Need to build Credit? You can still join the fun.
Recently I have been getting a lot of emails from readers wanting to know the best option for them if they have little credit. They want to travel, or in many cases are already traveling, but (and a big BUT) they aren’t earning any miles/points with their every day spending or taking advantage of rewards card sign-up bonuses. Yes, rewards cards will often have sign-up bonuses when you apply for a card. What?
Side Note: It’s always important to remember to protect your credit when dealing with credit cards. And if you aren’t responsible enough to pay off your bills at the end of the month- rewards cards may not be for you. I was young once, and I understand the temptations of having a new credit limit. But be responsible. Don’t pay interest rates, if possible. I know life throws curve balls, but check yo self.
Getting a credit card can do great things for your credit if you are responsible. Paying your bills on time every month will create positive credit activity and increase your credit score. Also, increasing your credit limit lowers your credit utilization rate (debt to credit ratio). A great tip to help start or build your credit portfolio is to have your parents add you as an authorized user on their credit card. This will help give you some credit activity. If your spouse has already established some credit history, then they could add you as an authorized user as well. This was the case when I married Jordan. She had a credit card since high school with Wells Fargo and since I really didn’t have any credit history, she added me as an authorized user. This helped my credit score tremendously.
When you have no credit, it’s a smart idea to find a card that has no annual fee. This way you can keep the card FOREVER. Jordan and I still have the Wells Fargo card and it makes our average age of account look really really nice.
That said, what card does the Noob recommend for you?
The Chase Freedom.
The Chase Freedom has NO annual fee and gives you the potential to transfer the points you earn to the Ultimate Rewards program in the future. Since you are building up your credit and paying your bill on time, your credit score will rise, enabling you to go Big Time and apply for the Chase Sapphire Preferred® or Ink Bold® Business Card in the future. Once you have the Sapphire Preferred, you will be able to transfer your Freedom points into the Ultimate Rewards program. Score. If you don’t know why this is awesome, read my post on why the Ultimate Rewards program is ballin.
The Chase Freedom also has quarterly rotating category bonuses of 5x points per $1, which makes it a great card for daily spending. It’s not a bad thing to start a relationship with Chase, either. They’ve got plenty of sweet offers you’ll want to get your hands on when the time is right.
Currently, the Chase Freedom has a sign-up bonus of $100 cash back or 10,000 points (future UR points) when you spend $500 in 3 months. Here are the full details for the Chase Freedom rewards card:
Leveraging a good credit score is an incredible way to rack up miles and points so you can travel the world for pennies. It’s important to be responsible and pay off your bills every month, and to never be late on a payment. If you are looking to build some credit history and get into the miles/points way of life (come on in, it’s a great life) the Freedom is your card. You are starting a relationship with Chase bank, and getting the opportunity to earn 5x points on rotating categories, 0% intro APR for 15 months, and $100 cash back. Pretty sweet deal.
Here are the links to apply for the Chase Freedom Visa and Mastercard. I do receive a referral credit if you apply. Thanks for your support if you do!
Don’t hesitate to comment or email me if you have any questions. I don’t bite.
— Noob Master