How do you use a credit card to increase credit properly?

I am 20 years old, live with my parents right now and go to college. I only have my cell phone to pay right now and take the city bus to school. Im not sure what my credit is but i know i was approved from my cell phone company and I get capital one platinum credit card applications in the mail.





- My question is how can I use a credit card right now to build credit? - Do you have any advice about credit card? |||You would want to buy merchandise within your budget, and then each month pay the bill in full. If not paid in full, it would be a revolving balance %26amp; cost you more money than what you originally paid, and could form bad habits and spiral into uncontrollable debt. Credit takes time to use to build up a history, and the different types of credit you use over the years.





Self-control and appreciating the math in how interest accumulates is a large part in using credit to our advantage.|||Use it and make sure you pay on time. Then you will have a credit history. But don't max out. Otherwise you look like you are hard up for money.|||Go ahead and get a credit card. If you are approved, use it monthly and pay off the balance every month. If you don't spend much, use it to pay your phone bill, and then pay off the balance on the card when you get the bill. This way, you will be building a credit history that other creditors can use to determine how well you can handle credit.





There are lots of useful and reliable articles about building your credit at www.bankrate.com


|||You could use the card just for small purchases and then pay it off every month. It will take about a year to establish a good rating. Maybe less. But use it wisely. It doesn't take long to get out of control.|||Get a credit card, but only put $20-$50 on it per month. Pay all your bills (credit card, internet, phone, rent, etc) on time and in full. This will show you are responsible and pay things on time, and by putting a small amount on your card it'll show you're not a big spender, which will improve your credit score and allow you to get better loans in the future.|||Only charge on credit card each month what you would otherwise be able to buy with cash on any given month and afford and don't go crazy charging random stuff...those $20 here and $20 there add up. Basically only put on credit cards things you normally buy anyway (say school supplies, lunch).





Try to pay the balance in full at the end of the month and NEVER be late on a payment. You can even set it up to pay online through their website.





Form good spending habits.


Remember that credit card is NOT free money...You have to pay for it all. And if you leave large balances on there (say only pay min), you're going to pay even more in interest in the long run.





You don't have to spend a lot of money on your credit card to build credit. Even charging $20 a month and paying it off in full and on time when the bill comes is enough.|||Branden,





Great question! You are wise to ask questions like this at your age.





Don't sweat building a credit score. The great misconception of consumers is that a good credit score means you are doing well financially. That is simply not the case. The best financial advice anyone your age needs to know is that compounding interest and time are on your side at age 20. This is best evidenced in the link below:





http://www.daveramsey.com/etc/cms/index.鈥?/a>





Notice that Ben only set aside $2,000 per year for 8 years (That's only $40 per week). He didn't have to put in any more money the rest of his life and he retired a millionaire. That's the power of compounding interest!!





Back to your original question about credit cards. Stay away! Millionaires know that credit cards are a scam for the middle class. Watch this video for some more wise advice on that subject:





http://www.cbsnews.com/stories/2005/10/1鈥?/a>





Good luck, Branden. Make wise choices while you are young!

















|||If you haven't needed a credit card up until people have been telling you that you need one, don't worry about it. You really don't 'need' one. The only reason that I got my credit card (aside to help with my credit score!) was for emergiencies-and that was at my family suggestion. I ended up applying for a card through my bank/federal credit union. They will be easier than any other place, especially if you have been with them for a while. Make sure you have NO annual fee. Aside from that, pick and choose.





http://hubpages.com/_36442/hub/How-to-Se鈥?/a>