Using Gas Cards to Help Build Credit

Filling up at the pump with a gas credit card could raise your credit score.

Building a solid credit history is important for a number of reasons. Foremost, it allows you to apply for home loans, car loans and credit cards. A good credit score is also important when it comes to renting a house and, in some cases, when applying for a job. One way to build credit is by using a credit card. The longer you have your credit card open and in good standing, the more beneficial it is to your actual score. Because the qualification standards for gas cards are much lower than for other cards, it's an easier way for those with poor or no credit to build credit.

Things You'll Need

• Gas credit card

Instructions

1. Apply for a gas credit card. You can do this at a prominent gas station location (Shell, BP, Marathon, Circle K, etc.) or online. Pre-approved offers will likely show up in your mailbox, or you can request information online as well.

2. Use the card. In order to build your credit score, you must actually use the card. Do this wisely by only spending an amount you can pay off in full at the end of the month.

3. Pay your credit card on time. If possible, pay the balance off in full. This improves your credit score and also prevents various finance charges and interest rates from accruing.

4. Continue using and paying on your gas credit card every month for at least six months. Do not close your credit card, even if it's not in use. Doing so can negatively affect your score.

Tips & Warnings

• You must be age 18 or older to apply for a credit card.

References

• Bills.com: How to Build Credit
• Think Credit Cards: Credit Cards That Help Build Credit