Final answer:
A person new to credit may start by applying for a credit card from their bank or acquire department store or gas station cards, which may have higher interest rates. Debit cards are also an option, using funds directly from one's bank account. All these cards facilitate purchases but do not increase the total money supply in the economy.
Step-by-step explanation:
When you are first starting out with credit, it is often a good idea to check with your bank to see if they offer a credit card for individuals with limited credit history. If not, another option might be applying for a credit card through a department store or gas station, which are sometimes more accessible. However, it's important to be aware that these cards often come with higher interest rates, which is the cost you pay for carrying a balance month to month.
Another alternative is using a debit card that would be issued by your bank if you have a checking account. This card looks just like a credit card and can be used at businesses that accept major credit cards but is directly linked to your bank account, using your own funds for transactions rather than borrowing money.
Smart cards are another form of payment, and like credit and debit cards, they facilitate the transfer of money during purchases. Yet, it's crucial to understand that having a greater number of credit or debit cards does not increase the total amount of money in the economy.