What is a credit card?

What do I need to do to get a Credit Card?

• This isn't as straight forward as the subject line leads on, so I apologize if you thought this was going to be a simple, "Get online and apply" answer. When I was 18 I got three credit cards (I know, save the lecture) and blew my credit. Okay...I didn't "blow" my credit, but I came close. All three cards defaulted, and I ended up having to pay off two of them within 6 months which completely broke me financially. At the end of those six months another company gave me 60 DAYS to pay off the credit card, so my parents ended up helping me out with that one...and I'm paying them back for that monthly. I do have another "credit card" but for some reason I never considered it a credit card because it was PayPal credit. Currently, I'm not sure what it's called, but the credit card isn't gaining any interest and I can't use it, but I have a monthly payment. In all honesty I could pay it off this weekend when I get paid, but come on...why would I want to give up 2/3 of my pay check? Aside from credit cards, I have 3 student loans totaling somewhere around $8,000. Those have never been paid late (aside from this month when I had to call ahead and get an extension on my payments) and are in good standing. So, my question is, since my credit is low (high 500's), what can I do to get a credit card to help increase my credit? I currently pay my bills on time but it doesn't seem to be helping much. I've been told by many people to get a credit card through my bank because they'll be more financially trusting of me especially if I've had a good balance with them for awhile. Thanks guys!!

• Answer:

  Paying bills DOES NOT build credit. Why do people think that it does? No CREDIT is being issued to you. NOT paying bills can hurt you if sent to collections, but simply paying bills on time does nothing. You need to apply for a credit card through your bank. If you get denied, then you need to try getting a co-signer OR a secured credit card.