> > My understanding is that having a card and never using it IS actually good for your credit rating. I've been told it's a good idea, when you're a teenager, to have a credit card that you're not allowed to use, as then you get credit when you may need it later. But I don't have any evidence to support this theory, and I don't even really know where this impression originated. And, for all I know, if it were once true, it may not be anymore.
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> I've heard that. My aunt told me I should do it. She tried to make a point of saying that what I should NOT do is get a bazillion credit cards and max them all out, but somehow her point got muddled and the conversation ended in, "NO, do NOT tell your parents that I'm telling you max out all your credit cards that you don't even have, because that is NOT what I'm saying!" I love my family.

I love your family, too. Would that be Aunt DEB, by any chance?

As for establishing good credit, I've heard different stories. On the one hand, it's good to have credit cards you've never used, because it shows that you qualified for the card and have not run up a debt since getting it. But on the other hand, you could have 10 cards with a $2,000 limit on all of them and suddenly go rack up $20,000 in debt tomorrow, thus making you a bit of a libility.

When I started college, I was bombarded by all sorts of credit card offers, and I took advantage of some of the opportunities to get free stuff. I didn't use the credit cards, so getting into debt wasn't a problem. I did use (and still do) one MasterCard that gives me back between 1 and 3 percent of all puchases and one Visa card that might someday give me a free stereo. I've never built up a debt on those cards, either. When I went to get a car loan, I was told that I had good credit, but I didn't have great credit, either. I just didn't have enough credit history, and I'd never had a large loan before. As for those credit cards I had and never used, they didn't seem to do me any good when it came down to it.

My advice? Only get the cards if you know, without a doubt, that you will not get into debt. Keep in mind that once you start signing up for the credit cards, your levels of junk mail will rise drastically. And don't forget that nobody is immune to credit card or identity theft.

Ellmyruh