only other fees would be the annual fee, which will be waived, but ONLY if you ask for it to be waived. In fact, if you ask them to waive it retro-actively for 2 years, they will do so. (as long as youve had the card for 2 years). The only types of cards that will not typically waive the annual fee are miles or points cards. So, if you pay the entire balance before the due date and you ask them to waive the yearly fee, you will have no extra fees to use your card. Another secret: Pay off your balance 15 days before the due date. AND occasionally leave a small balance for 2-3 months (but dont miss a payment). This will qualify you quicker for a credit line increase. If you always pay off your balance every month, the credit card company makes very little money from you. But if you allow them a few bucks in interest every now and then, they will reward you with a higher limit. That doesnt mean you should spend more, but this will help raise your credit score for use in the future when you get into buying a car and a house. Credit cards are good and evil at the same time. It sounds like you are starting out on the right track and I encourage you to stay on it. Dont be afraid to accept those pre-approved offers for cards. The more available credit you have, the higher your credit score will be. When the card comes in the mail, just cut it up. And whatever you do, do NOT cancel your card accounts. If you have a card with a $5000 limit, and you cancel it, you now have $5000 less in available credit, and your score could significantly drop (maybe as much as 20 points). The key is, get credit but only use it when absolutely necessary. Cut the cards up to kill the temptation, but keep the accounts open. Best of luck to you.