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Old 11-26-2012, 12:18 PM
thelastsubject thelastsubject is offline
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Join Date: Nov 2012
Posts: 11
Default Re: Credit Card for utility only

Originally Posted by austinrayman View Post
I earn a very small hourly wage at wal-mart. The idea of purchasing things with credit terrifies me in these hard times. However, I know that in the event that I need a major loan or maybe even a job, my credit history is important. So I have a question.

How would I use my account for the purpose of building credit, and that purpose alone, keeping my checkbook the lightest shade of red possible?

I read so many conflicting and confusing things. It all seems so counter intuitive. I just want to make sense of it all. Maybe there is an easy to follow website that can help me, or a book that you could recommend. Anything that will help me navigate this deep dark forest of credit card confusion.

Does it anger anyone else that this basic information is not part of our public school curriculum???

You should be terrified of debt. Especially with a lower income. This is the first realization that most people never make. They simply do not "respect" debt. Took me a good decade to learn. I think you are starting off on the right foot in that you realize you can get a credit card and not use it to overspend, but to establish a good credit history of on time payments.

It doesnt matter how much you spend, what you spend it on, or how you pay the card back, as long as you are never, ever, EVER, late on your payments. Also, what you will find is that you may only get approved for a $250-$700 credit limit. I would use it only for gas or a recurring monthly expenses you know you can pay off. Over time as your credit score and history improve, you will be able to borrow more, which is also scary.

Kudos to you for realizing the importance on educating yourself before walking into a bank and just asking for a card. Let me know if you have any other questions.

The Last Subject
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