First time to apply for a Credit Card .. to build a good credit history

[matiman]

Hi guys,

I was looking for a credit card company that gives lower APR and no annual and monthly fees at all. After surfing the web, I found that the current credit union I am member of gives 5.6% APR for the first 6 months and 11.9% after the end of the 6 month. There are no other fees included. Is there a difference between building a credit from a credit union and a bank ?

The problem is, since I don't have an income currently, there is going to be another guy as a co-signer. And he is okay with that as well. Do, you think having a co-signer will affect my credit card history in the future? I hope I will be employed after four months.

The bank is also going to give me from $500-$2000 after reviewing my application. I believe I am a good saver and I am not spending not more than $250 a month. So should I have to take $500 or $2000? What is the effect I spend only $250 a month on credit card but my limit is up to $2000? Is it going to have an effect on lowering my credit history?

Should I have to take this credit union's offer if they give me or look for others?

I look forward to hearing back from you guys.

Thanks a lot.

[MrCreditCard]

Matiman

You should take the offer. Make sure you pay your bills in full every month. And yes, having a co-signer can help your credit score (***uming his or her credit is ok).

Once you have built up enough credit to get your own card without any co-signer, you should get one yourself.

[matiman]

Thank you for your response. But when you say pay your bills in full every month, I have heard something about it. Some financial advisers say, its good to pay, lets say 95%, your debt on time and pay the rest 5% on the next month. Is that a good idea than paying the whole money on time in that period of month? Let me hear from you.

[MrCreditCard]

it's a myth that you should always "carry a little balance" to "show you can handle credit". I have not carried a balance ever and my scores are 760ish (T), 790+(Equifax) and 800+ (Experian)..Why pay interest if you do not have to?

Best practice - PIF (pay in full)
2nd Best Alternative - carry a balance if you need to, but pay off ASAP.