Building Credit

Barely after I turned 18 I received in the mail a "pre-qualified" credit card offer from Capital One. It was for a card specifically for those with no established credit, such as students and stay-at-home parents. I never had a credit card before then so I thought I would give it a shot and see if I would be approved. I was always interested in finance and money, so I thought this would be a great opportunity to learn about credit.

About a week later I received an unmarked letter with my shiny new Capital One credit card inside-with a limit of $300. Nothing big of course to most people, but to me it was a landmark in my life and because I actually had a credit card of my own.

I decided that I would not use the card unless I had money in the bank to pay it off in full each month, so that I would not have to worry about having the money to pay it off if I needed to. I am a frugal person by nature, so I don't have much problem not buying anything that I don't have money for or don't need, anyway.

So, I used the card on a regular basis, making sure to pay it off almost in full each month, to avoid as little of a finance charge as possible and to build my payment history, and only two months later I received notice from Capital One that they had reviewed my account and decided that my payment history was so good they increased my credit limit to $500.

• Receive $50 after you make your first purchase
• 3% Cash Back in your top 3 everyday spending categories
• 1% cash back for every $1 you spend on all other purchases
• Receive an extra $50 each time you save and redeem $200 in rewards

Apply today!