Q: I got into some bad credit card debt in college. However, I have since paid and cleared myself of all credit card debt but I closed all my accounts and now am unable to get a credit card that I have to pay for. What card would you recommend to someone newly financially responsible with no credit cards or credit card debt?
A: First - open a checking and savings account at a bank. Apply for a debit card linked to the checking account. Do not bounce any checks or overdraw on the debit card. Then round up some cash for savings and apply for a secured credit card. (CardTrak has the best list around for this type of card.) If you can, obtain two secured credit cards (Visa or MasterCard). Stay away from store or gas credit cards. It is also helpful if you can get a small bank loan using your savings account as collateral. If you follow this plan then you will be back in the credit game in less than two years.
