The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.
There is no reason to be afraid of credit cards. Think of them as tools that you can use to reach your goals. If you use them right, they'll serve you good, if not, there will be consequences. Never treat a credit card as your own money, it's a form of credit that you have to repay. And if you are always on time with your credit card payments and never carry a balance on your credit card, your credit card will help you build your credit.
Since you are just establishing your credit, you can either start with a secured credit card or with a credit card for people with limited credit. Both can be used anywhere credit cards are accepted as a method of payment, including at gas stations.
Secured credit cards are easier to get, but they require a security deposit upfront. The amount of the security deposit is usually between $200 and $300. Your credit line is usually equal to the security deposit you pay, and it is usually allowed to increase your security deposit in order to increase your line of credit. Some issuers allow cardholders to upgrade secured credit cards to unsecured accounts. In this case, you will get your security deposit back, provided it hasn't been used.
Unsecured credit cards for people with limited credit do not require any upfront deposit, but they may come with annual fees and higher interest rates. Plus, they are harder to qualify for. If you do not qualify for the card right away, you can always call the bank you applied with and ask for reconsideration. Explaining why you need a credit card and providing some additional information may help you to get approved.
