Now that Jose had given George a few tips on comparison sites, he recalled what he had learned in his recent peer advisor training about the importance of listening to clients. Before jumping in with his own thoughts, he decided to listen to hear what George had to say:

I really feel like its time for me to get a credit card. I learned how important it is to have a credit history when I kept getting turned down for an off-campus apartment my sophomore year. Every time that a landlord pulled credit on me, they came up empty. Now that I am 21, I can apply for a credit card without having my parents co-sign on the application because they would never agree to that! I hear that it is easy to land that first credit card, and I cant wait to apply.

Once I get a card, I want to know what the best way is to boost my credit score. I heard from a friend that you need to have a balance on your card by not paying off the card in full every month in order to get a credit score. He also told me it is ok to be late every once in a while, since credit scores are based on improving your payment habits and not whether you are paying every month on-time. That seemed to make sense to me.

As Jose thought about how best to respond to George, he realized that there were three questions he had better be prepared to answer to set George straight about credit:

Answer this:

3. Underline all of the misconceptions in Georges explanation above.

4. Do you think George will be approved for one of the three cards on his list? Why or why not?

5. What is the best way to use a credit card to build your credit history?

6. What are other ways that George can start to build his credit history besides a traditional credit card? You may want to skim this Simple Dollar article to come up with ideas.