I agree. Having a credit card does help build your credit score. Try to contact your creditor to have your credit limit increased without having your credit report checked. Higher limits help increase your credit score. And refrain from applying for department store credit cards too often--these lower your score a little compared to other types of credit cards.

Having a credit card helps you and even more if you make your payments on time. I have a credit card but I usually calculate how much I spend so then I can pay it off before the interest kicks in.

You should get a credit card if you know you can control/monitor your spending. Otherwise you're ruining your credit score. You'd be better off not having a card.

I agree with Kelle. I am a first year graduatuate student who has never had a credit card. I asked a family friend on ways to build my credit, because in a year and a half I will need to start looking for a car and an apartment, etc. and you really can't get those things independently if you don't have credit. They suggested that as of this summer I should get a credit card (most likely through my bank because I can sit down with the bank and they will explain all their terms, rules, and regulations) and use it only for gas or groceries. Then every month pay it off just as I pay for any other bill. They said that by the time next summer rolls around I will have wonderful credit and be ready to go. This is the best piece of financial advice I have ever gotten! Plus, its consistent with the type of advice that Kelle and MSN Finance (for example) has put out before. Of course, my family friend said to check out all credit card companies and compare them for the best offer (i.e. APR, fees, etc.).

I agree with Jeff. I was able to build my credit score from 0 to 750 in just a year or so by just having a credit card. The tips I was given on how to best build credit with a card are as follows:

1) Get a card with as high a credit limit as possible then put as little on it monthly as you can. (I have my Netflix automatically deducted and pay it off monthly). Mine started out around $500 or $750 because I had no prior credit history (I got it through my bank) and within a few months of loyal payments they increased it to $1000. Having a high credit limit/ charge ratio shows that you are capable of having a lot of money at your disposal and not being tempted to use it.
2) PAY YOUR CARD OFF MONTHLY. To Zero balance. I literally never use my card except for the one charge per month I have automatically deducted and I budget that money and treat it the same as any other bill I would expect.
3) Have only one credit card. Multiple cards will not give you a better score.
4) The longer you have your credit card and continue to pay off your small balance every month the better. When I checked my credit score they said this was the only thing that could increase it.

I should add a disclaimer here and say that I am not a finance expert by any means. This was just my experience in getting a credit card to build credit and the score I had in a year or so with the critique my score report gave me.

Thats wrong. You should definitely get a credit card-- just make sure you pay your bill on time and don't leave a balance. If you do leave a balance, your credit score will drop and it will be hard ot re-build. Also, try to limit your credit cards to a max of 3. This way you have build your credit score, but dont reduce your score by having too much credit available to you.

DON'T get a credit card!!!!!

Checked my credit score this year but I haven't done much of anything that needs credit. What are the best ways to build credit? Credit cards? Car loans? Is there any way to see the formula used to calculate credit score?