About a year ago I asked if I should open a credit card just to start a credit score once I turn 18. I turned 18 a few months ago and will qualify to open a card under the Credit CARD act of 2009 (I have enough income to qualify).
I have about $1000 in my checking account and I am going to this card as a debit card (meaning I will not buy anything I wouldn't be able to immediately pay off using the current balance in my checking account).
I've been shopping around for cards to apply for with little credit history, and all of them seem about the same. They all have
- Between $0-$100/yr fee
- 20%ish APR (which is kind of irrelevant to me)
- 1-1.5% cashback on all purchases
One thing I did notice is that not all cards gave you a grace period to pay off the debt - meaning if I were to make a purchase, I'd immediately start owing interest on top of it instead of a month later. That made me wonder if there are any other factors I should consider other than the three listed above.
I am comfortable getting a secured card as long as the deposit is returned within a year or so (as long as I make my monthly payments, which I will). I live in the US.