How to Use a Credit Card to Gain Credit
Building good credit through the use of credit cards is relatively easy, but it also requires a lot of self-discipline. Even if you have no credit, using a credit card that is specially designed for students or people who lack significant credit history is usually fairly simple. By sticking to a few simple rules, you can be on your way to establishing a good credit history by using your credit cards responsibly.
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Instructions
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Find and apply for a credit card that's right for you. If you have a limited credit history, look for student credit cards or cards that are specifically designed to help people build their credit. Start with your bank. Approach the financial institution with which you hold your checking or savings account and ask if it has a card to build up credit (most major banks do).
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Use the credit card for small purchases and pay it off in full each month. Most starter credit cards have relatively low credit lines, so be careful not to charge too much. Pay off the bill every month, and don't be even a day late with your payments. Spend only what you can afford on the card. Don't make special purchases that you wouldn't normally purchase just because you have the card---instead, purchase items that you would normally pay for with cash with the card instead. Set the cash that you would have used aside and use it to pay back the credit card at the end of the month.
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Use any other cards (if you have more than one) for emergencies only. You really don't need more than one credit card. However, if you choose to have more than one, keep track of your credit and finances by using only one regularly. Even if you use just one card, you'll still build a credit history with the other one, as long as you aren't late and don't carry a balance on the "emergency" card.
If you do decide that having a second card might be beneficial, wait awhile before applying for it. Applying for more than one card at a time can hurt your credit score.
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