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Hey guys I am currently in my 3rd year of college and I am trying to apply for a credit card so I can start building up my credit. I recently applied for a credit card from bank of america, but they told me that I need a guarantor. My parents have agreed to be my guarantor but I have a few questions and was wondering if anyone had any answers.

1. It ask what my annual income is. Should I put 0 since I do not work and only get money from financial aid?
2. It ask what my monthly housing payment is. I rent a place near my school but it is paid for by my financial aid that I get for school. Should I put what I pay monthly or should I also just put 0?

Thanks!
 

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It depends on how your financial aid works. If you don't taxed on it, then it doesn't count as income.

For your housing though, put down the correct amount. At least that's how I got my bank of america credit card.
 

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They do know that you don't have an income correct? I presume that is why your parents are also signing on. If you receive the financial aid to pay for the rent then I would put it.
 

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If your school has a credit union, I would apply for a card through them. They will most likely want you to open a checking account, but it should cost very little to do so if anything at all.
 

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I don't recommend a credit card till you get a job to pay it off. Depending on your income and current credit score and history they will base your limit off of that. Get a low starting limit first. 500 dollars should be more than enough for your first card. Also some card companies require that you open a savings account with them as well and require you to keep a minimum balance of 50 dollars in that account as well has having your credit card balance.

In my situation I have a savings account with NEA(my main banking accounts is with capital one) that I must keep 50 dollars in all time. I have it set up where 50 dollars from each pay check gets deposited in to that savings account, that way the only that money can go to paying my credit card. And the great thing about that system is even when my card is paid off. I get "back" money where if I have 200 in the savings and the card is paid off, I can make a purchase on the card and pay it off since I have the money right there just waiting to be applied to the card while raising my credit score.
 

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I'm with Gex.

You will be surprised at how easy you can rack up bills on the credit card, and with no income to pay it off how do you propose to even use it?

Stick to a debit account for now until you get a part time job or something more permanent. After all if you fail to pay, it's your parents who get a kick in the teeth.
 

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Quote:

Originally Posted by IcedEarth View Post
I'm with Gex.

You will be surprised at how easy you can rack up bills on the credit card, and with no income to pay it off how do you propose to even use it?

Stick to a debit account for now until you get a part time job or something more permanent. After all if you fail to pay, it's your parents who get a kick in the teeth.

Yep I get into a bit of trouble when I use my debit card too much and then fall back on my credit. It hurts me bad especially when my job had cut my hours. I recently got those hours back so I'm only spending the money in my debit account to pay 3/4 of my bill back(I only have about 1/2 paid) and keep it around there. You never wanna fully pay off in one shot. Pay it off in increments till it eventually is paid off and then use it to buy like a pair of sneakers and pay that off again.

Me I have like my small monthly charges like 10 dollars a month netflix and 15 dollar month zune pass which is less then the 50 I put in every 2 weeks.

So with my setup if I reach my limit it takes me 5 months to pay it back. This is also paying more than the minimum due which is like 12 dollars.

Another thing always pay more than the minimum. I pay 3x the minimum every 2 weeks.
 
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