How do I get my first credit card?

[cjscully]

This is an endless debate between the Dave Ramsey followers and those who don't follow him. Dave Ramsey believes you should go off the grid and let your credit score go to zero. I disagree. DR is of the opinion that the only way to maintain a good credit score is to go into debt. That simply isn't true. You can have a good score by paying all of your bills on time. Some rental properties report to the credit bureaus so just paying your rent and utility bills and paying your credit card in full every month is all it takes to have a good score.

DR teaches that there are ways to get insurance, rentals, mortgages, etc., without a credit score, and that's true, but it certainly complicates matters and limits your options.

I agree with everything you're saying here and will add that a credit card or two, used properly (paid in full each month) will not only help you maintain a good credit score but can also provide significant additional benefits such as rewards at no additional cost to you.

[disneysteve]

I agree with everything you're saying here and will add that a credit card or two, used properly (paid in full each month) will not only help you maintain a good credit score but can also provide significant additional benefits such as rewards at no additional cost to you.

The opposing point of view, which I don't share, holds that those of us who use credit cards to get rewards spend more than if we didn't use credit cards. My answer for that is simple. If you think you might be tempted to spend more, limit the use of your card to bills and purchases that have to be paid no matter what. For example, our cell phone, land line, cable TV, internet, alarm company and auto insurance bills, to name a few, get paid by credit card. The amounts of those bills are fixed. Whether we pay by cash, check, money order, debit card or credit card, the amounts won't change. So you could do well and earn rewards just by using that method with zero risk of overspending.

[whey2big4u]

I would not even attempt to get a credit card. If you like you can build up a credit score by using your debit card as your credit card. Just make charges as credit not debit when you buy things.

My first card was in college and then it snowballed into 9....and $20,000 later. took me 2 years of hard work and sacrifice to pay it off. If you can control yourself then more power to you, just pay them off in full every month and don't ever pay interest, but my advice is to stay away

[whey2big4u]

I would not even attempt to get a credit card. If you like you can build up a credit score by using your debit card as your credit card. Just make charges as credit not debit when you buy things.

My first card was in college and then it snowballed into 9....and $20,000 later. took me 2 years of hard work and sacrifice to pay it off. If you can control yourself then more power to you, just pay them off in full every month and don't ever pay interest, but my advice is to stay away

[JoshuaHeckathorn]

If you like you can build up a credit score by using your debit card as your credit card. Just make charges as credit not debit when you buy things.

FYI- Debit cards are not considered revolving credit and will not help build your FICO scores, regardless of how you use them.

[whey2big4u]

FYI- Debit cards are not considered revolving credit and will not help build your FICO scores, regardless of how you use them.

A bank debit card no, but some banks like BOA offer a program that allow you to put money on a prepaid credit card that helps you build credit...should have been more specific

[JoshuaHeckathorn]

A bank debit card no, but some banks like BOA offer a program that allow you to put money on a prepaid credit card that helps you build credit...should have been more specific

Yea- prepaid credit cards function somewhat like debit cards. However, another important thing to note is that the "credit builder" programs that are marketed with these products often only report to the PRBC, so using the card won't help improve your FICO scores ( the only scores you should really care about). I'm not sure about BOA, but I'm guessing that's the case with their program too.