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Comment by brk | Hacker News Reader

In your case being that you don't want to overspend, this is more about convenience than credit, with the side benefit that you will build up a good credit score just by acting naturally.

I put almost all my charges on my credit card. From a $1.50 bottle of soda to a $100 tank of gas. The bill of course gets paid in full every month. Using the card means I don't have to carry a bunch of case, and I'm afforded some minor degree of security should my wallet get lost/stolen/misplaced as compared to cash. I also get to "keep" my money an extra 30 days to earn a trivial amount of interest.

It's good for you to be thinking about these things, but getting a credit card is not a life-altering decision, it's just a normal thing like getting a cell phone or a pair of shows. How you use the card, and put it to work for YOU, it what makes all the difference.

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You should also choose a card that may benefit you in other ways. Collecting Airmiles or other loyalty program points, giving you cash back (yes, you can get paid to use your credit card). Don't worry about the monthly interest rate or initial offers because you'll always pay it off in full.

Developing a relationship with a bank through accounts and credit cards will also be of benefit should you look for more money in the form of loans or mortgages. Banks will always offer better terms to existing clients.

seconded.

When I was in college I worked full time but used credit cards the wrong way (and paid for it over the course of a few years).

Now just about everything goes onto a credit card (NOT a debit card) and it's paid off monthly.

Having a good credit opens a lot of doors and helps lower a lot of costs. Car insurance -- a huge factor in this is your credit score. Security clearances -- bad credit = harder to get security clearance.

Also if you ever need to self fund a start up, having good credit is important.

Why not a debit card?

Debit cards don't build your credit score. I learned this the hard way when I started my first job and couldn't get a reasonable credit card, despite 5 years of using a debit card (and a healthy salary)

Like another poster stated, debit cards don't build credit, but there is one HUGE problem with debit cards.

If someone steals your card (or number) with a credit card and spends money with it, the credit card company is out the money.

If someone steals your card (or number) with a debit card and spends money with it, YOU are out the money until your bank is benevolent enough to return it.

I don't know about you, but I'd rather have someone steal Visa's money than my money.

Another great benefit is that you get an itemized bill at the end of the month. It's a great way to track your spending.

Do this. I didn't, it was a mistake. Landlords, employers and other such undesirables like to run credit checks. Being a "credit ghost" does not help you.

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