By
18 July 2007

Q: For someone trying to establish credit for the first time, is there a card you can recommend? I have a debit/ATM card, but that doesn’t help me build my credit to my knowledge. I have heard prepaid cards are the best, with zero APR, etc., but what about a secured credit card?

A: Unfortunately, a prepaid card will not help you build your credit. Prepaid cards are considered the same as using cash.

You might consider starting at the bank or credit union where you have your checking account. They already have a relationship with you and will be eager to add services to your account.

There are also thousands of credit card offers available online. I suggest you check with the major Credit Card companies and bank websites to see what if any of their offers appeal to you. The interest rates and fees they charge you will depend on your credit score, credit history and which of their programs you fit into.

Large organizations and large groups often make credit card offers available to their members. If you are a member of any organizations you should check with them to see if they have any special offers.

It is a buyer’s market out there it just takes some time and patience to sort through all of the offerings.  

Good luck and keep us posted.

Mike Schiano

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