What kind of credit card would you recommend for a first timer? How exactly do they work?

I'm 18 and would like the start establishing credit. I would like to get a credit card and get the hang of using that before I move out of my parents house next year. I bank with Bank Midwest and have not contacted them yet for information...because I'm considering switching banks., Any tips or websites where I can get information? I don't fully understand credit cards yet and don't want to commit to one until I do|||I also agree that a secured card is best, and stay away from the American Express type of banks. In fact, you cannot even qualify for that type of card because you have NO credit yet.





Visit the Consumer Credit Site for options, if the law has changed and you need a co- signer, you will find out during the application. http://www.consumercreditsite.info/|||Go to the bank and ask if they have "secured credit cards".





If they do, you put in some money (like say $300) and then that's your credit limit.





It's safe for beginners, because you can't get way into debt.





But it does count as a "credit card", so it helps build up your credit rating.





Good luck!|||American Express. Balance is due every month, or you don't use it. Buy a piggy bank that doesn't have a hole in it's belly. Now would be a good time to start learning the art of the stock exchange. Read, learn and practice. and much luck to you.|||As of now you will need a co-signer to get your first credit card.





The law has changed and anybody between 18 and 21 needs to have co-signer (parent), a real source of income (job) and a certain income level before a lender will take your application in consideration.





You have a better chance applying with a bank that you have had an account with for a longer time period. They know you and your financial habits and will be more lenient. Switching banks will make you a newcomer to the new bank and they will want to see your performance for a while before they will trust you. (Usually takes about 2 years of handling your bank accounts in a responsible manner.





Get a checking and savings account.... keep your checking account always at a certain level and fill up the savings account. When you have a couple thousands in the savings account... you will look really good to a bank.|||This site has some good basic info on credit cards: http://www.ftc.gov/bcp/edu/microsites/mo鈥?/a>





You will probably have to go with a secured credit card -- you pay a deposit which is held as collateral against the line of credit. Check with your bank since you have a relationship with them. Start with a small limit. Use the card and pay in full every month. In about a year, you should be able to convert to a regular account.





Since you are under 21, you will have to show proof of sufficient income to qualify for any credit card or have a parent co-sign. That's the new law.|||I agree with the first poster. Put a small amount of money down against a card. Like $300, as suggested by the poster. You save up that money and you give it to the bank. Then you have a $300 "credit limit", because you've essentially already paid them in case you don't pay. They will hold onto your money until you prove you can pay back in full each month. Then they might gradually increase it (for example, to $500, over time, once they can see you are trustworthy. This will continue to increase over time (years), and eventually you won't need your $300 "security deposit" anymore and it will be returned to you.





This is how Credit cards work, in a nutshell:


You go to pay for something. It costs, say $20. You use your CC.


At the end of the month, you get a bill that says the name of the store, and the purchase price. So you pay the $20. Now here's the key. Each credit card company will give you a certain amount of time to pay that $20 back. Typically, thats three weeks (21 days). If you don't pay off your entire bill in that time, you are automatically charged interest (typically its a very high rate, especially if you've never had credit before). So now you're trapped, because not only were you not able to pay your original $20 bucks (for whatever reason), but now you're stuck paying $20 plus interest, which is accumulating daily.





Here's another example. Say your bill comes in, and you can only afford to pay $15. So you pay your 15$, and have 5$ balance remaining on your card. The interest charges though, are still going to be on $20 (purchase price) until you pay off the ENTIRE purchase in full. So even if you paid 19.99, that 0.01 would still nab you for interest for the entire $20.





Last thing you should know about CC's are the minimum monthly payments. On your bill it will say "Amount due: $20. Minimum payment: $1.00 (or whatever your minimum % payment is). So you think to yourself, WOW! I only have to pay $1.00! But thats not true. This is how they get you. You are stuck paying off the interest for the entire $20 (read scenario above), PLUS that measly $1.00 only covered the NEW interest accumulated on that $20. So basically you will forever be paying them $1.00, without ever starting to pay back that $20.





My advice: Get only ONE. And stick with only ONE forever.