Capitol One credit cards have raised the rates pretty much across the board. If you carry this plastic, check your credit card rates. It may be time to change to a new credit card with a better rate.

On the plus side Capitol One is changing their reporting standards to the credit agencies. Capitol One had refused to report the credit limit on cardholders. This would affect the credit score. So this is good news for those that will still use the Capitol One credit card after the bad news of the high rate increases.

Building your credit history
How do you establish your credit history? Even if you’ve never made a major purchase, there are ways to start building a good credit history and good a good credit score:

1. Open a checking account or savings account, or acquire a debit card. These do not create your credit file, but their existence will indicate that you have money and show something about how you manage it. Banks want to see stability and this will help.

2. Apply for a department store credit card or a major credit card (such as a MasterCard, Visa, or American Express card), and use it responsibly. Pay your credit card bills on time. You may need to look into getting a Secured Credit Card, we highly recommend this.

3. If you don’t qualify for credit on the basis of your own credit file, ask someone with an established credit history (like a parent) to co-sign your application. Remember, the co-signer promises to pay your debts if you don’t. We frown upon this method and prefer the Secured credit card .

Check out MoreMerchant.com for great credit info.

Qualifying for a credit card
If you are at least 18 years old, or 21 and have a regular source of income or savings, you’re on your way to qualifying for a credit card. You will still have to demonstrate that you are a good Customer worthy of a credit card. The proof is in your credit history, which lists the amount of credit you have received and how well you have paid it back.

If you are a full-time student, make sure to include that information on your credit application. Creditors often assign full-time students lower initial credit lines to start their credit files. As you advance through college and graduate school, you can always request increases to your credit line. Credit card companies are looking for students so you have a great chance of getting approved for a student card.

Before you submit a credit application, get a copy of your credit history to make sure it’s correct. Contact a credit bureau listed in the Yellow Pages under “credit rating and reporting.” To order a copy of your credit report, contact Equifax, Experian, or Trans Union. You can get your first credit report each year for free.

Choosing a credit card
Today’s savvy consumers are presented with a wide array of credit card choices from cards with low annual percentage rates, cards with no annual fees, rebate cards, gold cards, platinum cards, and on and on it goes from the credit card offers.

So how do you choose the best credit card? Before selecting a credit card, be sure you know which credit terms and conditions will apply to the account. The Truth in Lending Act is a federal law that promotes the informed use of consumer credit by requiring disclosures about its terms and cost, using specific terminology. In short, the Truth in Lending Act allows the consumer to “shop around” to find the best credit card for you.