Ok long story short, I have no credit. None, or if I do have credit I have BAD credit. Well I know how to spend and save money. I only use what I need, well my neighbor told me the best way to build your credit score, get a card and then instantly pay off the balance. I want one to use in EMERGENCY PURPOSES ONLY! Well #1: does that work? and #2: What is a good credit card? #3: If I use it one week for like $50, and pay it off the next week will I still have a remaining balance? and what is an APR rate?
Someone help!?
There are a few ways to get your first credit card. One way is to have someone with good credit be guarantor. Basically it says that if you don't pay your bill that your guarantor is responsible for it. For my first credit card my parents signed as my guarantor. After a year of paying my bills the bank dropped my guarantor so the account was all mine. If nobody is willing to be guarantor or you just don't want to ask anyone you can apply for a secured credit card. With a secured credit card you open a bank account that serves as collateral for your credit card. If you have $500 in your savings account you will have a $500 credit limit on your card but the two are not linked; that is unless you don't pay your bills. Either of these will start your credit history. The card that Nap mentions is a debit card not a credit card. After you get a card I'd recommend that you use it. Responsibly using credit and paying your bill demonstrates credit worthiness. Also, if you don't use your card your bank doesn't make any money so they may drop you. Most cards have a grace period so if you pay them off in full every month there is no interest. Use your card for its convenience if nothing else.
Why don't you open up a bank account and then they can give they're credit card. Easy open up a bank account some banks require you to deposit $50 or $100. But look for a bank that has no monthly fee's and no credit card fees once you did your homework on that. Once the checking account is opened they will ask if you want a credit card mailed to you you say yes and is there any fee's or monthly fee's they say no :D Once they mail you the credit card you can activate it with the phone or go them to them activate it, sometimes you have to use their ATM to activate the credit card like checking to see the balance, remember the credit card they give you is connected to your checking account lets say you have $500 deposited into your account and you use $100 for shopping that leaves $400 left, so you can always deposit more money into your account and connect the credit card to PayPal to buy stuff online etc. Don't apply for those credit cards that have monthly fee's, interest, and making payments every month that will screw up your credit really bad like my friend did. Good luck :D
