Expert: Gina Boykin - 12/3/2008

Question
I would like to obtain a credit card for the first time. This would mostly be used for small online purchases and perhaps a vacation or flight or room reservations.(they always seem to fluctuate and i would like to be able to get the good deal when i see it) I have a savings account , but no checking account. (Bank of America) Would I need to open a checking account , or is there a way to get a credit card without?

Answer
When you apply for a credit card, the company will check your credit score.  The only way you'll have a credit history (and therefore a score) is if you have either gotten a car loan, rented an apartment, or possibly even put utilities in your name.  If you have a decent score, you should be able to get a regular credit card.

If you haven't done any of these, you could start by doing one of the following:
-Open a checking account with your current bank and see if they'll give you a credit card since you have a relationship with them already.  (This may be easier if you do this with a local credit union)
-Open a checking account and get a debit card.  You can use a debit card online in the same way you would use a credit card.
-Get a secured credit card.  These will still require you to open a bank account.  They're called "secured" cards because you put money in an account and they give you credit up to the amount you have in the account.  The money is "security" for your credit.  These are usually advertised as a way for people to build credit; however, you have to be careful because these could have high fees.
-If you can wait a while, you can start with getting a store card.  These are usually the easiest cards to get. Once you have had that a while, it will be easier for you to get a regular credit card.