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cellephone54

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Is it better to have at least one credit card on your credit report and should i apply for one ?

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Yes a credit card is a must to build your credit. One of the big factors in determining your score is utilization of various forms of credit. They like to see a student loan, a credit card, a mortgage, an auto loan, etc. You can't rely on just one form of credit. Additionally credit cards offer something loans do not that factors into your credit score and that is credit limits and credit utilization rates. Both of these have big impacts on your score and without a credit card your score is being hurt pretty bad.

You should make sure you apply for a card you are very likely to get approved for as you do not want hard inquiries and a failed credit application. Once you have the card you want to use it EVERY month, just make a small purchase on it the you would otherwise pay on your debit card (easiest is gas for your car or groceries). Then when your statement comes pay off the entire statement balance in full. As each month passes you will be getting credit for more on-time payments, and you will show proper credit utilization and the credit card company will start increasing your limit. All of which have great gains on your credit score.

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