Credit cards are products that have many uses. They are the most reliable way to build credit history.

Every month, credit card companies report a person’s ability to pay on time to the credit bureaus. Even if you do not owe a balance, they report to the credit bureaus and your credit score increases.

NOTE: You can add a family member as an authorized user to help them build credit history also. Some banks allow for joint signers to help family get approved for credit cards.

You must be 18 years old or older to apply for a credit card. You must also have a Social Security Number (SSN) or individual taxpayer identification number (ITIN).

Some credit card products will require you to have established a good credit history. Declined credit card applications show as hard inquiries on your credit score and look bad.

Benefits of a credit card:

•       Builds credit history

•       Cash back rewards

•       Travel rewards

•       Pays off debt

You can pay a minimum payment on the credit cards each month, pay a larger amount, or pay the full statement balance each month.

If you pay late, you will be charged late fees each month.