 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: Why It's a Good Idea to Get a Starter Credit Card\n-------------------------------------------------\nIn most cases, a starter credit card won't have ideal terms. But it's still a good idea to consider getting one if you're new to credit. The most important reason for one is that it'll make it easier to qualify for inexpensive credit in the future.\nIf you wait until you need to buy a car or a home and don't have a credit history, you may have a hard time getting approved. Even if you can get an auto or mortgage loan with a limited credit history, you're unlikely to qualify for the best terms and interest rate.\nBuilding a good credit history can also help you in other ways, including:\n*   Improving your chances of renting an apartment, home or condo\n*   Giving you an advantage over other job candidates if a prospective employer runs a credit check\n*   Reducing or eliminating the required deposit when signing up for a utility account\n*   Decreasing your auto and homeowners insurance premiums\nIt can take a while to establish a good or excellent credit history, and the sooner you start building your credit, the sooner you can start reaping the benefits.  \nMore Tips on How to Build Credit\n--------------------------------\nAs you use your new starter credit card, here are some things to keep in mind as you work on establishing your credit history from scratch:\n*   **Pay on time, every time**: A late payment won't be added to your credit report until it's been 30 days since you missed it. But it's still a good idea to pay your bill on time every month to avoid interest charges and fees (with most cards).\n*   **Keep your balance low**: Your credit utilization rate can have a significant effect on your credit score, so try to keep it at least below 30% at all times. To accomplish this, especially if you have a low credit limit, use the card sparingly or make multiple payments throughout the month.\n*   **Get added as an authorized user**: If you have a parent or other family member who uses credit cards responsibly, consider asking them to add you as an authorized user on their account. Once you're added, the entire card history will be added to your credit report, which can further help improve your credit scores.\n*   **Avoid unnecessary borrowing**: Once you start getting some momentum with building your credit, you may be tempted to apply for more credit cards or loans. While adding more tradelines, or accounts, to your credit report can help improve your scores, going into debt unnecessarily could make things worse in the long run.\nAs you start building your credit history, get your free credit score from Experian to keep track of your progress, and watch for potential issues that you need to address. Building credit can take time, but the benefits are worth the effort. END