conversation: User (c1oudkun): "I currently just have a debit card at boa with a checking and savings account. Should I just get one there? I know I need to start building credit but have no idea what that means or how to go about doing that."
  Self: "My advice is: don't. Don't start. Ever. Don't ever get a credit card or loans - rent a place to live until you have the cash to buy a house. I am 21 years old, so I've only been able to have a credit card for 3 years and I already have over $12k in credit card debt. I had no self control, but it is all I think about and I regret ever doing anything on credit."
  kayakguy429 (kayakguy429): "THIS IS AWFUL ADVICE! Buying a home in cash is completely unrealistic. A credit card should be a means to stretch your emergency fund. (It should only be used to carry a balance for things that are unexpected and more than your e-fund can handle.) A loan should be a means to invest securely in the future. (Either for a car or a home, both of these things are investments. A car because it will let you travel to a job site and a home because real estate is a great investment over time.) You need to get your debt in control and look at how you spend money. Credit cards are extremely beneficial when used responsibly, and can open up a wealth of opportunity. "
  User (c1oudkun): "Yeah I'm currently not in debt and have a fair amount of savings but this is to go toward moving into an apartment pretty soon (like within the next three weeks) and i heard you can get better rent prices by having a better credit score. Also when should be a good time to invest in a home? "
  OddLawnGnome (OddLawnGnome): "I'm not sure how much of a difference three weeks of credit will make, in fact it might show up as poor credit. I remember when I first got a credit card and my credit was absolutely horrible, I panicked thinking someone stole my identity but it was just because I didn't have any credit. \n\nTo address the other people saying that credit cards are evil, they aren't. They are a tool to be used or misused. I'm 26 having had a credit card since I was 17-18, I now have 3 and my credit score is just a hair under 800. I have one "general purpose" card from Chase Freedom (no fees) that offers good cash back options, an Amex Blue Cash (no fees) that I use for gas and grocery, and an Amex Gold ($80 a year I think?) which I use for big purchases or purchases where I want an extra warranty. No plans to get any others, and if I do then it'll be at the expense of cancelling an existing card.\n\nI'm no financial guru, but here's what I've done that has worked for me:\n\nLook at your bank account balance, not your credit limit. Barring some sort of emergency, never spend more than you have. It doesn't matter if it's a paycheck that is coming or is in the process of clearing. Unless you could go to the bank and withdraw the money you're spending as cash, don't use it.\n\nPay your card statement balance in full as soon as you can every month. You don't have to pay the full account balance, as this will include purchases made since the previous month's statement closing. You can pay in full if you want, as far as I know there's no harm to it I just prefer one payment per month to keep things visible and simple.\n\nKeep as few credit cards as possible. I divided mine into 3 that are each for specific purposes. Don't sign up for a new card just because it's a good deal, or if you do then close out an older card. It's a bad idea to be constantly applying and closing out cards though, so choose carefully regarding which card fits your needs.\n\n\nOther than that, it's great to hear that you have a savings account and are contributing to it. If possible, set up an automatic transfer so you save a little each month without any conscious effort. Don't forget to contribute to your retirement as well! As far as buying a house, it's really up to where you live and what your job situation is like. Personally, I wouldn't worry about it for a while. I haven't even considered buying a home yet."
  User (c1oudkun): "Yeah im fairly good at budgeting my money and i half automatic payments for a prepaid phone bill as well as transfers to my savings every month that way i don't have to worry about it. And i only plan on having the one credit card to build good credit and to use for things that need a credit card, car rentals hotels and the like."
  OddLawnGnome (OddLawnGnome): "It sounds like you're well on your way to a financially stable life. One last tip from personal experience and $500 that I'm unlikely to see again:\n\nNever. Ever. Ever. Ever. Help cover a roommate's rent, even partially. Doesn't matter if they can pay you back in a day or they're your best friend. Tell them to pawn something or take out a loan."
  User (c1oudkun): "fair enough but what if i already agreed to pay a bigger portion mainly because of income differences we plan to split a 1300 apartment 650/550"
  OddLawnGnome (OddLawnGnome): "As long as it's clearly stated beforehand and won't lead to resentment, that's fine. I'm talking about "hey man, it's January 29th and I only have $450 can you help me out" kind of things."
  User (c1oudkun): "oh yeah we've definitely established that thanks for the heads up though!"
  OddLawnGnome (OddLawnGnome): "In that case, best of luck to you! Doesn't sound like you'll need much luck though :)"
  