Best credit card to build credit in the US?

[Operator 1,927]

My wife got a $1500 secured card from BOA and then 6 months later got a Capital One card and used it for 2 years with no complaints.

Now 3 years later she has; among other cards, a Chase Sapphire Preferred card with a $14,000 limit and a credit score of 790.

Pay early and pay often!

[waitinggradstuden 0]

Read up on nonprofits that do lending circles and report to the major credit agencies.

http://missionassetfund.org/has been in the NYTimes, Univision, CBS news etc.

They get a group of people together, say X people who pay $Y/ month for X months. Each person will receive X*Y dollars once during the time. So if there are 10 people and each pays $100 then you pay $100 every month for 10 months and one of those months get $1,000.

Lending circles have been around, informally, for decades at least. This non-profit and their partners back the loan amounts with donations (mainly from financial institutions like JP Morgan Chase and Citi) so no one is left out in the cold if someone in the group doesn't pay up. They also report your payments which helps build credit without having to be denied a credit card from a major company or get a store card that you really don't want. Immigrants and low-income people are their main targets. They require proof of income & identity, set up automatic deductions through your bank and require participants to work through short online financial literacy modules. I know a lot about this because my husband who recently got his permanent residency is going through the process. After he completes the program and has some amount of established credit history through the lending circle we will apply for a joint card/auto loan.

[Transborderwife 4,666]

I'm not saying that people can't use Cap1 without issues. I just know the frustration and aggravation that I saw a lot of new immigrants go through once they fall behind on bills not always understanding how credit works. Cap1 is the most complained about cc company in the business but it is what it is.

OP I wish you the best in your choice

[KHnTX 4]

I'm going to offer this advice from personal experience. If you save up for things you need, or have a large enough down payment on something like a car loan or a house, you don't need a credit score. Having credit cards can lead to large amounts of debt that can put stress on you and your family from not budgeting expenses properly.

However, if you still want to persue a credit card do not let them increase your credit limit beyond something that you can't pay off in a month. If they approve you for more just call them and tell them the amount you want it limited to.

[Hotter Otter 1,211]

I started off with a secured one with just a $300 limit. Then move to better cards as my credit rating improves. I hate credit cards and the whole idea of them but I know how important it is in the US to have a good credit score.

[j&ana 363]

Of course it is. but I only got a good rate on a car loan because my credit rating had gone up thanks to the credit card. That is why its called CREDIT BUILDING. You start with the card you seem so against, then you improve your rating and open other lines of credit. And also that is complete ####### about only getting offers for cards at high rates of interest simply because your first card has a high rate. I am now getting offers for cards with very good rates, and of course like everything else you can shop around.

I never say the op will only get offers with high rates. I say why will they go with a card if they can get another one at lower rate. That is why saying interest rates does not matter when you are trying to build credit is ####

[Amy_and_Victor 159]

Do not under any circumstances go with capital one. I've worked both Canadian and American collections for them and honestly, they're the sketchiest of the bunch.

They've been known to spike interest rates, heavy penalties for missing payments. If ever in collections they lowball offers to settle, offer you plans to keep you in debt longer, they are just sketchy in general.

For myself I have a very positive experience with CapitalOne so far. Their secured card was the only card I was able to get at the beginning of my credit history journey, I have it for about a year and can't tell anything bad about it, only positive. After a few months of using it I got credit line increase from $200 to $500 and I didn't even ask for that!

IMHO all these conses about interest, missing payment fees etc. apply only if cardholder can't manage money well and being irresponsible with credit cards. Pay off your balance few days before grace period ends, don't spend more than you can afford, and you will not have to deal with all of it. I don't even know fees and interest on any of my cards because I always pay off balance before any fees/interest start to apply and I'm not being charged a penny extra.

Since I got my CapitalOne card my credit score got better soon and I already have few real credit cards, not secured, and even with rewards. Just a little bit ago I applied and was approved for CapitalOne Quicksilver card with no annual fee and 1,5% cashback on any purchases. This card requires excellent credit, and my way to this level of credit score started with CapitalOne.

The only terrible experience with banking in the US I had was with Chase. I don't recommend anyone to deal with this bank, their customer care is really bad and they don't even try to keep customer satisfied. I will never be their customer anymore in any kind of financial products.

