<prompt> Human: Hi rpersonalfinance! My 20 YO girlfriend, J, is looking to buy her first car. She has 5000 saved. The seller is asking 3300 for the car. J wants to put 1300 down on the car and finance it for 18 months at about 160 per month. Shes being offered a 5 interest rate on the loan. She could buy the car outright. Her only bills are about 300month and she makes 1200month. She will have to pay for full coverage insurance if she finances the car, which will increase her insurance premium by at least 50 a month for the 18 month period The only reason J wants to finance the car is to build credit, but I dont think the huge increase in cost through interest and full coverage insurance is worth it. Is it a bad idea? What are some less expensive ways to build credit? Thanks in advance.Assistant: How bout a credit card that is paid off in full each month?Whats the point of 5 financing when she can afford the car in cash?Human: She keeps saying she doesnt want a credit card because shes scared shell be irresponsible with it.Assistant: She can get a secured credit card, which only allows her to spend money on the card that she already has deposited in cash. Thus, she cant carry debt, but will still build credit.Human: Oh cool, neither of us knew that was a thing. Thanks!  <response>: That guy sounds like theyre describing a prepaid credit card which is just a glorified gift-card with a visamastercard logo on it, and does nothing for your credit score.A secured credit card you put a deposit on, but you still need to pay your bill every month. And you are still technically in debt if you dont pay on time. Just if you stop paying, eventually the credit card company will close your account and keep your deposit. 