Pen Freak

To establish a credit history using such cards, buy something relatively inexpensive and then pay it off in several installments. Don't pay it off completely when you get the bill (although that's a great plan for later, because you normally don't pay interest on charge cards if you pay them off in full every month).

Once you've done that a few times, your credit history will begin to show creditworthiness, and you can apply for lower rate cards that can be used in a wider variety of situations.

Having a major credit card is vital in many situations, such as renting a car, since they'll almost always ask to see a major credit card, even if you're paying cash for the rental. Remember, there are ways to obtain that major credit card, even if you have no credit history.