- Victor from Russia

PS: That's my first credit card, secured from Capital One: http://www.capitalone.com/credit-cards/secured-mastercard/

Edited December 16, 2014 by Amy_and_Victor

[LORIEandPHIL 123]

I never say the op will only get offers with high rates. I say why will they go with a card if they can get another one at lower rate. That is why saying interest rates does not matter when you are trying to build credit is ####

Obviously you are to intellectually challenged to understand that paying off a credit card in full does not cost you anything in interest payments, so I won't bother trying to explain it to you a third time. But I will point out that no company will give someone a low interest credit card if they have no credit score. A secured credit card is designed for the purpose of building peoples credit, it is one of the best, ways, and sometimes the only way for a new immigrant to start building their credit. The OP, asked for advice on credit cards, and that is what some of us on here are trying to give, sound advice. I will not be wasting any more of my time replying to your drivel.

[j&ana 363]

Obviously you are to intellectually challenged to understand that paying off a credit card in full does not cost you anything in interest payments, so I won't bother trying to explain it to you a third time. But I will point out that no company will give someone a low interest credit card if they have no credit score. A secured credit card is designed for the purpose of building peoples credit, it is one of the best, ways, and sometimes the only way for a new immigrant to start building their credit. The OP, asked for advice on credit cards, and that is what some of us on here are trying to give, sound advice. I will not be wasting any more of my time replying to your drivel.

[j&ana 363]

Obviously you are to intellectually challenged to understand that paying off a credit card in full does not cost you anything in interest payments, so I won't bother trying to explain it to you a third time. But I will point out that no company will give someone a low interest credit card if they have no credit score. A secured credit card is designed for the purpose of building peoples credit, it is one of the best, ways, and sometimes the only way for a new immigrant to start building their credit. The OP, asked for advice on credit cards, and that is what some of us on here are trying to give, sound advice. I will not be wasting any more of my time replying to your drivel.

actually it is you that is intellectually challenge that does not understand that you do not have to get the first credit card offer just because you want to build credit.Secure or unsecure there is still fees and rates and to say it does not matter because your assumtion of paying it off every month is not very smart thinking. A person can just use a bank/debit card to pay something off in full

[mrszorak44 7]

If my husband adds me as an authorized user in his credit card, will I also get my own credit score or whatever my transactions are will go to his credit score?

[Glyn and Kathy 288]

I'm going to offer this advice from personal experience. If you save up for things you need, or have a large enough down payment on something like a car loan or a house, you don't need a credit score. Having credit cards can lead to large amounts of debt that can put stress on you and your family from not budgeting expenses properly.

However, if you still want to persue a credit card do not let them increase your credit limit beyond something that you can't pay off in a month. If they approve you for more just call them and tell them the amount you want it limited to.

You need a credit score for many things...not just credit. Many jobs check your credit score, car insurance companies, landlords, etc. And if you want to buy a house....you do need some type of score, doesn't matter how much of a down payment you have. Unless you have the entire amount, you're going to need to take out a mortgage, which will need a credit score. And then homeowners insurance, which will also check your credit score. I don't think anyone is advocating getting a credit card to charge them all up. But a credit score is a fairly necessary thing for most adults. Can you live without one? I suppose...but life is a heck of a lot easier with one.

[Operator 1,927]

If my husband adds me as an authorized user in his credit card, will I also get my own credit score or whatever my transactions are will go to his credit score?

Yes, this will help you to establish credit.

[VOL 425]

If my husband adds me as an authorized user in his credit card, will I also get my own credit score or whatever my transactions are will go to his credit score?

No

You need to be a joint card holder on the account.

[KHnTX 4]

You need a credit score for many things...not just credit. Many jobs check your credit score, car insurance companies, landlords, etc. And if you want to buy a house....you do need some type of score, doesn't matter how much of a down payment you have. Unless you have the entire amount, you're going to need to take out a mortgage, which will need a credit score. And then homeowners insurance, which will also check your credit score. I don't think anyone is advocating getting a credit card to charge them all up. But a credit score is a fairly necessary thing for most adults. Can you live without one? I suppose...but life is a heck of a lot easier with one.

No, you don't need a credit score to buy a house. There are still mortgage companies that will underwrite the mortgage themselves provided you have enough of a down payment. I just want to OP to think about alternatives based on my experience. Many people make it just fine with and without credit cards. After what I have been through, I ended the need to have a credit card and choose not to use them again. My bank check card does everything the credit cards do and I don't have to worry about having a debt to pay off later. Life is a heck of a lot easier with no debt at all.

Edited December 17, 2014 by KHnTX