sound48

Hello everyone,

If this is the wrong forum, please move accordingly. I know this is a topic that has been talked about many times on the forums so please forgive me for bringing it up again.

I've talked to my girlfriend about getting into the points game. She's gone her whole life with almost no credit history except a retail payment card she got to get me a birthday present. It should be paid down to 50 percent next month. She's also currently going back to school so is in college.

I called the bank she uses and a secured card has an annual fee vs none for the college one. Since she has no credit history, would obviously like the card to be one she can keep forever if possible.

Would she better off getting a secured card now or wait until her debt ratio is lower and go with a college card to build credit history?

DCA1983

If she cannot get an unsecured card, then *responsibly* using a secured card to start is a very good place to begin.

But since it seems like she's already paying interest on a retail card, I'd be VERY careful introducing her to more ability to spend and not immediately pay if you have any concern about your partner's finances (going back to school etc.)

darthbimmer

Credit history is exactly what it sounds like: a history of how well you manage credit. Do you make payments on time? For how long? Do you carry a low balance relative to your limits? Etc.

You build a credit history by starting with one card or loan and handling it responsibly. If that first account needs to be a secured card because that's all the lenders are willing to provide based on your situation, so be it. Start with that and move forward.

Don't worry about your first card being one you'll use forever. The notion of having a lifetime credit card with one lender is almost as quaint as lifetime job with one company.

Once you have a credit card, you need to use it to really build credit history. But be careful not to overspend! I've seen people with tight finances charge, say, a tropical vacation to their credit cards and then take 10 or more years to pay off the balance.

For someone who's never managed a budget including credit cards before and has tight finances I suggest viewing credit cards as a convenient way to bundle monthly expenses. Use the card for purchases you would normally make with cash or check-- groceries, utility bills, the occasional meal out. Then write one check per month to pay off the card in full.

World-Wide

I am young also probably older then you guys BUT........My point don't charge what you can't afford to pay right away. better when you get your statement for that month to pay in full. Paying interest after buying stuff they can't afford is not smart. When you are young easy to get your self into crazy debt doing that. Then you stress over paying all that back.