Go to the Post Office and get a prepaid card.
Credit is not evil. Credit cards are a way to build credit for other purchases like mortgage, auto loans and personal loans. They are also good in emergency situations or making online purchases. You need a credit card to rent a hotel room or a car and even plane reservations. If you can budget and pay your bills you can avoid finance (interest) charges.
I've received many offers through the years for interested free credit cards, for the first year that is. Sometimes they'll send you no or low interest checks you can use for purchases (I don't use them). Interest rates vary, usually depending on your credit. If you don't owe much your monthly finance charge will not be very much, but it's best to avoid them. If you have the money, pay the bill in full every month. If you don't have the money, stop making purchases and pay the most you can every month.
If you don't have any credit you can start with a job, checking and savings accounts and a secure credit card. A secure credit card requires you to put down a deposit. The deposit is usually your credit limit (the maximum amount you can charge to your account). Deposits vary depending on the offer, but $300-$500 is common. After about a year or so of good, on time payments, you should have some credit history and may be receiving non-secured credit card offers or can convert your secure card into a regular account. Once you cancel or convert the secure credit card account the deposit is returned, unless you violated some part of the agreement (non-payment, late payment, etc.). Don't get a secure credit card that has any fees other than finance charges. Don't pay a application fee, insurance or any other bullshit like that.
Credit activity is important for building credit. You need to make a monthly purchase and pay it off. You can use it for things that you may usually pay cash for, like gas or food. Just make sure you can pay it on time. This will build good credit.
Credit is very important. A good credit score will get you lower interest loans (mortgages, cars, personal loans, etc.) and can save you money on insurance. It can also eliminate the requirement for a deposit on utilities (water, gas, electric, etc.). Good credit shows responsibility, which will make your life easier and save you a lot of money.
I suggest starting credit as soon as you are responsible. Don't spend more than you can pay off monthly and always pay on time.
I've received many offers through the years for interested free credit cards, for the first year that is. Sometimes they'll send you no or low interest checks you can use for purchases (I don't use them). Interest rates vary, usually depending on your credit. If you don't owe much your monthly finance charge will not be very much, but it's best to avoid them. If you have the money, pay the bill in full every month. If you don't have the money, stop making purchases and pay the most you can every month.
If you don't have any credit you can start with a job, checking and savings accounts and a secure credit card. A secure credit card requires you to put down a deposit. The deposit is usually your credit limit (the maximum amount you can charge to your account). Deposits vary depending on the offer, but $300-$500 is common. After about a year or so of good, on time payments, you should have some credit history and may be receiving non-secured credit card offers or can convert your secure card into a regular account. Once you cancel or convert the secure credit card account the deposit is returned, unless you violated some part of the agreement (non-payment, late payment, etc.). Don't get a secure credit card that has any fees other than finance charges. Don't pay a application fee, insurance or any other bullshit like that.
Credit activity is important for building credit. You need to make a monthly purchase and pay it off. You can use it for things that you may usually pay cash for, like gas or food. Just make sure you can pay it on time. This will build good credit.
Credit is very important. A good credit score will get you lower interest loans (mortgages, cars, personal loans, etc.) and can save you money on insurance. It can also eliminate the requirement for a deposit on utilities (water, gas, electric, etc.). Good credit shows responsibility, which will make your life easier and save you a lot of money.
I suggest starting credit as soon as you are responsible. Don't spend more than you can pay off monthly and always pay on time.
Last edited by west-phoenix-az (2010-01-07 11:36:43)
