first time credit card!

If youre really starting from zero credit (like I did as I moved to the US at the age of 24).  You may have to get a partially/fully secured card.  I had to pay $99 for a $500 limit card (the $99 was refunded after a year).  REALLY reduces your credit card options, but two years later my credit was great and can get access to a lot more cards with better offers.

What?  They make you pay for one?  When I first moved to the states I had to start my credit all over again.  They wouldn't even consider my credit in Canada.  I had to start with a $500 credit card and the stupid a-holes kept holding my pay checks since it was written by a company that was out of town.  Seriously?  We do all your IT you silly people.  Pretty sure it is going to clear, just like all the other ones.  Anyways, I am not still bitter or anything.  But, I didn't have to pay for that card. I pity folks trying to start credit.  Sometimes there is no reason to their thinking.  Get a great card while in school and have no way to pay it but once you have a good job good luck...

Check out your local bank (the one you already use) or credit union. 

If you're just starting out, skip the national banks/cash-back/rewards cards route whose business model relies on cardholder fees and interest payments to provide these "goodies." 

I have reward cards that never charge me a fee, nor do I ever pay interest. Most cards make money for the issuer every time you use them, do not need to rely on said "business model" to provide the goodies.

Still, if you're looking to build credit, your local bank/credit union is a great place to start.

I've always heard you have fewer protections with a debit card, including a much shorter window to report disputes. And using a credit card that you pay off ever month also "wont put you into debt."

A debit card will not build your credit.  And if you can buy a house with cash and not need credit, well, then, my hat's off to you.  That's truly awesome

That was true in the past but both companies have changed the wording in their agreements and now provide the exact same protection.  True, if you pay it off, but according to consumer reports 85% of americans don't pay off every month...  And if you look at companies like perkstreet you can get a debit card that also gives perks/cashback

As to the house argument, if you have a rent for three years and have a stable employment history for that same amount of time under federal manual underwriting requirements you will qualify for the same loan, and often times better, as someone who went into debt.

Just trying to throw out other options to the OP

x2 - do a quick google search on "how to build credit" and you'll find a bunch of ways to safely do it... a debit card is not one of them.

I have my credit card auto-pay the balance to pay it off each month.  I also tend to look at a spreadsheet I have to see how much money I can spend instead of what is in my bank account.  Sometimes auto-pay can also help you lower an interest rate .25% or so when buying things if it is something you cannot pay in cash total such as a car/student loans.  I don't think mortgages have that option.

mattrp - 2011-12-24 6:37 PM I recommend one you can pay off each month.

x2