Credit Cards?

[Mike P]

Capital One and MBNA are the two cards I carry. Low interest rates, no annual fee. Capital One also doesn't impose any extra fees for an online or other electronic payment. Some companies charge $15 for this service.

I also try to use my debit card whenever possible to order online or mail-order. That avoids your running up a big credit card balance and being tempted to only pay the monthly minimum they ask for. You also have to discipline yourself to spend within the limits of your bank account.

Watch out for the "transaction fees" for cash advances or balance transfers. Once you establish good credit, you'll be bombarded with offers from other credit card companies to transfer balances from existing cards to their company. They'll tell you that it'll be 0% for a set period, but often the transaction fees will eat up most if not all of the savings in interest, and the APR on the new account might be higher than your old one after the "intriductory period" expires.