Thursday, December 15, 2011

What's the best credit card for a young person just startin gout in life?

Get a student checking account from your local bank (US Bank is pretty good) and apply for a LOW LIMIT credit card for students. To help build your credit, ask for a limit of about $300. Each month, put some regular, predictable expenses on there (gas, groceries) and pay them off in full. Do this for a few months until you get used to it. Then try carrying a balance for a couple months, but making payments that are at least twice the minimum. Carrying the balance helps to BUILD the credit. When you use your credit card, make sure that you never buy something that you will not still be enjoying, using, and appreciating when you are done paying off the balance (dinner out with friends, vacations you cannot afford to pay cash for, etc.), but rather lasting things and emergencies only (like a modest TV for your new apartment may be worth carrying a balance on for 2-3 months, or new tires for 4-6 months if needed).

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