Applying for and receiving credit card

To make credit all you need is hold the credit card by your name and not by the parent’s name.

You might also discover that applying for a store credit card at a department or specialty store where you shop often is an option. Be sure that the company reports the status of its accounts to credit reporting agencies. A secured credit card is another option. Secured credit cards require that you place a certain amount in savings. They typically have smaller credit lines and higher interest rates.

A secured loan is guaranteed by the money you have in a savings account. It offers a lower interest rate. After you receive the credit card, make only small purchases, and pay the bill in full when it arrives and well before the due date. Doing this regularly over time helps build your credit history as a prompt payer. Never be late and never skip payments.

Don't fall into the seductive traps of credit cards-overspending and/or making minimum payments. By paying off the balance in full each month, you probably won't incur a finance charge "interest charged on an outstanding balance," but it's still important to keep rate in mind when shopping for a credit card.