by Austin Hale

Created on: February 25, 2009

"Don't get a credit card!" many of us were told when we turned 18. "You'll dig yourself into a hole," we were warned. However the negative press surrounding credit cards is too much. Credit cards are essential for young adults to start building wealth. Credit lines are imperative to buying nearly anything of value in these times. They can be dangerous but if you follow the right steps you should be just fine.

1.) You definitely want to stick with large credit companies. They offer the most competitive rates and will always report to the three largest credit-reporting agencies. Some smaller cards do not.

2.) Do not fall for the sales pitch at your local college booth. These people are paid commissions for every card they give. Do research online and compare cards. There are many card comparison sights available on the Internet.

3.) Pick out two good credit card choices and apply for just one. If you aren't accepted don't worry you still have your backup. If your backup doesn't work then you may be looking at a secured credit card.

4.) If and when you do get a credit card take a deep breath. Don't get all giddy inside and rush out and spend, spend, spend. To build credit you should never go over 30% of the credit limit on the card.

5.) Alternate between paying off your credit card bills every time you get a bill and paying it off over two to three months. This shows that not only can you handle credit in the short run but also in the long run.

6.) If one month you are short the money to pay on the card do not pay the minimum. Get creative. Go mow a lawn, sell something on Ebay, or write an article on Helium. You will never build good credit if you aren't willing to go the extra mile.

7.) Most importantly every three months call the number on the back of the card and try to negotiate your credit limit up and your interest rate down. If the credit card company is unwavering after two consecutive quarters then it may be time to look into other cards. This is one of the fastest ways to increase your credit score.

Credit cards are really the perfect segue into building a good credit score that will benefit you the rest of your life. Whether you are buying a house, a car, or even a boat the wise decisions you made will save you significant amounts of money. Just remember to be realistic and not to get caught up in the emotion of shopping.

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